![]() Financial Daily from THE HINDU group of publications Tuesday, Dec 09, 2003 |
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Industry & Economy
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Radio/TV CAS: Several issues unresolved as date with Delhi nears Nithya Subramanian
New Delhi , Dec. 8 IT'S not going to be smooth sailing for the Conditional Access System (CAS) this time round too. Even as the cable operators are pushing for its implementation from December 15 in the Capital, several issues relating to revenue share between broadcasters and service providers, audit of number of pay channel households and piracy issues are remaining unresolved. While the cable service providers have decided to go ahead with the implementation irrespective of support from the broadcasters, officials in pay channels said that the success would depend on how the differences are ironed out. "Most of the contracts with cable operators have to be renewed in January. If the pending issues are not resolved we can either switch off the pay channels or just not renew the contracts," said a senior official in a broadcasting company. So even as cable service providers claim that CAS would insulate the consumer from yearly price hikes, broadcasters said that any further action should be taken only after proper agreements are reached. The cable operators and multi-system operators (MSOs) have written to the Information and Broadcasting (I&B) Ministry indicating that CAS would be implemented in Delhi's South zone first and that set-top boxes (STBs) would be offered at the same rate. "If CAS rolls out in Delhi we are confident that Mumbai and Kolkata would follow suit," said a cable operator. However, broadcasters said, "We have not received any indication from the MSOs. There has been no agreement on the revenue share and most importantly we are concerned about the issue of under-reporting and piracy." In fact, most of the broadcasters have included in their existing contract, a clause making it mandatory for cable service providers to enter into fresh contract if CAS is implemented. Meanwhile, the cable industry has decided to go ahead with the implementation and has not asked for fresh rates from the broadcasters that would mean that popular channels such as Star Plus, Sony and ESPN would be priced at Rs 24, Rs 20 and Rs 22 respectively. In August this year too, there was a disagreement between the cable operators, broadcasters and Government on the individual rates of pay channels. The Government on its part, has decided not to act in haste. The I&B Ministry has sent the High Court judgement quashing its notification removing Delhi from the CAS list to the Law Ministry. Sources in the Ministry said, "We want the Law Ministry's opinion on whether a fresh notification would have to be issued and other such details. We are examining the issue and will call for a meeting with representatives of the State Governments only after that." The I&B Minister, Mr Ravi Shankar Prasad, today said in the Rajya Sabha that the Government has not shelved the CAS.
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