The Hindu Business Line : Broadcasters, cable industry move towards consensus

The broadcasters and the cable industry seem to be veering towards a consensus on the implementation of the Conditional Access System (CAS). While it is felt that the Telecom Regulatory Authority of India (TRAI) should continue as the regulatory body, broadcasters will announce tariff packages for the individual as well as bouquet of channels, subject to vetting by the regulator.

Currently, the prices have been frozen by TRAI, but broadcasters would be allowed to promote both a la carte prices and bouquet schemes. TRAI would have to try and ensure that prices of bouquets are realistic and are not so low that people are forced to buy them instead of opting for a single channel.

After a meeting between the various stakeholders and the Information and Broadcasting Ministry, a senior official said the talks were positive and a final solution in the best interests of the consumer should be reached soon.

The TRAI is also likely to finalise the revenue share arrangement between the various stakeholders. It has been suggested that 50 per cent of the subscription revenues should be retained by the broadcaster, and the remaining be equally divided between the multi-system operator (MSO) and the last mile operator (LMO).

It was proposed that the broadcasters and the cable service providers enter into extensive agreements that would include both technical and commercial ones. "It was also felt that the LMOs should be compensated adequately as they service the customer directly," said Ms Roop Sharma, President, Cable Operators' Federation of India (Cofi).

Another round of meetings is expected to take place next week to discuss the implementation of CAS. The Delhi High Court had given the Government four weeks' time to implement CAS in some parts of the three metros of Kolkata, Delhi and Mumbai. This time period is expected to come to an end shortly.

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Broadcasters, cable industry move towards consensus