Conditional access system notified areas in Mumbai have turned into a battleground with local cable operators and multi-system operators trading allegations, even as CAS implementation in selected areas of Delhi, Mumbai and Kolkata is nearing its January 1, 2007, deadline.
"The cable industry in Mumbai is dominated by two players, Hinduja's InCable Net and Hathaway, with the former having a 60 per cent market share and the latter with 40 per cent. Incable Net is known to be in the cable business for over 11 years with Hathaway joining in later," said Ganesh Naidu, president of Cable Operators & Distributors Association, Mumbai.
He added in CAS areas, Hathaway has a majority of the market share.
However, "WWIL (Zee's cable arm) is forcefully trying to get local operators on board both in CAS as well as non-CAS areas, while operators are unwilling to sign the interconnection agreement with the company since they have been working with InCable Net and Hathaway for years," alleged Naidu.
Raju Rao, cable operator and distributor in South Mumbai, claimed: "WWIL has proposed a few schemes to LCOs (already on board with either Hathaway or InCable Net), but the agreements reads differently."
Industry sources alleged that WWIL is trying to penetrate into the market by offering LCOs 20 pay channels free of cost to begin with.
However, WWIL hasn't given anything in writing nor has the company mentioned whether the 20 channels will be only Zee channels or will include others as well.
Jagit Singh Kohli, CEO of Zee's cable wing, WWIL (Wire & Wireless India Ltd, formerly know as Siticable), refuted these claims, saying, "LCOs are, in fact, willing to come on board with us, but we are being threatened by others in the industry. We have announced a few new schemes for operators which are in their favour."
He added: "We are offering 25 pay channels to operators, 50 per cent of which will be Zee channels. We have also offered a combo package of Rs 1,800 and the set top boxes will be given free."
"The problem lies in the fact that InCable Net and Hathaway have joined hands and are doing business together. With WWIL now making an entry, the two players who've been enjoying monopoly are afraid of losing out on their share," explained Avinash Bhatra, distributor and cable operator in Navi Mumbai.
He added, "As of now, more than 120 operators in South Mumbai have signed with WWIL."
Naidu countered this, saying, "Of the approximately 354 operators in South Mumbai, all LCOs are on board with either Hathaway or InCable Net. However, some of the operators under pressure have signed on with WWIL, but have not loaded their lines. They still function on either Hathaway's or InCable Net's connection."
Industry sources said WWIL is trying to bring in operators on its side because the company plans to get listed in the coming year.
Incidentally, WWIL, under the name of 'Siti Cable Network', has filed a petition in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), New Delhi, appealing that the board should let WWIL have a 40 per cent share on the Rs 77 cable operators earned on free-to-air (basic service tier).
The hearing of the same is scheduled in the first week of January. This too has not gone down well with the LCOs.
"Nothing will come of the hearing and if it is in our favour, then we will share the carriage fee with the LCOs," asserted Singh.
