Conditional access gets the thumbs up in indiantelevision.com poll
The government seems to have the mandate of the people in the matter of conditional access.
The government seems to have the mandate of the people in the matter of conditional access.
The latest indiantelevision.com poll that queried if conditional access is the solution for the ills facing the Indian cable and satellite industry, had a whopping 71 per cent endorsing CAS. Those who answered in the negative were a mere 17 per cent, while 13 per cent were unable to decide either way.
Information and broadcasting minister Sushma Swaraj does seem to be inclined to push in conditional access, a move that is likely to ring in some cheer for the cable industry. The broadcaster community has not been quite so enthusiastic though .
Star Group CEO James Murdoch, in Mumbai last month, made no bones about his displeasure with the cable op fraternity, which he blamed for the mess the industry is in. According to Murdoch, the whole call by the cable industry for CAS systems to be introduced was no more than a delaying tactics was reacting to what was potentially a major threat to his business interests in India. The government task force‘s report on the introduction of conditional access has not been too helpful to the broadcaster either.
Among other recommendations, the report stipulates that CAS should be mandated under the Cable Television Networks (Regulations) Act, 1995, that a set top box be required only for pay channels (premium tier) while FTA channels continue to be receivable by subscribers in the current mode. While the government does not intend to interfere in the pricing of the pay channels or the pricing of set top boxes, leaving both to market forces, it would still retain the right to regulate the price of the ‘basic tier‘ of FTA channels, the report says.
The report is also of the view that consumer interest needs to be protected by providing efficient and responsive service through a transparent and accurate billing and collection system to ensure that the revenue accruable to the government is determined in a fair manner. The report envisages that eventually the set top would permit migration by the subscriber across various delivery media - satellite, cable and terrestrial. The user will have the capability to migrate to various delivery media, simply by changing the "network interface module".
However, even if legislation is to come in the next few months, implementation will take three to five years, according to the industry.
Although the poll result offers a clear inclination towards CAS, there is no doubt that there is a real problem on the cards for the general entertainment pay channels. This is because if the decision is left to consumers, the majority would go in for the basic tier. The resultant picking and choosing among channels will mean that the bottom will fall out of all that has been achieved in the last few years. The leader, Star naturally has the most to lose. However, all pay bouquets will take a hit, although niche channels need not be as worried by the introduction of CAS.
Some or all of these issues are likely to come up for debate at a seminar on CAS scheduled for next week in the capital. The seminar is being organised by the Swiss-based Consumer Action Network, according to Deepa Mistry of the PR firm Euro RSEG.
The government, meanwhile, has not really moved forward on this issue. Whether it is the political uncertainties prevailing that have virtually paralysed the government or whether it is due to some heavy duty behind the scenes lobbying is still to be ascertained.
The past few weeks have witnessed some hectic lobbying for easing up of the bug bear clauses as far as DTH regulations are concerned. Star TV Asia chairman James Murdoch, and News Corp chairman Rupert Murdoch have made whistlestop visits to India for meetings with information and broadcasting minister Sushma Swaraj. Murdoch Jr in fact in a public address at Ficci Frames blasted any move to legislate conditional access, and privately made a pitch for DTH with Swaraj.
At around the same time there was also the buzz that Zee TV was considering a joint DTH venture with AOL Time Warner, which was denied later by both its Turner India boss Anshuman Mishra and Zee Group chairman Subhash Chandra.
Now the unconfirmed news emanating from Delhi is that Star India has applied for a DTH licence (or is seeking to do so in the very near future) through a company called Space TV. The fact that Star India is indeed thinking of such an initiative is an indicator that the government may be backtracking on its tough stance on quantum of foreign equity permitted, and cross media restrictions in DTH ventures. Star India was the first mover in DTH in India through ISkyB in 1997 but had its foray scuttled by a skittish government and rivals. The government issued a ban on distribution of Ku-band reception equipment and the regulations were eased up only a year and a half ago when it issued DTH guidelines which placed a cap on foreign equity and cross media equity of 20 per cent. No one applied for a licence, because TV companies and others found the DTH guidelines too draconian.
When contacted Star India denied that it had made any move in recent times on its part to apply for a DTH licence. Altaf Ali Mohammed, president digital platforms group, who oversees its DTH project and is currently operating out of Dubai, said: "We continue to explore the DTH option but we have made no firm decisions on that score."
Market sources insist otherwise. "The reason Star wants to clam up on its decision is because it does not want a repeat of the ISkyB disaster of 1997," says an industry observer.
Watch this space to find out more.
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