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A bill aimed at digitising the cable sector by December 31, 2014, was passed in Lok Sabha on Tuesday.
The Cable Television Networks (Regulation) Amendment Bill 2011 will pave the way not only for mandatory digitisation, but usher in a host of other changes. The amendments include systemisation of registration of cable operators, compulsory transmission of certain channels like Doordarshan, inspection of cable network services, use of standard equipment in the cable television network, prescription of interference standards by the Central Government and empowering the TRAI to specify basic service tier and its tariff.
Cable television network will not be operated except after registration and cable operators are required to fulfil certain eligibility criteria as may be prescribed by the Central Government.
Industry beams
Almost all stakeholders in the TV broadcasting and members in the distribution chain including LCOs (local cable operators) hail the cable digitalisation Bill passed by the Lok Sabha today. The Bill makes it mandatory to digitalise analogue cable network before the end of 2014 in four phases though.
The digitisation of cable network will hugely benefit the broadcasting industry and the consumer, as it will ensure more channels and enhanced viewing pleasure. While there are over 600 channels available, cable network can carry only a little over 100 channels. In India, cable network dominates the market with almost 75-80 per cent of the 140 million TV homes. Once digitised, cable network can carry at least 400 channels with ease, say industry sources.
Though some multi system operators say digitisation would call for huge investments (approximately Rs 25-30,000 crore) and without any clarity on the Government's stand on FDI in this segment, it will almost be impossible to meet the deadline, local cable operators say, this is a welcome move as the cable industry has been pushing for CAS through out the country for a very long time. “It will only improve the quality of service and we will be able to offer more channels at better quality to our customers,” says Mr Kayal R. S. Ialavarasu, President of the ‘Tamil Nadu Cable TV Urimayalargal Sangam.'
According to Mr Harit Nagpal, Managing Director of one of the leading DTH service provider, Tata Sky, this will, for sure, offer a better level-playing field for DTH operators and will benefit every stakeholder in the industry. The move, apart from addressing issues such as under declaration of subscriber base, will generate better subscription revenue for broadcasters and the Government by way of taxes, he said.
Echoing this view, an AirTel DTH spokesperson says digitalisation move augurs well for the DTH industry as this will pave the way for better transparency, and, “we are committed to playing a leading role in partnering the digitalisation agenda and believe that this development is a win-win for all.” Mr Tarun Katyal, CEO of Reliance Broadcast Network, says this will bring Indian TV viewing experience on par with other developed countries in the world. This will also help broadcasters to have better and accurate TRP ratings and as a result channels will be able to price their airtime and strategise their business accordingly.
Earlier, the Telecom Regulatory Authority of India Chairman, Mr J.S. Sarma, said he would not be surprised if the last phase of digitisation gets over by December 2013, as the National Broadband Plan (nation-wide fibre optic network) is likely to be completed by then, and “one has to simply plug into the fibre optic network”.
Speaking to Business Line on the sidelines of a media summit organised here by FICCI early this month, he said once digitised even the prices of set-top boxes too will come down even to the levels of sub-$20.
Mr Nagpal of Tata Sky too says, “Larger scale will obviously help us negotiate better with the suppliers.”
As a ripple effect, the move would mean better sales for flat panel TV makers too. “As all content will be in digital quality, it will surely give a huge impetus to full HD TV sales in the market,” said Samsung India's spokesperson, Ms Ruchika Batra.
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