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Rina Chandran

MUMBAI, July 6

THE proposal to defer the rollout of the Conditional Access System (CAS) to September 1 has met with mixed response from broadcasters, cable operators, advertisers and media planners.

While the suggested rollout plan would benefit all parties, there is still some degree of uncertainty and trepidation about the actual implementation, and the possible loss of advertising revenues in the crucial festive period.

The I&B Ministry is expected to formally announce that CAS will be rolled out zone-wise in the four metros in a staggered manner from September 1, and that the process will be completed on December 1. All channels — pay and Free-to-Air (FTA) — will be made available at Rs 72 in the four zones where the rollout is to take place for the month prior to the rollout.

In the interim, broadcasters will have to educate consumers on CAS, and waive their subscription fee in the zones during the month prior to the rollout in the respective zones.

"The July 15 date was unrealistic because of the unavailability of STBs (set-top boxes), so it would have been unfair to consumers," said Mr Sameer Nair, COO, Star India. "So this is an extremely positive move."

While waiving subscription fee would result in a "considerable loss", the broadcasters have acceded to the Ministry's request "in the greater interest of the implementation," he added.

As for the Government's suggestion that the broadcasters may have to look at channel pricing again, Mr Nair said competitive pressures would streamline pricing ultimately. "We're all responsible people and no one wants to derail the process," he said.

That thought was echoed by other broadcasters as well: "It's a win-win proposition for all: Consumers get to choose what they want during the free-viewing period and broadcasters don't lose much money, as the other zones will continue to pay, and there won't be a blackout, as threatened," said Mr Shantonu Aditya, President, Sony's One Alliance.

"It will also protect advertisers' plans, as connectivity will be better."

However, some free-to-air channels denounced the "arm-twisting tactics" of the "foreign broadcasters", and said the proposed rollout would discriminate amongst viewers.

In a joint statement, representatives of Aaj Tak, SABe TV, Sahara TV and Eenadu TV said the delay in implementation would work against the public's interest and erode the credibility of the Government.

Still, the ayesayers seem to outnumber the naysayers; some Mumbai-based multi system operators (MSOs) — who claimed they were prepared for even the original deadline of July 15 — are also in agreement that the staggered rollout would facilitate the faster deployment of STBs.

But there is also a rumbling of discontent among the MSOs, who have been ordered to pay all outstanding dues to the broadcasters by July 31.

There is another objection: The zonal segregation of the metros for the rollout is flawed, as it is only based on an "an inherent populist assumption" that the south of the city is generally plush, said Mr Ravi Kiran, Managing Director (West & South), Starcom Worldwide.

"There may be more wealthy people living in bungalows in Mumbai suburbs than those who have been living for many years in south Mumbai, and who may not be willing to buy an STB right away," he said.

"This division of plush vs. non-plush based on nothing more than geography is very questionable," he added

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