CAS – Page 14

CAS: Gloves off as IBF, cable frat hurl charges

NEW DELHI: The game of ping-pong being played in the name of Conditional Access System (CAS) took another turn today with the broadcasters and cable fraternity hitting out against each other as the government reserved its verdict on the issue of rollout of addressability.

The Indian Broadcasting Foundation today made it clear in a submission to the information and broadcasting ministry that all addressable systems should be mandated like CAS and providing a la carte pricing of channels would not be in the interest of consumers. Indiantelevision.com had reported on Wednesday that this was the stand the IBF would be taking on the CAS imbroglio.

While the government is yet to firm up its stand from the wide-ranging industry feedback, which, if taken into account, would push CAS rollout to fourth quarter of 2006, the Hinduja-owned IndusInd Media Communication Ltd has said that the government should honour the court verdict in the light of CAS being operational in Chennai since 2003 without any objections being raised by stakeholders.

The Delhi High Court on 10 March had directed the government to implement CAS in Kolkata, Mumbai and Delhi within one month’s time, which is about to get over technically this month. But it needs to be seen when the government received a certified copy of the court order.

Interestingly, at a meeting that the government had with industry stakeholders today on CAS, the issue of registering of CAS operators with the government and the whole process of doing it, is likely to add to the delay.

A new sequencing of CAS rollout submitted by Siti Cable at the meeting, according to government sources, states the date of implementation should 14 November 2006 with the time in between used for getting ready for a CAS-enabled regime.

The IBF’s submission has not only created more confusion, but has enraged a certain section of the cable industry too.

At one place in its letter to the I&B ministry, the IBF has said that the government should stop the cable industry from charging huge amount of carriage fees, which raised the hackles of cable ops present during today’s meeting.

In a separate submission to the ministry, the Delhi-based National Cable & Telecommunications Association has, in turn, requested the government to direct the pay broadcasters not to play tough.

“If the pay channels demand more time for the implementation of conditional access system in Delhi, Mumbai and Kolkata, then it is imperative that they must be directed to immediately stop collecting monthly subscription from the cable service providers till CAS comes into force,” NCTA has said.

Though the NCTA letter exhorts the government to “exercise its powers” and direct the pay channels to declare rates of their individual channels and fix an upper limit for pricing of individual; channels and bouquets, the I&B ministry representatives at the meeting today did not utter any word on these issues.

April 7, 2006

MSO’s should be marketing CAS now: Sameer Nair

MUMBAI: The cable fraternity is wasting the huge first mover advantage they already have in hand vis-a-vis pushing addressability in chasing the mandating of CAS, feels Star Entertainment India CEO Sameer Nair.

Reiterating Star’s well documented opposition to mandated CAS, Nair asserts that the MSOs are seriously missing a trick on the matter in their “all-consuming” focus on getting a mandate out that will fix a time frame for the rollout of CAS.
Nair drew attention to the latest reports circulating indicating that it could be anywhere between six to eight months at the minimum for the mandated CAS rollout to take off (if at all).

According to Nair, even as big corporate players were preparing the ground for different addressable delivery platforms to roll out, the cable fraternity were only focussed on getting a cut-off date in place for the rollout of CAS.

Nair is of the view that with the imminent arrival of Tata-Sky DTH, Zee’s Dish TV ramping up and the big telecom players aggressively pushing ahead with IPTV, market forces would soon make the whole debate irrelevant and the MSOs may well end up “missing the addressability bus”.

Nair averred that MSOs should instead be focussing their efforts on attractively packaging and marketing CAS to their direct points to begin with and concurrently convincing their franchisees of the need to get CAS going, government or no government.

Another issue he raised was on the inability of many cable ops to deliver on CAS even if it was mandated. He said that barring a few big MSOs, most operators were simply not ready for CAS. Neither did they have the set top boxes nor the subscriber management systems in place to get it off the ground.

According to Nair, in such a scenario, the likely result would be a blackout of pay channels in many areas, as had been witnessed in Chennai. But the difference here, he pointed out, was that unlike in Chennai, where there was no great demand for pay channels, in this case it would more likely be because of inability to deliver.

April 7, 2006

CAS: IBF to push for level playing field

NEW DELHI: The Indian Broadcasting Foundation (IBF) has decided to exhort the government to mandate all other addressable systems in the country like DTH and IPTV, for example, as was being done with CAS or conditional access system.

This suggestion was one of the many that were discussed today by the board of IBF, an apex body of broadcasting companies operating in India, during a debate to help formulate a stand on the issue of CAS, which can be taken to the government by 7 April.
Another issue that the IBF would note down in a communication to the information and broadcasting ministry, which is holding meetings with industry stakeholders to finalise a rollout plan for CAS, is the pricing of such addressable services.

Though the exact words are still to be formalized, IBF sources told Indiantelevision.com it was suggested that the government should be petitioned to follow a recommendation of the sector regulator on the pricing mechanism of addressable systems like CAS, DTH and IPTV with an aim to provide a level playing field to broadcasters vis-à-vis the cable fraternity.
In a set of recommendations on addressable systems made in 2004, Telecom Regulatory Authority of India (Trai) had suggested that since addressable services depend on offering a choice to consumers, unlike non-addressable system like present-day cable TV services, pricing should be allowed to be formulated by market forces and not mandated.

