The Hindu Business Line : Broadcasters hold meet with TRAI over CAS

FOLLOWING the newly appointed broadcasting regulator, the Telecom Regulatory Authority of India (TRAI), issuing a preliminary consultation paper, both broadcasters and the cable industry on Tuesday highlighted the issues surrounding the implementation of the conditional access system (CAS).

The broadcasting industry made a presentation to the regulator and said pricing of individual channels should be left to the market forces by encouraging competition, so should the revenue splits between the various stakeholders.

They said the prices of broadcast channels could vary significantly; premier movie channels can cost over Rs 10 crore each while sports events can cost hundreds of crores. Also, ad revenues are linked to ratings and performance and are, therefore, unpredictable.

They also objected to the freeze in prices, saying the interim price order was decided without consultation to create turmoil and uncertainty in the industry, leading to potential litigation between stakeholders as legally valid contracts are being questioned. The freeze has led to confusion even outside CAS markets, with the loss of ability to negotiate new contracts.

The broadcasters also pitched for addressability and choice of platforms; sources in the Indian Broadcasting Foundation felt DTH and broadband should be encouraged.

The cable industry, on its part, said there should be cross-media restrictions, since several top broadcasters have stakes in the cable service industry.

TRAI is expected to bring out the first consultation paper next month.