The apprehension of the cable tv industry has come to be a reality now. Reliance JIO has now tightened its belt to consign the cable sector to dustbin. It has started implementing its hidden agenda to permanently shut down cable operators and small MSOs. With attractive subscription packages, JIO has planned to attract the subscribers. On the other hand, it is threatening the LCOs to move away from the competition and there are allegations that JIO is resorting to cord cutting in many areas. Replacing the existing Set Top Boxes and laying own cable have become a real threat to the cable industry.
Offering very low subscription
JIO has come forward to offer cable TV services at a very nominal monthly subscription. This offer will be valid for a period of 6 months and it is needless to say that it will fix up very high tariff once it is a monopoly. By the time the subscriber realizes that he has been trapped, nothing can be done to recover. JIO has fixed Rs. 100 per month for those who want all the SD channels and Rs.200 for HD channels. It will not be collecting both installation charges and STB cost.
Industry sources say that this offer is valid for a limited period, say 6 months. Once the 6 month period is over, the subscribers will be forced to pay as per the earlier tariff. Jio Hathway has already written to certain Housing Societies in Mumbai. Industry believes in the fact that the hidden agenda of Jio is to chase away the existing LCOs. Those who get attracted to this offer will become JIO subscribers once for all. It is pertinent to mention here that JIO has fixed its broadband tariff as low as Rs. 399 per month.
Now as per the current offer, the subscriber needs to pay Rs. 600 towards subscription for 6 months of standard definition (SD) cable tv service. It includes the cost of STB and installation charge too. In case the subscriber wants a HD connection, he has to pay Rs.1000 and he will get cable service for 6 months. The HD plan covers almost all the major channels, viz., Star India, Zee, Sony, Discovery, UTV, TV9 and all important sports channels.
Now as per the current offer, the subscriber needs to pay Rs. 600 towards subscription for 6 months of standard definition (SD) cable tv service. It includes the cost of STB and installation charge too. In case the subscriber wants a HD connection, he has to pay Rs.1000 and he will get cable service for 6 months. The HD plan covers almost all the major channels, viz., Star India, Zee, Sony, Discovery, UTV, TV9 and all important sports channels.
The usual price of a SD package is Rs.320 and now it ois priced at rs. 100. It amounts to a discount of 70%. When it comes to HD package,. The original subscription is Rs.422 and is now offered at Rs.200 and the discount comes to be more than 50%. During the offer period of 6 months, the LCO will not be in a position to subsidize such a huge amount and will be forced to move away from his business. JIO is expecting the same. Some pockets of Mumbai are already under the influence of these packages.
Installing JIO STBs clandestinely
Hathway and DEN are now installing JIO Set Top Boxes in a clandestine manner. They are replacing their own STBs with JIO STBs. They have failed to enter into fresh Model Inter connection Agreements (MIA) in the place of the outdated Standard Interconnection Agreements (SIA). This shows the malafide intentions of Hathway and DEN which are dancing to the tunes of their Master, JIO.
In case any of the operator objects to it, they are not allowed to access the prepaid portal and ultimately the services to the subscribers are stopped. At the same time, they are also encouraging some dummy operators to threaten and jeopardize the existence of the LCOs of that area.
The Maharashtra Cable Operators’ Foundation has demanded JIO to show its agreements with Broadcasters and also the present status of the licenses of the MSOs DEN and Hathway. “Just because an entity purchased shares from an organization, it is not entitled to install its Set Top Boxes”, says MCOF. It has written to TRAI and the Ministry of Information and Broadcasting for a clarification
Threats and cord cutting
LCOs belonging to Indore, Ujjain and Bhopal in Madhya Pradesh, have staged a dharna in the state capital, alleging that JIO was laying its own cable and cutting the cables of local operators. They allege that Geo is trying to eliminate cable operators by acting unfairly and unethically. The Madhya Pradesh cable operators have also accused JIO of intimidating operators by cutting cables, disrupting cable services to the public and trying to discredit the operators.
In fact, the Madhya Pradesh Cable Operators Association (MPCOA) claims that JIO has entered into business agreements with about 150 cable operators and is now cutting their cable by laying cable for its own business. “ If JIO does not change its attitude, we will convert it into a nationwide movement,” the operators said. The association said it also had the idea of going to court for breach of contract.
There is now a perception in the cable industry that it is not enough to make small movements anywhere in the case of J, which seeks to destroy the cable industry with such undesirable tendencies. It is time for everyone to realize that the experiences encountered in Maharashtra and Madhya Pradesh will be repeated across the country in a few days. If the Telugu states do not wake up and get rid of it, the cable business may not survive. It may not be possible for LCOs to thwart JIO’s aggression and sustain the cable business, unless they are part of a national movement that is moving everywhere.
