Conditional Access System - Boon or Bane?

Imagine a day without your favourite soaps on air! What kind of hell it would be!! The day is not far off - around July 15th. If you are ready to buy a Set Top Box (STB), then you have no problems. However, if you are one among the unfortunate (!) lot who is still contemplating as to whether to invest or not in the box, then read on. The government is very keen on implementing the new legislation. Our government is under the impression that if it brings about the Conditional Access System (CAS) in all homes across the country, then consumers would enjoy the benefits of 'just' broadcasting. Ironically, the legislation as a whole, appears to bring in its wake more hurdles to the consumer.

Firstly, users have to buy the Box, which after the reduction in the import duty might cost around Rs. 2,000 to 3000. Going by the figures of the government, out of 6.4 million cabled homes, only the cream of the populace would be able to afford it. The case is worse if a consumer shifts from one area to another as he has to buy another box. Also, the consumer has to bear the brunt of paying different fees for free-to-air and pay channels. Where does this lead the consumer to?

From the point of view of the broadcaster, the situation seems worse. He would have to consider making his pay channel a free-to-air one, if he has to retain the customer base. If he retains his channel as a pay channel, then the advertisers may not approach him for some time. The advertiser is least bothered as to whether the channel is for payment or free-to-air. He is ready to sponsor the programmes, but lack of a large base of consumers may affect the broadcaster gravely. Consumers can of course, have a say in the kind of channels they want. But there is a catch here. Given the heavy cost of STBs, only a section would buy them and the rest may prefer to wait till the prices drop.

Also, consumers would be forced to go in for certain channels in the pay channel package which they do not want otherwise. Since there are a lot of illegal activities surrounding the cable operation in the country, the new Act might bring in transparency in operations. But the efficacy of the legislation depends upon the collective efforts of the operator, the broadcaster and the government.

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The broadcaster wants to increase his ratings, the operator wants to make a profit and the government wants to collect service and entertainment tax. Who is there for the consumers? If the government is truly aware of the pros and cons of this situation, then why don't they pass the long-awaiting Communications Convergence Bill? The Bill if passed, would repeal the Indian Telegraph Act and the Cable TV Networks Act. It would ensure a more competent set-up in the communication industry in India. That could enable the country to compete globally.

S.Sowmya