The cable-DTH conflict
home Resolving the issue by separating areas of operation
28 May, 2010 – Licensed cable TV operators losing business to DTH (direct to home) TV systems being illegally installed by homes across the country was one of the issues raised by business community members on May 26, the last day of BCCI’s annual general meeting in Thimphu.
Rinzin Dorji, president of the IT association, said that cable operators are levied a 30 percent sale tax, which was passed by the national assembly in 2002.
“We pay 30 percent, next are hotels that pay 10 percent and the rest are exempted and that’s not fair,” he said, adding that cable operators were also subjected to all kinds of rules and regulations.
On the other hand, those using DTH system, which the government has approved in principle, but is yet to appoint a licensed operator, are free from all these troubles.
At one time, based on the complaints of cable operators, the government announced that owning DTH systems was illegal. However, it did not stop people from buying the system, particularly in those parts of the country that did not have cable TV operators.
In the larger urban areas, people made the switch on the grounds that the cable service was poor and unreliable; and that pay channels went on and off the air every now and then.
The prime minister, Lyonchhoen Jigmi Y Thinley, in his monthly meeting with the press on May 26 said that the service of the cable operators can function optimally in urban areas but would be impossible in rural areas.
“Cable operators came to me twice and what they wanted was DTH, which they heard would be allowed, should not be allowed,” said the prime minister. “What we have done is to put certain measures, whereby cable operators would not be considerably disadvantaged, while, at the same time, our people can have access to information through DTH channels and programmes,” said the prime minister, adding that what has been laid out so far is that DTH operators will not compete in urban areas and will be bound with the same rules and regulations with respect to the number of channels and the kind of programmes they can provide through their service, and subject to the same kind of monitoring and control as cable operators.
“DTH is the only way through which we can reach out to the otherwise unreachable. However, if the DTH operators aren’t subjected to any restriction that the cable operators are, then obviously the ministry of communications and Bhutan infocomm for media authority (BICMA) in particular isn’t doing its job. We’ll have to ensure that the gaps are plugged,” said the prime minister.
By Kuenga Tendar in Kuensel