Cable TV to cost more

[iS THAT ME]

INDORE : Cable TV subscribers, whose number may well run into millions in the state, are in for bad times. Cable operators may pull the plug on subscribers next month to protest higher entertainment tax by stopping beaming programmes. They have yet to take a decision to this effect, sources said. By conservative estimates, there are 5,000 operators in the state.

They are also considering increasing cable connection charges to pass on the burden to subscribers.

At a meeting on Friday, MSOs decided to go ahead in a strategic manner. They would submit a representation to the state government. If nothing happens, they would either stop beaming programmes or increase monthly subscription charges.

Currently, the cable operators are charging Rs 250 per month, which may go up to Rs 300. DTH players are charging Rs 150 and above, which is less than cable operators' charges.

Though 20% entertainment tax, in case annual sales turnover of the multi service operators (MSOs) exceeded Rs 5 lakh, came into effect in the state from April 1 last year, it was not implemented. The cable operators had approached the Madhya Pradesh High Court, which granted the stay. However, the stay was vacated on Thursday.

Simply put, all MSOs would have to pay entertainment tax of 20% from the due date besides a service tax of 10.3%. Earlier, the cable operators in the state were paying a measly Rs 20 per cable connection per month to the state government as entertainment cess. The cable operators see the state government's move as a threat to their existence as they are already finding it hard to compete with DTH operators having deep pockets.

Talking to ToI, an executive of Digi Cable, said we can't pass on the burden of increased entertainment tax to our subscriber as we may lose the battle to DTH operators. We are doing our job as the state-owned TV channels services are not just enough to cater to entertainment-related needs of the people. Forget entertainment, we also provide information, news and other related services to our customers. Now, when the state government has imposed additional entertainment tax on us, why it doesn't do the same in case of telecom providers that provide entertainment to cellphone subscribers through SMS and dial tones, he added.

Source : TOI

 

[iS THAT ME]

RE: Get ready to shell out more to cable guy

Although, i dont understand what the fuss is all about...they will be bound to go for digitization in a few months to a year...

 

[Greatkarthik]

But in tamilnadu they introduced govt cable. It costs 70rs per month.

 

[Pugazhbalaji]

100 rs per month in our area.

 

[iS THAT ME]

Yeah, in my area, it starts at 140 bucks and its there upto 250 bucks...

They provide at cheap rate only because they share connections, like one connection for more than one person. But ideally, it cant be less than 250 bucks