Kolkata: Cablemen plan to levy service charge
Prithvijit Mitra | TNN | Updated: Apr 8, 2019, 06:01 IST
Even though pay channel prices have gone up, the operators' share has droppedKOLKATA: A reduced income in the new a la carte regime of cable TV subscription has prompted Kolkata operators to contemplate levying a service charge on viewers, which, they claim, has become necessary to provide maintenance that was free so far. Operators’ earnings have dropped by almost 45% in the new regime, largely due to a smaller share in the pay-channel pie.
Most local cable operators may soon find it difficult to employ enough people for quick repairs and collection of subscription fee, say operators’ associations, who plan to write to the Telecom Regulatory Authority of India (TRAI) for permission to levy the maintenance fee.
While an operator would earlier earn Rs 175-Rs 200 per cable home, it has now slid to just Rs 90. It would be difficult to serve subscribers without a fee of Rs 20-Rs 25, said a member of a south Kolkata operators’ association. “Serving subscribers requires several workers. Fixing cables and collecting subscription fee are round-the-clock work. An average operator employs at least five-six people. Over the last five years, staff salaries have doubled but now, with a reduced income, it will be impossible to serve our customers,” a member said.
Even though pay channel prices have gone up, the operators’ share has dropped. While 80% of the price of a pay channel now goes to the broadcaster, multi-system operators (MSO) and cable operators share 20%. Operators now get Rs 75 out of the Rs 135 charged for free-to-air channels (FTA). They earn around Rs 80 for a package priced at Rs 200 and above, Rs 95 for a package priced at Rs 300 and above and Rs 110 for a package that costs Rs 400 or more. Since most subscribers are yet to get used to paying every 30th day, the employees had to put in a harder effort to collect the subscription fee, pointed out Tapash Das of Ideal Cable Operators’ Association.
“Under the revenue-sharing model, our income has been cut to half. Our profit margins no longer allow us to continue with the same number of employees. Only a service charge can help us continue with maintenance and fee collection,” said Das, who has customers in Hazra and Harish Mukherjee Road. He added that his association was looking into the legal provisions of levying a service charge.
Subscribers must now get into the habit of visiting the local operator’s office to pay, said Mrinal Chatterjee of MSO Bengal Broadband. “Most small and medium operators will have to cut down on the number of employees, making door-to-door visits impossible. Repairs, too, will be delayed and will have to be charged,” he said, adding he might start charging for maintenance and repairs from this month itself.
It might not be possible for all subscribers to visit operators’ offices to pay, added another MSO official. “Elderly people and working couples can’t do that. Perhaps operators will now have to charge separately for payment. But TRAI regulations may come in the way,” he said.
Most local cable operators may soon find it difficult to employ enough people for quick repairs and collection of subscription fee, say operators’ associations, who plan to write to the Telecom Regulatory Authority of India (TRAI) for permission to levy the maintenance fee.
While an operator would earlier earn Rs 175-Rs 200 per cable home, it has now slid to just Rs 90. It would be difficult to serve subscribers without a fee of Rs 20-Rs 25, said a member of a south Kolkata operators’ association. “Serving subscribers requires several workers. Fixing cables and collecting subscription fee are round-the-clock work. An average operator employs at least five-six people. Over the last five years, staff salaries have doubled but now, with a reduced income, it will be impossible to serve our customers,” a member said.
Even though pay channel prices have gone up, the operators’ share has dropped. While 80% of the price of a pay channel now goes to the broadcaster, multi-system operators (MSO) and cable operators share 20%. Operators now get Rs 75 out of the Rs 135 charged for free-to-air channels (FTA). They earn around Rs 80 for a package priced at Rs 200 and above, Rs 95 for a package priced at Rs 300 and above and Rs 110 for a package that costs Rs 400 or more. Since most subscribers are yet to get used to paying every 30th day, the employees had to put in a harder effort to collect the subscription fee, pointed out Tapash Das of Ideal Cable Operators’ Association.
“Under the revenue-sharing model, our income has been cut to half. Our profit margins no longer allow us to continue with the same number of employees. Only a service charge can help us continue with maintenance and fee collection,” said Das, who has customers in Hazra and Harish Mukherjee Road. He added that his association was looking into the legal provisions of levying a service charge.
Subscribers must now get into the habit of visiting the local operator’s office to pay, said Mrinal Chatterjee of MSO Bengal Broadband. “Most small and medium operators will have to cut down on the number of employees, making door-to-door visits impossible. Repairs, too, will be delayed and will have to be charged,” he said, adding he might start charging for maintenance and repairs from this month itself.
It might not be possible for all subscribers to visit operators’ offices to pay, added another MSO official. “Elderly people and working couples can’t do that. Perhaps operators will now have to charge separately for payment. But TRAI regulations may come in the way,” he said.
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