Thursday, August 28, 2014

SCV Licence Killed, 1.5L Clients in Fix

MHA refuses to give security clearance forcing I&B ministry to cancel registration
C Shivakumar
Chennai:

The 14 year monopoly of Kal Cables is likely to end in the cable
industry after Union Ministry of Information and Broadcasting
cancelled registration of Kal Cables to operate as multi system
operator (MSO) to provide cable television network services with
digital addressable system.

The Union Ministry which cancelled the registration following the
denial of security clearance by Ministry of Home Affairs has ordered
a 15 days notice from the date of the cancellation order to wind up
their operations and switch off the signals in a communication dated
August 20, 2014.

The decision has resulted in mixed reaction with many welcoming the
decision. P Shakilan, founder Tamilaga Cable TV Operators General
Welfare Association (TCOA) told Express that the decision is welcomed
by the industry. “They had total monopoly. This will also boost the
fortunes of independent cable operators. Sun group through political
interference controlled the media. But now things will improve,” said
Shakilan.

More than 1.5 lakh set top box owners in the city would be affected
following cancellation of registration of Kal Cables to operate as
multi system operator (MSO).

A leading cable operator in the city who is providing SCV connection
through set top boxes to more than 1,000 customers feels this order
will have a huge impact on the cable scenario in Chennai.

Currently, SCV controls more than 50 per cent of business in Chennai
and is followed by TCCL, Akshaya, Aadhar, Crystal and state owned
Arasu cable network.

The information and broadcasting ministry may have passed the order
but who will refund the set-top box owners who have coughed up Rs
1,500 for a box.

“Currently, SCV has 1.5 lakh subscribers and the cost would be a huge
one which the consumer has to pay,” the cable operator said on
anonymity.

But Shakilan says that TCCL which has around 600 cable operators would
be ready to provide the set top boxes to SCV consumers who have been
affected by the Information and Broadcasting order. He also
highlighted how the high-handedness of SCV has forced cable operators
to break rank with SCV and form TCCL.

Meanwhile, SCV Cable operators said that they have been assured by Kal
Cables that a legal remedy would be in place to counter such a move by
the government.

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