Prepaid model for cable TV subscribers soon

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Gagan

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New Delhi: A prepaid model for cable TV subscriptions, itemised computer-generated billing for consumers, a choice of 50-100 free-to-air channels in the basic pack, mandatory helpline numbers and transparent revenue-sharing formula between multi-service operators and local cable firms are among a host of revolutionary changes that are set to be announced by the Telecom Regulatory Authority of India (Trai) this week.
These measures will form a part of the much-awaited recommendations from Trai on the implementation of the Digital Addressable Systems (DAS) for cable television as mandated by the government in November 2011. Delhi, Mumbai, Kolkata and Chennai are set to roll out DAS in next 80 days.

Most stakeholders have supported aping the telecom model for the payment of monthly cable subscriptions, i.e., allowing prepaid scratch cards, secure online payment gateways and mobile banking services for consumers under DAS, which kicks-off in the metros from July 1.

For nearly 500 million cable viewers, this would mean a freedom to choose channels and paying for them directly to the service operators. For the various stakeholders like cable operators, service operators and broadcasters, this would mean upfront cable revenue from each subscriber, which will lead to realisation of up to 100% cable subscription collection from the 110 million cable homes.

The move is aimed at bringing in transparency under the proposed mandatory digitalised cable regime and also to plug the rampant leakage in the R17,500-crore cable subscription market of which only R3,500 crore actually reaches the broadcasters and multi-service operators (MSOs).

Under DAS, all cable consumers would need a digital addressable set-top box to access television channels. Also, all private channels under DAS will become encrypted, which means they cannot be accessed without a set-top box.

The four-phase mandatory DAS will cover metros (from July 1, 2012), large towns (by March 31,2013) and rest of India (by December 31, 2013). For consumers, DAS will mean access to 400 digital quality channels, internet usage bundled with cable services, HD channels, value-added services and many more facilities at a nominal cost.

Trai is also expected to announce shifting of the billing and collection of money from local cable operators (LCO) to MSOs. The telecom and broadcast regulatory is also expected to favour a half-yearly subscriber audit by MSOs and broadcasters and mandatory furnishing of cable subscribers numbers to Trai.

Trai may also favour the commercial portability of DAS set-top boxes as it will help consumers retain their boxes even if they shift residence anywhere in the country. As a result, consumers would only require a one-time purchase of the boxes and the freedom to choose their cable service provider.

Such benefits are currently not available to DTH subscribers who need to buy a new DTH box if they change their service provider.
http://www.financialexpress.com/news/prepaid-model-for-cable-tv-subscribers-soon/935288/0
 
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