Multi system operators (MSOs), have drafted a code of conduct to formulate a common pricing for subscribers and franchisees in an initiative that could change the way the industry operates if implemented.
As per the agreement, cable pricing for the subscribers would be in the range of Rs 200 to Rs 350 per connection a month. Distributors of the MSOs will have to take the responsibility of driving local cable operators to collect subscriptions in this range, depending on the area. The decision was taken at a meeeting in Mumbai among MSOs like INCablenet, Hathway Cable & Datacom, SitiCable and Win Cable. The uniform franchisee fee charged by the MSO would be Rs 100 a subscriber per month.
According to industry sources, another significant recommendation was that no new headend should be allowed to be set up by a breakway operator.
The code of conduct stressed that no MSO should poach operators from the rival networks. Only unity among the MSOs can provide them leverage to fight against the steep price hikes by pay-TV channels.
Any breach of conduct would be referred to the disciplinary committee. The MSOs want the broadcasters to be involved in the committee, without whose support the ground distribution situation would not improve. The distributors of the MSOs and the local cable operators would be under pressure to increase connectivity and enhance the rates.
Source: Financial Express