BUSINESS

Pay channel rates not viable, say cable guys

June 19, 2003 16:19 IST

Kolkata's cable operators and multi-system operators have termed the rates (to be applicable in the CAS regime) forwarded by Star, Sony, and ESPN to the Centre as 'impracticable'.

Consumers meanwhile are still in the dark over how much exactly they would have to fork out for a set-top box for viewing their favourite channels on the television in the conditional access system regime.

The broadcasters on Wednesday submitted a list to the government according to which a consumer was likely to pay around Rs 550 to watch all free-to-air and pay channels in the CAS regime.

The economic condition of an average viewer should be kept in mind as also the interests of cable operators to make CAS successful, said Tarak Saha, executive committee member of the Cable Operators Sangram Committee -- the umbrella forum of operators in West Bengal.

The marketing head of a prominent Kolkata-based MSO Manthan, Sudip Ghosh said: "About 30 per cent of our subscribers have already booked set-top boxes and many more are expected to come in coming days once things become clearer. We earnestly hope that the deadlock ends in a few days."

A top SitiCable official said he was clueless about what was happening in New Delhi.

"As we don't know what the pay channel rates are, we cannot tell the subscriber what could be the possible fare for viewing free-to-air and select pay channels like Sony, Star, ESPN and Zee. We want the government and the channels to come up with the rates without much delay as less than a month remains," the official said.

While Ghosh was in favour of keeping the rate around Rs 200 per month (for free-to-air and pay channels together) or slightly higher, Saha, however, felt Rs 200, the figure suggested by government for viewing pay channels, might not be 'profitable' for cable operators.

Saha, who refused to quote any figure, which could be beneficial for both the cable operator and viewer, said: "We will charge whatever is decided by the government -- Rs 250, 300, 350, whatever -- but while Rs 550 is too high for viewers, Rs 200 is a losing proposition for us."

Saha, also the Secretary of Forum of Cable Operators, warned that if CAS could not be finally implemented due to the impasse on July 15, cable operators would be forced to take a few channels off the air as their rates had been hiked earlier this year.

"Channels like Star hiked their rates earlier, but we continued to charge subscribers Rs 150, irrespective of increase. If CAS does not come in force from mid-July, we will be forced to charge at least Rs 250 from subscribers every month (Rs 180 and Rs 72 for free-to-air channels) and withdraw some channels," Balraj Shaw, spokesman of Third Eye Cable Service said.

Manimay Saha, spokesman of the Cable TV Viewers' Forum, said the impasse over the announcement of rates and the resultant delay was causing uncertainty amongst the consumers.

The forum would oppose any move which would pinch the consumer hard, he said, referring to the suggestions to peg the monthly rate above Rs 200.

The chief executive officer of RPG.net Dilip Sen preferred to wait and watch. "Once everything is sorted out satisfactorily, the consumer can be the king in post-CAS scenario," he said.

Meanwhile, not even half of about 12 lakh (1.2 million) viewers in Kolkata and its neighbourhood have yet booked the set-top boxes.

A top SitiCable official said: "As of now, many people still prefer the wait and watch policy. But once the pay channel rates are settled satisfactorily, we are sure over 60 per cent of our subscribers will opt for the service."

Rangan Dasgupta, chief operating officer of Manthan, said about 25,000 of their 350,000 subscribers had asked for analog set-top boxes so far.

Saha, of the Cable TV Viewers Forum, expressed skepticism over the pricing of STBs.

"The so-called low price of foreign made STBs and the July 31 deadline for customs reduction might only create pressure on the consumer to go for early booking without knowing the exact features of the product they are paying for," Saha said.

He suggested that the prices quoted for analog and digital boxes made in Taiwan and South Korea could be inflated and the production price could not be more than Rs 1,500.

UNI

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