CAS rollout to come with MRP for TV channels

To keep overall monthly costs of cable TV under control, the government will fix a maximum retail price over which no broadcaster can price its television channel as the conditional access system is all set to roll out in Delhi, Mumbai and Kolkata.

The government's meetings with broadcasters, multi-system operators, cable operators and consumer bodies had been successful and a consensus route on CAS rollout was nearly through, official sources said.

When the new arrangement is formalised and notified, the government may allow a 220-day transition period during which implementation work will begin, including providing set-top boxes to consumers, tariff announcements by channels and awareness campaigns to highlight the benefits of the new content delivery system.

According to the broad contours being finalised, the government will set an MRP over which no broadcaster can price any individual channel.

This will be done to ensure that the actual price for consumers in a CAS system, where they pay only for channels of their choice, does not exceed the average price paid currently, which is generally accepted at around Rs 200. But the sources said broadcasters were free to price their channels at any price within the MRP.

For example, a broadcaster having multiple channels can price its main channel at the MRP ceiling while pricing the relatively less-watched channels lower.

The broadcasters will also be allowed to sell bouquets of channels. However, the sources said broadcast regulator Trai, which would oversee pricing and standardisation, will ensure that the bouquet prices were not so low so that the consumer was forced to opt for them.