A big task awaits local cable operators (LCOs) and multi-system operators (MSOs) in Delhi, Kolkata, Chennai and Mumbai, as they just have 33 days left — to meet the deadline set by Telecom Regulatory Authority of India (Trai) — and move from analogue to digital transmission. Currently, there are 9.4 crore cable viewers in the India.
Broadcasting experts say the digitisation of cable network will bring more channels to the viewers with better clarity and the right to choose a channel. These same words were in vogue when the conditional access system (CAS) was mooted way back in 2001 in the four metros. We all know what happened to that! So, how different are the new guidelines as made mandatory by the Cable Television Network (Amendment) Rules, 2012 (CTNR)?
WHY DIGITISATION?
Balancing the power structure:
With cable digitisation, the monopoly of the cable operators will come to an end. The CTNR mandates all cable television operators to transmit TV signals in an encrypted format through a digital
addressable system (DAS). This will be done trough installation of set-top-boxes (STBs), which decode the encrypted signal in every cable TV home. And each STB will come with a unique identification number, thus making it easier for the broadcasters to keep an eye on their customer base and charge the cable network operators accordingly.
“The addressability is the major change that digitisation will bring.
It will be mandatory for every MSO to create a Subscriber Management System and billing system at its own expenditure. The data will be accessible to everyone within the system and will bring transparency in revenue sharing and tax calculation,” says Rajesh Jain, partner-corporate finance at KPMG, a finance advisory company, which recently released a detailed study of the media and entertainment industry in India.
Mr Jain added that digitisation would also bring more revenues to the government in terms of taxes. A Media Partners Asia report stated that the government stands to gain tax revenue of at least of `55,000 crore over the next 10 years with complete digitisation of the cable industry.
Secondly, post digitisation there will be no constrain of space in the bandwidth, hence broadcasters will not be required to pay any placement fees (the amount they used to pay for placing a channel in the prime band) to cable operators. “This will help broadcasters save a lot of money as they will now be required to pay only carriage fee(amount to carry their channel),” Mr Jain says.
Effective consumer grievance redressal:
DAS not only makes it easier to control and administer the cable products a consumer views, it will also make consumer grievance redressal easier. Trai has made it mandatory for every MSO to run a complaint centre with their LCOs and respond to consumer complaints within eight hours as per the Interconnection Regulations. Cable services have to be offered in pre-paid and post-paid format. Also no broadcaster, MSO or LCO can cut off the transmission of a TV channel without giving three weeks notice in two daily newspapers. A channel once declared free-to-air or pay channel has to remain so for at least one year.
Better picture, sound and programming, and more channels:
Digitisation will bring better picture, sound quality, more channels and better programming with lesser ads. “There are around 800 channels registered with the Ministry of Information of Broad-casting, but cable networks can carry only a little over a 100 channels, which means that 75 to 80 per cent of the 140 million TV homes don’t have access to most of the channels available in India. Post digitisation cable will be able to carry more than 500 channels,” tech expert Naresh Sadwhani says.
Besides, the consumers will also be able to enjoy services like high-definition TV and video-on-demand, so far only available through the direct-to-home (DTH) platform.
After digitisation, the number of free to air (FTA) channels will also go up to 100 at a monthly basic-tier price of not more than `100 (after taxes it’s `160). And there will be equal number of channels in each genre along with the compulsory Doordarshan channels.
Trai has also made it mandatory for broadcasters not to include more than 12 minutes of ads in an hour, and since they would no longer be required to pay any placement fees, mproving the quality of programmes will be a top priority. “It’s going to be an equal playing field for all channels, who will now be competing within the same genre for viewership,” Mr Jain adds.
Is it any better than DTH?
According to Mr Sadhwani, with digitisation, cable network will become more lucrative to customers. “Quality wise it’s at par with DTH. But a cable network can carry more channels than a DTH operator. You may get more channels depending on the MSO. Besides, unlike DTH, heavy rains or wind does not affect your cable service unless some catastrophe destroys the underground wiring,” he says.
Then why the delay?
Digitisation will come at a price, which neither the MSOs, the LCOs, broadcasters or the consumers are willing to pay for. “Upgrading the transmission from analogue to digital needs a lot of investment, besides there are things like laying optical fibre networks, buying more digital head-ends and arranging adequate number of STBs before the deadline,” says J.S. Kohli, MD and CEO of Digicable, adding, “We need to install 1.8 lakh STBs every day to ensure there’s no blackout on July 1…The deadline that has been given to us is too small to carry out all that.”
According to the data submitted by the MSOs to the government, there will be a need of one crore STBs to meet the June 30 deadline. “We have installed only 25 lakh STBs around the country. We (MSOs) have another 25 lakhs boxes in stock, the rest have been ordered and should reach us in time, but for installation and customer education, we will need more time,” says Girish Mohanlal Kothari, director of Home Cable Entertainment LTD. Besides, after the regulations were declared many small LCOs have now united and become independent MSOs, but they don’t have the necessary finances in place to update their equipments. Mr Jain says that all these factors will delay the digitisation by at least six to eight months.
Besides, the tariff and inter-connecting rules is another area where the LCOs, MSOs and broadcasters have failed to reach up to an agreement. Trai is yet to take a final decision on the profit sharing between the three of them.
The Future:
With CAS and electronic programme guide in place, the programming for television channels will improve. “Things like live and pause TV, recording your favourite programme and several features could be accessed,” he adds.
All that could be a reality in the near future depending on whether or not the phase I of digitisation completes in time.
What set-top-box to buy?
There are four types of STBs — standard STBs come with standard
features like EPG, subtitles etc; STBs with inbuilt personal video recorder (PVR) comes with an inbuilt hard-disk storage space and/or with support to an external hard disk or USB memory card; high-definition STBs does everything that a PVR does and also allows you to watch HD TV channels and Internet ready STBs, which allow you to browse the Web, access YouTube videos, send mails etc. on your TV set.
Who needs a new set-top-box? Is it compulsory to buy a new STB for everyone?
Everybody with a cable connection in the four metros — Mumbai, Delhi,Kolkata and Chennai — needs a digital STB to decode the encrypted signal. If you were using an analogue STB, you will need a new STB. In case your cable connection was already digital and had a digital STB installed at your home, you may not need a new box.
You will need an STB if you have more than one television set at your home. The encrypted signals make it compulsory for every television set to have its own set-top-box.
Rent or Buy?
If residing on a leave and licence basis, it’s advisable that you rent your STB. As per Trai regulations, cable operators are supposed to provide the customers with the option to rent or purchase a box. The existing monthly rent is `30-50 per month with a refundable deposit of `800 to `1200.
Where and how to get an STB?
Only your local cable operator can sell an STB to you. You will need a proof of residence, copy of an identity card and two photos to get a digital STB. For leave and licence consumers, you will need a copy of the agreement, Pan Card and two photos.