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DTH launch delay hits ventures
Nithya Krishnaswamy & N Ravi kumar
CHENNAI, May 7: The uncertainty shrouding the take-off of the direct-to-home
(DTH) service has not only sealed the fate of many joint venture agreements
but also brought into question the viability of the investment made by
foreign television networks.
While all hopes rest on the new information and broadcasting minister Jaipal
Reddy to move fast, doubts are still lingering among the Indian private
television networks about the swiftness with which the go-ahead would be
given. The DTH services, as per the original schedule, were slated for
launch on April 1, 1997.p
According to reliable information, many of the foreign entertainment
networks have already lined up mega investments. For instance, the Rupert
Murdoch owned Star network has set up a hi-fi studio in Hong Kong to
digitalise its signals, while MeaSat of Malaysia has sunk in $7 million in
two KU transponders hoping that the Government of India would accord an
early clearance for DTH.
Industry sources, during a conversation with The Financial Express
expressed apprehension over the delay and lamented that their proposals,
planned with much fanfare now are in a state of limbo.
They also voiced their concern over the signals aired by the government, to
the overseas investors, as the Broadcasting Bill was touted to be a major
step towards India's liberalisation in the entertainment sphere.
Sources are not only aggrieved with the time-lag, but hit by the fact that
the Bill is going to be tabled in the parliament in toto with its draft
copy. Whereas expectations were kindled earlier that some amendments may be
brought in.
But, what appears to be major point of discomfort is the modus operandi to
be adopted in passing the Bill. According to present indications, a
parliamentary sub-committee consisting of members from both the Houses will
be constituted. In order to gauge the opinion of the public, this committee
would move from town to town eliciting responses. All the information
collected in the process would be then submitted to the cabinet, which in
turn would pass the buck back to the parliament.
The entire process is expected to take a minimum of two years, by which time
the concept of DTH itself might become less attractive as even now the
introduction of terrestrial channels appears to be an immediate reality.
Unlike the cable system, terrestrial channels could be received with the
help of an antenna leaving no scope for the cable operator. While
Doordarshan is the only network available terrestrially, one has to wait and
watch on how many private television networks opt to go terrestrial once the
government approves it.
Contention of the private players is that the country could save precious
foreign exchange by allowing network's to uplink from the country as the
channels are presently coughing up sizable amounts towards the transponder.
Another discomfiture for the private network players is the regulation
regarding cross-media and inter-media. Besides disallowing those from the
print media to enter the electronic scene and vice-versa in the cross-media
slab, the Bill also restricts a network from broadcasting in more than one
language.
If the Bill is approved in the present form, then many print media houses
with interest in electronic front, and players like Sun TV having channels
in three languages would be stopped.
On the other side, such regulations if enforced would only lead to many
malpractices like benami companies and transactions, it is said.
The Broadcasting Bill not only encompasses all aspects of broadcasting, but
the also Prasar Bharati Act (for making Doordarshan and All India Radio
autonomous organisations), and regulations for providing uplinking
facilities.
Call it a sentimental reason or a genuine one, sources expressed their
opposition against the decision to club various aspects into the Bill.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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