NEW DELHI: To CAS or not to CAS mandatorily? This is the question that is being debated by the government.

According to a senior government official, "There is a thinking going round in the information and broadcasting ministry that conditional access systems (CAS) should not be implemented with a "must" clause. In other words, not to make it mandatory."

Though the official was quick to add that "there was nothing formal" to the thinking on CAS in the ministry, he admitted that the current spate of debate on CAS, especially issues related to investments and cost to the consumer, has made it necessary to look at other aspects as well.

The idea is to go in for CAS on an optional basis. Those consumers and cable operators who want to go in for CAS can go in for it, those who don‘t want that can continue in the present regime where on an average the monthly cable susbcription fee is Rs 300/month/household, which gives access to over 70 channels.

However, when efforts were made to confirm this from the I&B ministry itself, it came to naught as nobody was willing to talk on the issue.

Meanwhile, a meeting of the industry and some government officials was held at the Bureau of Indian Standards (BIS) yesterday in Delhi where the various inputs received by BIS on the technical aspects of a set-top box (STB) were discussed.

Some 50-odd people from the cable industry, manufacutueres like Thomson and Philips and the government attended yesterday‘s meeting which started at about 10 a.m. and went on till late in the afternoon.

Amongst the many issues discussed was the digital aspect of a STB, including features like connectors and look-ins.

At the meeting it was also discussed what type of technology can a cable operator opt for and whether it should be made mandatory to have a remote control with an analog STB. A digital STB will mandatorily have a remote control.

The BIS is expected to formulate a final report latest by next month for the government‘s consideration.

It is also expected that the amendments to the Cable TV (Networks) Regulation Act, 1995, which will facilitate CAS, will sail through the Rajya Sabha (Indian parliament‘s Upper House) without too much of a problem.

NEW DELHI: Sony Entertainment Television, part of the Japanese conglomerate Sony, is in a restructuring mode both in Singapore and India. Though company executives did not provide any specifics, media analysts feel this is a precursor to an initial public offer (IPO) in India, which may come some time in the second half of 2003.
"We are undergoing some restrucuturing both in Singapore and India as part of which the Indian operation has undergone work-related changes," SET India CEO Kunal Dasgupta, told indiantelevision.com today in Delhi.

Asked to respond to the sentiment among media analysts that the changes in SET in Singapore and India may lead to an IPO in India, Dasgupta reluctantly admitted: "At some point of time we have to bring the two entities together for valuation purposes." Dasgupta however, refused to divulge any further details.

Bringing the Indian and Singapore operations under one company has to be done as the Singapore SET is the brodcasting company, while SET India is the marketing, ad sales and distribution company.

"Only merging the two entities will unlock the real valuation of Sony Entertainment if it wants to go in for an IPO," a media analyst with a Delhi-based stock investment firm explained.

To a direct poser as to when SET would be going in for an IPO, Dasgupta said: "Speculations have been made in the media. But to this question I have no answers at the moment."

Still, informed industry sources based in Singapore indicated that SET may go in for an IPO in India after completing its restrucuturing which may take some time yet.

MUMBAI: Underdeclaration has been the way out thus far; 100 per cent declaration is an impractical option. CAS is the effective solution in the foreseeable future. That about surmises what the New Delhi-based National Cable Telecommunication Association feels about the cable scenario in the country.
In a presentation at the Consumer Electronics & TV Manufacturers‘ Association (CETMA) seminar in Delhi on Thursday, NCTA‘s Vikki Chaudhry outlined the independent cable TV operator‘s side of the story, supplemented with statistics. If the cable op has to offer 100 per cent declaration to pay channel broadcasters, says Chaudhry, it would cost the subscriber Rs 402, a figure which Chaudhry claims the average subscriber can ill afford.

On the other hand, cutting operating expenditure to accommodate pay channels and taxes means ‘frequent network breakdowns, poor picture quality, inferior distribution equipment and ineffective implementation of effective CAS‘. Underdeclaration to pay channels has thus far entailed an average subscription of Rs 225 to Rs 250 per month, offering "commercial viability to the cable op with scope for upgradation and value service additions, but also some disruptions in pay channel services on issues of subscriber under-declaration," says Chaudhry.

The implementation of CAS, on the other hand, he says, will offer a basic tier at affordable rates to subscribers, more transparency in business with pay TV broadcasters, a level playing field for all players and additional revenue.

Click here for the complete presentation made by the NCTA at the CETMA seminar in New Delhi on 11 July 2002

NEW DELHI: Striking a bullish note, Sony Entertainment Television (SET) India feels it will make profits after tax (PAT) at the end of the current financial year ending 31 March, 2003. The company netted revenues of about $ 84 million in the last fiscal.

"We expect to make a profit (after tax) this year," SET India Pvt Ltd chief executive Kunal Dasgupta said on the sidelines of a press conference organised by SET to announce four new programmes, including the Madhuri Dixit-hosted marriage-related reality show Kahin Naa Kahin Koi Hai.

According to Dasgupta, SET India netted advertising revenues of about $ 74 million in the last financial year, with approximately $ 10 million coming in as subcription revenues.

Though Dasgupta did not give out the details of the targets for the company this year, he admitted that for his ad sales and marketing team, the target is to get 40 per cent of the ad budget for TV from each advertiser.

"We have two strong channels, SET MAX and Sony and air the best of movies, serials and now an Indian reality show too. Our aim should be to get 40 per cent of the budget of every big advertiser which it has earmarked as TV spend," Dasgupta said.

SET India, is expecting that new programmes, specially the Dixit-hosted show, will do for the company what KBC and few "saas-bahu kahanis" did for Star Plus and Star India.

Queried on how SET India plans to market the cricket rights that it has obtained, Dasgupta gave a cautious reply: "Wait and watch."

However, when queried whether implementation of the conditional access system will hamper SET India‘s revenue prospects, Dasgupta said, "I don‘t think by the time next cricket World Cup is played CAS would be in place. That is why I don‘t think our marketing of cricket will run into any problems."

The goal for Sony Discovery Pvt Ltd, the distribution joint venture between SET and Discovery, is to up the susbcription revenues so that 25 per cent of the total revenues of SET come from subscription.