Pay channels can charge only for viewers
Mumbai: It is a decision that has definitely caught the broadcasting industry by surprise and has opened a Pandora’s box. In a judgement delivered by the Andhra Pradesh High Court, pay channels operating across the country have been barred from charging subscription fees for those channels which consumers do not want to subscribe to.

The order has rekindled the ongoing debate on the cable network industry in this country. It underscores the need for a national network that gives the consumer a choice in deciding what to view and pay for.

Currently, across the country, cable operators collect between Rs 100 to Rs 300 per month for a bundle of up to 70 channels, which include both encrypted pay channels as well as those which are free-to-air. The pay channels collect the subscriber fees from the cable networks directly.

The judgement was delivered in response to a public interest petition filed against the union information and broadcasting ministry, Prasar Bharti, Doordarshan and major pay channel demanding that pay channel collections should be stopped under Section 151 of the Civil Procedure Code.

Most pay channels, like Star TV, have said that the order has been passed ex-parte and are likely to move the court for modification of the order.
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Government may lift 49 per cent cap in telecom investment
New Delhi: As part of its moves to boost investment in communication infrastructure, the government is likely to take a final decision to scrap the 49 per cent ceiling on foreign direct investment in telecom services.

A committee under the chairmanship of the finance minister has been convened and is currently reviewing the proposal. The government is also likely to establish a national telecom financing corporation, covering information technology and broadcasting sectors. The modalities for the same need to be worked out by the financial sector in consultation with telecom and IT sectors.

The government is expediting finalisation of a financing policy for convergence as well, the minister said. ``DTH is a precursor to convergence and through DTH, entertainment, information and communications will come under one instrument,’’ he said.
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