Cable TV Digitization in India

The cable operators used to transmit the channels in analog signal mode before they were forced to move to digitization. The transmission of analog signals results in a hazy picture and sound quality. We all have experienced that after certain number of nicely viewed channels, the quality of channels becomes very poor. At the same time, if we switch to the Digital signals provided by DTH service providers, television viewing experience becomes nice.

The reason is that in the digital signal, the receptivity is much clearer and all the channels have the same reception quality. As both the signals are received at the same time, there are no issues with the synchronization of sound with video. Since the digitization of the cable signals incurs huge costs and some kind of investment, most of the cable operators kept shying away from digitization.

Implications of Digitization

For consumers

• For a common man, digitization means wider choice of TV channels, better quality of transmission, increased value added services.
• Consumers are able to access internet as well as telephone through the digital cable.
• The Consumers can access digital services through only one route that is set top box.

For Industry & Government

• For industry, digitization means greater consolidation, reduced dependence on viewership ratings and drop in carriage fees.
• Digitization increases the ARPU (Average Revenue Per User). ARPU is the amount of money a company generates from each of its customers on an average. The higher the ARPU of a company, the better it is. Though there is some initial investment, yet in the long term increases the viability of the business. For Government also, it ultimately a revenue booster.
• There is no prime band after introduction of digitization. Digitization is expected to correct the current pricing anomaly, which is largely supported by significant leakage at LCO level, preventing fair share of value getting captured by broadcasters/MSOs (pay channel revenue) as well as the government (taxes).
• Cable TV Networks (Regulation) Amendment Ordinance 2011 (and subsequent law)

In October 2011, India’s president promulgated an ordinance to digitize analogue cable systems. This ordinance mandated the complete digitization in the four metros of Delhi, Kolkata, Mumbai and Chennai by March 31, 2012. About 35 cities with more than one million populations like Pune, Ahmedabad and Bangalore were required to mandatorily shift to digitization by March 31, 2013. The target for complete digitization in urban areas was kept September 31, 2014 while the entire country is expected to achieve digitization by December 31, 2014.

Current Status (2012)

By the end of 2012, 96% of television houses in the four metros have been digitised as per official figures. The government set the ball rolling for the Phase II of digitization to cover digitization of 38 cities (22 million analog subscribers).