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| Indiantelevision.com's
interview with Trai chairperson Nripendra Misra |
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| Posted
on 24 September 2007 |
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Nripendra
Misra is a suave IAS officer with a reputation of being completely
above board, and perhaps lacking the 'guile' that puts many
others in the topmost slots of the bureaucracy, fellow officials
say of him in a positive sense. After the first initial setback
for Conditional Access System in 2003, it was during Misra's
tenure that Cas was enforced in parts of Mumbai, Kolkata and
Delhi. And it was war
MSOs had to be readied, LCOs trained
to shift to higher technology, broadcasters' resistance to
be broken down by assuaging their fears and yet, the court
order had to be implemented within the deadline: 31 December
2006.
It
could not have been a pleasant task. Amidst
all this, Misra and his dedicated but small team is going
about handling one of the noisiest of industries in the country,
issuing consultation papers, and ushering in new technologies.
Misra
took his stand on various contentious issues during an interview
with indiantelevision.com's Sujit Chakraborty.
Excerpts:
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It has been nine months since Cas was implemented in parts
of Kolkata, Mumbai and Delhi, after Chennai was brought under
Cas. Towards the beginning there were uncertainties, and some
people even opposed Cas. So today, what is your assessment
of Cas? Is it a success or a failure in numerical terms?
Well, we never had a target in terms of penetration percentages.
It was left to the subscriber who wanted to opt for choice,
whether he wanted pay channels or FTAs and which are the ones
he wanted. The latest numbers tell me that about six lakh
(600,000) homes have opted for Cas in the mandated areas.
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That is out of a universe of around 1.6 million cable homes
?
Yes, so that is about 30 per cent of subscribers. Then
you have also a similar facility in DTH, which has also been
accepted by many. In Kolkata particularly, the response has
been poor because most of the popular channels are FTAs. So
if the criterion is in terms of numbers, I think it has been
a very satisfactory performance.
But
it is not the number that is important. Unfortunately, we
are always missing the true substance when attempting to evaluate
Cas.
What
is it we are trying to do? We are trying to set up a mode
of digital transmission, which is more efficient and more
accommodative. It is the global practice. Analogue is gradually
getting out of the scene, and so we have to make a beginning.
That was made into a kind of a pilot in these four areas.
Today
you have a choice, you have DTH and you have Cas. Tomorrow
you may have HITS
which is another option. You have
voluntary Cas. So a beginning has been made, a seed has been
sown, which must someday fructify in terms of an all India
feature. Success has to be measured in terms of whether it
is a trendsetter or not, and not in terms of how many people
have opted for it or not.
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So would you say that the target of becoming a trendsetter
has been achieved?
Oh yes! It is perhaps a watershed in that in the broadcasting
industry, digital transmission has begun.
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But one main area that remains disturbing is the quality of
service, which in many parts of the mandatory Cas zones remains
highly dissatisfactory. Lots people are not getting the channels
they have opted and paid for.
Firstly, I do not want to defend the quality of service,
and there are problems of channels being discontinued. But
it is not just at the level of local cable operator. I think
somewhere down the line, the MSO also has to take his role
seriously. Unlike in non-Cas areas, the role of the broadcaster
and MSO in implementing Cas is far more important than that
of the LCO. So, if these things have happened, they have happened
because of the inadequacy of the functioning of MSOs.
When
it started in January, we wanted to take a very liberal view.
We did not want to enforce all the regulatory provisions in
the first four or five months. They wanted time so that the
consumer preference could be registered, and we gave them
enough time. The subscriber register that has to be maintained
was not complete to the extent we wanted. Therefore billing
got delayed, payments also got delayed
subscribers have
also not made payments. But we have made it clear that come
1st of July, we are not going to forgive anyone.
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But
how do you enforce this, as it has clearly not happened in
many places till now?
There are three ways of how to enforce this. First is
the awareness of the consumer. There is a quality of service
regulation in the Cas area which is operational. Therefore
the subscribers must reach to and judge the performance of
the MSOs and cable operators. There are great details in the
regulation about the kind of rebate that has to be given if
the channels are not coming, or how much time it should take
which kind of interruption, what should be the response time
for the MSOs
these are all standardised and fixed.
