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For most of those living in the metros – Delhi, Mumbai, Kolkata and Chennai, the way you watch (and pay) for television will change considerably from 1st July 2012. The Cable Television Networks (Regulation) Amendment Act comes into effect, and all analog cable TV signals will be switched off and the digital signals will replace them. In effect, just like Direct To Home (DTH) and existing Digital Cable services, you will need a set top box to receive the digital signals.
What are the upgrade timelines?
The analog signals will switch off in the metro cities on the midnight of 30st June 2012. There will be two more phases of rollout, which will cover the entire country by 31st December 2012.
But what does this mean for the consumer?
Quite a lot actually - some things are good and one slightly bad!
First off, the number of channels that you get increases massively. On the current analog system, technically about 200 channels can be broadcast. However, in the real world scenario keeping issues like quality of wiring, signal drops due to distance etc., usually you get 90 – 100 channels that are watchable. On a digital network, the operator will be able to offer anywhere between 400 channels to 700 channels.
Secondly, the picture quality will see a huge improvement. Gone will be the days when fuzzy picture with all sorts of vertical and horizontal disturbance running across the screen will be tolerated.
Third is the ability to tailor the channel package more to your needs. All channels will be available on an ala-carte basis, meaning you can pick up channels individually as well.
Fourth and very critically, cable operators will be able to offer High Definition channels to subscribers, something they couldn’t do at the moment (except Hathway’s Digital service).
The caveat here is – you will need to buy a set top box from your cable service provider to continue using the service. This will cost anywhere between Rs 700 and Rs 2000, and will be offered with the option of complete up-front payment or part payment and part EMIs. Without this box, you will not be able to watch television, not even free to air channels (FTA).
TRAI recommendations:
To begin with TRAI has mandated that all Multi Service Operators (MSOs) carry a minimum of 200 channels from the beginning. This number has to be bumped up to 500 channels by 2013. Also, subscribers will have to be offered 100 free-to-air channels as a basic pack – Basic Service Tier, if they wish to subscribe to that, at a minimum of Rs 100, carrying all 18 Doordarshan channels and five channels of each genre - news, sports, infotainment, music, lifestyle, movies and general entertainment. Also, TRAI states that a set top box should cost Rs 1500, with the customer paying Rs 850 up front, and the rest in installments. There will be a 1-year warranty on the hardware.
What does this mean for the LCOs and the bigger MSOs?
First and foremost, both the MSO and the regional cable operators will have to upgrade the hardware at their end – digital signal reception, decoding and forwarding to the local cable operator who services the area around your home, as well as upgrade to fiber optic cable throughout the service area.
The second critical element is the channel packages. Instead of all channels at a flat rate, cable operators will have to go the DTH way and offer basic packs, as well as optional add-on packs.
For quite a while now, many of the concerned parties had been cribbing that cable operators are in the habit of underreporting subscribers and eating into what would have been due to the broadcaster and the government as tax. All that will get sorted, now that every television will have a set top box registered to it.
What does this mean for DTH operators?
At the moment, all DTH operators are struggling to reach the number of channels that a cable network will be able to offer post digitalization. Satellite transponder space is quite scarce, and most DTH operators are being very careful about what channels they add, keeping some channel space for future channel additions. This will be solved to a certain extent by 2015, post the launch of some satellites carrying Ku- band transponders.
Secondly, DTH will not have the exclusivity for value-add features like video on demand and pause-play and record live TV (with DVR / recorder set-top boxes) anymore. Over a period of time, expect the cable operators to add these services to their packages. However, these might take some time, particularly since it involves additional infrastructure at the operators’ end and expensive hardware at the consumer’s end.
At the moment, the cable operators are under pressure to tailor channel packages at prices that remain affordable for the masses. On the other side, DTH operators are also adopting a wait and watch strategy to see how this compares to the packages they offer, but with a sense of optimism.
Cable operators will have the ability to customize channel offerings according to the subscriber base – area, language, etc. based on the regional demographic that will allow them to keep costs down, while DTH cannot do anything except offer pan-India packages.
Where the government should step in
What hurts DTH operators even more is the current tax structure. And in turn cripples them in face of the competition from the cable operators, who will be able to offer services at competitive (read: possibly lower) rates to the consumer. The problem for DTH operators is compounded when individual state governments levy more taxes on them.
What does this mean for the broadcaster?
Very simply – more money in the kitty! Some would say it had been a long time coming, considering it has been alleged that cable operators have been underreporting subscribers for a long time. The dependence of channels on advertising will slightly come down, as the subscriber revenue will go up.
Secondly, TRAI has made it mandatory for Multi Service Operators (MSOs) and Local Cable Operators (LCOs) to declare the carriage fees that a broadcaster will pay them to carry the channel on the platform. At the moment, that is largely not being done.
What are the options for the customer?
For someone who is currently on the cable TV network, you can either continue with the same service. You will need to contact your cable operator for the set top box. While TRAI has guidelines for the basic set top box price and payment structure, upgraded hardware (like HD box or DVR) will surely see customized offers from operators - unique schemes to reduce the immediate financial burden on the subscriber.
Alternatively, you can switch over to a DTH connection. DTH operators are offering hardware and bundled free viewing period for a variety of packages. Post that, you can choose from a variety of channels packages and add-ons. Here is a lowest indicative price of the hardware some of the leading DTH operators offer:
Airtel: Standard STB: Rs 1590, HD STB: Rs 2890, HD Recorder (DVR): Rs 5990
Tata Sky: Standard STB: Rs 1410, HD STB: Rs 2610, HD+ (DVR): Rs 5710
Videocon D2H: Standard STB: Rs 1690, HD STB: Rs 2890
Dishtv: Standard STB: Rs 1390, TruHD Plus STB: Rs 2690
If you are a DTH user at the moment, but are not satisfied for some reason, you just might find the upgraded cable TV services premium enough to shift back!
