MUMBAI: National economic gains from a new approach to investment in cable-TV infrastructure could deliver a Rs 54.6 billion ($1.2 billion) increase in economic activity and Rs 18 billion in new tax revenues within five years, according to the Cable & Satellite Broadcasting Association of Asia (CASBAA).
However, even with a target of 20 million cable broadband subscribers by 2010, the
“To achieve this goal we will need a new approach to capital investment in pay-TV, including abandoning the view that cable should be treated as a utility with commodity-like price controls. Today, the approach is more in-line with old-style thinking on electricity services or traditional political battlefields like print media,” said CASBAA executive director (
“The fact is that if we don’t change our entire attitude to cable, we could suffer nothing less than a ‘digital failure.’ However, if policymakers get the environment right, there will be huge rewards for the economy, first in the big cities, but then rolling out to the still needy rural areas,” he added.
According to CASBAA,
With around 70 million homes wired, cable TV already plays a bigger role in
CASBAA is a regional industry body representing 120 multi-sectoral players such as AsiaSat, Intelsat, Nokia, Sun Microsystems, IBM, CSM Sofres, Synovate, NDS, Standard Chartered Bank and PricewaterhouseCoopers, as well as the likes of Turner International, Walt Disney and HBO Asia. Other CASBAA members include regionally successful pay-TV and broadband operators such as PCCW of Hong Kong, TrueVisions of Thailand, Astro of Malaysia, StarHub of Singapore and ChungHwa Telecom of
During an Executive Briefing in Mumbai, the industry organization called on the Government of India to learn the lessons of telecoms liberalization and to let consumers decide “what they want to pay for cable TV services and what they want to watch. After that, for digital networks, it’s a matter of “build and they will come.'”
CASBAA VP for Regulatory Affairs and Government Relations John Medeiros said, “Digital broadband is changing the face of the economically crucial global communications sector and
Medeiros noted that global experience shows that while the adoption of digital TV may start slowly, the pace of change picks up quickly.
“The very nature of (digital) cable broadband provides consumers with more content choice and more price options; on-demand services become pervasive, allowing people to choose exactly what they want to watch and when, as well as yet more choice in terms of linear (traditional) TV channels.”
According to Mitra, the greatest opportunities for economic growth will only come when the investment climate is right for consolidation of
“The exciting experience of other countries Ã¢â‚¬â€œ and already seen in the Indian telecoms industry — is that domestic and overseas investors are ready and able to generate the large sums necessary to deploy cable broadband Ã¢â‚¬â€œ if there is a chance of reasonable returns,” said Medeiros.
But most importantly, said CASBAA, “government funds are not needed to achieve these goals. What is necessary is a supportive environment.”