Financial Daily from THE HINDU group of publications
Sunday, Jan 22, 2006
Financial Daily from THE HINDU group of publications Sunday, Jan 22, 2006 |
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Tamil Nadu Industry & Economy - Radio/TV Government - Policy TN Govt introduces Bill to take over MSOs — Street-level cable operators out of purview Our Bureau
Chennai , Jan. 21 THE Tamil Nadu Government proposes to take over the operations of two multi-system operators (MSOs) — those who provide satellite television services through a network of cable operators — on grounds of public interest, through a legislation. Specifically, the Bill will apply to Sumangali Cable Vision (a part of the Sun TV group, of which Mr Kalanidhi Maran is the Chairman and Managing Director) and Hathway, part of the Mumbai-based Rajan Raheja group. Sumangali Cable Vision is a multi-system operator in Chennai, Madurai, Coimbatore and Tiruchi, while Hathway offers its services in Chennai. In the Tamil Nadu Acquisition, Transfer and taking over of the administration of cable television network (including multiple service optical transport system) Bill, 2006 — tabled in the State Assembly on Saturday, the Government said it had received numerous representations about the lack of proper cable network facility and collection of excessive and prohibitive charges by the operators. The Government had also received complaints about disruption and selective blurring of telecast of certain channels. "The State of Tamil Nadu, considering the welfare of the public, felt that the present unsatisfactory situation caused by the cable operators in cable television transmission should be remedied," the Bill said. However, the Bill intends to keep the small street-level cable operators outside the purview of the acquisition, since their operations are small and they function at the fag end of the distribution system. Representatives of the MSOs are, however, unfazed by the proposed legislation. They first question the powers of the State in enacting such a legislation. They say that cable television comes under the purview of the Centre and it is regulated by the Telecom Regulatory Authority of India (TRAI). Moreover, the representatives say that any legislation cannot be selectively enforced. They point out that there are more than 40 MSOs in the State and the legislation proposes to cover only two. In the Bill, the Government has said that the right conferred by the Constitution of India to carry on a trade is subject to reasonable restrictions imposed in the interest of the general public. "The public viewing and welfare is of paramount consideration, and the Government of Tamil Nadu cannot shirk its responsibility in this sphere," it said. The Bill states that the Government proposes to appoint a commissioner of payments who will determine the amount to be paid to the companies once they are taken over. According to unofficial industry estimates, there are about eight lakh cable connections in Chennai, of which about 80,000 have got set top boxes.
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