Cable TV operators want laws changed

Kolkata-based Cable TV Equipments Traders & Manufacturers Association (CTMA) would like the central and West Bengal government to make necessary legislative changes for smooth, seamless and speedy implementation of digitization permitting installation of addressable systems, in order to empower the consumer for Conditional Access System (CAS) on the cable TV platform.

At a press conference in Kolkata, Binod Sancheti, president of CTMA, said, "The cable TV industry should be placed under the infrastructure vertical, thereby enabling all relevant tax exemptions, priorities and rebates as applicable under the Income Tax Act and other statutory enactments."

The association has also asked for customs duty waiver for all imports relating to digitization. The cable TV industry is estimated at around Rs 55,000 crore currently, employing over 30,000 people.

The sector dealt with broadband with Internet for data, video and voice, software, hardware equipment, service industry, entertainment and other value-added services.

Digitization, growth of broadband services and convergence were seen as the three major areas set to affect the future of the Indian cable TV sector.

The Indian cable TV Industry was currently migrating from the pre-dominantly analog system to digital format mainly through the voluntary efforts towards digitalization and introduction of limited Conditional Access System (CAS).

"The government should expedite the CAS process and streamline the tax structure, in the wake of converging technologies, to bring the cable TV sector to a level playing field with the DTH and telecom sector," said K K Binani, secretary, CTMA.

According to Sancheti, "The government's decision to complete digitization of cable TV broadcast by 2010 would help the cable operators offer more choice and services to the customers, up to ten times the number of current channels, over the current pre-dominant analog system that allows 108 channels only."

Moreover, cut in bandwidth rates would help cable operators to provide extensive broadband services through its cable network to the end users.

This would need massive upgradation of the networks involving huge capital infusion.

According to Sancheti, government policies currently favoured the direct-to-home (DTH), IT and telecom sector especially in the areas of taxation or providing institutional support.

This lack of level-playing field has put the Indian cable industry sector in a tight corner.

"If the government brings down the import and excise duties along with VAT on capital equipment used for cable TV industry from 12 per cent to four per cent or at par with the telecom and IT sectors, the cable TV industry would be in a position to pass on the benefits to the customers and become more competitive. It is long due and the government should grant `industry' status to the cable sector just as it did for the film industry," Sancheti added.

The Telecom Regulatory Authority of India (Trai), in its consultation paper on convergence, had suggested that the cable TV Industry should be allowed parity with the telecom sector since cable TV networks were only the carriage platform for delivering voice and data just like copper or fibre being used by telecom companies.

Trai said it had observed that in the era of convergence, the distinction between voice, internet and video was getting blurred.

"CTMA supports the government's regulatory and CAS rollout initiatives since it would bring the cable TV (CATV) industry under a proper regulatory regime and structure. But the government should expedite the process and extend support to the cable industry which would require huge investments at the cable operator's end in set top box, head ends, software management systems and encryption technology while implementing CAS. Cable industry, like the mobile handset industry, has huge potential for a separate hardware segment involving set top boxes and related software solutions," Sancheti said.

The Cable TV Show 2008 (CATV 2008), one of the largest shows on satellite and cable television in India and the Saarc region, would be hosted for three days at Kolkata by CTMA from January 28.

According to Pawan Jajodia, chairman of the exhibition committee of CTMA, "The cable TV show has emerged as one of the biggest cable industry events in India. Products and services of over 45 international vendors, representing USA, Europe, Taiwan, China, Hong Kong, Dubai, Korea and Saarc countries, are showcased at the Cable TV Show. Top representatives of some of the leading broadcasting companies, MSOs and cable companies would participate in the Show."

Jajodia said, "We are expecting nearly 10,000 cable operators, traders, manufacturers, channel partners, distributors, broadcasters and MSOs from across India, Bangladesh, Bhutan and Nepal to attend the Cable TV Show 2008. The number of footfalls during the three-day show is expected to touch 30,000. There would be 100 stalls and pavilions this year showcasing a wide array of products, services and solutions".