New Delhi Oct 2: It is a business where most entrepreneurs are thriving on a knife's edge. Profits notwithstanding, small cable television operators in Delhi have to do with a plethora of infrastructural and operational hindrances. There are no effective government regulations, industry is utterly unorganised and competition is fierce. And above all, as operators claim, even the satellite channels which they serve are insensitive to their problems.Operators point out that even though coming of the monied operators, like Siti Cable and In Cable, have helped small operators in increasing their connectivity, growing competition among satellite channels has created a lot of operational problems. "Siti Cable shows only Zee TV channels on prime bands. This creates problems for us for we cannot offer other popular channels like Sony or Home TV to our subscribers. As such we are often at the receiving end of the subscribers," says V D Dutt, who caters to homes at Rani Bagh in north Delhi.
Moreover, Dutt pointsout that with more and more channels going digital, many small operators are finding it hard to sustain business. "Viewer demand is growing with each passing day, and when channels go digital operators have to invest in decoders. Unless there is a subsequent increase in the subscription charges, it is futile to invest money in decoders," says Manjit Singh of XL Cables. Dutt, however, adds that most operators will be forced to install decoders otherwise they might lose subscriptions.
Another serious problem which has arisen lately is the theft of amplifiers and cables by rival operators, at times, resulting in violence. Dutt and Singh point out that these incidents usually occur when events like cricket matches are being telecast. "And when the police comes in, instead of getting the matter rectified we end up being harassed by them," Singh grudges.
Most operators lament that while satellite channels have benefited hugely by becoming pay channels, there has been no significant change in their earningpatterns despite they being the crucial link between the satellite channels and viewers. In fact, operators say, profits have remained stagnant despite a substantial increase in the number of subscribers.
"We do not say that we are not earning profits, but things are not as simple as they used to be four years back," says Dutt. Dutt, who started with 100 subscribers in 1993, says that despite catering to some 500 subscribers today, his profits have shown no significant rise. "In the beginning it was just films which I used to air through a VCR, then came the satellite invasion which completely changed the nature and scope of our business." Sangeeta Keshwani, who has also been in the business since 1993, agrees.
Beginning with six channels, Dutt now offers some 30 channels to his subscribers. But, he says, as the number of channels increased so did the number of people coming into the business. "This meant that operators had to significantly bring down subscription charges." Dutt, himself, was forced toscale down charges by about 50 per cent.
Keshwani, who caters to some 200 homes in Rohini, also points out that increasing competition has resulted in loss of business as more and more operators are resorting to unfair practices to outwit each other. Citing the case of Rohini, she says that it is one area where competition among the operators is perhaps toughest in Delhi. "In Rohini, there are operators, especially the big ones, who charge as little as Rs 30 to Rs 45 per month from their subscribers. This is affecting the business of small operators who cannot survive such conditions," she stresses.
Keshwani claims that operators who charge little are reluctant to disclose the actual number of subscription. "By doing so they avoid paying charges which they owe to pay channels like ESPN and Star Movies." Interestingly, Keshwani points out that in whole of north Delhi subscription charges are below Rs 100.
Moreover, Dutt claims that in order to ward off competition, most operators had to do away with theone-time installation charges. "This severely affected our income as on an average we used to charge Rs 300-400, which we later on invested in cables and amplifiers," says Singh. The cost of basic equipment, like amplifiers and cables, have gone up substantially, adds Dutt.Among other things, imposition of entertainment tax by the Delhi Government at the rate of Rs 10 per subscriber owning colour TV sets and the pay channel charges have also eaten into the business. "As the subscribers refuse to pay the tax, it is we who have to bear the brunt," says Keshwani.
Dutt adds that while the pay channels regularly hike their charges, the operators are not able to follow suit as far as their subscribers are concerned.
As a way out of these problems, many cable operators are now seriously considering the option of forming co-operatives. Dutt, who is also the president of the Delhi Cable Operators Welfare Association, has already taken the first step towards forming a co-operative of cable operators in northDelhi. However, Dutt regrets that the Delhi Government has not been helpful in this direction. "It has almost been three months since we approached them, but they have not yet recognised us."
Dutt is optimistic that once co-operatives are formed, a lot of problems will easily go away. "Subscription rates will become uniform warding off unfair competition. Moreover, we will be able to secure loans from banks for expansion."
Dutt believes that forming co-operatives are the only way through which they can sustain their business. "Once there is a unity of interest, operators will be able to solve their problems easily and more importantly, carry out their operations smoothly."
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.