1. COST OF DELIVERING CABLE TV SERVICES VIKKI CHOUDHRY National Cable & Telecommunications Association

2. CATV - Basic Information  Approx. 6,800 head-ends all over the country  Today a CATV head-end has 54-76 +Channels  CATV Bandwidth: 450-750 MHz  Available Free to Air Channels : 38-46  Available Pay TV Channels : 32  Local Channels (VCR,VCD,Local News etc): 2  Radius of Operation – 5Kms [Co-Axial] 10+ Kms [OFC]  Homes Passed per Km : 350 Homes (approx)  All India C&S Homes: 38 M ( source.NRS)  Percentage of C&S Homes: Metros – 60% Towns- 40%  Average Subscriber Homes /Head-end: *4,000 + Homes  Average CATV Distributors / Head-end: 10  Annual Rate of Depreciation- 33% [On Capital Investment]

3. CABLE TV SYSTEM – Head End  Dish Farm –Dish Antennas, LNBC, Dish Platform, TI Shielding and Grounding etc.  IF Distribution Network –Cables and Connectors, IF Amps, Conduits, IF Splitters (Power Dividers) etc.  Signal Reception & Processing Unit –Satellite receivers: Analogue/Digital FTA/Digital Pay IRD –RF Modulators: [One Modulator for Each Channel], Processors –Local Video: VCR/VCD/DVD –A/V, Switcher/Mixers and Text generators –Combiners, Tap Off, Splitters and Power Inserters –Post Amplifier, –Integration Cables, Connectors and Accessories  Test and Infrastructure Equipments –Spectrum Analyzer/ Field Strength Meters, Cable Preparation Tools –UPS, Power Generators and Cable Plant Power Supplies –Aircon, 19” Modular Racks, TV Monitors etc. * Estimated life of Head End Equipment / Capital Expenditure - Max. 6 Yrs

5. CABLE TV SYSTEM - Distribution  Trunk and Distribution Cables  Drop Cables and Accessories  Mini Bridger, Line Extenders & Home Amplifiers  Amp Accessories-Eq-pads, filters, Attenuators  Tap-offs & Splitters- Outdoor/Indoor  Co-Axial Connectors and adapters  Power Ins., Line Power Supplies, UPS Backup  Messenger wire, Ties, Ground Blocks etc.  Clamps, Poles, Amp Boxes etc. * Estimated life Max. 4 Years [ Due to weather Exposed Installation & Constant Up gradation]

6. CATV HEADEND Home - Cable Network

12. Can Customers Afford? –To Pay Monthly Cable TV Subscription of

13. Cutting on Operating Expenditure to accommodate Pay Channels and Taxes means – Will affects QOS [ Quality of Service to Subscribers] – Frequent Network Breakdowns and poor picture quality – No technological up-gradation / value addition in service – Inferior quality Head end & Distribution Equipment used – Customer Dissatisfaction resulting Non –payments – Soon commercial Un-viability of Cable TV Business – Grey market CATV equipment suppliers/ manufacturers will flourish, while manufacturers adhering to BIS prescribed standards will face decline in sales. – obstruct implementation of effective CAS.

14. If under- declaration to PAY CHANNELS  Affordable Cable TV Subscription Rs. 225 – 250 per month Max.  Offer to give better picture quality and efficient service  Flexibility to run the business with some commercial viability  Scope for up gradation and value service addition for future  Use of standardized equipment for providing better QOS.  Sometimes disruption in pay channel services on issues of subscriber under-declaration, pay channel rates etc.

15. Effective solution to this is CAS  With CAS basic tier available at affordable rates to the subscribers  More transparency in business with the pay TV broadcasters, Revenue Dept & Govt.  Level playing field for all the players i.e CSP, MSOs & Broadcasters.  Additional revenue from Pay TV service  Business becomes more viable