Although linear television remains the primary mode of viewing for most Indian households, cableTV operators still face numerous challenges – what the rapid uptake of OTT services and the inflexible pricing regulations set by the regulator. And the situation is not getting any better for the tribe, says Maharashtra Cable Operators Foundation (MCOF) president Arvind Prabhu. He has written a letter to the new chairman of TRAI
He claims that matters took a grim turn with Covid2019 causing a 25-30 per cent drop in subscribers for the cable TV trade operators in the first four months of the crisis, mainly due to lack of fresh TV content, labour migration and the closure of commercial establishments. He further projects that only 5-10 per cent of these subscribers might come back. While a lot the of users had moved to OTT during the beginning of the pandemic, Prabhu says there are fewer chances of them returning to TV as the platforms are already offering linear TV content, streaming live sports events.
There had been a challenge at the operational level too with the onset of this pandemic. However, the situation is normalizing inch by inch, thanks to the stage by stage unlocks, and it is comparatively easier at this moment, says Prabhu. However, 30 per cent of workers are not coming to offices regularly. Given that cable TV is an essential service, the government should have looked at insurance for its staff, insists Prabhu. Moreover, vendor supplies have also slowed down. The scene is a little different in rural areas, where manpower is available but getting equipment is an issue. Hence, it would take another month or so to reach normalcy, he expresses.
Putting aside the challenges imposed by Covid2019, cable TV operators have been in distress for a while now. With the Telecom Regulatory Authority of India (TRAI) introducing a cap on NCF under NTO 2.0, their worries have only increased. Prabhu claims that TRAI did not take into consideration the suggestions that were given following the NTO consultation paper. He goes on to add that MSOs manipulated NTO 1.0 and it failed to bring end-to-end transparency.
However, the MCOF president acknowledges that former TRAI chairman RS Sharma did his best to help small cable TV operators. “If the new chairman (PD Vaghela) does not quickly help us to revive the overall economic situation, we will be in dire straits. What we ask of the new chairman is to look at all the correspondence sent by cable TV operator associations. He will immediately realise that there has been a serious breach of regulations,” says Prabhu, and he urgesVaghela to call a meeting of all stakeholders at the earliest so they can figure out a solution together.
Alongside the long-term strategies, the operators are facing short-term issues as well. “First and foremost, there should be a signing of model interconnect agreements. Nobody has signed a model interconnect agreement, whatever was signed was two three years ago. The ownership of a set-top box needs to be defined. If a consumer is buying then it is his property; if a cable operator is buying to give it to consumers it belongs to him, if it is being rented or leased, then it is owned by MSOs. Clarity on that is needed,” he states
