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Sunday 1 July 2012

Digitisation deadline deferred by 4 months

This story first appeared in DNA Money edition on Friday, June 22, 2012.

The sunset date for conversion of cable systems from analogue to digital has been postponed by four months to October 31.

The earlier deadline for Phase I digitisation in four metros — New Delhi, Mumbai, Kolkata and Chennai — was June 30.

“All the TRAI (Telecom Regulatory Authority of India) regulations for DAS (digital addressable system) will come into effect from November 1,” the Ministry of Information and Broadcasting said in a statement issued late Wednesday evening.

The ministry, however, did not mention any changes to the December 31, 2014 deadline set for the rest of the country.
The ministry decided to extend the deadline after taking into consideration the lack of preparedness among multi-system operators (MSOs) and local cable operators (LCOs) in the four metros.

While broadcasters have been pushing for sticking to the June 30 deadline, cable operators had sought more time citing shortfall in the availability of set top boxes. “...installation of set top boxes has not picked up necessary pace for the completion of the process of digitalisation by June 30,” the statement said.

However, the ministry asserted that there will be no further extension of the deadline thereafter and that MSOs and LCOs will have to ensure complete digitisation in the four metros within the said timeframe.

While DTH operators have been very bullish about implementing cable digitisation, the trouble largely was on the MSO and LCO side wherein some of the MSOs said they were not fully ready for various reasons including non-availability of set top boxes.

Industry sources, however, said the key reason for the delay was that commercial arrangements between broadcasters and MSOs with respect to the rates to be charged to customers had not been finalised.

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