Cable war hots up as operators join hands

In a bid to break the stranglehold of cable channel providers and major distributors, who have been hiking subscription rates at the drop of a hat, about 525 cable operators have joined hands and started their own distribution network, 9 Plus Network.

Despite that, the viewer continues to suffer. The network, which was formed about 4 months ago, has led to acrimony between the operators and the distributors. The rivalry reached a flashpoint on at least three occasions—in one instance, proprietor of 9 Plus Network Lalabhai Shah lodged a complaint that some people working with a distribution network tried to set him on fire when he went to the Star TV office to pay the deposit for the Star decoder.

Ahmedabad Cable Operator Association (ACOA) president Pramod Pandya says rival distribution networks ransacked the 9 Plus Network control room at Sardarnagar days after the it was set up.

This Saturday, about 100 cable operators ransacked the office of ESPN-Star Sports at Samudra Complex in Navrangpura, claiming that the company had declined to provide a ESPN-Star Sports decoder to 9 Plus Network. A complaint has been registered at the Navrangpura police station.

"There is a systematic attempt on the part of distributors to prevent any other cable operator from becoming a distributor. Even television companies have joined hands with them," the ACOA president said. In January, all major distributors signed an agreement that no distributor would "trespass" into another’s territory. While this agreement checked rivalry to some extent, it also effectively blocked entry of any new player into the distribution market. The distributors, who felt they were king, then started hiking rates at will." The major distributors don’t want us to start another distribution network fearing we will provide services at lower rates. In all this, the subscriber ends up paying more," Pandya said. The major players are Siti cable, In Cable, Skynet, Syndicate Cable and GSN.

Minister of State for Home Gordhan Zadaphia, stating that cable operators had still riot made a representation to him, said there is little the Government can do as this was a business matter. "If there is a law and order situation, then the Govt will definitely intervene," he said.

However, customers are the worst hit. In many areas, consumers do not get to see packages of Star or Zee or other networks because of the rivalry between various networks. R L Vora, a LIC employee residing in Ghatlodia said that While the Zee network was earlier not available, other networks went off the air when the Zee network started. Dipak Patel of Behrampura, who has a 9 Plus connection, said he cannot watch matches as ESPN and Star Sports are not available.

Republished from The Indian Express