How well it will work in the rest of the country remains to be seen. But the leading cable MSOs in Mumbai have decided to work jointly to implement an across the board structured increase in cable television subscription rates. The process, which kicks off on 1 May, will see monthly subscription hitting an upper slab ceiling of Rs 360 within the next six months.

The hikes, which are being instituted as part of a two slab structure linked to locality and paying capacity, will mean subscribers will have to pay Rs 300 per month in the lower slab before the year is out or face disconnection.

All the leading cable MSOs in Mumbai - Hinduja Group‘s IncableNet, Rajan Raheja‘s Hathway Cable & Datacom (in which Rupert Murdoch‘s Star India officially has a 26 per cent stake), Wincable (in which Hathway holds almost 100 per cent stake), Subhash Chandra‘s Zee Group cable arm Siticable, and Seven Star Networks Ltd - have decided to implement these rates.

There are some reports that certain building societies in south Mumbai have issued notices to their members opposing the move saying they will not accept a rate above Rs 250 a month. However, Anand Patwardhan, chairman, Consumer Guidance Society of India (CGSI), was of the view that because cable companies had formed what he termed a cartel, there was little chance of serious opposition from consumers.

The bedrock of this deal is that the big cable companies will have to adhere to a no-poaching agreement wherein they stick to their own turfs. The unique way the Indian pay TV market has grown has meant that Indian MSOs have fought to get control of local cable operators, to make sure that they gain maximum subscriber households. Local cable operators have in the past used it to their benefit by playing one MSO against another.

As to whether this formula would be applied in other parts of the country, the word is that these issues are being looked into.

Delhi-based citizen‘s forum Consumer Action Network (CAN), has censured the Central government for failing to implement the recommendations of the task force on the introduction of conditional access systems.

CAN held a seminar on ‘Cable TV: New Age Dictatorship‘ in New Delhi on 16 April, where speakers denounced ever increasing cable rates and subsequent government inaction. CAN claims the seminar helped raise several related issues faced by cable consumers.

The purpose of the seminar was to highlight and voice issues currently faced by cable TV viewers in the country. It aimed at being a platform for face-to-face dialogue with cable ops and broadcasters. Speakers included former MRTP acting chairman Sardar Ali, journalist Saeed Naqvi, Hinduja TMT executive vice-president Ashok Mansukhani, Delhi high court advocate Shyam Moorjani, and CAN president Ahmed Abdi.

Some of the issues discussed at the seminar included freedom of choice, arbitrary rate hikes, absence of any regulatory authority in India unlike other countries and lack of initiative on the government‘s part.

Abdi lamented the present state of the consumer who has neither choice in selection of channels nor in deciding the rates. Cable rates have increased by more than 400 per cent in five years, he pointed out. He alleged that it suited broadcasters to delay the introduction of conditional access as they would no longer be able to bundle their weak channels and sell them forcibly along with the popular channels.

Naqvi commented that there was a need to create awareness on such issues through forums, debates and seminars. Moorjani stressed on the need for a regulatory authority to be formed that can regulate the broadcasting and cable industry and protect consumers. Cable TV, which has more than 200 million users in India and which is projected to grow into a Rs 5000 billion advertising industry, does not have any regulatory authority, he said.

Speaking on behalf of the cable industry, Mansukhani said that transparency should come in and that the cable industry was sick of allegations of "underdeclaration". He stressed the need for a regulatory authority and conditional access. He also stressed on the need to freeze the rates.

The recordings of the findings and suggestions of the seminar will be forwarded to the information and broadcasting ministry.