Cable operators’ business is being adversely affected by the direct-to-home (DTH) platform because of the lack of a level playing field in the TV channel distribution industry, according to Cable Operators’ Federation of India (COFI) president Roop Sharma.
While no tax was imposed on DTH players till recently, cable TV operators have always had to pay entertainment tax. Furthermore, channel rates for DTH players are 50% less than cable TV operators.
The cable TV industry, estimated at about Rs 55,000 crore, employs over 30,000 people.
Sharma said cable operators should shift to the digital system as the analog system, which cable operators continue to use, is a major part of their problem. But cable operators do not have the requisite funds for that.
Officials of Kolkata’s multi-system-operators feel that digital network will be seen in niche markets. “Both MSOs and its franchisees require huge amount of money to upgrade the headends and control rooms,” said Sudip Ghosh, director, Manthan Broadband Services.
Meanwhile, if other technology-rich service providers such as DTH claim to offer free services and use other marketing gimmicks to push their promotions at a cheaper cost with the help of the government, the cable TV industry will collapse in the near future, according to Sharma.
Suresh Sethiya, director, Wire & Wireless India Ltd, said DTH can never replace cable TV but may grab 10-15% market share by providing advanced technology. WWIL provides digital network through Galax Zee, the set-top-box of the company. “We provide the network at a low cost. It is available at Rs 750 in place of Rs 2300 and the feedback is impressive,” Sethiya said.