Cable operators of Tamil Nadu are facing a great dilemma. State government has forced them to join ARASU, a government initiated MSO but I & B Ministry given it only a provisional license. In fact the regulator TARI has recommended that no government or political party should own any media venture. If Ministry accepts and notifies these recommendations, ARASU loses it license and will have to wind up its operations. Thus Cable operators who depend on its signals will lose their business.
The other MSO in the state, Sumangali of Sun TV group is an archrival of ARASU, being patronized by the opposition party DMK in the state. Thus fate of 30,000 cable operators of Tamil Nadu hang in balance as coming from ARASU, Sumangali may not accept them. Hence they lose either way. Not only this, their livelihood is in danger as they are not allowed to collect more than Rs 70 from, consumers per, TV set whereas due to inflation, their day to day functioning becomes difficult if they do not get an ARPU of Rs 150 per TV connection. At present, after giving the government Rs 20 they are left with only Rs 50 per subscriber.