MUMBAI: CAS on schedule!
This was the common message delivered by broadcasters and MSO (multi-system operators) representatives after the first meeting today of the recently constituted 16-member conditional access system (CAS) implementation committee today.
The meeting, which was held at Mumbai’s Doordarshan Kendra, however saw the last mile operators and their representatives on the panel striking a contrary stance.
One definitive that came out of the meeting though was that the pre-CAS “honeymoon” offer of Rs 72 (plus taxes) for television channels in the four metros is off. The proposal can now be stated as officially scrapped.
I&B ministry additional secretary Vijay Singh was one of the first to come out of the three-hour plus meeting. Singh said: “In today’s meeting, we discussed several issues such as pricing of the pay channels and availability of set top boxes (STBs). The MSOs have informed us that they are in a state of readiness with the headends and the STBs in place. The broadcasters and MSOs have assured us that they will be ready with the pricing and commission structure before the next meeting on 14 August.” The next meeting is scheduled to be held in Delhi.
When asked about the confusion that still surrounds CAS, Singh emphasised: “Things were never chaotic . The broadcasters and MSOs have old existing relationships and they have assured us that they will sort out the contentious issues and work hand in hand.” When questioned about the fears expressed by the smaller cable operators, Singh feigned ignorance and said: “We are not aware of any apprehensions whatsoever. Even if there are any, it will be taken care of.”
Speaking about the monthly cable rates of Rs 72 per month charges for free to air channels, Singh stated that the CAS task force had finalised these rates long back and there wouldn’t be any review at this point of time. “Even if we reconsider this, it will be much later,” Singh said.
Zee Telefilms CMD Subhash Chandra, Star India CEO Peter Mukerjea, Sony Entertainment Television India CEO Kunal Dasgupta and Living Media TV Today CEO G Krishnan were among the broadcasters present at today’s meeting.
Zee’s Chandra said: “Everything is on schedule. We are working together with the MSOs and cable operators. All the stakeholders have decided that we shall undertake implementation in a way that is best suited to protect consumer interests.”
According to Mukerjea, “Some progress has certainly been made. Once we resolve issues with penetration, number of households and (revenue share) margins, we should be there.”
LMOs SAY WILL FIGHT TO PROTECT INTERESTS
Shiv Sena Vibhag Pramukh and party spokesperson on the issue of the implementation of CAS in Mumbai Anil Parab however was not so optimistic. “There hasn’t been any improvement in the situation. In today’s meeting, I made it clear right at the outset itself that the implementation process is not being undertaken in a way that is in favour of the cable operators as well as the consumers. I asked the ministry officials to allay our concerns first before talking about the state of readiness.” .
Parab also added that he provided documentary evidence that the broadcasters’ strategy to declare bouquet rates won’t offer any substantial benefit to the consumers post CAS. “If the broadcasters continue to push bouquets even post CAS, then we are much better off today then in the future,” Parab added.
Speaking on behalf of the cable operators, Parab said: “The cable operators will not allow any technology that will be detrimental to their interests. I have briefed the ministry officials about the plight of the small cable operators and they have given assurances that they will look into the matter and come up with solutions within eight days. However, I feel that the ministry officials are confused and unclear.”
Parab reiterated that the government officials couldn’t bind the cable operators while letting the broadcasters scot free. “The ministry should have imposed restrictions on the pay broadcasters too – for instance cap on the rates declared initially and freeze on the rates for a particular time frame. Why has the government imposed restrictions only on the cable operators?” questioned Parab.
When reminded that Vijay Singh had ruled out the review of the Rs 72 FTA monthly cable rates, Parab offered: “Since they were part and parcel of the I&B ministry’s decisions, these bureaucrats will never admit their mistakes. The fact of the matter is that the CAS task force had arrived at Rs 46 after undertaking a detailed costing exercise. However, the decision to arrive at Rs 72 was purely a random one. They should increase it from Rs 72 to Rs 150 in the same manner.”
