Lok Sabha passes bill to digitize cable TV industry

A bill aimed at digitizing the cable sector by December 31, 2014, was passed in Lok Sabha, by passing the Cable Networks (Regulation) Amendment Bill, 2011, the government has put Rs 20,000 crore cable TV industry one step closer to going digital and promoting better picture and sound quality to consumers. 

The cable bill, which was introduced in Lok Sabha last month, now need to be passed by the Rajya Sabha and then approved by the President to become a law. Once the law is introduced, the cable television industry will convert to digital from analog cable. The move will pave the way not only for mandatory digitization, but usher in a host of other changes.

The amendments include systemization of registration of cable operators, compulsory transmission of certain channels like Doordarshan, inspection of cable network services, use of standard equipment in the cable television network, prescription of interference standards by the Central Government and empowering the TRAI to specify basic service tier and its tariff.

Television industry experts are of the view that the digital set-top boxes will deliver better video and audio quality to television households and it will also give choice to consumers to pick and pay for channels which they wish to see.

Information and Broadcasting Minister Ambika Soni said the measure was a major step towards reform, going digital means bringing TV networks in India on a par with their counterparts in the US, the UK and South Korea.

The minister also expects set-top box prices to decline. The set-top box will be available on payment via installments and on rent. However, the Telecom Regulatory Authority of India (TRAI) will impose a limit on tariffs for subscribing to channels. By next week, the TRAI will bring out a consultation paper to set up regulatory framework for digitization. Presently around Rs 30,000 crore is required to digitize cable, the networks are pushing for a higher foreign investment limit.

The industry has welcomed the move, as digitization will allow firms to offer value added services to consumers, and it also expects that after introduction of the bill, TV industry will experience surge in investment. 

The cable bill may be tabled in the Rajya Sabha today i.e. December 14, 2011. Though, some of the Lok Sabha members expressed their anger at the content on some channels including those broadcasting news, however, the entire house supported the Cable Bill. Since the cabinet committee on economic affairs in October 2011 had cleared an ordinance for digitizing cable television networks, its introduction in the Lok Sabha and the Rajya Sabha are just ‘procedural formalities’, official from the ministry of information and broadcasting said.

The cable firms are expected to convert their analog systems to digital in the four metro cities by end of current fiscal year. And at the end of next fiscal year cities with more than one million population will adopt digital cable, whereas the deadline for the whole country to go digital is December 2014.