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18 March 2007
Foreign
cable firms want PM to relax rules
By Ashish Sinha New Delhi
Business Standard
(c) 2007 Business Standard
Foreign cable companies like Liberty Global Inc,
Macquarie Media Group and Star Group want the prime
minister to intervene in the digital broadband policy
initiatives for the cable industry. They say the existing
regulatory environment governing the cable industry
discourages them to make the necessary investments required
in the cable industry for its upgrade from analogue
cable to a digital broadband one.
It is estimated that foreign investors are ready to
pump in Rs 35,200 crore in the cable industry over next
four years. While a 49 per cent foreign direct investment
(FDI) in the cable industry is acceptable to foreign
investors, they are wary of the controls imposed on
the cable industry by the Telecom Regulatory Authority
of India (Trai).
According to a detailed
report made by Hong Kong-based Media Partners
Asia (MPA) on behalf of these companies the
regulation for broadband digital cable by Trai against
any government supervision goes against the free market
spirit of India and impedes further development of the
cable industry.
“Current regulations hold back the growth of cable
industry in India. A lighter approach might be necessary
to encourage significant investments required to develop
broadband and digital industry,” Shane O’Neill,
chief strategic officer and board member, Liberty Global
Inc said in the report.
Liberty Global operates and invests in broadband communications
network in 17 countries including Japan, Chile, Australia
and Europe. It is in talks with cable companies for
investment opportunities. Macquarie Media Group is an
investment vehicle listed on the Australian Stock Exchange
and aims at making investments and acquisition in media
companies globally.
According to the MPA report, $200 per subscriber will be required to upgrade from an analogue cable system
to digital two-way broadband network-an investment none
of the local cable companies can afford to make.
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