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This is an archive article published on June 8, 2003

Just in CASe, Govt hurries with Direct to Home service

Quit grumbling about the Conditional Access System because the Information and Broadcasting Ministry’s Direct to Home (DTH) offer may s...

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Quit grumbling about the Conditional Access System because the Information and Broadcasting Ministry’s Direct to Home (DTH) offer may soon have you kissing your cable operator goodbye.

The DTH requires a one-time investment of Rs 6,000 on a set-top box and a pizza-sized dish to receive signals from a satellite. The rest is free. Because the Prasar Bharati Corporation is a public service broadcaster, it has decided to keep its DTH operation free.

SCENARIO 1

• A year later you may have a set-top box and a tiny dish antenna for all of Rs 6,000. No monthly subscription fee or rental for the box.
• Prasar Bharati becomes a carriage provider for a fixed annual fee
• Channels like Star, Zee, Sony and the BBC may have to forego their pay status if they want to join DTH. They get both viewership and advertising money throughout India, not just metros

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This means the consumer does not have to subscribe to the channels — he gets them free. And being digitally transmitted, he needn’t worry about the quality either.

The Finance Ministry has said yes to the Prasar Bharati Corporation’s DTH project. At a meeting of the Expenditure Finance Committee on Friday, the corporation was given the approval to start its DTH operations.

A final nod from the Cabinet will set the project on course, say officials — an admission made on All India Radio FM on Friday. ‘‘This is just another carriage option,’’ said Pavan Chopra, I&B secretary.

Just in case you are wondering why the Government is pushing through with DTH, when it is still battling for CAS, it’s because in all evolved markets, whether it be the US, or UK — the consumer gets the first right to choose what he wants.

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SCENARIO 2

• If DTH gets sabotaged by vested groups, you will have to live with the cable operator and his set-top box
• Prasar Bharati may have to aggressively market its free to air channels to attract advertisement
• Channels like Star, Zee and Sony get to earn from advertising and subscription revenues after taking a initial hit from fall of viewership due to non-availability of set-top boxes

‘‘DTH, cable service, Conditional Access System or terrestrial transmission, all can co-exist,’’ say sources in the corporation. As for the goodies on the plate, the corporation will be wooing broadcasters and niche channels around the world to join its platform for a token fee. They can make money through advertisements. The bait? The entire country gets connected, including the North East.

Now consider the other possibilities that DTH has to offer. Sitting in Delhi, our Members of Parliament can check out the performance of their colleagues elsewhere in the states. Even the Election Commission can have 20 channels of its own — whenever it announces the dates of elections in key states — and keep watch.

As far as making it commercially viable, this DTH, unlike the West, will be free to air. The emphasis will be on local boxes manufactured in the country, and glitches, if any, can be taken care of by Corporation engineers.

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With a capacity to uplink 30 channels to begin with, its potential can go upto 100. For starters, the I&B Ministry will invite key broadcasters to join the DTH platform for a token fee — the amount has not been fixed. Niche channels are also being planned.

‘‘The players will be allowed to make money out of advertisements as the platform will be free to air. With the nation in its grasp, viewership potential and the advertisement potential is immense,’’ sources in the Corporation said.

Interestingly, the Government took the decision to open DTH on Ku-Band transmission nearly two years ago, the rules of which are still being finalised. The DTH of the Corporation, by virtue of being free to air, does not attract the restrictions of a 20 per cent cap on broadcasters investing in the platform.

So far, three players have applied for DTH licences — Agrani, Essel Shyam (promoted by Zee), and Space TV (backed by Star) — all of whom have been issued letters of intent. Once they deposit a sum of Rs 10 crore, applications will be scrutinised by Home, Defence and Communication ministries.

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