Hopeful of no more extension in digitisation deadline: WWIL

Metros of Delhi, Mumbai, Chennai and Kolkata will have to wait for another four months to experience digitisation of cable services.

The assessment of ground realities indicated that smooth transition from analogue regime to digital regime wasn't possible because seeding of set top boxes (STBs) in cable viewing households was not satisfactory. This compelled the Ministry of I&B to set a new deadline.

This step would disappoint broadcasters, but it would aid multisystem operators to gear up and put things in place, A Mohan, President-Legal at Essel Group told CNBC-TV18. "Taking the ground realities into account the extension is fine."

He expects the government to vigorously monitor all service providers so that the four month deadline is not pushed further, as feared by broadcasters.

"The notification that has been issued by the government this time says that this just not simply an extension, but it is an extension with caveat," he added.

Wire & Wireless India (WWIL) is one of the India's largest Multi System Operator (MSO) and is a group company of the Essel Group.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Are you getting the sense that there is greater vacillation right now with the government in terms of pushing through with the deadline or is it just that all the parties involved or not being able to find the common ground?

A: My reaction from broadcasting point of view would be that we are disappointed. But, we are quite hopeful. From multisystem operators’ point of view another four months have been given to place everything in order because there were certain wrinkles.

When the government took stock of the situation from each of the stakeholder then it was found that a smooth transition was a bit suspect as on the deadline date of June 30. In order to ensure that not even a single consumer is unconvinced as on particular date they have extended it.

They have decided that it is better to have a kind of extension because it’s a mammoth kind of a situation from a massive analogue regime to digital regime. Taking the ground realities into account the extension is fine.

Q: The question is if this is the final deadline because sometimes these postponements have a habit of being repeated and come October again the industry might shout that they are not ready and it will get pushed back by another three months. Is that likely in your eyes?

A: You are right. This precisely was the fear of the broadcasters because here the issue was that that of implementation of a stated policy by the government and government has been repeatedly saying that 30th June is sacrosanct; it’s not going to be pushed. But if you go through the notification that has been issued by the government this time one will realize that this just not simply an extension, but it is an extension with caveat.

What the government has done this time is that before announcing the deadlines they have sought specific feedback from each of the service providers. In that feedback they have specifically sought the targeted timelines to complete various formalities. Once those feedbacks have been received by the government, then government analyzed whatever is going to be the realistic timeframe in which everything will fall in order.

Based on that the government has announced the deadline with the caveat. They will strictly went to monitor the meeting of those targeted deadlines by the service provider. In case there is any default on the part of any service providers the government is going to take action.

So therefore hopefully this time past will not be repeated. My hope is based on a fact that everybody is geared up. As far as the fundamental part is concerned, they are positive about the implementation. It is now only the question of practical ground realities, which have to be met.

This time I do not think the past will be repeated with the government strictly monitoring the targeted timelines which have been given by the service providers themselves. This time there is not going to be a further postponement or extension.

Q: What is been the progress so far though even for WWIL what kind of see penetration have you seen in terms of digi boxes for markets like Delhi and Mumbai as well?

A: As far as the penetration part is concerned, if you see the reasons for postponement was that the tariff guidelines and other necessary interconnection regimes were announced very late by the TRAI. They announced it on April 3. Prior to that, there was also a delay in announcing cable rules by the government. So the rules of the game were known only on April 30.

At this particular point the agreements between various stakeholders like broadcasters and multi-system operator (MSOs) and local cable operators (LCOs) have not yet taken place.

Despite that, it is a fact that there has been a penetration of about 35-40%. Without having agreements in place if you have such kind of penetration level of STB and deployment level of STB, then that means all the stakeholders are putting in best of their efforts. Once this timeframe is available to put in place all those agreements etc, four month period is a comfortable timeframe in which the deployment would further take pace.

As on 31st October have which is the extended deadline we will have a smooth transition. That is because of the fact that even without tariff and interconnection framework in place, if you have a penetration of about 35-40% then once all these things are in place the momentum would be there and the necessary set top boxes would be deployed.