The Ministry of Information & Broadcasting seems to be backtracking on making Conditional Access System (CAS) mandatory. After being operational in select parts of Delhi, Mumbai, Kolkata, and Chennai for over three years, the ministry is deliberating on making the rollout of CAS voluntary across the country.

Such a move will slow down the digitization of cable TV distribution in India and impact MSOs who have invested in servicing existing CAS areas. Voluntary CAS is a non starter as only the mandatory introduction of CAS is likely to produce structural corrections required in the cable TV industry. Consumers, on the other hand are opting for other competing delivery platforms like DTH and IPTV. Broadcasters too prefer the voluntary CAS system as in this they sense the demise of CAS. Broadcasters have regulated and unremunerative tariffs under CAS.

The equipment and technologies for Mobile TV are readily available and services can be rolled out within a year. The Commonwealth Games 2010 could provide an opportunity for these services. Challenges include establishing a technology neutral policy, examining alternative business models for Mobile TV, and making Prasar Bharati's infrastructure available for sharing with private service providers. Specifically, the technology developers feel that there is a need for creating Mobile TV specific content, as well as handsets that can support multiple technologies. To enable an early launch of Mobile TV services, policy support from the Government in the form of implementation of TRAI recommendations is required. An immediate identification of some slots in the 700 MHz band will need to be made, which could later be auctioned on the lines of FM spectrum auction.

DTH service providers are seeing rural subscribers and tier-II cities continuing to provide the requisite impetus to this sector. The target of twenty million DTH households by March 2010 is now a distinct possibility.

Broadcast India 2009 is scheduled to be held from October 29–31 in Mumbai. We have a display booth at the event and look forward to seeing our readers at the show.