![]() Financial Daily from THE HINDU group of publications Thursday, Sep 15, 2005 |
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Regulatory Bodies & Rulings Industry & Economy - Radio/TV TRAI sets the ball rolling for digitisation of cable TV Sets 2010 Commonwealth Games as deadline Our Bureau
New Delhi , Sept. 14 SHARPER pictures for a better viewing experience will become a reality, if digitisation of the cable network takes off in the country. Setting the 2010 Commonwealth Games as a deadline, the Telecom Regulatory Authority of India (TRAI) has suggested preparing a national plan for digitisation of the cable television network in the country. In its recommendations submitted to the Information and Broadcasting (I&B) Ministry, the TRAI has suggested a time-bound implementation, the first phase between April 1, 2006 to 2010 coinciding with the Commonwealth Games to be held in Delhi. "The expansion of digital services in the country will help to provide consumers with better quality pictures as well as the ability to watch more channels. This will help in meeting the varied demands for various channels in cities with widely heterogeneous populations," it said. The TRAI has said that digitisation and upgradation would enable cable service providers to compete with other emerging new technologies for delivering content. At present, digital cable television is available in the five cities of Delhi, Mumbai, Chennai, Pune and Bangalore. During the first phase of 2006-2010, it is proposed that digital services should be made available in all urban centres with a population of over one million. The TRAI has also suggested that the Centre should recommend to the State governments that the proceeds of the entertainment tax during these four years should be used for an intensive consumer education programme. The broadcast regulator has also suggested that, "No person shall be allowed to offer digital service after April 2006 without a licence for digital services." It has recommended automatic licensing for existing operators and a non-exclusive automatic licensing process for new operators, subject to compliance with certain minimum conditions. It has also been recommended that there should be a clear policy framework for Head-end In The Sky (HITS), which could be on the lines of the permission already given by the Government to Siticable's venture. This technology combines channels provided by different broadcasters and puts them in one stream, which is finally given to distributors. TRAI has further suggested offering incentives such as rationalisation of duties on set-top boxes (STBs) to promote the digitalisation of cable TV services. Customs duties on set top boxes for cable TV should be reduced to 10 per cent from 15 per cent, while excise duty be raised to eight per cent from nil, and import duty on ICs (integrated circuits) be down to eight per cent from 15 per cent from April 1, 2006. Meanwhile, some of the larger multi-system operators such as Siticable, InCablenet and Hathway have already started investing in digitisation of network. Mr Jawahar Goel, Head of Siticable, said, "We have already started digitisation in six to seven cities that we operate in. We hope to start marketing this next year." However, the cable industry believes that an addressibility system or a conditional access system, too, should be in place so that consumers pay for the channels they wish to watch.
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