Another issue that is likely to find its way in the letter for the government involves the free-to-air bouquet of channels and its pricing.

The IBF board feels that since the scenario has undergone a change from the time CAS was mooted in 2003 when the free-to-air (FTA )bouquet was to comprise 30 channels and priced at Rs. 72 (exclusive of taxes), more channels should now be added to the FTA package for consumers in a CAS-enabled regime.

The argument in favour of increasing the number of channels to at least 50 is backed by the fact that the subscription-free DTH service of Doordarshan will also carry more than 50 FTA channels from May. This was announced by DD today at a press conference.

The IBF board is also likely to express its reservation against providing a la carte pricing of channels as it might be against consumer interest.

Though such a line of thought had been forwarded by the broadcasting industry in the US to the American regulator, the Federal Communications Commission recently put out a statement saying that the earlier report on a la carte pricing was lopsided and individual pricing of TV channels actually works to the benefit of consumers. This too is being contested by broadcasters in the US.

April 5, 2006

CAS: MSOs propose a rollout plan to govt.

NEW DELHI: The CAS story limps along with an early solution not in sight, as industry stakeholders are yet to find a common ground. This was evident in today’s meting on the issue called by the government.

Though the MSOs did make a proposal on sequence of CAS implementation and one particular MSO provided some additional data relating to the Chennai market where CAS has been implemented, lack of data from others, notably the broadcasters and local cable operators, didn’t help matters much.

The government, which is also under pressure due to a Delhi court direction on CAS rollout by the first week of April, could use the data provided by the MSOs to force the pace, a government official said, adding this could include mandating individual prices of TV channels.

The official did admit that at the two meetings on CAS held till now, there has been a sense of “resistance” from the pay broadcasters to come out with a la carte pricing of channels, which is “complicating the matters a bit.”

According to information available with Indiantelevision.com, some of the MSOs have proposed a plan, which envisages a phased preparation for CAS with a blackout of TV channels — not going through a set-top box — after 5 July.

The MSOs today said that for CAS rollout, 5 April should be taken as the zero hour. The preparatory phase should last till 20 May. The time between 21 May and 21 June should be treated as transition phase, while the final implementation of CAS should start from 5 July onward when all TV channels would have to go through boxes on a mandatory basis or face the threat of a blackout.

The MSOs also suggested that the government should mandate the maximum retail price (MRP) for individual channels as also bouquets — a proposal that did not go down very well with broadcasters — if a consensus is not arrived on this.

While the MRP issue is being pushed by consumer bodies too, the MSO said that if a consensus on this is elusive, then the sector regulator (Telecom Regulatory Authority of India) could be asked to address the issue.

What is making matters difficult for the government is that some pay broadcasters have raised valid doubts on piracy of signals and the technology that would be used for conditional access. Country’s biggest broadcaster in terms of revenue has raised 16 issues that should be addressed before CAS is rolled out.

According to some people who attended today’s meeting, a suggestion relating to revenue share for subscription money in the ratio of 50:25:25 (broadcasters: local cable operators: CAS operators and independent ops) was also made.

A demand that all commercial contracts amongst broadcasters and MSOs and MSOs and cable ops be standardized was echoed today again.

In the wake of divergent views on CAS still persisting, the information and broadcasting ministry made it clear to industry stakeholders that
ambiguities would only lead to more confusion and wastage of time.

With today’s meeting ending relatively inconclusive, the government has scheduled another one on Monday (3 April) to get down to serious sequencing of CAS rollout

March 31, 2006

Hathway launches digital cable in Hyderabad

MUMBAI: Even as the government is assimilating views of the various industry stakeholders on how to roll out conditional access system (CAS) smoothly, multi-system operators (MSOs) are busy plotting expansion of their digital cable TV service.

Hathway Cable & Datacom today announced the launch of its digital cable in Hyderabad. The MSO has already rolled out its digital services in Chennai, Mumbai, New Delhi, Pune and Bangalore.

Digital cable TV services are offered to the customer through a remote controlled digital device, which will be accompanied by a fully functional sleek smart card.

“The advantages of the digital set-top boxes (s) is that the consumer does not have to pay extra money in their monthly cable TV bill but in turn can enjoy over 150 digital channels. The device costs over Rs. 2500,” Hathway said in a release.

March 28, 2006

Decision on CAS appeal after stakeholders meeting 27 March: Arora

MUMBAI: The uncertainty over the implementation of conditional access system (CAS) is not over yet. The government will take a call on whether it should move the Supreme Court only after a meeting with the broadcasters, multi system operators (MSOs), cable TV operators and consumers on 27 March.

“We have invited all the stakeholders for a meeting on 27 March. We will take into consideration their views before deciding whether we should approach the court,” I&B secretary S K Arora told Indiantelevision.com.

