Cable association wants rate caps to go

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New Delhi, Mar 17: The Cable and Satellite Broadcasting Association of Asia (Casba) on Monday urged the government to consider removing rate caps from the supply chain of subscribers to broadcasters so that niche channels may grow.

In 2006, Trai capped the amount cable operators charge end-user subscribers and the MSOs and also the rates that MSOs paid to channel providers. “Trai’s price freeze was interim in nature, but there is no indication as to when it will be lifted. Also, it has been extended to additional classes of users. The Conditional Access System regulation is also restrictive in nature as it subjects all channels to equal price caps irrespective of their content or cost," said Simon Twiston Davies, CEO, Casba.   

The organisation also wants the government to adopt a 'lighter-touch' approach in the regulatory framework implying transparent, even-handed environment that is flexible enough to permit evolution of new business models.

John Medeiros, deputy CEO, Casba, said, "There is lack of clarity in existing programming codes. The Broadcasting Bill includes a sweeping requirement for local content quotas on international channels. The status of the proposal is unclear now." Medeiros further pointed out that the clause that makes it mandatory for all channels to make their content available across all delivery platforms eliminates the ability of broadcasters to offer differentiated content-reducing competition in the industry.

Anjan Mitra, executive director, Casba India, said, "Development of the DTH industry has been retarded by limits on platform operator's ability to use international satellites. According to Mitra, prohibition of local advertising on foreign news channels affects the ROI of the channel providers and the mandate that sports rights of a broad range of events be shared with public broadcasters is restricting growth of the industry and should be looked into by government.

Later in the day, industry players presented a set of recommendations before government officials on how to offer more choice to Indian consumers in terms of quality and variety of content. They also discussed the impact of current regulatory practices on investment in new infrastructure in India.