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The ministry of information and broadcasting (I&B) issued new rules to further amend the Cable Television Networks Rules, 1994, in view of the 30 June deadline for the digitization of cable television networks in Delhi, Mumbai, Kolkata and Chennai.
The cable rules will provide the framework for digitized cable networks to provide services. In August 2010, the government ordered the switch to digital from analogue cable in a phased manner. The new rules took effect on 28 April.
The new rules say local cable operators and multi-system operators (MSOs), or large cable networks, have been directed to ensure they have the capacity to carry a minimum number of channels as specified by the Telecom Regulatory Authority of India (Trai).
“As of now, according to cable company executives, operators carry a minimum of 200 channels. This may increase to almost 300 channels, and later to 500 channels by January 2013,” said a person familiar with the development.
The push for digitization is aimed at plugging the gaps in the system through what is known as addressability, or ensuring that all subscribers are accounted for, besides improving telecast quality. By minimizing revenue leakage, the government can also ensure it gets the taxes it is owed.
The new rules also seek to protect the interests of subscribers by stipulating that cable operators have to set up grievance systems to deal with customer complaints. Subscribers can also choose to opt out of services provided by the local cable operator, or MSO, if dissatisfied.
The rules also specify that a subscriber is free to buy a set-top box (STB) of approved quality from the open market as long as it’s compatible with the MSO’s system. “The multi-system operator or the cable operator shall not force any subscriber to buy or to take on rent the set-top box from him alone,” as per the rule.
Subscribers will get a full refund of the security deposit (if any on the STB) when leaving the service area of the MSO.
The new cable rules also redefine procedures for MSOs, which will have to pay a processing fee. There is no change in the fee for registering as a local cable operator. MSOs will register with the central government, while local cable operators will remain registered with the head post office closest to them and within their coverage area.
In the next round, cities with a population of more than one million have to adopt digitization by 31 March 2013. The deadline for complete digitization in urban areas is 30 September 2014, while the entire country is expected to achieve digitization by 31 December 2014.
Late on Monday, Trai announced the new tariff order as per which television viewers will soon get to choose a minimum of 100 free-to-air (FTA) channels at a maximum retail price of Rs. 100. Cable operators will have to mandatorily offer a basic service tier (BST) to viewers throughout the country. The basic service tier would consist of 100 FTA channels including 18 mandatory Doordarshan channels plus the Lok Sabha channel.
The Trai tariff order lays down that, apart from the mandatory channels in BST, cable operators and MSOs will have to provide customers a minimum of five channels of different genres.
“BST shall be mandatorily offered by the cable operator. However, it will be optional for the consumer to subscribe,” Trai said in its tariff order.
Customers can also choose another option which includes some pay channels and pay a monthly price of up to Rs. 150, the Trai rules state. “If the total value of the channels/ bouquets opted by the subscriber exceeds Rs. 150, only then actual subscription charges has to be paid,” a press release issued by Trai said.
Jagjit Singh Kohli, CEO, DigiCable, a cable distribution firm, said, “The new rules meet our expectations.” On the new tariff order, he said, “We still need to read the fine print before commenting on the impact of the order.”
“Market forces should determine prices, as in the case of DTH right now,” said Devendra Parulekar, partner at consultancy Ernst and Young. “The price ceiling that the cable industry can charge is determined today by the DTH industry....consumers are not being forced to pay for any one source of content. Therefore, market forces should determine pricing. Why should Trai dictate prices?”
Source :
The cable rules will provide the framework for digitized cable networks to provide services. In August 2010, the government ordered the switch to digital from analogue cable in a phased manner. The new rules took effect on 28 April.
The new rules say local cable operators and multi-system operators (MSOs), or large cable networks, have been directed to ensure they have the capacity to carry a minimum number of channels as specified by the Telecom Regulatory Authority of India (Trai).
“As of now, according to cable company executives, operators carry a minimum of 200 channels. This may increase to almost 300 channels, and later to 500 channels by January 2013,” said a person familiar with the development.
The push for digitization is aimed at plugging the gaps in the system through what is known as addressability, or ensuring that all subscribers are accounted for, besides improving telecast quality. By minimizing revenue leakage, the government can also ensure it gets the taxes it is owed.
The new rules also seek to protect the interests of subscribers by stipulating that cable operators have to set up grievance systems to deal with customer complaints. Subscribers can also choose to opt out of services provided by the local cable operator, or MSO, if dissatisfied.
The rules also specify that a subscriber is free to buy a set-top box (STB) of approved quality from the open market as long as it’s compatible with the MSO’s system. “The multi-system operator or the cable operator shall not force any subscriber to buy or to take on rent the set-top box from him alone,” as per the rule.
Subscribers will get a full refund of the security deposit (if any on the STB) when leaving the service area of the MSO.
The new cable rules also redefine procedures for MSOs, which will have to pay a processing fee. There is no change in the fee for registering as a local cable operator. MSOs will register with the central government, while local cable operators will remain registered with the head post office closest to them and within their coverage area.
In the next round, cities with a population of more than one million have to adopt digitization by 31 March 2013. The deadline for complete digitization in urban areas is 30 September 2014, while the entire country is expected to achieve digitization by 31 December 2014.
Late on Monday, Trai announced the new tariff order as per which television viewers will soon get to choose a minimum of 100 free-to-air (FTA) channels at a maximum retail price of Rs. 100. Cable operators will have to mandatorily offer a basic service tier (BST) to viewers throughout the country. The basic service tier would consist of 100 FTA channels including 18 mandatory Doordarshan channels plus the Lok Sabha channel.
The Trai tariff order lays down that, apart from the mandatory channels in BST, cable operators and MSOs will have to provide customers a minimum of five channels of different genres.
“BST shall be mandatorily offered by the cable operator. However, it will be optional for the consumer to subscribe,” Trai said in its tariff order.
Customers can also choose another option which includes some pay channels and pay a monthly price of up to Rs. 150, the Trai rules state. “If the total value of the channels/ bouquets opted by the subscriber exceeds Rs. 150, only then actual subscription charges has to be paid,” a press release issued by Trai said.
Jagjit Singh Kohli, CEO, DigiCable, a cable distribution firm, said, “The new rules meet our expectations.” On the new tariff order, he said, “We still need to read the fine print before commenting on the impact of the order.”
“Market forces should determine prices, as in the case of DTH right now,” said Devendra Parulekar, partner at consultancy Ernst and Young. “The price ceiling that the cable industry can charge is determined today by the DTH industry....consumers are not being forced to pay for any one source of content. Therefore, market forces should determine pricing. Why should Trai dictate prices?”
Source :
Code:
http://www.livemint.com/2012/04/30232601/IampB-ministry-issues-new-gu.html
