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One after another,
the complaints are gathering. Not enough set-top boxes
(STBs); insufficient time to effectively and smoothly
roll out conditional access system (CAS); and no marketing
at all to generate a consumer pull.
The
pay TV broadcasters are at it again. Back in 2004, the
government decided to withdraw CAS based on the backlash
faced from broadcasters and consumers. Will history
get repeated this time around?
Looks
unlikely. If the government decides to move the Supreme
Court, it can at best get the implementation of CAS
delayed by a few months. But the industry today is more
or less settled to the fact that CAS is here to stay,
sooner than later.
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A
stockpile
of STBs, imported in 2003 during the time government
had mandated CAS, is waiting to enter into consumer
homes. Unlike in the past, MSOs also have the
support of their franchisee operators to push
digital boxes
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Valid,
though, is the question thrown at the multi-system operators
(MSOs): Can they implement CAS in the next four weeks?
The
MSOs say they can. There are several factors working
for them this time. They have already deployed digital
cable TV in small patches. A stockpile of STBs, imported
in 2003 during the time government had mandated CAS,
is waiting to enter into consumer homes and can by and
large take care of at least the first phase of implementation
(zone one) in the three metros.
The
MSOs also have the support of their franchisee operators
to push forward the digital boxes. Unlike in the past,
last mile operators have swung in favour of CAS for
fear of losing subscribers to the direct-to-home (DTH)
service providers. Concern over thrust of second and
third bouquets by broadcasters has also brought them
into the side of the MSOs in pushing for CAS.
Still,
a month's time seems an impossible deadline to meet.
MSOs will have to work out commercial agreements with
broadcasters. In all fairness, this will take time as
broadcasters have to negotiate and chalk out long term
deals in an addressable system. Several considerations
will have to be weighed in before arriving at a retail
price structure of their TV channels. In the new era,
discounts on volumes will also become an important part
of the matrix.
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MSOs
will have to work out commercial agreements with
broadcasters. In all fairness, this will take
time as broadcasters have to negotiate and chalk
out long term deals in an addressable system
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Though
operators are in favour of CAS, there are several issues
on the ground that have to still be sorted out. Flowing
down the chain margins will have to be fixed for distributors
and last mile operators. Commissions on sale and rental
of STBs will also have to be worked out. MSOs, however,
are confident that such agreements can be done in quick
time. The problem is that everything can be "set
into motion" once the commercial terms are settled
with the broadcasters.
A
lot of ground has to be covered including launching
promotional campaigns. Just looking at the logistics,
one realises how Herculean the task is. A more comfortable
time zone would be three months. But the ball game can
change if support is extended by everybody including
the government and a tough regulator to cut the errant
stakeholders into size. Support from the broadcasters
will also help in making CAS possible in quick time.
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