The government decided to implement the Conditional Access System (CAS) for cable operation in 12 cities last September. The system is projected to be implemented by or before September this year. Biratnagar, Dharan, Itahari, Janakpur, Birgunj, Hetauda, Bharatpur, Pokhara, Butwal, Bhairahawa, Nepalgunj and Kathmandu are the targeted cities. Shrish Shumsher Rana, state minister for Information and Communication, has categorically said that the government is committed to implementing CAS at any cost. Though it is an expensive affair, Rana claims that the operators can recover their costs.

The government has already published the notification and the operators were supposed to fill in their applications for licence by March 6. It is regarded as positive for both the subscribers and the operators because CAS allows cable operators to regulate the reception of the subscribers, and the subscribers can choose the channels. Obviously, this system could eliminate the exploitive control of TV broadcast by cable operators and make them responsible to the subscribers. However, in the beginning, subscribers have to pay extra money to buy a ‘set-up box’ that costs between Rs. 3,500 to Rs. 7,000.

Cable television service providers are divided into two groups. The Nepal Cable Television Union (NCTU), consisting of almost three dozen operators, is against immediate implementation of CAS. The NCTU argues that if the government is committed to implementing CAS it should be enforced after necessary preparation. It is demanding facilities of exemptions of tax for five years and that there should be the facility of importing necessary equipment to start the new system without any customs duty. Manaraja Ranjit, chairperson of the Union, says every operator needs to invest Rs 30 million extra to install the equipment — ‘digital head end’.

However, the Cable Television Association (CTA), a group of 12 operators, is arguing in favour of the implementation of CAS. CTA general secretary Sudhir Sharma argues that if an operator runs his service with 60 channels at Rs. 6 million, commensurately CAS will require Rs. 36 million to install new equipment and the investment they made earlier is useless. Some entrepreneurs claim this system will cost the operators more than five billion, which they would have to collect forcefully from the consumers. The need of a huge amount of investment would create a monopoly or the control by a few big investors; and as a result, a small company or group may drop out of competition. Except a few cable operators, most of them do not have resources for extra investment. This means small operators either have to quit or merge with big operators creating monopoly.

There is a lack of homework for implementing CAS. It is apparent that not everything should be taken for granted by overlooking important factors like whether the majority of TV-owing middle-class people could spend the extra amount on entertainment and whether the required number of set-top boxes would come out of the assembly line of manufacturers. The cable TV network is too intricate and it involves conflicting interests.

The terms for a CAS connection show that consumers, once stuck with the set-top boxes, will have few choices. The terms favour the operators and do not give consumers any rights. Even after buying the box the representatives of the local cable operators may drop by for surprise inspections. If the monthly bill is not paid in time, the representatives can take away the smart card of the box, which stores important data to run the box. For this reason, the consumers have to pay an extra for the smart card. Choosing channels would not be easy because a consumer cannot change the package chosen under a rebate scheme until that scheme expires. Even in India, the government has failed to enforce CAS in many cities. In Bangladesh, the government had to withdraw the decision after the subscribers opposed.

The cable is the easiest means for the public in the absence of new technologies like Internet protocol television (IPT) and direct to home (DTH) system. The government should rather plan to introduce DTH for those who can afford the high cost for initial set-up along with the supply through telephone connections as is being done in Japan, South Korea and other countries. TV, Internet and voice communications like landline phones and mobile phones need to be made available as a common facility, which Nepal’s Information Technology Policy, 2000 has also made the commitment to provide. The policy has the strategy of providing Internet facilities gradually to all village development committees with the participation of the private sector. The cable operators, too, could help achieve this goal by offering Internet facility as a package. This may help to extend Internet facilities to rural areas as well. The charge for telephone calls to be used for the Internet may be gradually reduced as well.

Chalise is a career journalist