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'Broadcasters
have been cooperative in rolling out Cas, despite serious
reservations about the Rs 5 channel price'
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But that brings us to a moot point
. The consumer is
not truly aware and also does not seem to care about implementing
his rights?
It takes time
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So you are saying that MSOs are primarily responsible for
QoS, so where have they failed? Because there are lots of
complaints about failure across the board.
The MSOs initially were perhaps not ready with the level
of demand. That has settled down, STBs have been imported
and they are in plenty today. The second stage was to get
the reference of the subscribers. Now, I know and it is correct
to say that the MSO representatives have gone to the homes
four or five times, asking the subscribers to fill up the
forms. But the gentleman says, you have come at the wrong
time, that he will have to consult his family.
But
gradually, that too has ceased to be a problem. Ninety percent
of the subscriber registers have been completed and the choice
is now there. Now the stage is where the subscribers must
know what their right is. That is, the manual of practice
of the MSOs must be made available to the subscribers. That
manual of practice in most of the cases is not available.
The contractual conveyance, that we have between us signed
a contract, and this is our right, that message is still not
being passed on, which is reflecting in the lack of awareness.
Broadcasters
have been extremely cooperative in rolling out Cas, despite
serious reservations about the RS 5 channel price, and all
the Reference Interconnect Offers are in place.
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So what have you told the MSOs about this?
We have conveyed to them that look, we shall view very
seriously if there are defaults. We have written to the state
governments, because they are the enforcement machinery.
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So what is holding back the extension of Cas in the three
metros?
The Central government wanted us to report back on this,
we have sent that report, we have said it will take six to
eight months' time to implement after notification of the
extension. But then the state governments said that it is
better to evaluate before extending Cas. We on our own without
waiting for such instructions have engaged some outside agency
to advice us on the level of implementation.
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Has that audit been completed?
It will take another two months, we are expecting the
reports by the end of October or beginning of November.
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So it will further delay Cas extension by that much time?
Well this has nothing to do with Cas extension, this is
something we are doing independently, and as far as the government
goes, they can extend Cas, and we have just said that it would
take six months from the day of notification to implement
the extension. It is for the government to take a view when
they wish to notify.
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Resistance
to Cas had been from the broadcasters, but even from the grassroots
level, due to privileges of piracy and under declaration, there
had been resistance from the cable operators as well, so have
the realised that this is the business model of the future?
I think they have realised this more than anybody else.
Today there is demand from many, many parts of India that they
be given the permission for implementing voluntary Cas. |
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Like
Ortel and Sristi in Orissa and West Bengal?
Ortel is one, then Pune is another, and there is demand
from Bangalore, Mumbai and many other places. Some have in fact
gone ahead with the implementation of voluntary Cas. So what
the LCOs know very well is that the competition from DTH is
very strong. The LCOs thus know that of they have to remain
in the industry, two or three things are required.
First,
investment is required, which is not come if the industry
is so disorganised as it is today. Second, they know that
there has to be some regulatory provisions to give stability,
which will ensure certain amicable relations between them
the broadcasters and the MSOs. So to answer your question
as to why they are not implementing voluntary Cas, perhaps
for that some regulatory initiative is required.
Now,
for that the expert committee had been set up, and it has
suggested that voluntary Cas be rolled out in 55 cities and
towns. But they have also said that you have got to have a
regulatory regime for at least one year. Even for voluntary
Cas, certain things are important, like Standard Interconnection
Offer, what should be the connectivity, what should be the
revenue sharing formula. So these are the issues we are looking
at, and we are going to put up the paper on voluntary Cas.
"Fixing
of channel pricing in non-Cas is a challenge, but we shall
come out with something that meets the expectations of both
the high and low income groups"
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When
is that likely?
Oh any day, we are working on HITS and next is the paper
on voluntary Cas. |
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The
consultancy paper on HITS is already out?
