The Hindu : Cable operators' new offer

Online edition of India's National Newspaper
Sunday, Jun 22, 2003

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Cable operators' new offer

By Our Special Correspondent

NEW DELHI JUNE 21. Taking on the broadcasters over the Conditional Access System (CAS), Multi-System Operators (MSOs) and cable operators today joined hands to offer cable television — including pay channels — to subscribers for a maximum of Rs. 250 a month; a figure that does not include the cost of Set-Top Boxes (STBs).

Though this still exceeds the Rs. 200 monthly bill promised by the Minister of State for Information and Broadcasting, Ravi Shankar Prasad, post-CAS, it is half the price quoted by broadcasters earlier this week.

Soon after announcing their rates, the MSOs and cable operators urged the Government to put a cap on the maximum a broadcaster can charge for a pay channel.

While Siti Cable announced an introductory offer of Rs. 128 for all pay channels to CAS-enabled viewers, other MSOs and cable operators said they would offer the same for Rs. 150; the argument being that since Siti and Zee came from the same stable this MSO was in a greater position to adjust distributor margins than other service providers.

Since Entertainment Tax varies from city to city, the actual cost to the consumer would vary. Siti's package of free-to-air and pay will be available for Rs. 200 plus taxes while the other MSOs have worked out a price of Rs. 222 plus taxes.

As for the cost of STBs — needed to access pay channels post-CAS — the argument provided was that monthly rentals would not be charged if the subscriber opted for the security deposit scheme.

Apart from Sony — which is keeping its cards close to its chest and is said to be in discussion with Siti Cable/Zee — the two other big broadcasters, Star and ESPN-Star Sports, have refused to accept the rates quoted by the MSOs.

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Cable operators' new offer