A $300-million project for setting up a new broadcasting platform on the Thaicom satellite may take off in the next four months. The platform will be available exclusively to cable TV operators and viewers opting for subscriber management system (SMS).

Industry sources said that the project is expected to take-off by November. The project will be based in Mumbai and would involve some of the leading cable operators and a few foreign channels, who are keen on entering the country by year-end, sources added.

Currently, the satellite broadcasters are using transponder space on three foreign satellites for uplinking. These are: PanAmSat, AsiaSat I and Intel Sat.

Transponder space on the Thaicom satellite, which is operated by Thailand based Shinewatra group, is also being leased out to private parties. Foreign channels planning to enter the country have shown great interest in acquiring them.

Sources said that these 15-20 foreign channels have already shown their appreciation for the drafted broadcasting bill likely to be passed this year.

These channels are apparently ready to operate within the framework of the proposed law, especially with regard to clauses such as 49 per cent cap on foreign equity, mandatory uplinking from the country and cross-media holding upto 20 per cent.

Sources stated that the idea has been well-received by some of the big cable operators. In fact, it has been proposed that the platform in Northern India would be put under the management of Cable Networks Association, sources added.

The CNA officials are tightlipped about the project. One of the members, however, stated that the project is still at a preliminary stage.

The SMS system would involve controlling of cable services through a set top addressable box, which will be installed at the subscriber's end. The service will be provided from a control room and monitored via computers.

The system is expected to be helpful for the broadcasters in knowing the exact number of subscribers receiving their services. On the other hand, the cable operators would stand a greater chance in in recovering subscription fees.

Significantly, the cable TV service industry's combined turnover has fallen by nearly 30 per cent in the last six months due to high default rate among subscribers. During 1996, the industry's combined income was estimated to be nearly Rs 1,000 crore.

The cable operators in north and west India have recently boycotted ESPN as the channel had hiked its per subscriber fee. On this issue, CNA has said that the cable operators are willing to pay a hiked fee only if their subscription recovery is guaranteed through a system like SMS. The association had also approached few broadcasting companies for subsidising the cost of set top addressable boxes for the subscribers. At the present rate the cost of a set top box is Rs 3,000.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.