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While speaking to various cable operators, MSO (multi-system operator)
representatives, one gets a feeling that more clarity is needed
on the following issues:
1) The cable trade feels that the FTA (free to air) bouquet pricing
issue must be sorted out as soon as possible in order to have adequate
time for setting up infrastructure and systems for the roll out
of CAS.
2) The three main satellite channels (Zee, Star and Sony) must immediately
clarify whether they will become FTA or remain pay channels.
3) The digitalisation of the networks infrastructure will ensure
that more analogue channels can be shown to viewers. Currently,
the trade is finding it difficult to air several new channels (including
Headlines Today, NDTV channels). The only option is to show them
at the cost of other less popular channels.
4) Post CAS, the cable trade will have to change their existing
methods of laying cables wherein systematic methods will have to
be adopted.
5) Today, there is a lot of duplication in several areas wherein
cable operators affiliated to the same MSOs are catering to different
consumers within the same premises. Post CAS, this will need to
be stopped in order to have better cost efficiencies. The consolidation
process will become more prominent.
6) Several societies collect money from their residents and directly
pay the cable operators. This system will have to be stopped and
individual households will have to pay directly. It is possible
that the socities will end up paying for the FTA prices only.
7)There is a lot of confusion about the models to be used - whether
headend in the sky (HITS) or on the ground (HITG) at the MSO centre
in each city. In fact, HITS operators need 52 different types of
permissions and several MSOs prefer the slightly more expensive
HITG. The key issue will be to ensure that digitalisation process
results in ensuring that the feed eventually reaches out to the
consumers without any hassles. MSOs will have to support the last
mile operators in ensuring that commonly used RG 11 (cable or trunk
systems) will be replaced by the 500 series cables which are required
for digitalisation.
8)The last mile operators (LMOs) will have to employ more people
(including sales teams, accountants) in order to ensure proper subscriber
management. The LMOs will also have be trained in customer service
and relationship management.
9) There is a lot of confusion about DTH (direct to home) becoming
a viable option for consumers who don't want to deal with cable
operators. It is likely that some consumers (for example in a society)
might buy an antenna (for DTH) and share it with other consumers
by using IF antennas.
Hathway GM operations Rohinton Dadyburjor says:" The race is all
about who places the first set-top box in the consumer's household.
cable operators have to speak in a united voice since CAS has forced
unanimity on them. Those cable operators who are committed will
survive in the near future. Also, there will be a lot of employment
opportunities in sales, after-sales and accounting departments."
Shafiq Butt, a cable operator says: "We also need to know the kind
of commissions which we will get in the case of FTA channels. Several
MSOs and broadcasters have not yet declared their strategy of incentivising
cable operators who support their bouquets."
Another industry expert who refuses to be named says: "The writing
is on the wall for the cable trade. Stop bickering, get serious
and speak in a common voice. The government is empowering the consumers
with multiple options - DTH and broadband could be your competition;
not the next-door cable operator or MSO. The cable trade has to
realise that the passage of CAS has given them the first-mover advantage.
They must grab a large chunk right now before the outside threats
throw them out of business!'
Well, it's up to the cable trade to take these words seriously
and act on them. Time is running out. Be quick or be dead, is the
message going out!
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