The Hindu Business Line : A choice for the TV viewer

THE RECOMMENDATIONS OF the Telecom Regulatory Authority of India on distribution of television channels can improve choice for consumers. Classifying the country into three groups for distribution of pay channels — the option depending on the viewer profile — appears a more practical way of balancing costs and choice. This approach has a greater chance of success than the ill-conceived mandating of the Conditional Access System in select parts. It also ensures that pay channels do not run the risk of losing viewership due to mandatory CAS imposition. The first two models — voluntary CAS and use of `traps' — have been proposed as transitory arrangements for a move towards the mandatory use of some technology to view pay channels. With a choice of distribution platforms — direct-to-home (DTH); CAS using set-top boxes, as in Chennai; and the broadband, customers can pick and pay for what they want to watch.

Customer choice is also likely to improve by the move to specify the maximum allowable discount for a bouquet, as compared to the a la carte rates. By restricting the role of the regulator topricing free-to-air channels, the discount element in a bouquet of channels where CAS is mandatory and the rate that pay channels can charge in non-CAS areas, TRAI is paving the way for the emergence of market rates. The recommendation that there should be no regulation of advertisement time on pay channels goes well with the suggested distribution system. As pay channels would have different status in different parts, any regulation on the advertisement time could prove detrimental to the broadcasters. This situation may prevail for several years as the addressability process has to be ushered in with preparation, customised to local requirements and involving the State governments as well. It is unfortunate that TRAI has left unaddressed the lack of transparency in the declaration of subscribers by cable operators; declaration levels are just about 20 per cent of the subscriber base. This practice has worked against the interest of consumers and broadcasters. A combination of contemporary technology and stiff penalties can ensure transparency in declaration rates. Else, the broadcasting sector's growth would mean higher costs for customers.

The norms prescribed for quality of services, billing and rectification of poor transmission mechanisms, and the stress on flexibility in the usage of set-top boxes without being tied to one service provider should ensure that customers are not left at the mercy of cable operators. But implementation is bound to be difficult, as the cable distribution business is fragmented. As for DTH, the stipulation that every channel must make its signals available across service providers is likely to stimulate growth and provide the much-needed competition to cable services. This must, however, be accompanied by a transparent and time-bound system of clearances for would-be DTH players. Else, it may confer unfair advantage to an existing player and even lead to a monopoly. If politicians and other vested interests are kept at bay, the TRAI package could benefit customers and broadcasters in what is an unregulated market where intermediaries have unjustly enriched themselves.

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