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Vashi2Panvel.Com: Navi Mumbai: August 14: Home entertainment goes retail! So how does the consumer benefit? A cranked up direct-to-home (DTH) platform and digitized cable content will get you the finest content, sound and picture quality. The Ministry of Information and Broadcasting has issued a Notification for the implementation of Conditional Access System (CAS) in the notified areas by December 31, 2006. The ball is in the consumers’ court now as it is on them to decide whether they want to stick to their old cable operators or start an alliance with any of a slew of new services. All of them guarantee to give you hundreds of channels, with clear transmission quality, pay-per-view films and programmes, and a whole set of choices until now unknown to the Indian television viewer. Better than the routine cable providers? Still uncertain.

The cable operators in Navi Mumbai have diverse opinion on the issue. “The consumers will be shelling out more money, in the form of entertainment taxes and other hidden costs. This will burden the consumer at the end leading to more monthly expenses,” says Raghu Ardevgar, Balaji Cable Network.

Others feel that the Conditional Access System will benefit the customers. “This latest implementation will be very profitable for the customers as they will have to pay only about Rs 150-180 per month which will include the free channels and around 7-8 paid channels of their choice,” opines Rajesh Wadhwa, Shivani Cable Networks. “There are chances that these paid channels will become free in the future which will add up to the gains of the consumers,” he adds. It is a double jeopardy situation for the cable operators! “The proposal will make things legal saving us from incessant blackmailing by the paid channels. It is a good move but the loss that we will incur from losing out on customers who might opt for DTH would be great,” says Deepak Rahat, Direct cable, Vashi.

The Navi Mumbai customers have been caught unawares by this latest announcement by the broadcast ministry. However, they are not very sure of the implications on them, whether positive or negative. “The Dish TV is presently offering a package of 75 channels for Rs.180 and this does not include pay channels. If you add up the cost of pay channels to this it will amount to Rs 200-250 which is costlier than the current cable charges, Rs 200,” says Sajid M, a Nerul resident. Contrary to this, others feel that DTH would be a better solution. “It is quite evident that DTH would be a cheaper option than the present cable network. We will have picture clarity and all the channels would be of our choice,” says Sagar Thakkar, a Vashi resident.

“Things will be clear once the proposal is on the roll, till then it is tough to comment if it is profitable or not,” says Garima Pandey, a C.B.D. resident.

Smriti Mishra

Already, select cable operators have begun to shift from the analog format (which is what you watch) to the digital in a bid to protect their territory. However, the big news is the direct to home (DTH) format to leverage its superior technology and woo away discerning customers from cable. DTH is not new but it is the biggest thing that is happening to television viewing. Television viewers will get another taste of independence as Tata-Sky (a joint venture between Tata and Star TV) hits the markets with its DTH platform, ending the two-year monopoly of Subhash Chandra’s Dish TV (which has 1.3 million subscribers in the private DTH platform space, so far restricted to non-metros). At an introductory price of Rs 2,999 as upfront charges, and Rs 200 a month for 55 channels, Tata-Sky has already brought the battle straight into the cable operators’ court.

Some Basic Information:
Identifying the set-top box (STB) as the major reason for the opposition to the introduction of the Conditional Access System (CAS), the Telecom Regulatory Authority of India (TRAI) has suggested that STBs be offered on rent or lease to ensure that the consumer is not "tied to the box".
Dish TV has offered a monthly Direct To Home of Rs 180 for 75 channels apart from a one-time installation charge of Rs.3200.

Tata Sky is providing 55 channels at Rs.200/month. Plus, there is, with Rs 2990 being the price of Set Top Box (STB) that one needs to unscramble satellite signals and view programmes.

However cable operators believe that the real price of DTH is understated in the above numbers. There is an entertainment, licence fee 10% and sales tax so the expense for all channels on Dish TV would come to Rs 412 per month. This is without the star bouquet. Tata Sky’s offer with installation of STB would amount to Rs 4000. With taxes, the monthly bill a customer has to shell out is Rs 290 and that’s without the Zee bouquet.

CAS schedule
With CAS scheduled to roll out in Delhi, Mumbai and Kolkata on January 1, 2007, the Authority, which is doubling as the regulatory mechanism for the broadcast media, on Tuesday came out with a draft tariff package for STBs. The tariff order will be finalised after August 23 — the deadline set for stakeholders to air their views on the suggested packages.

Monthly rental scheme
In the monthly rental scheme with security of Rs. 999 per STB, the rent has been pegged at Rs. 30. The plan without security deposit entails a monthly rental of Rs. 45. These rates are applicable only to digital boxes. For analogue boxes, the rental has been fixed at Rs. 23 per month. In both options, there will be no installation, activation and maintenance charges.