CAS rollout encouraging, DTH numbers good: TRAI

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Close on the heels of being made compulsory in the country, TRAI Chairman Nripendra Misra spoke to CNBC-TV18 on various issues surrounding the implementation. He informs that CAS rollout so far has been far more encouraging than anticipated. He also informs that the number of set top boxes are likely to cross 4 lakh within this week, and that DTH pricing would be regulated only if needed.

Excerpts from CNBC-TV18's exclusive interview with Nripendra Misra:

Q: We have heard contradictory reports on how smooth rollout of CAS has been. What are the reports you are getting?

A: The rollout of CAS has been far more encouraging than we had anticipated. Set top boxes to the tune of about 2,50,000 have been installed in Mumbai, Kolkata and Delhi. There is of course another pending request of 50,000 with all the three cities taken together.

There are enough set top boxes and they are reaching the houses but the whole issue is that technicians have to go and do the job. While the expectation is that it would be installed on the same day, there is a gap of about two-three days because of the bunching of the request, which we have been telling the subscribers to register themselves from the month of October onwards. But I can understand the subscriber's reluctance in the beginning.

Q: Three lakh set top boxes over three cities - is that the number you were expecting. Do you expect that to go up?

A: I definitely expect that the number will go up in about one week's time and it will cross 4,00,000. Another encouraging feature of CAS implementation this year has been that the DTH has been able to do a great job, they are in competition and they are supplying set top boxes and also have the same numbers. My informal information about the two companies is that both of them have already crossed about (total together) three million, which is a very encouraging number.

Q: Set top and DTH together that's the addressable system of television viewing. What kind of numbers do you expect in the medium-term?

A: In the medium-term I think the three cities taken together the set top boxes from the CAS and the DTH together will be of the order of about 7,00,000.

Q: Are you seeing this kind of demand coming in only from the CAS notified areas of all these three cities or is the demand picking up in the other areas where CAS is not been implemented yet but there has been a potential pick-up in demand there as well?

A: DTH of course is doing their job and extension through out the country but are little more focused about the data at this point of time, to ensure that the CAS and the DTH both are able to serve the subscriber.In Delhi the area, which is been served in the CAS the total number of reported subscribers before the CAS was implemented was 87,000 i.e. the revenue payment were been made among the three levels that is the broadcaster, the MSO (multi-system operator) and the cable operator, which was 87,000.

Q: You have talked about introducing CAS in a phased manner across all the three metros. When can we see that process being completed?

A: In the three metros, we are acting on the basis of notification issued by Information and Broadcasting Ministry. But the digitalization of the entire TV net programme moving from analogue to digitalization is our agenda and we are already going to start serious work sometime in the first week of February where we are going to organize a round table of experts to tell us how to ensure that the digital system extends throughout the country in a voluntary manner. So that will be our emphasis.

Q: The TDSAT has asked you to give your view on DTH prices. Would you be in (favor of) setting a ceiling for DTH prices or do you think that market forces gain once you set a ceiling for CAS prices or will automatically rein in DTH operators?

A: Our first assessment was that perhaps the intervention in terms of price fixation would not be necessary for DTH. They are already offering about 75 pay channels at a price of about Rs 200-300, which works out to a reasonable level of pricing below Rs 5 per channel. So we would like to have some kind of regulation on pricing when it is a must otherwise we would rather prefer that the market itself find its level in terms of price.

Q: At the moment we can take that you are not going to set any prices for DTH?

A: I have not seen the order of the TDSAT  (Telecom Disputes Settlement and Appellate Tribunal). I will have to see whether it is a mandated order or  is it optional; if it is optional we are going to examine all the alternatives and if it is a mandated order then we have to see how to comply with that.

Q: There is still a question being raised on whether the consumer has the right to choose and pay for only the channels he chooses to watch. Has that issue been completely addressed with this rollout?

A: The consumer is making his choice; in fact I looked at some of the forms, which have been filled up by the subscribers and they have just indicated what channels they want. So many of the cable operators and the MSOs who were trying to give the bouquets inspite of the fact that there is an individual pay channel price, I have seen that the consumers have broken the bouquets and opted for very specific channels.

But we are extremely hopeful that the subscriber who is now aware in these three cities obviously are the people who are enlightened  and they would exercise their choice in a meaningful manner, which is according to their monthly budget.