We are reading a lot about the implementation of CAS by 14th of July, 2003. There has been a lot of activities at the end of Broadcasters and Operators (BIG or small), but there are lot of 'ifs' and 'buts' going on between all the parties as everyone is looking for their self interest. We are not interested in anyone's monopoly.

The implementation of CAS is very important and this is going to be in the interest of customers as well as the Government as it will have effect on increase in revenue also. The process of industry moving from unorganized sector to organized sector will start. The decision about the technology whether it is Digital or Analogue is more or less decided by the operators. I personally foresee there is going to be lot of restructuring and consolidation, as this will depend upon on the selection of technology as well as revenue sharing between major operators (MSO) and independent operators. I also foresee this restructuring is in the interest of industry.

There are two phases of implementation of CAS, one is at Head-end and second is that there is some restructure with last mile change, which are very essential for the digital transmission, besides the customer going for Set Top Box.

I personally feel that lot of operators will be able to partly implement the changes at the head end, but the availability of set top boxes at the customer end will take some time. The industry is today gearing up and working towards the target of 14th July, but I personally foresee that the target of 14th July is too harsh at this stage. I do agree with the observations of Secretary I&B that what is the guarantee that CAS will be implemented in next six months if extension is granted?

I personally foresee that in case the restructure and implementation is done in the following manner, CAS will be implemented successfully where everyone will have their presence felt and there is going to be availability of boxes etc

Ø The staggering of implementation schedule will also help the consumers and will keep the prices under control.

Ø The investment also will be staggered for the successful implementation.

I propose the following:

We stagger the implementation of CAS in four Metros by 45 days at least and then the implementation should be in the following manner.

a) Delhi - it should be implemented by 31st August.

b) Mumbai - it should be implemented by 30th September.

c) Calcutta - it should be implemented by 15th October.

d) Chennai - it should be implemented by 15th October.

The availability of all boxes on a particular date is not possible. It is not the question of availability of boxes, but the delivery and the implementation will take some time and for this purpose each city can be divided into four zones so that the implementation in each city can be completed in a period of 45 to 60 days. I feel that staggering will help everybody and CAS will be effectively working in all the cities by 31st December. The procurement of boxes including manufacturing of boxes within the country will get established. There can be a Committee with representatives of Broadcasters, operators and hardware manufacturers with ministerial representatives to oversee the implementation.

Heavy investment is required to be put in by the Indian manufacturers which is being delayed as lot of uncertainties are there in the mind of manufacturers. The manufacturers are apprehensive of making big investments as no one is certain about implementation, but once the success starts, the manufacturers will make the investment.

The staggering of implementation of CAS will also help the Indian Electronic Industry, as lot of manufacturing will be done in the country, which will increase the employment and revenue on account of custom duties and excise duties and there will be proper financial planning by all. We should encourage local industry than to industry from Far East and also not reduce custom and excise duties on import.

I do agree with the sanctity of 14th July, but if we work on a comprehensive schedule as mentioned above so that all four Metros have their network with CAS ready by 31st December and it is up to the subscribers then whether to go for the CAS or to have FTA and there will not be any heart burning at different levels. We will avoid the public outcry also. The Broadcaster can tune their pay channels. The other cities can be covered from January 2004.

Arvind Kharabanda is president, Pals Consultants.

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