Parab lambasted the other committee members by saying that they (bureaucrats, MSOs, broadcasters) never reveal the true picture or the real issues discussed within closed rooms. “These people forget that the success of CAS is in the hands of the cable operator,” Parab added as a parting shot.
Spoken like a politician and these words were like music to the Parab’s followers – the cable operators who had assembled at the venue.
INCableNet distributor for Mumbai’s suburban area of Borivali Ganesh Naidu actually confronted Vijay Singh while the bureaucrat was on his way out. “These broadcasters and MSOs have not involved us in anything. Please allow us to present our case. We are ready to organise a seminar to help you understand the real issues hounding the LMO,” Naidu told Vijay Singh even as Singh got into his car to catch his Delhi flight.
Later on, while speaking to indiantelevision.com, Naidu said: “The cable infrastructure belongs to the cable operator. The MSOs or the broadcasters cannot force us to do anything. Collections for 2003 have been affected due to this bungling; we are in the second half of the year and nothing is still clear. We shall not accept the Rs 72 figure because it will not help pay our basic costs. Who will pay the electricity bills required for providing FTA channels for an entire day or the salaries of the staff or maintenance charges?”
Ravi Kalastri and Shakeel Shaikh of the Eastern Cable TV Operators & Welfare Association echoed Naidu’s concerns by saying: “We knew that nothing would be achieved in today’s meeting. More than 300 cable operators affiliated to our association will meet tomorrow in Chembur (a Mumbai suburb) and decide our next course of action.
We shall not allow the small cable operator with 100-200 points to be wiped out of business – we are happy with the present system. The success of CAS depends on us and we shall protect our interests.”
Well, at least in Mumbai, cable operators seem united and the support of Shiv Sena supremo Bal Thackeray has given them the confidence to defy the dictates of the I&B ministry. Morchas and cable black outs may well be among the sideshows of the CAS rollout!
Tag: CAS deadline
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CAS deadline will be met, say major players; LMOs refuse to play ball
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Govt says firm on new CAS deadline, miffed with MSOs over lack of rollout readiness
NEW DELHI: It is not just the pay broadcasters that the government sees as at fault over the mess that is CAS.
The government is miffed with the multi-system operators who, it thinks, had mislead the government as to their preparedness for conditional access system rollout. But criticisms and opposition to CAS, notwithstanding, the Indian government is pushing ahead with the revised rollout plan of 1 September. At present.
A source close to information and broadcasting minister Ravi Shankar Prasad said that the present imbroglio would not have happened had the MSOs been upfront about their own preparations and the availability of set-top boxes.
It is learnt that the government feels that the MSOs are equally, if not more than the pay broadcasters, to blame for the quagmire that CAS has sunk into. “While assuring that adequate number of boxes would be in by the D-day (14 July), it was found out quite late in the day that assurances had not converted into reality,” the source said, adding the government had no option but to announce a revised rollout plan.
It was evident at yesterday’s meeting at the Prime Minister’s Office where Prasad is also understood to have said that all the stakeholders of the industry, including the government, stand to gain from CAS, taking a cue from the Morgan Stanley report on CAS that indiantelevision.com had published a few days back. But Prasad reportedly pointed out that some stakeholders had played hookey.
The government is trying to see that CAS does not become a contentious issue in the ongoing monsoon session of Parliament and it is not put on the dock by the Opposition parties. Some of the government’s allies like the Shiv Sena and some state governments like Delhi have already opposed implementation of CAS.
At the bottom of most of these opposition is the availability (or the lack of it) of set-top boxes. For example, Delhi chief minister Sheila Dikshit told the Indian broadcasters who met her yesterday that her opposition stems from the fact that without boxes available, a large section of Delhiites may not be able to get their daily dose of television viewing. Additionally Dikshit has taken the stand that the rentals of the boxes (Re 1 a month and Rs 999 deposit) are still too high.
