With CAS, number of free channels is likely to rise

MUMBAI: The introduction of CAS is likely to increase the number of freeto-air channels. Because viewership will be electronically recorded, there will be no scope for fudged claims. It will be difficult to woo advertisers with the actual viewship figures— which are likely to be considerably lower than the numbers produced by these channels so far—most pay channels will have to go free-to-air.
Then there are those free-market quirks.If four news channels are free, other news channels will find it almost impossible to charge viewers.
However, there will still be viewers who find that their favourite channels are in the pay zone. They can rent the boxes from multiservice operators for about Rs 30 per month, after putting down a refundable deposit of about Rs 1,000. Else, the cost of buying a digital box would be between Rs 2,000 and Rs 3,000.
“Certain vested interests tried their best to create confusion around the price set-top boxes, claiming these would cost about Rs 6,000-Rs 7,000,’’ said BJP MP and CAS champion Kirit Somaiya. “I started investigating after a friend told me they were available abroad for $40 or about Rs 1,880 and exposed the myth of ‘expensive’ machines. Subsequently, the government’s duty waiver has made these boxes more affordable.’’
While Shiv Sena chief Bal Thackeray and many others argued that the government was helping foreign set-box makers, three or four Indian companies have already started making set-top boxes.
For instance, TeleNext, an IIT Mumbai start-up from the Kanwal Rekhi School of Information Technology, has devised an indigenous settop box. Other players like Pacenet Broadband and a Bangalore-based firm are in the arena, say government officials. With all this, public opinion has slowly leaned towards CAS.
The Indian Merchants Chamber (IMC), which has initiated a series of seminars and meetings on the issue, says it has been a “neutral facilitator’’ for the process. “We started this to bring infotainment into the organised sector. Initially, I was amazed at the level of distrust broadcasters, operators, MSOs and consumers had for one another,’’ said Vikas Kasliwal, chairman of IMC’s infotainment and media committee. “Now, I am amazed to find how minor the real dif ferences were.’’
The IMC has started to frame a draft agreement between cable operators and MSOs to ensure smooth revenue-sharing. It also addresses the cable operators’ fear that MSOs will now directly deal with the consumer, easing smaller operators out of business.
“Even the consumer should sign an agreement with his operator. After all,we have agreements with our telephone and electricity providers,’’ said Mr Kasliwal.
However, all these do not make CAS a watertight case. Many feel that in its great hurry, the government has missed out on homework. “What happens when pay channels buy broadcast rights for important cricket matches and raise prices abnormally?
Who is going to save the consumer?’’ said B.K. Subbarao, a scientist and member of the social group Citizens For A Just Society, which recently filed a writ petition against CAS in the Bombay high court.
Arguing that CAS would benefit only broadcasters, he said that in other countries, pay channels do not show advertisements. “In India, the channels will have it both ways—they’ll charge the consumer and earn massive ad revenues too.’’
Mr Subbarao also raised the issue of pricing of the pay channels.Already, cable operators have accused pay channels of planning to price the channels so high that consumers begin to panic and CAS gets scuttled.
Journalist and Shiv Sena MP Pritish Nandy, one of the people who persuaded his party chief to oppose CAS, says the system will create a huge liability for the consumer. “It is the hallmark of every government. They promise a wonderful future and punish you in the short term,’’ he said.
He said that in a CASless environment, market forces always determine what the consumer will pay.
“This is not the time for CAS. Let the market mature. Also, the fact that the government should regulate content reveals a sick and depraved mindset. Settop boxes are also an invasion of privacy. The government watches what you are watching and can use this information otherwise,’’ he said.
Among other problems, the government has also not been able to formulate a system by which the consumer can choose his cable operator.With all this, CAS is still an open case.