The Financial Express [FRONT PAGE][ECONOMY]
[CORPORATE][MARKETS]
[EXPRESSIONS][LEISURE]
[BRANDWAGON][HABITAT]

Thursday, May 8 1997

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.

ICICIBANK

PLANET INDIA

HUDCO
Infrastructure Bond Issue

All the India who want to know

The Indian Express

IMAGE MAP

Late News | Front Page | Expressions | Economy | Markets | Corporate
Home | Habitat | Leisure | BrandWagon
Advertising | Feedback | What's New
Search | Archives
The Group