June 2012

1/6/12 -- 10th meeting of Task Force for Implementation of Digitalisation of Cable TV held under the Chairmanship of Mr Rajiv Takru.

Digital Switchover - Are we on the Right Track?

Indian cable TV industry is at a very crucial turning point, when not only it is undergoing a switchover from analog transmission to digital, it is undergoing a change in its structure as dictated by the government and the regulator. Cable Operators, who were running the industry for the last 25 years are being pushed behind the scene, leaving space to some big media houses that already enjoy large scale vertical monopolies in the business.  Considering the way digitalization is being implemented through hurriedly drafted regulations, without any consideration for thousands of LCOs threatened with unemployment and millions of subscribers who cannot afford the STBs and the Pay Channels, industry is definitely being pushed into a chaotic situation by the incumbent bureaucracy. What USA and Europe could not achieve in 12 years, we are trying to achieve in three years ignoring the fact that our economy is in shambles, GDP has come down to 6.5, number of poor is growing every year, power and food shortage is perennial and we have no adequate manufacturing infrastructure in place.  

Digitalisation - Going from bad to worse

As deadline for the first phase of digitalisation ie 30 June 2012 is coming closer, speculations are in the air that it may be deferred for a few months. Already there are two cases filed in the courts in Delhi and Mumbai respectively against the unrealistic deadlines and unviable revenue share. 

Cable Operators in the Metros are also approaching local authorities to help them seed the STBs as per the government mandate as they are complaining that the distributors of MSOs are not providing sufficient number of STBs for their consumers. As STBs are in short supply, they are seeding STBs first in their own direct points, thus endangering the livelihood of other LCOs who would be asked to shut shop after the blackout day of 1 July 2012 if they do not seed the STBs in their network. In Delhi, operators have even demanded police protection against any public outrage on 1st July. 

Industry upset over DAS Regulations

After a long wait Ministry notified the Cable TV Rules and the TRAI issued the Interconnect and Tariff Orders at the end of the last month, just 60 days before the first phase ends. Some provisions of these regulations were expected but some of them which were not even discussed in the open-house were a rude shock to many. 

At the outset, it appeared that Ministry as well as TRAI had well planned the move to release the regulations late so that operators who were planning to operate independently were discouraged considering the huge investments and insufficient time for the first phase. 

May 2012

01/05/12 -- 8th meeting of the Task Force on Digitalisation of Cable TV held under the Chairmanship of Addl. Secretary(I&B).

LCO’s Journey to end Soon

The much awaited regulations for DAS areas scheduled to be issued by 31st March have finally come at the fag end of April. Only 60 days are left for the first phase to be over. How does the ministry expect things to roll out in this condition, is beyond my comprehension. Many cable operators who want to install their own headends and operate independently are unable to do so because of this uncertainty. They need time to get their license from I&B, get the content and install their Headends. 

All cable operators are apprehensive of their huge investments going waste, which they can hardly afford, particularly now when they may lose their livelihood permanently if I&B Ministry is adamant in imposing the deadlines without coming out with supporting regulations and also insisting that every headend provides 500 digital channels. 

No Unregistered Channels on Cable Networks - Cable Television Networks (Regulation) -- Second Amendment Bill, 2011

The passage of the Cable TV bill for Digitisation of cable TV in India has been accomplished in such a great hurry, without even completing the recommendation of TRAI given in 2010. However, an infructuous Bill called the Second Amendment to Cable TV Act Bill, is pending finalization in the Standing Committee of the Parliament on Communication and IT.  Very few in the industry know the existence of this Bill that will restrict the transmission of any unregistered channel on cable TV networks. Very introduction of such a Bill makes me suspicious of government intentions when there are already many provisions in the existing Cable TV Act that do not permit any cable operator to transmit any unauthorized content. Also, Guidelines for Downlinking do restrict downlinking of any unregistered TV channel.