The Hindu Business Line : CAS: Area monopoly worrying stakeholders

EVEN as there is uncertainty regarding the full implementation of Conditional Access System (CAS), the issue of `area monopoly' that is emerging among cable operators is worrying the stakeholders, including the indigenous consumer electronics manufacturers. "This could restrict the smooth implementation of CAS," industry representatives said.

The Consumer Electronics and TV Manufacturers' Association (CETMA), in a representation to the Telecom Regulatory Authority of India, has voiced concern on the emergence of `area monopoly' among cable operators.

Keeping in mind consumer interest and to improve quality of service, it said, "It is advisable that each area should have more than one operator. Today, the consumer is dependent on what the cable operator chooses to beam as most of the areas have single service providers. The Government should, instead, issue licences to operators on the same lines as they do for cell phone companies and landline networks. There should be no area monopoly."

"Piracy is another major concern of the stakeholders, broadcasters and multi-system operators (MSOs). Efforts should be made to implement CAS effectively, as it would benefit all the stakeholders. Besides, it would help Government revenues (both State & Central) to take an upward swing," a CETMA official told Business Line.

In its representation, the association has also pitched for a `monitoring body' that would ensure that MSOs and last-mile operators comply with the `cabled distribution systems for television and sound signals' to ensure good quality reception. "For the set-top boxes (STBs) to function properly, it is essential that the cable networks adhere to a minimum performance level. Further, the `networks and consumer outlet signal requirement' should adhere to Bureau of Indian Standards specifications," the official stated.

On the issue of price of indigenous STBs, industry representatives said, "STBs in India are priced amongst the lowest in the world. The industry has been able to get good prices for technology partners and component manufacturers. The base line price of the analogue STB is about Rs 2,000 and the digital is about Rs 3,300."

Brushing aside arguments against the manufacturing capabilities of the domestic industry, CETMA said, "Consequent to the passing of the CAS Bill, the industry has committed approximately Rs 500 crore for creating infrastructure, production facilities, technology fees and inventories. In fact, some manufacturers are already manufacturing STBs and exporting them to developed countries."

"Since the indigenous industry has the capacity and capability to manufacture STBs, CETMA has proposed a duty structure to encourage domestic manufacturers," the official said. The industry has also urged the Government to desist from further extending import duty sops beyond February-end.