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This is an archive article published on June 13, 2003

Prasad to sell CAS to Thackeray

When Information and Broadcasting Minister Ravi Shankar Prasad meets Shiv Sena chief Bal Thackeray tomorrow he will not only have to convinc...

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When Information and Broadcasting Minister Ravi Shankar Prasad meets Shiv Sena chief Bal Thackeray tomorrow he will not only have to convince him that CAS is good for Mumbai, he will also have to convince the Sena supremo that ultimately its consumers (not overseas manufacturers of set-top boxes) who will gain by exercising their choice over what they watch.

Tough call for the Minister. The set-top box business, if one considers roughly the 41-million cable subscribers in the country, is estimated to be worth Rs 6000 crore. For the manufacturers, most of them overseas, that is an unexpected windfall.

In Delhi, Mumbai, Chennai and Kolkata with nearly 6.3 million cable homes, where the first phase will kick off on July 14, the boxes are being imported by Multi-System Operators (MSOs) from Taiwan, Korea and other South East Asian countries.

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MSOs in Mumbai that will import boxes are IndusInd Media and Communications Limited, a subsidiary of Hinduja TMT Limited, Hathway Cable (in which Star has 26 per cent stake) and other cable networks, as local boxes cannot be manufactured now.

A quick bailout package by the Finance Ministry, in the form of a customs duty reduction – valid only till July 31 for the time being, has facilitated the entry of set-top boxes for the importers. MSOs are trying to extend the deadline.

As for the consumers, they have nearly 73 free-to-air channels for Rs 72 (excluding entertainment tax).

Prasad is also scheduled to meet consumer groups in Mumbai and gauge their position on CAS. With most consumer groups threatening to move court if CAS is implemented, it remains to be seen.

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Meanwhile, Delhi Chief Minister Sheila Dikshit has called for a meeting with MSOs in Delhi to discuss CAS. With Dikshit clearly declaring that CAS is confounding, it’s the MSOs who will have to do the convincing. There has been no murmur of dissent from Kolkata and Chennai.

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