The Telecom Regulatory Authority of India (TRAI) is looking for several options to work on voluntary implementation of conditional access system in non-notified areas. A report

The Telecom Regulatory Authority of India (TRAI) has forwarded a report on "Digitalization and Introduction of Voluntary CAS in Cable TV network in India" along with the comments of stakeholders to Ministry of Information and Broadcasting to bring about addressability in the cable TV sector.

Major recommendations in the Group's report suggest that voluntary CAS would be a non-starter unless the date from which CAS is to be implemented is mandated by the government, 55 cities in the country i.e. all state capitals, and all other cities with a population of one million and above, have been identified for this purpose, dates of roll out of CAS for these identified cities to be notified in advance by the Government of India in one go, and the 55 identified cities may be covered in phases over a time frame spread over three years from October 2008 to September 2011.

CAS seems to be beneficial for viewers, broadcasters, cable TV operators and advertisers as it gives the freedom of choice to consumers, makes the system transparent, and improves the quality of service leading to better administration and healthy competition. CAS helps the broadcasters to know the exact number of subscribers a cable operator has and allows them to price their channels according to their popularity. The cable industry is desperate to implement CAS in areas such as Delhi, Mumbai, and Kolkata.

Pay channel broadcasters have filed the information with TRAI indicating the a-la-carte rates and bouquet rates of their channels. In order to ensure that the MSOs and cable operators get the content in a non-discriminatory manner, it is necessary for them to know the rates declared by the broadcasters.

CAS and broadcasters

In the absence of addressability, broadcasters have been able to push their content only at a high price. It is also important to note that the operators have not disturbed such a non-addressable system as they under-report the subscriber base, to the broadcaster and the Government. in a mandated CAS scenario, the revenue share arrangements implemented by TRAI (between the broadcasters, MSOs and the LCOs) require that the broadcasters and the operators make accurate declarations, apart from maintaining high quality of standards.

CAS significance

Rolling out of CAS on digital networks has been the most significant step to implement order in the marketplace and remove some of the vagaries in cable distribution such as - unequal bargaining powers amongst various players, under-declaration of subscriber base, rampant disconnection disputes, numerous billing and payment disputes, allegations of discriminatory practices in pricing and unfair trade practices. The framework should clearly define the time lines during which voluntary efforts would be facilitated and the kind of regulatory framework that would be available during such period. Broadcasters and MSOs are also free to implement CAS in cities other than identified cities on voluntary basis.
It is apparent from the experience of the stakeholders that CAS is beneficial in the long term as it brings transparency and accountability into the industry and offers choice to the consumers. It is also observed that voluntary implementation of CAS without a timeframe and determinable yardstick to monitor the same could lead to dissipation of a well-intended objective.

Your views on the need for digitalization and introduction of voluntary CAS

As you know that CAS is partly implemented in four metros, it is in a very bad shape. Around 700000 subscribers have already opted CAS. So it is suggested that voluntary CAS should be allowed in country and that more efforts need to be made. Presently there are about 76 million subscriber of cable TV in India. As per my knowledge there are about 66000 cable operators in country. It is very difficult to convert to digital immediately because it requires a huge amount of investment, approximately Rs. 40,000 crore.

Your views on the major role that the government should play to expedite CAS

The government must allow the FDI investment to more than 74 percent in Cable TV business and announce the status of industries so that more financial institutions can take part in this sector.

On the recent a-la-carte and bouquet rates of the pay channels by broadcasters in non-CAS areas.

The policy should be same for any content delivery of video, voice and data. Be it IPTV, digital or analog cable TV, DTT or DTH, the rate must be uniform.

Your views on the consumer dilemma over CAS, and a shift towards DTH.

There is no competition of Cable TV with DTH. I believe that cable TV is more powerful than DTH. Cable TV is two way transmission and can provide more value added services.

Key factors that are set to impact the cable TV sector in India

There is a need to introduce value added service in this sector such as VOIP, VOD, NVOD, MOD, Internet and more value added services.

On the future of CAS in India

The future of conditional access system is bright in India because after digitalization in the country, everything would come with a set top box and there will be an increased viewership.