TV viewers, watch out! The falling rupee is pushing up the prices of set top boxes. As a result new cable connections could cost more. Multi System Operators (MSO) and independent cable operators who are feverishly importing set top boxes to meet the deadline for the first phase of digitalization on June 30 say the decline of the rupee is hurting them badly. And, they are likely to pass on the additional burden to the consumers.

Mr Ravi Mansukhani CEO and MD of IndusInd Media &Communications which runs Incable, said the MSOs and cable companies are providing the set top boxes at a subsidised rate and the currency fluctuations are adding to their woes. "It is costing us nearly 18 per cent higher.”

As of now, MSOs are offering digital cable connections to consumers for around Rs 700-900 through their affiliate cable operators, even as they say it costs them between Rs 1600-2000 to procure them.

Essel Group’s cable arm WWIL has already decided to increase the entry price for new connections.” We have decided to increase the price by Rs 100 to factor in the rupee fall against the dollar,” said Mr Jawahar Goel, MD Dish TV who is also spearheading the operations for WWIL.

The rupee’s decline is particularly hurting smaller players. “Since these boxes are not made indigenously we have to import all the boxes. The cost of the boxes has shot up by nearly 25 per cent which includes the import duties,” said Mr Atul Saraf CMD ABS Group which is an independent MSO company that runs Seven Star Cable Network in Mumbai.

Delhi based independent cable operator Vicky Choudhary said that he had to put a consignment of set top boxes from vendors on hold to avoid losses due to the currency fluctuations.

According to a Ministry of Information & Broadcasting statement released in early May, out of the one crore STBs required in the four metros, over 22 lakh STBs have already been installed, and about 25 lakhs STBs are available in stock which are being installed while orders have been placed for the balance requirements of STBs.

Meanwhile, the Parliamentary Standing Committee in its report released last month, has raised concerns about the huge dependence of the country on import of set top boxes. The committee has also said that the ministry should look at extending the deadline and co-ordinate with the Department of Electronics and Information Technology on a strategy for manufacturing the required number of STBs domestically.

Meenakshi.v@thehindu.co.in

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