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Debashis Chaudhuri
New Delhi, Jan 28: The opening up of the direct-to-home (DTH) television service is expected to lead to a technology war between `open architecture system' and `proprietary system'.
The open architecture system means technology similar to the cellular phones currently in vogue in the country. In this case, DTH subscribers would have to make a one-time investment in the hardware. The consumer's preference on the service would depend on the access card (akin to a SIM card), which will be provided by the operator.
On the other hand, proprietary technology implies that hardware for DTH is made to the specification of one particular operator, which can only accept the access card provided by that particular party. In case a subscriber wishes to shift to other similar services he would have to invest in new hardware again.
Experts feel that in case DTH is allowed with proprietary technology then it would mean either blocking of entry of competitors or, making it imperative for the government to issue licencesto the operators providing the service at a later stage.
Experts state that in case the communications ministry decides to lift the ban on marketing and distribution of DTH equipment then it may have to reflect on this issue of what type of technology the operator can use.The hardware for DTH -- set-top-converter or integrated receiver decoder (IRD) -- would be priced around Rs 40,000 if it is not subsidised.
Keeping the subscribers in mind the government at a later stage would not be in a position to deny the subscriber a licence under the Broadcasting Act, experts added.
Though it is not a good idea to block any form of technology from entering the country, it may be desirable on the part of the government to spell out a clear-cut policy guideline on DTH, experts added. This may prevent the possibility of a monopoly in DTH services.
The crucial issues include, uplinking and foreign equity. Some of the private players interested in the services feel that if the foreign equity specification is notmentioned now, it is unlikely that very many players would be interested in investing in the country. As the DTH hardware is not produced in the country it would be necessary for most players to go for a technology tie-up with foreign players.
The uplinking issue, according to legal experts, has implications for the country's security. In order to put such a service under an Indian law, it should be made mandatory for all operators to uplink from the country, feel experts.
The union information and broadcasting ministry had earlier said that the government was keen to allow private and ultimately foreign players to uplink from the country. However, before that it has to make sure that the infrastructure is adequate for them to do so.
So far the government has only allowed 80-per cent Indian owned channels to uplink from the country through Videsh Sanchar Nigam Ltd (VSNL). In the second phase, the government wants to allow foreign investment in setting up infrastructure for uplinking from the country.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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