After almost six years of deliberation and doubt, the Telecom Regulatory Authority of India (TRAI) on April 31, 2012 issued an order specifying modalities for the implementation of the Cable Television Network (Regulation) Amendment Act of December 2011. The 2011 Act makes it mandatory for television networks (both DTH and cable networks) to switch over from analogue to digital transmission in the entire country.According to a set time-frame by TRAI, all four metros, Mumbai, Delhi, Kolkota and Chennai, had to make the switchover by July 1, 2012, while for the rest of the country the changeover must be effected by 2014.
It was to discuss this that DNA called in a panel of industry experts, including Hathway Cable & Datacom president (finance & company secretary) Milind Karnik, Videocon Digital DTH Service CEO Anil Khera, Digicable Network (India) MD & CEO Jagjit Singh Kohli, WWIL [Wire & Wireless India] COO (sales & operations) Anil Kumar Malhotra, Incable [Indusind Media & Communications] MD Ravi Mansukhani, Tata Sky MD & CEO and DTH Association president Harit Nagpal and DISH TV CEO RC Venkateish (on phone from Delhi).
The discussion, moderated by DNA’s RN Bhaskar, explored the reasons for bringing in this law, while looking at some of the challenges and opportunities. Some edited excerpts:
Background: Why the amended Act?Nagpal: It became necessary because the the system needed transparency and clarity on who should get what part of the money collected. A digital transmission system allows anyone to see who the customer is, what he is consuming, how much is he consuming, and so on.
The customer can now choose what he wants to buy, apart from being able to use features like interactive services or one-way service. Moreover, one can record, forward, rewind and much more, which all is possible only on the digital platform.
Karnik: I agree. And you don’t have to depend on claims that someone’s channel is the most desirable and enjoys the highest TRPs. All this now becomes more transparent. This will allow revenues to multiply. And obviously revenue to the government will also multiply.
Nagpal: Our last estimate said that in the next 10 years, we are likely to get around Rs5,500 crores by way of incremental taxes for the government.
Mansukhani: The major story is that of India shining, with everybody landing in India and all channels seeing the huge middle-class potential. Today, we have over 800 channels with permission to downlink to India, but there is no spectrum. And that made it unviable for new channels due to the huge costs involved in what we call “carriage and placement”. If this business is to expand, one must turn digital. Then the news channels and the niche channels knocked on the government doors. Voila! We have digitalisation.
Khera: I see it as a natural progression in which the consumer gets more choice. You have a metering device attached for the first time to your services, as now there is encryption for all content. There is investment coming into the business. People will get better content, better quality and the right to choose.
Read More : DNA
It was to discuss this that DNA called in a panel of industry experts, including Hathway Cable & Datacom president (finance & company secretary) Milind Karnik, Videocon Digital DTH Service CEO Anil Khera, Digicable Network (India) MD & CEO Jagjit Singh Kohli, WWIL [Wire & Wireless India] COO (sales & operations) Anil Kumar Malhotra, Incable [Indusind Media & Communications] MD Ravi Mansukhani, Tata Sky MD & CEO and DTH Association president Harit Nagpal and DISH TV CEO RC Venkateish (on phone from Delhi).
The discussion, moderated by DNA’s RN Bhaskar, explored the reasons for bringing in this law, while looking at some of the challenges and opportunities. Some edited excerpts:
Background: Why the amended Act?Nagpal: It became necessary because the the system needed transparency and clarity on who should get what part of the money collected. A digital transmission system allows anyone to see who the customer is, what he is consuming, how much is he consuming, and so on.
The customer can now choose what he wants to buy, apart from being able to use features like interactive services or one-way service. Moreover, one can record, forward, rewind and much more, which all is possible only on the digital platform.
Karnik: I agree. And you don’t have to depend on claims that someone’s channel is the most desirable and enjoys the highest TRPs. All this now becomes more transparent. This will allow revenues to multiply. And obviously revenue to the government will also multiply.
Nagpal: Our last estimate said that in the next 10 years, we are likely to get around Rs5,500 crores by way of incremental taxes for the government.
Mansukhani: The major story is that of India shining, with everybody landing in India and all channels seeing the huge middle-class potential. Today, we have over 800 channels with permission to downlink to India, but there is no spectrum. And that made it unviable for new channels due to the huge costs involved in what we call “carriage and placement”. If this business is to expand, one must turn digital. Then the news channels and the niche channels knocked on the government doors. Voila! We have digitalisation.
Khera: I see it as a natural progression in which the consumer gets more choice. You have a metering device attached for the first time to your services, as now there is encryption for all content. There is investment coming into the business. People will get better content, better quality and the right to choose.
Read More : DNA