Prasad got off easily on Monday since he did not have to verbally reply to fellow parliamentarians on CAS as other issues took centre-stage. The next test could be on Thursday. Prasad has to field several questions in the Lower House or Lok Sabha as also face privilege motion and calling attention motions on CAS later. -
Zee scrip crosses Rs 100 as CAS deadline is extended
MUMBAI: The barometer 30-stock Bombay Stock Exchange (BSE) Sensex continued its ascent; gained 53.92 points (weekly gain) to settle at 3,676.26 as compared to 3,622.34 on 4 July. The S&P CNX NSE Nifty also gained 23.20 points and ended the day at 1161.65 as compared to 1,138.45 on 4 July.
The BSE sensex hit its 16-month high on 10 July as Infosys Technologies raised its earning per share forecast for the full year. Share prices also gained on improved sentiments for tech stocks and announcements by the government about its intention to sell its stocks in divested public sector companies.
The Zee Telefilms counter witnessed heavy action as media reports indicated that the promoter’s stake in the Subhash Chandra company has fallen below 51 per cent. Reports stated that Chandra continued to hold 23.5 per cent even as an overseas body owned by the promoters reduced its holding to 27 per cent. FIIs have hiked their stake to 29.4 per cent (up from 26.6 per cent). The report also states that the increase in the share price can be attributed to the delay in the implementation of CAS. However, market perception says that Zee Telefilms will gain due to higher advertising revenues in the post CAS scenario.
On 11 July, Zee Telefilms opened the day on the BSE at Rs 100.45; gained 3.83 per cent to end the day at Rs 104.30 as compared to Rs 96.20 on 4 July. The volume of shares traded was around 2.51 million shares.
On the National Stock Exchange (NSE), the Zee scrip opened at Rs 100.45; gained 3.78 per cent to end the day at Rs 104.20 as compared to Rs 96.10 on 4 July. The volume of shares traded was around 5.40 million shares.
The Television Eighteen India scrip opened the day at Rs 98.70; dipped 4.51 per cent; ended the day at Rs 94.25 as compared to Rs 98.15 on the BSE on 4 July 2003. The volume of shares traded was 95,897. On the NSE, the scrip opened the day at Rs 100.10; dropped by 4.65 per cent to end the day at Rs 94.40 as compared to Rs 98.90 on 4 July. The volume of shares traded was 229,825.
On the BSE, the Balaji Telefilms scrip opened the day (11 July 2003) at Rs 63.90; dropped 0.31 per cent to end the day at Rs 63.70 as compared to Rs 68.65 on 4 July. The volume traded was 131,385 shares.
On the NSE, the scrip opened the day at Rs 64.20; dropped 0.31 per cent to end the day at Rs 63.70 as compared to Rs 68.55 on 4 July. The volume of shares traded was 462,247 shares.
Sri Adhikari Brothers Television Network (SABTNL) opened the day at Rs 76.85; dropped 0.98 per cent to end the day at Rs 76.10 – same as the last price at which it was traded on 4 July. On the NSE, the scrip opened the day at Rs 77.80; dropped 1.04 per cent and ended the day at Rs 76.10 as compared to Rs 82 on 4 July. The volume of shares traded was 92,191.
On the BSE, Cinevistaas’ opened the day at Rs 32.20; dropped 3.26 per cent; ended the day at Rs 31.15 as compared to Rs 32.05 on 4 July. On the NSE, the scrip opened at Rs 31.05; dropped 1.10 per cent and ended at Rs 31.40 as compared to Rs 32.70 on 4 July.
Creative Eye opened the day at Rs 16.12; dropped 0.74 per cent to end the day at Rs 16 as compared to Rs 17.61 on 4 July on the BSE. On the NSE, the scrip opened the day at Rs 16.75; dropped 1.85 per cent to end the day at Rs 15.95 as compared to Rs 17.60 on 4 July.
The ETC Networks scrip opened the day at Rs 59.60; dropped 1.93 per cent to end the day at Rs 58.45 as compared to Rs 56.55 on 4 July.