BUSINESS

Govt to clear CAS fog

By BS Corporate Bureau
May 29, 2003 11:16 IST

The information and broadcasting ministry is on a drive to remove misinformation about the conditional access system. It has come out with a 14-point "do you know" charter on the new system and how it will protect the interests of television viewers.

An official release giving details about the new regime, under which consumers would be required to purchase a set-top box to access pay channels, said the amendment to the cable TV law was aimed at "protecting consumers from arbitrary and frequent increase of subscription rates".

Contradicting the claims of some broadcasters, the official release said the cost of analog set-top boxes would be around Rs 3,000 and the digital ones between Rs 3,500 and Rs 5,000. "To start with, the set-top boxes will be imported, but it is expected that with increasing demand and indigenous production, their prices will fall," the statement said.

It said the set-top boxes would be made available to subscribers through various mechanisms, depending upon the business models of cable operators and multi-system operators, either through outright purchase, hire purchase or financing schemes.

"The conditional access system will enable consumers to receive and pay for only those channels they wish to view," the statement said, adding that it would initially be implemented in the four metros from July 14.

Pointing out that it would bring transparency in viewer ratings, it said the broadcasters blamed the cable operators for under-reporting the number of subscribers, resulting in revenue losses for them and evasion of entertainment tax, service tax and even income tax.

The release said the multi-system operators and cable operators blamed the broadcasters for increasing the rates of pay channels, which resulted in frequent hikes in subscription fees. It also said broadcasters clubbed their channels into bouquets and the subscriber was forced to pay even for channels he did not wish to view.

The government has notified that a cable operator will have to provide at least 30 channels, including three must-carry channels of Doordarshan, of various genres at Rs 72, excluding local taxes, in the free-to-air basic tier.

Cable operators will have to publicise the subscription rates for each channel and the intervals at which they are payable. The release said violation of the Act had been made a cognizable offence and the subscriber would have to approach the district magistrate, the commissioner of police or the nearest police station for lodging complaints. A help line would also be provided, it added.

BS Corporate Bureau

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