Category: Regulators

It has been nine months since Cas was implemented in parts of Kolkata, Mumbai and Delhi, after Chennai was brought under Cas. Towards the beginning there were uncertainties, and some people even opposed Cas. So today, what is your assessment of Cas? Is it a success or a failure in numerical terms?
Well, we never had a target in terms of penetration percentages. It was left to the subscriber who wanted to opt for choice, whether he wanted pay channels or FTAs and which are the ones he wanted. The latest numbers tell me that about six lakh (600,000) homes have opted for Cas in the mandated areas.

That is out of a universe of around 1.6 million cable homes…?
Yes, so that is about 30 per cent of subscribers. Then you have also a similar facility in DTH, which has also been accepted by many. In Kolkata particularly, the response has been poor because most of the popular channels are FTAs. So if the criterion is in terms of numbers, I think it has been a very satisfactory performance.

But it is not the number that is important. Unfortunately, we are always missing the true substance when attempting to evaluate Cas.

What is it we are trying to do? We are trying to set up a mode of digital transmission, which is more efficient and more accommodative. It is the global practice. Analogue is gradually getting out of the scene, and so we have to make a beginning. That was made into a kind of a pilot in these four areas.

Today you have a choice, you have DTH and you have Cas. Tomorrow you may have HITS… which is another option. You have voluntary Cas. So a beginning has been made, a seed has been sown, which must someday fructify in terms of an all India feature. Success has to be measured in terms of whether it is a trendsetter or not, and not in terms of how many people have opted for it or not.

So would you say that the target of becoming a trendsetter has been achieved?
Oh yes! It is perhaps a watershed in that in the broadcasting industry, digital transmission has begun.

But one main area that remains disturbing is the quality of service, which in many parts of the mandatory Cas zones remains highly dissatisfactory. Lots people are not getting the channels they have opted and paid for.
Firstly, I do not want to defend the quality of service, and there are problems of channels being discontinued. But it is not just at the level of local cable operator. I think somewhere down the line, the MSO also has to take his role seriously. Unlike in non-Cas areas, the role of the broadcaster and MSO in implementing Cas is far more important than that of the LCO. So, if these things have happened, they have happened because of the inadequacy of the functioning of MSOs.

When it started in January, we wanted to take a very liberal view. We did not want to enforce all the regulatory provisions in the first four or five months. They wanted time so that the consumer preference could be registered, and we gave them enough time. The subscriber register that has to be maintained was not complete to the extent we wanted. Therefore billing got delayed, payments also got delayed… subscribers have also not made payments. But we have made it clear that come 1st of July, we are not going to forgive anyone.

But how do you enforce this, as it has clearly not happened in many places till now?
There are three ways of how to enforce this. First is the awareness of the consumer. There is a quality of service regulation in the Cas area which is operational. Therefore the subscribers must reach to and judge the performance of the MSOs and cable operators. There are great details in the regulation about the kind of rebate that has to be given if the channels are not coming, or how much time it should take which kind of interruption, what should be the response time for the MSOs… these are all standardised and fixed.

But that brings us to a moot point…. The consumer is not truly aware and also does not seem to care about implementing his rights?
It takes time…

So you are saying that MSOs are primarily responsible for QoS, so where have they failed? Because there are lots of complaints about failure across the board.
The MSOs initially were perhaps not ready with the level of demand. That has settled down, STBs have been imported and they are in plenty today. The second stage was to get the reference of the subscribers. Now, I know and it is correct to say that the MSO representatives have gone to the homes four or five times, asking the subscribers to fill up the forms. But the gentleman says, you have come at the wrong time, that he will have to consult his family.

But gradually, that too has ceased to be a problem. Ninety percent of the subscriber registers have been completed and the choice is now there. Now the stage is where the subscribers must know what their right is. That is, the manual of practice of the MSOs must be made available to the subscribers. That manual of practice in most of the cases is not available. The contractual conveyance, that we have between us signed a contract, and this is our right, that message is still not being passed on, which is reflecting in the lack of awareness.

Broadcasters have been extremely cooperative in rolling out Cas, despite serious reservations about the RS 5 channel price, and all the Reference Interconnect Offers are in place.

So what have you told the MSOs about this?
We have conveyed to them that look, we shall view very seriously if there are defaults. We have written to the state governments, because they are the enforcement machinery.

So what is holding back the extension of Cas in the three metros?
The Central government wanted us to report back on this, we have sent that report, we have said it will take six to eight months‘ time to implement after notification of the extension. But then the state governments said that it is better to evaluate before extending Cas. We on our own without waiting for such instructions have engaged some outside agency to advice us on the level of implementation.

Has that audit been completed?
It will take another two months, we are expecting the reports by the end of October or beginning of November.

So it will further delay Cas extension by that much time?
Well this has nothing to do with Cas extension, this is something we are doing independently, and as far as the government goes, they can extend Cas, and we have just said that it would take six months from the day of notification to implement the extension. It is for the government to take a view when they wish to notify.

First, investment is required, which is not come if the industry is so disorganised as it is today. Second, they know that there has to be some regulatory provisions to give stability, which will ensure certain amicable relations between them the broadcasters and the MSOs. So to answer your question as to why they are not implementing voluntary Cas, perhaps for that some regulatory initiative is required.

Now, for that the expert committee had been set up, and it has suggested that voluntary Cas be rolled out in 55 cities and towns. But they have also said that you have got to have a regulatory regime for at least one year. Even for voluntary Cas, certain things are important, like Standard Interconnection Offer, what should be the connectivity, what should be the revenue sharing formula. So these are the issues we are looking at, and we are going to put up the paper on voluntary Cas.

“Fixing of channel pricing in non-Cas is a challenge, but we shall come out with something that meets the expectations of both the high and low income groups”

There is the issue of price freeze versus price cap?
That I won‘t answer because we have not issued the regulation on that so far.

It is important for the cable industry to grow and I am not a great votary for centralised economic activity, or vertical integration, so franchise should be the mode.