Cable TV digitisation programme further extends in Chennai

Counsel representing the Corporation told the court that set-up box suppliers have asked 18 weeks time to supply boxes from time of placing order

Implementation of cable television digitisation programme in Chennai was further extended till Friday, since the Madras High Court has posted the matter (relates to a petition filed seeking extension of deadline to implement digitisation in Chennai) to Friday. Meanwhile, the Ministry of Information and Broadcasting (I&B) said that it is ready to give extension provided the State Government commits December 31, 2012 as a date to implement the programme.

The Counsel representing the Corporation told the Court that the set-up box suppliers have asked 18 weeks time to supply the boxes from the time of placing order.

“We are negotiating for a good price. From the time of placing the order (which may happen before Diwali) the suppliers are asking for 18 weeks time,” said a representative from the Corporation. He added “the Corporation don't want to burden the Public and Cable is part of State Government's welfare scheme so we want to get the best price”.

It may be noted, earlier the Company floated a tender for design, supply, installation, testing and commissioning of Digital Cable TV headend with Conditional Access System (CAS), subscriber management system, one lakh set top boxes and rate contract for a period of one year for 19 lakh STBs and services for five years.

Since the rates quoted by the prospective bidders were high, the Corporation had to cancel the said tender and issued a fresh tender.

Following which the Corporation said that the entire process cannot be completed within the mandated time of October 31, 2012 and had sought two months extension for the implementation of DAs in Chennai i.e. December 31, 2012, today again the Corporation has seeked extension.

Responding to the Corporation's appeal, the Counsel representing the Ministry of Information and Broadcasting said “if they (Arasu Cable) commits December 31, 2012 as time for implementation, then we will consider to extend the deadline”.

Meanwhile, Counsels representing some of the companies including Air Tel, Videocon and Tata Sky have objected Arasu Cable's reason (non-availability of set-up boxes). The Counsels told the Court that their clients have enough stocks to meet Chennai market's demand. But the Corporation Counsel maintained that these companies do not fall under the digital set-up box catergory, as they are direct-to-home cable tv service providers.

Hearing all the sides on Monday, the Madras High Court posted the matter for Friday for further hearing. It means the Chennai residents can continue to watch their favourite channels thorugh analogue till Friday.

The hearing was related a petition filed by Chennai Metro Cable TV Operators Association seeking extension of digitisation deadline set by the Government of India as October 31, 2012.

Johnson D Kennedy, president of the Association said while around 40 lakh set top boxes are needed, only around 1.6 lakh active set top boxes are in the city at present.

Earlier industry sources said that around 32 lakh households in Chennai may not be able to go out from the cable network if the Government decision comes into effect from November 1, as scheduled by the Government.

It may be noted I&B Ministry claimed that in Chennai, the Cable homes are showing 61% digitisation and together with DTH, the percentage of digitization goes up to 85%.

The operators earlier said that the Government had used the data which is very old and it was restricted to 200 wards within Chennai Corporation limit, whereas the city was already extended at one side till Sripermbdur and on the north side till Tiruvatiyur. The Government also didn't take the free television sets which was given by the DMK led Government, which was ruling the state between 2006 and 2011. The new TV sets alone means 20% increase.

As per the industry estimates, there are 40 lakh cable connections in the Chennai, whereas only 2.5 lakh set-boxes were issued plus 6 lakh DTH connections. It means only around eight lakh households are equipped, while 32 lakh households are not equipped and they will be out from the cable.