Government is planning to take several steps to ensure that availability of Set Top Boxes (STBs) does not become a major hindrance in implementation of the digitization plan for the cable sector.
Over one crore Set Top Boxes would be needed in the first phase of digitization plan as per which the cable sector has to be completely digitized by the end of June this year.
Sources said that at a recent meeting, senior officials of the Information and Broadcasting Ministry and representatives of the Broadcast and Cable sectors identified availability of Set Top Boxes as a major hurdle in the implementation of the digitization plan.
"The issues relating to indigenous manufacturing capacity and import requirement will be thrashed out soon," a senior official said.
Apart from the availability, standardization of STBs was another area on which the Task force set up by the Information and broadcasting ministry was working.
Efforts were on to ensure standardization of the latest technology STBs like the MPEG 4 were on, officials said.
Representatives of the cable industry had also raised concerns related to STB standardization.
Official sources said representatives of the industry also pressed for exemption of customs duty on the import of Set Top Boxes.
Officials said representatives of the industry pushed for a clarity on rules for the import of STBs since the time left for the first phase of digitization was only six months.
Apart from waiver of customs duty on the import of the STBs, the broadcast industry representatives also pushed for a relief in other areas of taxation and demanded a "conducive Digital Eco system,” sources said.
A Committee of Secretaries is scheduled to meet on Friday to discuss the fiscal incentives government can give to the cable industry and the Multi Sector Operators for smooth digitization of the cable sector.
Sources said representatives of the broadcasting and the cable industry also suggested the Ministry of Commerce and the Industry should be moved in order to allow them to secure finance at concessional rates.
The broadcasting industry had in the past also sought infrastructure status for itself which will make it eligible for tax concessions.
Officials said the task force on digitization has also decided to approach the department of Telecommunications so that infrastructure of BSNL and MTNL can also be shared for the digitization of the cable sector.
Officials said the Information and Broadcasting ministry would also write letters to Chief Ministers of the states in which the four metros are situated to ensure that there is proper coordination with the state governments for the implementation of digitization.
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