The Hindu Business Line : BCCI, Nimbus await encryption committee report

New Delhi March 18 Nimbus Communications and the Board of Control for Cricket in India (BCCI) are waiting for the report of the committee looking into Doordarshan's un-encrypted signals, before they sort-out financial issues between themselves. The sports broadcaster and BCCI are even willing to pay for the cost of encryption, which could be anywhere between Rs 10 to 20 crore.

Broadcast Engineering Consultants India Ltd is believed to have recommended encryption of DD's signal to the committee. However, the committee has postponed its meeting to March 23, when the report on the impact of the non-encrypted signals is likely be submitted to the Government.

A BCCI committee is to meet on March 22 to discuss the matter. For now, it is standing behind Nimbus, which earned telecast rights in a $612 million bid (about Rs 2,703 crore). The sports broadcaster is, however, yet to pay the Board the next instalment of its bid. ``These are usual business matters, and the main issue right now is that of the Ordinance, and the encryption of DD's signals," said a source close to BCCI, dismissing reports of a rift between the BCCI and the broadcaster.

Meanwhile, according to a source, Nimbus has estimated its subscription losses over the next three years from DD's non-encrypted signals at Rs 750 crore. The company is believed to have brought up a clause in its contractual agreement with BCCI, which calls for "substantial fee deduction".

Revenue base

Forty per cent of Nimbus' revenue is dependent on subscription, and the company is expecting BCCI to consider absorbing at least half of its "damages" from loss of income from West Asia, Pakistan, Bangladesh and Sri Lanka markets, where DD's signal are believed to reach.

Early this year, Nimbus refused to share live feed of its cricket telecast with Prasar Bharati, claiming that the latter's un-encrypted signals were available in neighbouring Asian countries, and that its free direct-to-home service would not go down well with other private DTH players who paid the broadcaster for its feed. Following this, the Government introduced The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Ordinance, 2007.

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BCCI, Nimbus await encryption committee report