ens
of thousands of television screens went blank in India’s financial
capital on February 21 as cable operators went on a strike to
protest consumer action against rising subscription fees.
Cable operators, in a meeting, decided they would
switch off television channels for 24 hours. A few operators however
said they would switch off only pay channels and beam the
free-to-air channels so as not to inconvenience customers. The
operators, who have formed the Maharashtra Cable Consumers’ Action
Committee, have criticised satellite television channels for
increasing subscription rates that are then passed on to customers.
"The Central and State governments have failed to rein in the
multinational cable television companies," said Sudhakar Velankar, a
spokesman of the committee.
Those who attended the meeting hit out at
politicians, including MPs of the Bharatiya Janata Party (BJP), for
‘demonising’ cable operators. They said the MPs must use their clout
with the BJP, which leads the Central Government, to get television
channels to reduce subscription rates. Senior BJP leaders, including
Kirit Somaiya, an MP from Mumbai, and members of the Maharashtra
Assembly Atul Shah and Mangalprabhat Lodha, are leading the campaign
for lower cable television rates.
The politicians have set up a helpline manned by
party workers to listen to complaints and tabulate the number of
cable television connections in every neighbourhood in Mumbai. They
said the exercise would allow the government to collect
entertainment duty on all cable television connections. Somaiya said
cable operators in Mumbai had declared only 447,000 connections in
the city. According to him, the number of cable connections in
Mumbai exceeds two million. Every subscriber is required to pay Rs.
30 every month as entertainment tax, but the gross under-reporting
results in large-scale revenue loss to the State.
The BJP felt entertainment tax should be
drastically reduced and cable operators should bring down
subscription rates to Rs. 150 per television set per month. At
present cable subscription charges vary from Rs. 275 to 350 a month.
Last year it was about Rs. 200 a month.
The BJP leaders have now tied up with consumer
rights groups to take on cable operators who cut off links to
subscribers who have resisted paying the higher bills.
Cable operators say they are caught in the war
between private television channels and the consumers. While the
channels frequently increase their fees, consumers are reluctant to
pay more. Most operators provide between 80 and 100 channels on
entertainment, sports and current affairs in a number of languages.
Most of these channels bill the operators on the number of customers
they have in the absence of a system to accurately track viewing
habits. At present, most cable subscribers pay Rs. 300 per month for
the entire bouquet. Of the 80-100 channels on offer, only eight or
10 are regularly watched. "I don’t need the Kannada, Tamil, Arabic,
Chinese, Malayalam and the sports channels," said Julia D’Costa, a
suburban housewife. The Indian government has enacted a law to
enable installation of set-top boxes on every television set so
subscribers can pick and choose the channels they want. However, the
law comes into effect only later this year after sufficient
electronic set-top boxes are made available in the market.
Meanwhile, cable operators and television
channels are increasing subscription fees in a mad rush to maximise
revenues.