Day before deadline, only 5% migrate to new cable system

Ranchi: The new broadcast tariff regime has got off to a poor start with low migration across cable platforms, and initial estimates suggesting an adoption rate of under 10%.
More than 90% customers of direct to home channels through multisystem operators (MSOs) in Jharkhand are yet to migrate to the new subscription model mandated by the Telecom Regulatory Authority of India (Trai).

The new regime, which kicked off from February 1, was rolled out by Trai to provide greater freedom and choice to consumers to opt — and pay for — only those channels that he or she watches rather than being tied down to the bulky bouquets that had been in prevalence.

As per the new rules, MSOs will stop broadcasting pay channels to a customer’s television set, unless they are subscribed to individually. Although Trai announced to relax implementation of the norms till February 7, the ground reality is different.

Local MSOs, including Manthan, SITI, GTPL and Den, have decided to block pay channels from Friday. The four MSOs have a combined subscriber base of 40 lakh customers in the state. DTH providers like Videocon, Airtel and Tata Sky are yet to clarify their stand.

Talking to TOI on Wednesday on the status of customer migration to the new subscription model, Rajesh Sinha, president of Jharkhand Cable Operators’ Association, said the process is slow and lacks clarity. “We are yet to calculate the exact number of subscribers who have opted for the new system. However, of around 40 lakh customer of the MSOs, barely 5% have so far migrated to the new model,” he said.

Local cable operators blamed the delay on service providers. “None of the companies have devised proper plans on the basis of which we can suggest our customers what to choose from. Even as customers are submitting SAF (subscription application form), it is becoming difficult to guide them on which plan to select,” he said.

Service providers disagreed. “We have already sent all the package details to our customers as well as cable operators. Not only that but we have been calling up the cable operators in this regard,” said Ajay Kumar Sinha, an official of Manthan here.

Representative of another service provider said on the condition of anonymity that many operators aren’t keen on facilitating migration to the new system, fearing they will lose their commissions.

“Earlier, on a minimum package of Rs 250 operators received Rs 170 as commission. Now, the local cable operators will get Rs 90 as commission for the compulsory and basic package of Rs 130. While the percentage of profit is good, many operators fear their profit margin will go down if customers choose less number of pay channels,” he said.

Trai had quoted studies that showed that ordinary household did not watch more than 50 channels in a month, even though they were being made to subscribe to over 200-250 channels on an average through packaged bouquets.

“By introducing a low-priced MRP regime, we want people to make informed choice about the channels that they want to watch – either from the free channel portfolio or from the paid stack,” Trai chairman RS Sharma had said while justifying the measure.

“We expect monthly bills to come down if consumers make a studied choice and pay for only those channels that they generally watch.” But the much-awaited measure – which had been challenged by certain broadcasters and operators – has failed to get on to a flying start.