Early this month, the Delhi High Court had ordered the government to enforce the rollout of addressability in cable pay television (conditional access system or CAS) in India within four weeks. After reserving the judgement for several months, the court had delivered the verdict on a writ petition filed by a bunch of MSOs.

On being queried whether one month was too short a time to implement CAS, Arora said the government’s argument in the court was that three months would be needed.

Was the old notification on CAS good enough? “We will discuss all this in the meeting. Only then can we take a stance on whether modifications are necessary,” Arora said.

The scheme as it was structured in 2003 ran into rough weather with some of the stakeholders opposing it, Arora added. “We need to resolve these issues. Consumers were opposing it because they felt they were forced to buy the set-top box (STB). Broadcasters came out with a pricing that wasn’t serious in intent.”

Arora also pointed out that the government was yet to receive the Delhi High court judgment. “We believe the implementation of CAS would come into effect one month from the date of receiving the certified judgment,” he said.

March 22, 2006

Govt role: CAS’ fate linked to political compulsions

The Indian government (read the information and broadcasting ministry) is suddenly finding itself caught between the devil and the deep blue sea, which more often than not takes great pleasure in turning red.

Sandwiched between a strident judiciary — justifiably so in the present circumstances — and the politics of running a coalition government with vocal allies (who seem to have a view on anything and everything), the Manmohan Singh regime is bound to find it difficult to implement a recent Delhi High Court order that in short says: implement conditional access system in the areas notified earlier by a previous Bharatiya Janata Party-led coalition regime over 18 months ago.

The I&B ministry hasn’t yet held any talks with the various state governments where CAS is sought to be implemented. Nor have any meetings been held with industry stakeholders
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State-level elections in April-May would compel the government to give a deep thought to the so-called concerns of regional politicians. And, decision-making gets that much tougher when one of the states going to the polls, West Bengal, is ruled by a Left party, which is also a crucial ally of the federal government in New Delhi.

Though the Delhi High Court order exhorts the I&B ministry to rise above regional level party politics and not use ‘public interest’ to influence an executive order (the notification related to CAS rollout) passed by the federal government, reticent politicians would definitely try to have their own way. Don’t forget that the I&B minister Priya Ranjan Dasmunsi’s parliamentary constituency lies in West Bengal and the street-smart politician has cut much of his political teeth in Bengal.

With Kolkata in West Bengal, one of the metros targeted for CAS rollout, already swinging to the election tune, the I&B ministry would have to see how New Delhi’s Left-oriented allies react to the issue of CAS or ‘watching TV channels via a black box that would cost around Rs 3,000 (approximately $ 67),’ as some politicians are explaining addressability to the people.

It can just be that the ministry goes in for an appeal one day ahead of the month-long court-mandated deadline
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Though it hasn’t reached a crescendo, already there are murmurs amongst politicians of the Communist Party of India (Marxist), especially the local ones, on how CAS’ introduction around election time can be ‘disruptive’ and have telling effects on the electoral fortunes of the party in West Bengal.

It is pertinent to note that the I&B ministry hasn’t yet held any talks with the various state governments where CAS is sought to be implemented. Nor have any meetings been held with industry stakeholders to discuss the issue in the light of the court’s observation.

Apart from the West Bengal politicians, those representing the seven constituencies of Delhi in Parliament have already been petitioned by some cable operators on the ground that implementation of CAS might upset cable TV consumers of the National Capital Territory.

With Delhi’s aam junta (hoi polloi) totally clueless on what CAS is all about — apart from what has been fed to them by politicians and the media — scepticism is bound to run all across on something new, which is not part of the basic infrastructure that is severely lacking here and making daily life that much more worrisome.

And, the Congress-led Delhi government, trying to battle its own intra-party differences on demolition of illegal constructions all over Delhi (as directed by Delhi HC) that has left the denizens of the Capital fuming, the will to immediately implement another court order (on CAS) is definitely lacking.

It would also be interesting to see how New Delhi could read the Delhi court order, which is not as simple as is being made out by many industry stakeholders — the benefits of CAS or addressability, notwithstanding.

For the I&B ministry to plan a rollout of CAS as per the court order, it has to first revoke an executive order that suspended implementation of CAS.

Now, here is the piece de resistance: the court order is silent on the fact whether addressability should be introduced, as per the prayer of the petitioners, ONLY in the south zones of the metro cities of Kolkata, Delhi, Chennai in Tamil Nadu and Mumbai in Maharashtra or the whole of the cities.

After revoking an earlier notification, the federal government can stick to CAS’ introduction only in the south zones of the metros or interpret the court order as rollout in the whole of the cities. A clarification on the interpretation hasn’t been sought yet by the I&B ministry as there is a section that feels an appeal should be made against the present court order.

If the government goes in for an appeal, which can turn out to be time consuming, then the timing of it would also be important. It can just be that the ministry goes in for an appeal one day ahead of the month-long court-mandated deadline.

As things stand today, the government is keeping things fluid — deliberately so — to weigh all options, including the biggest challenge: political compulsions.

March 14, 2006