ISKYB: END OF THE ROAD?

Is the long-pending Rupert Murdoch-backed direct to home television project ISkyB living on borrowed time? Industry sources point out that the senior executives of the company have been issued notices that if the project is not cleared within the next two months, their services will be terminated. This has been denied by ISkyB executive director Urmilla Gupta in a local newspaper report.

One school of thought in the industry is that it is Star TV/News Corp itself, which is in no hurry to get the governmental nod for ISkyB as it wants the memorandum of understanding for a joint venture for the DTH project, which it signed late last year with the Mittals of the Ispat group, to lapse. The agreement, they say specifically gives a timeframe within which government clearance has to be sought and got. Failing the meeting of the deadline, Star TV/News Corp has the option to discontinue the arrangement. This school of thought says that Star/News Corp would like the government-imposed DTH equipment and broadcasting ban to be lifted after July. Star TV sources deny this, saying that the agreement with the Mittals was renewed in April.

Union information & broadcasting minister, Pramod Mahajan, added to the chaos recently by saying that the "decision on KU-band DTH is a political one." Star TV/News Corp followed up by forcing P.K. Mittal of the Ispat group, to meet up with his old friend, Mahajan and find out what he was thinking.

Mahajan told The Indian Cab&Sat Reporter's Delhi correspondent M. Anuradha that "Pramod (Mittal) keeps on meeting me very often and even during our last few meetings we did not discuss anything specific." But the minister admitted that he is aware of the fact that Mittal has signed a memorandum of understanding with Star TV for "some broadcasting venture." Said he: "Pramod Mittal did refer to something on broadcasting, but I do not remember exactly what."

Mahajan pointed out that neither he nor the government is in a hurry to take a "decision on DTH at this point of time. We are not legally bound (to take a decision on DTH)," he said, adding, "though I know it will just take an executive order to remove the ban on dealing in and maintaining equipment capable of receiving TV signals over 4800 MHz."

Hinting that the DTH decision is connected to politics and the forthcoming general elections, Mahajan said: "Its a political decision. If the group of ministers agrees there is no prima facie case to discuss DTH, the government would not take any decision on it at the moment."

Mahajan's stance is reflective of the mood within the government: do not take a definite stand on any issue, which can generate controversy, especially with the elections round the corner.

After hectic lobbying, Star TV was hoping that the present government would take a favourable stand on KU-band DTH even though it had lost the vote of confidence in Parliament sometime back. But apparently that is not to be - at least for now. Only time will tell if - and when - DTH broadcasting will dawn on the Indian horizon.