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Debashis Chaudhuri
New Delhi, Jan 7: The Centre may issue an ordinance to amend the Cable Networks Act as a prelude to lifting the ban on direct-to-home (DTH) television service.
Sources said that discussions were on at the union information and broadcasting (I&B) ministry to this effect to organise the domestic cable industry.
before DTH on KU band was allowed. This follows the union I&B minister Pramod Mahajan's recent announcement in a press meet that the Government is thinking of de-linking issues like DTH, cable network and uplinking from the pending broadcasting bill within two months.
In 1997, the Government had banned distribution of equipment necessary for receiving DTH services on KU band till the bill's enactment.
On the expected changes, sources said that they may include removing cross-service restrictions, setting up of a cable regulatory authority, and issuing licences to two operators per telecom circle.
The minister had also said that the ministry was contemplating changes in the Cable Networks Act toregulate the content of private satellite channels in the absence of a broadcasting authority, which is to be set up after the enactment of the broadcasting bill.
Regarding licences, the sources added that it would be issued to two operators either representing at least 50 per cent of the operators in the circle, or who bid the highest.
The Cable Networks Association recently suggested to Mahajan that it should be made mandatory for all cable operators to form a single corporate entity in each telecom circle.
The association also wanted imposition of cross-holding restrictions between satellite channels and cable operators. The association's representations were earlier taken up by the chairman of the standing committee on communication, Somnath Chatterjee, with the Prime Minister Atal Bihari Vajpayee.
The association's president R Datta said that if such cross-service restrictions were removed, the industry would fall prey to bigger players with interests in distribution and broadcasting.
Theassociation also felt that if the cable industry was organised prior to lifting the ban on DTH, it would be equipped to face competition. According to the association, cable operators can then take advantage by providing Internet services and refraining from indulging in unhealthy competition among themselves.
Media experts said that the Government may take a significant step by amending the cable law, but it should not bring about cosmetic changes. They added that it should take steps to consolidate the cable industry before services like DTH were allowed.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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