The Hindu Business Line : CAS — Key issues still unanswered

WITH barely a fortnight to go for the implementation of a Conditional Access System (CAS), issues regarding the monthly subscription bill a consumer would have to pay, incentive schemes and the revenue share arrangement between the broadcaster and cable service provider remain unanswered.

At the second meeting of the Implementation Committee held here while broadcasters once again presented to the cable operators the earlier announced rates of pay channels as the final MRP rates applicable to the consumer, the cable operators emphasised that the revenue share arrangement between them needed to be sorted out. They also reiterated the need for revising upwards the free-to-air basic tier price of Rs 72. Amidst all this, the Shiv Sena representative and a Mumbai-based cable operator, Mr Anil Parab, opposed CAS.

Talking to newspersons, the Star India's CEO, Mr Peter Mukherjea, said, "We have presented the rates to the multi-system operators (MSOs) and these are the final rates, inclusive of commission. Broadcasters are coming up with individual promotional offers and are in talks with cable operators."

While the members maintained that the total cost to the consumer is not to go up, according to the rates circulated, a consumer may have to pay about Rs 211 for the basic tier, some driver channels such as Star Plus, Zee TV, Sony and ESPN/Star Sports plus taxes. To this, the cost of set top boxes would also be added. Currently rates vary between Rs 150 and Rs 350 for a whole range of pay channels.

Meanwhile, the cable industry said that unless the issue of margining or revenue share is sorted out, marketing of STBs would not take off. "Though the issue of revenue share has not been sorted out, the broadcasters have agreed to do so next week. The margins for a popular channel is likely to be less than margins for a weak channel," Mr Rajiv Vyyas, Head of Incablenet, said. He also added that broadcasters have to work out incentive schemes of pay channels to help push STBs.

"Sony for instance is looking at offering special prices for STB buyers to create demand," he added.

The Government on its part today said that nearly 1,07,000 STBS have been imported and have been customs cleared and an equal number of assembled boxes are available. "This is adequate to meet the initial demand," officials said. They also added that steps would be taken to ensure that CAS is implemented and in areas where cable operators do not do so, the Government cold step in. They also added that the cable operators demand of hiking in the basic tier rate would not be acceded to immediately.

But the Shiv Sena continued to stick to its hard-line against CAS. Mr Parab said that the rates offered by the pay channels continue to be high. He said that if the FTA rates are not increased and pay channel rates not brought down, CAS might be a non-starter in Mumbai.

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CAS — Key issues still unanswered