Cable television will be a completely new experience for subscribers soon, thanks to the industry switching over to digital operation from analogue mode.
This will roll out umpteen number of channels of different genres and languages, and to top them all, with crystal clarity of picture. The digital mode facilitates provision of hundreds of channels while it is restricted to around 80 in analogue mode. “The biggest advantage is that HD channels can be seen on high-definition LED TVs the way they should be seen,” says A. Pandi, secretary of Madurai Cable TV Operators’ Guild.
While it is good news for subscribers, cable TV operators will have a stiff competition as Telecom Regulatory Authority of India (TRAI) has allowed more players in the industry. Eight players have licence to operate as multi-system operator (MSO) in Madurai.
Cable TV service was introduced in the late 1980s. Unemployed youths grabbed the chance to become entrepreneurs, laying cables to a cluster of houses in the neighbourhood, beaming two films a day with video players. The scene changed drastically when the MSO concept was shoved down the operators’ throat as the poor operators could not afford to invest in huge infrastructure for ever-increasing number of channels, according to C.V. Satheesh, a cable TV operator.
The SCV monopoly
After Sumangali Cable Vision gained monopoly during the DMK regime with its political clout, the split between its promoters and the powers-that-be led to the launch of Tamil Nadu Arasu Cable Television Corporation (TACTV) by the same regime. However, it was the then Chief Minister Jayalalithaa who used this concept to take on her political rivals in a big way.
Cable TV subscription that was around ₹130 to ₹200 a month came down to around ₹130 after she announced that the subscription under the TACTV would be only ₹70 a month. Just as things looked like stabilising, digitalisation of cable TV was mandated by the TRAI. Now, the TACTV has seven competitors who are fighting for their share of the business.
Though TACTV has embraced digital operation after much dithering, its rollout has been a disappointment for cable operators. “Its pricing is high compared to private MSOs. Besides, the basic standard definition (SD) package of 200 channels priced at ₹150 a month does not have some of the popular channels,” says S. Kumaresan, a cable TV operator who also manages another MSO – Tamizhaga Cable TV Corporation Limited (TCCL).
People will have to opt for the second package of ₹210 a month to watch their favourite channels, but not many can afford it, says T.D. Krishnakumar, an operator.
Mr. Pandi says the very announcement of free set-top boxes by the TACTV is misleading. “While the operators are allowed to charge only ₹200 as activation fee, the TACTV has made the cable operators responsible for distributing set-top boxes to subscribers. How will a subscriber hand over a free STBs back to the operator when he shifts his house out of his jurisdiction,” he says. The operator will lose ₹2,000 for every missing STB.
However, the cable TV operators have decided to collect ₹300 as security deposit from the subscribers which will be refunded while handing over the STB.
Like the TCCL run by a consortium of cable operators, Madurai Cable Operators’ Guild has floated another MSO – Guild Digital Network Limited.
These MSOs offer STB for a nominal deposit of ₹500 to ₹600 with additional channels, including pay channels, at a lower subscription fee of ₹150 to ₹210.
However, cable operators under both the MSOs have taken a cautious move by giving their subscribers a choice of Arasu Cable connection too. “It is the subscribers’ choice. We are not forcing them to have our connection. But, with a better range of channels at a cheaper fee, they will embrace us,” says Mr. Pandi.
For example, Arasu Cable gives 200 (42 pay channels) and 300 channels (142 pay channels) for ₹150 and ₹210 a month respectively . However, the GDN offers 400 channels for ₹150, and the TCCL offers 310 channels (including 150 pay channels and 76 HD channels) for ₹210.
“Whatever profit we make will go only to cable operators who are the partners. We charge them ₹60 per connection and it is up to them to fix subscription fee,” says Mr. Kumaresan.
The operators tend to fix fee based on to the economic background of their loyal subscribers.
Replacement
With no clear picture on how long it would take for Arasu Cable to replace a STB when it conks out, the private operators promise replacement within a day.
The operators complain that Arasu Cable does not offer HD channels. Besides, the ₹60 per connection it collects from the operator for pay channel is not transparent. “While the pay channel charge was only ₹20 a connection under analogue mode, it has gone up to ₹60 under digital with almost same number of pay channels,” Mr. Kumaresan says.
The operators with the TACTV have to take their signal from Arasu Cable control room at Ellis Nagar to their area, while private MSOs are giving their signal at the doorstep of the operators.
“Charging the same fee for all operators – those in the city and those who have to put up cables for several km in distant Vadipatti and Peraiyur – by the TACTV is not justified,” he adds.
The MSOs are hopeful of bringing down subscription fee in the long run as they would also get paid by the satellite and other local channels for carrying their channels in prime slots. “When we share profits, the operators will automatically reduce the fee to retain subscribers,” Mr. Kumaresan says.
The new MSOs say that under TRAI no channel can indulge in arm-twisting by denying operators their popular channels. TRAI’s policy also does not allow any player to have more than 49% of operations which will keep competition alive.
The private operators are excited to give more channels of choice to customers and GDN plans to provide Internet connection too through its cable network, says Mr. Pandi. “At that stage, customers will be charged only for the Internet and channels will be free,” he says.
“Under the new regime, the customer will be the king and operators will pamper him,” says Mr. Kumaresan.
