TRAI releases Interconnect Agreements for CAS

Televisionpoint.com Correspondent
The Telecom Regulatory Authority of India (TRAI) has released the proposed standard forms of Interconnect Agreements for Conditional Access System (CAS) areas between Broadcasters & Multi System Operators (MSO's).

TRAI has said that the draft agreement contains a numbers of sections and provisions including what the revenue sharing should be. The actual revenue share percentage has been left blank in the draft and is proposed to be filled after getting comments of the shareholders.

Besides, TRAI has also sought comments on whether there should be a uniform revenue share percentage between all broadcasters and MSO's and also between the MSO and local cable operators and if this is the case what should be the revenue share between broadcasters and MSO and between MSO and local cable operators.

In addition, TRAI has also sought comments on whether there should be a different revenue percentage share for different broadcasters and if so should the rates for different broadcasters prevailing in Chennai be adopted in other CAS notified areas also. Further, TRAI has also sought comments on whether there is any other alternative method of arriving at the revenue share percentages between the broadcasters and MSO's and local cable operators.

TRAI has sought comments by June 27, which comes after the Delhi High Court in March this year directed that CAS be implemented in Mumbai, Delhi and Kolkata. Following this the Secretary Ministry of Information and Broadcasting held a series of meeting with the stakeholders to firm up plans for roll out of CAS.

The CAScading Effect
Note, that with TRAI seeking more time to implement CAS, and the second DTH platform of Tata Sky set to invade Indian homes, the cable operators are suddenly in the throes of a fight for survival. Unfazed though, the cable industry has come out with a unique plan, ignore the CAS notified areas for a while and instead persuade the regulator to offer a la carte pricing for the non-CAS areas of the country.

This, they believe, will serve two purposes: First, help them retain hold over the Rs 15,000 crores annual collection money from the 65 million cable and satellite homes of India and second, help nudge the industry towards voluntary addressibility. The key component in this plan, the broadcasters, are completely cold to the idea though. But more on that later.

In smaller towns, a la carte pricing is a a key part of the cable TV industry's plan to hold on to their client base. By offering them the option to choosing the channels they want, cable operators believe they can offer a more cost-effective option than DTH.

Amit Khanna, President, Film and TV Producers Guild of India has said, "If everyone wants a fair share, the pie must grow faster. While the government wakes up to the realities, let the industry rise from its self-induced slumber. India has a potential to be the third-largest TV market in the world by 2010. India has a tryst with digital destiny, let us not fall asleep while the world awakens."