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The cable industry may have to shell out about Rs 600 crore (Rs 6 billion) for the proposed rollout of the Conditional Access System in the rest of Delhi, Mumbai and Kolkata.
The process may begin as early as November this year if the cable industry's plan, submitted to the ministry of information and broadcasting, is accepted. CAS has been implemented only in parts of these three cities.
As the technology enables consumers to choose channels, the expansion will bring down the average monthly cable bill of about 7.2 million consumers in the non-CAS areas in these cities by almost half to Rs 150-Rs 200.
That is if all consumers in these cities opt for CAS. But the industry estimates a demand for around 2.2 million set-top boxes, which are likely to cost about Rs 600 crore (Rs 6 billion).
However, the nationwide rollout proposed in the plan will cost the operators about Rs 1,200 crore (Rs 12 billion) as there will be a demand for about 4.4 million set-top boxes according to the Telecom Regulatory Authority of India.
Under CAS, consumers get itemised bills mentioning the price of each channel.
Currently, CAS has been enforced only in south Delhi, south Mumbai, south Kolkata and Chennai. Under this, consumers have to pay Rs 77 for free-to-air channels and Rs 5 per pay channel, apart from a monthly rental for the set-top box if it has been taken on rent from the service provider.
"We have submitted the entire CAS rollout plan to the I&B ministry. We have mentioned that the industry and the broadcasters will have to bear the cost of educating consumers about the benefits of CAS," A Mohan, secretary, MSO Alliance, apex body of cable distribution companies, told Business Standard.
Mohan said according to their plan for other 55 cities, the I&B ministry has to bring out a CAS notification by April 30 along with the notification for the three metros.
Now, the I&B ministry will have to call a meeting of all stakeholders, including cable operators, multi-system operators, broadcasters and consumers, for a discussion on the proposed CAS rollout plan before any notification is issued, say informed sources.
According to the industry's plan, the 55-city rollout will begin on February 1, 2009.
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Photograph: Fayez Nureldine/AFP/Getty Images
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