Via ThinkDigit
What are the upgrade timelines?
The analog signals will switch off in the metro cities on the midnight of 30st June 2012. There will be two more phases of rollout, which will cover the entire country by 31st December 2012.
But what does this mean for the consumer?
Quite a lot actually - some things are good and one slightly bad!
First off, the number of channels that you get increases massively. On the current analog system, technically about 200 channels can be broadcast. However, in the real world scenario keeping issues like quality of wiring, signal drops due to distance etc., usually you get 90 – 100 channels that are watchable. On a digital network, the operator will be able to offer anywhere between 400 channels to 700 channels.
Secondly, the picture quality will see a huge improvement. Gone will be the days when fuzzy picture with all sorts of vertical and horizontal disturbance running across the screen will be tolerated.
Third is the ability to tailor the channel package more to your needs. All channels will be available on an ala-carte basis, meaning you can pick up channels individually as well.
Fourth and very critically, cable operators will be able to offer High Definition channels to subscribers, something they couldn’t do at the moment (except Hathway’s Digital service).
The caveat here is – you will need to buy a set top box from your cable service provider to continue using the service. This will cost anywhere between Rs 700 and Rs 2000, and will be offered with the option of complete up-front payment or part payment and part EMIs. Without this box, you will not be able to watch television, not even free to air channels (FTA).
TRAI recommendations:
To begin with TRAI has mandated that all Multi Service Operators (MSOs) carry a minimum of 200 channels from the beginning. This number has to be bumped up to 500 channels by 2013. Also, subscribers will have to be offered 100 free-to-air channels as a basic pack – Basic Service Tier, if they wish to subscribe to that, at a minimum of Rs 100, carrying all 18 Doordarshan channels and five channels of each genre - news, sports, infotainment, music, lifestyle, movies and general entertainment. Also, TRAI states that a set top box should cost Rs 1500, with the customer paying Rs 850 up front, and the rest in installments. There will be a 1-year warranty on the hardware.
What does this mean for the LCOs and the bigger MSOs?
First and foremost, both the MSO and the regional cable operators will have to upgrade the hardware at their end – digital signal reception, decoding and forwarding to the local cable operator who services the area around your home, as well as upgrade to fiber optic cable throughout the service area.
The second critical element is the channel packages. Instead of all channels at a flat rate, cable operators will have to go the DTH way and offer basic packs, as well as optional add-on packs.
For quite a while now, many of the concerned parties had been cribbing that cable operators are in the habit of underreporting subscribers and eating into what would have been due to the broadcaster and the government as tax. All that will get sorted, now that every television will have a set top box registered to it.
What does this mean for DTH operators?
At the moment, all DTH operators are struggling to reach the number of channels that a cable network will be able to offer post digitalization. Satellite transponder space is quite scarce, and most DTH operators are being very careful about what channels they add, keeping some channel space for future channel additions. This will be solved to a certain extent by 2015, post the launch of some satellites carrying Ku- band transponders.
Secondly, DTH will not have the exclusivity for value-add features like video on demand and pause-play and record live TV (with DVR / recorder set-top boxes) anymore. Over a period of time, expect the cable operators to add these services to their packages. However, these might take some time, particularly since it involves additional infrastructure at the operators’ end and expensive hardware at the consumer’s end.
At the moment, the cable operators are under pressure to tailor channel packages at prices that remain affordable for the masses. On the other side, DTH operators are also adopting a wait and watch strategy to see how this compares to the packages they offer, but with a sense of optimism.
Cable operators will have the ability to customize channel offerings according to the subscriber base – area, language, etc. based on the regional demographic that will allow them to keep costs down, while DTH cannot do anything except offer pan-India packages.
Where the government should step in
What hurts DTH operators even more is the current tax structure. And in turn cripples them in face of the competition from the cable operators, who will be able to offer services at competitive (read: possibly lower) rates to the consumer. The problem for DTH operators is compounded when individual state governments levy more taxes on them.
What does this mean for the broadcaster?
Very simply – more money in the kitty! Some would say it had been a long time coming, considering it has been alleged that cable operators have been underreporting subscribers for a long time. The dependence of channels on advertising will slightly come down, as the subscriber revenue will go up.
Secondly, TRAI has made it mandatory for Multi Service Operators (MSOs) and Local Cable Operators (LCOs) to declare the carriage fees that a broadcaster will pay them to carry the channel on the platform. At the moment, that is largely not being done.
What are the options for the customer?
For someone who is currently on the cable TV network, you can either continue with the same service. You will need to contact your cable operator for the set top box. While TRAI has guidelines for the basic set top box price and payment structure, upgraded hardware (like HD box or DVR) will surely see customized offers from operators - unique schemes to reduce the immediate financial burden on the subscriber.
Alternatively, you can switch over to a DTH connection. DTH operators are offering hardware and bundled free viewing period for a variety of packages. Post that, you can choose from a variety of channels packages and add-ons. Here is a lowest indicative price of the hardware some of the leading DTH operators offer:
Airtel: Standard STB: Rs 1590, HD STB: Rs 2890, HD Recorder (DVR): Rs 5990
Tata Sky: Standard STB: Rs 1410, HD STB: Rs 2610, HD+ (DVR): Rs 5710
Videocon D2H: Standard STB: Rs 1690, HD STB: Rs 2890
Dishtv: Standard STB: Rs 1390, TruHD Plus STB: Rs 2690
If you are a DTH user at the moment, but are not satisfied for some reason, you just might find the upgraded cable TV services premium enough to shift back!
Via ThinkDigit
