The Information and Broadcasting (I&B) Ministry has accepted the recommendations of the Telecom Regulatory Authority of India (TRAI) for implementation of digital addressable cable television systems in India, to transition from the existing analog cable network. Although the I&B Ministry has deferred the timelines proposed by TRAI and pushed the proposed sunset date for analog cable distribution from December 2013 to March 2015, in ICRA’s view, the approval of TRAI’s other recommendations by the Ministry is a significant positive development for the Indian TV distribution space as digitization would pave the way for the cable distribution sector to become more organized, attract greater institutional funding and improve profitability.
In addition, other stakeholders in the value chain would also potentially benefit – broadcasters by way of increase in subscription revenues, government via increase in service tax collections and customers from an enhanced television viewing experience.
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