With the Union Cabinet clearing a proposal to bring in an Ordinance for digitalisation of all analogue cable TV connections, decks have been cleared for the country-wide digitalisation starting with the four metros. The ordinance will enable the government to amend the Cable TV Act to make it mandatory for all cable operators to switch to digital signals in metros (by March 31, 2012) and in the rest of India (by December 31, 2014) in a phased manner. The estimated requirement for funding digitalisation is R30,000 crore and will cover around 90 million cable homes, almost 80% of which are connected by analogue cables.
Under digitalisation, all subscribers will need a digital set top box to access cable channels. FE was first to report this on September 26. The Ordinance also clears the way for overseas investors to pump in money in the cable distribution business. The decision to bring in an Ordinance was taken as the timetable for complete digitalisation proposed by the information and broadcasting ministry was running out.
Shifting to a 100% digital cable distribution requires changes and amendments to the existing Cable TV Networks (Regulation) Act, 1995 which will be provided through the Ordinance, official sources said. An Ordinance is a legal order made by the government when Parliament is not in session. However, it requires to be passed by Parliament within six months of coming into effect.
Experts said with digitalisation the monthly cable rates for consumers could go up by 30-40% as he would now get more channels and value-added services on the digital cable. Also, there will be a one-time or a monthly rental cost for the digital set-top box.
Commenting on the Ordinance, MG Azhar, president of strategy and business development, DEN Networks, said: “The mandate for full digitisation is a landmark moment for India. It will create a paradigm shift in the pay distribution industry and alter the fundamentals of the media sector. The transition will see the entry of more channels, the spread of broadband and triple play offerings and ultimately a transformation in how households consume content and entertainment in this country.?
Earlier this year, the government announced a new four-phase deadline for cable digitalisation – March 31, 2012 (four metros), March 31, 2013 (35-towns of 1 million-plus population), November 30, 2014 (all urban area), and the rest of the country by March 31, 2015.