DISAPPOINTING PACE OF BROADCASTING REGULATION

Amidst the brouhaha about the Jain commission report and the Congress' demands relating to the DMK, what appears to have been consigned to the dustbin is the broadcast bill. The bill has to be amended based on the joint parliamentary committee's recommendations before being enacted. And with the focus now on politics and politicians' survival a quick enactment seems a remote possibility, despite information and broadcasting minister Jaipal Reddy's insistence that it is round the corner.

That will be bad news for not only the television but also the media and advertising industries. The Bill has already dragged on for more than six months and a further delay is going to add to the uncertainty in the business.

At a recent television conference organised by Kagan World Media in Mumbai, worry was writ large on several broadcasters' faces. Some foreign broadcasters were livid. Said one: "Why don't they get some regulations in place. At least we'll know what and who we are fighting and what course of action we should take."

Press reports have hinted that the JPC is in favour of minority equity stakes for foreign satellite broadcasters, no equity in terrestrial networks, mandatory uplinking from India within a timeframe, one or two DTH licences, and more favourable cross media ownership restrictions than envisaged in the Bill.

One multinational which had had an India team in place for more than four years for a direct-to-home project has in fact dismantled it and relocated resources for other markets. "We can't wait forever," said the executive in charge of the team. "We'll come back and take a looksee once the environment is more conducive."

What emerged from the Kagan conference was that DTH is not a game that any Indian company would be able to play because of the high cost of funds involved and the possibility of a late payback. "We are talking about investments of $300-400 million," said ISkyB chief Urmila Gupta. "It's a tough business but one which will do Indian consumers a lot of good."

Broadcasters even favour a presidential ordinance if the Bill gets buried and forgotten. Now it is to be seen if Reddy can come up trumps and heed their call. He managed to push through the Prasar Bharati Board with its ancient and doddering members, didn't he?


Article appeared in a local newspaper on 25.11.96