The government said on Friday that market dynamics and not the Centre would decide the pricing of channels once the conditional access system is implemented in a phased manner across the country from September 1.
The government has only fixed the maximum price for free-to-air channels and the number of such channels that every cable operator will have to show.
Addressing the media after inaugurating the Hathway Digital CAS in New Delhi, information and broadcasting secretary Pavan Chopra said, "It is impossible to have arbitrary pricing in a transparent market. Post CAS, the total cable bill will depend purely on market dynamics."
Asked what had happened to the government's assertion that the total cable bill post CAS will not exceed Rs 200-250, Chopra said the government cannot fix the channel prices.
Even though just over a week is left for its proposed implementation, majority of the consumers have refrained from purchasing the mandatory set-top boxes as they wait for the broadcasters to announce the prices.
Questioned on the low sale of STBs, the secretary said: "Everything will happen... Let the process begin. I believe channel prices would be announced shortly."
To a question on what action the government proposed to take against those cable operators who have decided not to abide by the 'Rs 72 plus taxes' package but charge Rs 180 for non-CAS areas, Chopra said redressal mechanisms were being put in place.
"We have written to consumer courts asking them to pay special attention to CAS-related cases," the I&B secretary said.
He said when CAS becomes fully operational, the cable TV services should operate like any other free market, with neither the government nor the broadcaster having a say in matters such as pricing.
Speaking on direct-to-home service, likely to be launched soon, Chopra said the introduction of DTH will not make CAS disappear.
"Increased transparency will fuel cable TV growth. In fact, DTH will be in demand in those remote areas where cable services are not available, whereas CAS will be more in demand in the metros and cities."