BUSINESS

Operators to go slow on set-top box purchase

By Onkar Singh in New Delhi
June 07, 2003 17:34 IST

Cable operators plan to wait and watch the reaction of their subscribers and may even go slow on buying set-top boxes to offer on rent once the conditional access system comes into effect from July 15.

Roop Sharma, one of the leading cable operators in Delhi, told rediff.com: "We are not going to buy set-top boxes right away. We will wait and watch the situation, because it is not within everyone's reach to buy thousands of set-top boxes. We will take an advance amount from those who want to buy the boxes outright."

She claimed that there were only 4.7 million cable subscribers in the four metros of Delhi, Mumbai, Kolkata and Chennai and not 6 million as stated by Information and Broadcasting Minister Ravi Shankar Prasad.

"You wait and see; many paid channels will soon turn free-to-air to avoid complications of going through CAS and exposing their shortcomings. Most broadcasters have been making tall claims about their viewership and they will all be exposed," said a senior journalist who has been closely following the CAS issue.

Manoj, a small cable operator, said he cannot afford to buy set-top boxes for all his subscribers.

"I have 400 subscribers and if I buy set-top boxes for all, I will have to invest close to Rs 12 lakh (Rs 1.2 million). If I borrow this money from a bank, I will to pay interest on it. My subscriber is not going to pay me the interest along with the instalment for the set top box. Hence, I will be able to serve only those who give me money and buy the set-top box on an outright basis," he said.

Onkar Singh in New Delhi

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