Arasu Cable’s free set top box plan

The government’s plan to provide free set top boxes (STBs) to subscribers has left private Multi-System Operators (MSOs) feeling unsettled.

The AIADMK had, in its last election manifesto, promised to provide free STBs to subscribers of Arasu Cable, if voted to power. The Tamil Nadu Arasu Cable TV Corporation Limited (TACTV) recently received a provisional Digital Addressable System (DAS) licence — the first time such a licence was issued to a State-run MSO.


TACTV has issued a tender for procuring STBs and is expected to open the bids on May 29. However, ahead of a meeting last week, as many as 74 potential bidders raised a number of issues.


“Some of the companies are good with [manufacturing] boxes, some are good with software. Some of them felt that the condition set out in the tender to provide a five-year warranty for the boxes was strict. There were other queries raised as well, which will be sent to the board for approval,” a senior official of TACTV told The Hindu.



Unfair advantage


Meanwhile, a few private MSOs have expressed concerns over TACTV’s plan to provide free STBs. “While it is a policy decision, how will we be able to compete in such a scenario?” questioned a top official of a newly-set up MSO.


““Why should the State spend money to give away something for free? Is entertainment more important? This money should be used for other major issues like water scarcity, drought and creating employment opportunities,” an operator argued.


His comments were echoed by P. Sakilan, the founder of Tamizhaga Cable TV Communications Pvt Ltd (TCCL), who said that his organisation was now working on a model to either subsidise the STBs for its customers, or provide them for free. “TCCL has about 10,000 operators. If the cost of an MPEG-4 STB is about ₹1,200, we can get about 10-15 lakh boxes. The operators will invest 50% and TCCL will invest 50%. But these are just proposals. We have to wait for an official announcement from the government regarding Arasu Cable’s plans,” he said.


According to Mr. Sakilan, the government’s involvement in the cable business will threaten private MSOs and cable operators. He also alleged that politicians were involved in the cable TV industry and political parties were using it as a tool to meet their own goals. “It [cable business] has become political in Tamil Nadu,” he claimed.


However, a TACTV official stated that the STBs will be procured through the ‘suppliers’ line of credit’ model. Elaborating on the model, he said, “The supplier will bear th