Yes, but we have to now recommend the terms and conditions
of licensing provisions to the ministry of Information &
Broadcasting. Even the voluntary Cas paper is also in the pubic
domain, and so we have to now concretise our views. And then
specifics like what are the regulatory issues, what are the
areas in which facilitation is required
perhaps some technical
training is required, and the go ahead. |
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But
voluntary Cas would mean that channel prices will be dictated
by the broadcasters and subscribers may suffer?
Let's see. Voluntary Cas does not mean it cannot be regulated,
and as such I do not have any views on the subject now. |
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It
follows that even in voluntary Cas you could regulate prices?
If it requires so in the case of DTH I can regulate prices.
In fact, there has been some judicial expectations on this,
when TDSAT in one of its judgments asked that if channel price
is regulated in Cas, why it is not there in DTH? We had our
reasons, it is an infant industry, we wanted DTH to grow. |
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But
then Cas is also an infant system?
The difference is that DTH is a new initiative, and I am
of the view that there should be minimal regulation. Cas was
a shift from the old cable industry. |
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The
cable industry has been insisting on a level playing field and
they are pointing out to the IPTV and DTH consultation papers
as proof that Trai is not creating that level playing field.
And in Trai's own meetings on Cas in Kolkata and other places,
LCOs and MSOs have accuse Trai of siding with broadcasters?
There was never such an accusation. You may have been told
so, but never, never has a single cable operator said that Trai
is favouring broadcasters. It is all a matter of which platform
you are utilising. You fix the price at RS 5, and someone will
say, it is against broadcasters. If you do not do that, they
will say you are favouring the broadcasters. There is a bogey
being raised that in many of the countries channel prices are
fixed. The truth of the matter is channel prices have not been
fixed in a majority of the countries. And majority means, more
than 90 per cent of the countries. |
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So
there, prices have panned out according to market pull and push?
Of course. |
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So
how much time do you think we will need for market forces to
create prices that are compatible with the pockets of the average
consumer, who are the vast majority, that is, when would deregulation
start and prices shape up as per market forces?
It is already there, because in non-Cas it is already there
according to the market forces. I haven't regulated prices there.
The prices have been fixed by the cable operators and the subscribers.
In 2004 when there was such a noise, there was an order on freezing
the prices. You know that order was an interim measure. The
ideal situation, which is there in our consultation paper, is
it should go to forbearance. And I think that the day is not
very far. The moment there is healthy competition and prices
should be put on forbearance. |
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There
is the issue of price freeze versus price cap?
That I won't answer because we have not issued the regulation
on that so far.
It
is important for the cable industry to grow and I am not a
great votary for centralised economic activity, or vertical
integration, so franchise should be the mode.
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Is
it in the offing?
Yes, the next thing for the non-Cas areas. |
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In
recent meetings the ministry of broadcasting has said that content
control in IPTV is not in their domain because that platform
is under the ministry of telecom. Despite that Trai has said
that it is I&B which should control content in IPTV, so
do you think you have usurped some of the government's prerogatives?
No, not all. It is a viewpoint. I can't say anything on
content regulation, who will or who will not do. It is not within
my powers. It is simply this, that we are of the view that the
control of all content of all broadcasting and on all technological
platform is best done by the broadcasting ministry. It is just
a view point. |
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So
what are the forthcoming issues in the cable or rather the video-related
industry?
Well after introducing digitisation in non-Cas, there will
be the issue of pricing. Then the other issue will be also of
the structure of the cable operators. Can we contribute to their
organisational strength? This comes from the understanding that
there is the issue of investment, because we know there is an
opportunity. |
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But
that investment with such small players would not be possible,
so what does one do to ensure investment?
In some manner it has to be there. Whether in the franchise
mode, or through takeovers, or vertical integration. But I think
that in countries such as India, perhaps there will be a role
for everybody. I am not a great votary for a centralised form
of economic activity. So it is better that we perhaps have a
relationship in which franchise is the mode and there is mutually
shared revenue principles. |
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