Maharishi Channel Cable Network (MCCN) has notched up a first by becoming the only channel to adopt the Ku-band platform in India.

The channel has reportedly moved over to Ku-band digital transmission effective 15 December. The channel has shifted to the new platform on EuropeStar satellite. It will continue to be available as a free to air channel and will remain on PanAmSat until the end of February 2002 to enable cable operators to shift to the new mode.

Reports indicate that MCCN will offer the entire equipment package for Ku-band transmission to broadcasters at a special price reduction of 25 per cent. With the change over to the more sophisticated Ku band, MCCN is likely to offer additional channels. Maharishi Satellite Network, which owns MCCN, will probably offer a bouquet of channels instead of the solitary Maharishi Channel being beamed currently. The Network airs vedic wisdom in 19 languages in over 200 countries.

Maharishi Channel also broadcasts four hours a day to the entire world via a global network of eight satellites. These broadcasts via the Maharishi Open University satellite system are in addition to the 24 hours broadcast in India and South Asia. Most of the Maharishi Channel programmes are in Hindi, and are specially designed to reach the 30 million NRIs living all around the world. So far, the channel was being beamed off PanAmSat4 in India, China, South Asia and South East Asia, off Palapa C2 in East Asia, off Thaicom3 and OptusB3 in Africa, Central Asia, Australia and New Zealand, off HotBird3 in Europe, the Middle East, North Africa, Central Asia and off Telstar, SatMex5 and Echostar3 in The Americas, including the Caribbean.

Controversy notwithstanding, Sabe TV will go ahead with the scheduled telecast of the Zimmedar Kaun? episode featuring the hawkers-Bombay Municipal Corporation fracas tomorrow at noon.

Sabe TV vice-chairman and managing director Markand Adhikari says there will be no rethinking on the telecast of ?Feriwale?, as demanded by deputy municipal commissioner Chandrashekhar Rokde. The chat show had degenerated into mud slinging and even physical abuse as host Priya Tendulkar allegedly sided with some of the panelists during the debate on whether hawking should be restricted in Mumbai. Tendulkar herself claimed that she had been also hit during the show. Rokde allegedly walked out of the episode in disgust after he was heckled by hawkers? union leader Suresh Kapile and a section of the audience. Citizen?s forums? representatives who participated in the show also spoke about Tendulkar?s bias.

Adhikari says the channel does not interfere with the editorial aspects of its programmes. Zimmedar Kaun? is produced by host Tendulkar herself. The programme was launched at the time of the Sabe TV channel launch in 2000, and won the RAPA award for the best talk show in June this year. It was also nominated for the Screen Videocon awards this year.

Meanwhile, the Hind Mazdoor Kisan Panchayat, which is spearheading the hawkers? agitation against the municipal corporation, seems to have got its facts a little mixed up. In a press release, it has demanded that Zee TV go ahead and telecast the controversial episode, failing which the union will hold demonstrations in front of Rokde?s office. Rokde had earlier said that, in all fairness, the channel should refrain from airing this episode.

So what can we expect now? A demonstration outside Zee?s offices for "their having bowed to BMC pressure in not airing the show?"

The programme is aired on Sabe TV on Sundays at noon, with a repeat telecast at 8 PM.

Yesterday Zee Telefilms and Turner International India (a 100 per cent subsidiary of AOL Time Warner) announced a joint venture with Zee holding a 74 per cent equity stake and Turner holding the balance 26 per cent.

What happened on the bourses following this piece of positive news makes for interesting reading though. The Zee scrip has been in a downward spiral since peaking on 11 December at Rs 151.45. The scrip closed down at Rs 134.35 yesterday and continued its fall to close at Rs 123.75 today.

According to Motilal Oswal Securities though, this movement is not surprising. A report it has prepared states that the core issues dogging Zee remain - that of management quality, transparency, disclosure standards and unauthorised advances to group companies. Zee is also badly in need of funds to repay its debt of Rs 7 billion plus. It needs money for its hybrid fibre coax (HFC) network and acquisition of the last mile too. The number of days debts are outstanding on a consolidated basis has touched 180 days, clearly indicating stress on the business. None of these crucial issues would be addressed by this marketing JV, due to which Oswal Securities remains distinctly cool to these developments.

The report it has prepared further states that prospects of any resurgence driven by content continues to be bleak. Viewership is down significantly, making Zee TV the No 3 Hindi entertainment channel. Zee TV?s channel share has slipped to an abysmal 4.4 per cent compared to Sony TV?s 8.2 per cent and Star Plus? 19.4 per cent in the prime time slot. Now, the gap with Sony is also increasing continuously and there seems to be no major reversal in sight.

The management owes Zee Telefilms around RS 2.2 billion and there are no evident signs of repayment of the dues coming through. This after having missed the promised deadline several times. Even if the new JV brings along benefits in terms of better acceptance of the bouquet by MSOs, earnings will not get impacted materially over the next 4 quarters.

Oswal Securities expects an EPS of Rs 4.96 in FY02 (a growth of 12 per cent) and Rs 5.95 in FY03 (a growth of 20 per cent).

The stock price has run up from Rs 70 exclusively on the hopes of induction of a strategic partner (AOL Time Warner) in Zee Telefilms at a price of Rs175 plus. This JV with Turner International does not match up to anything close to a strategic stake by AOL Time Warner in Zee Telefilms.

This is a major disappointment for the market after expectations were run up so high. At the current price, the stock quotes at a P/E of 27x FY02 and 22.4x FY03 earnings. With valuations clearly stretched, the stock price will fall from these levels, the report concludes.