Pakistan far lags behind in digitisation of cable industry as compared to our countries. International Telecommunication Union (ITU) since 2011 has asked all countries repeatedly to digitise their cable TV network by replying digital headend content addressable systems (CAS) encryption.
In India, digitisation is said to have already achieved 95%, where in Pakistan, this number is less than 5%.
Despite knowing the fact that Analog cable distribution can carry a maximum of 80 channels, PEMRA has issued 135 Satellite TV channels, with an addition 45 recently auctioned. Add to this state owned news, infotainment, sports education and in-house channels. The total capacity is required comes to minimum 200 channels.
This transition from analog to digital broadcasting would bring greater channel carrying capacity, improved quality of service and value added interactive services.
This digitisation roadmap was first announced in 2016 with frequent extensions in deadlines but Pakistan Electronic Media Regulatory Authority (PEMRA) has so far not been able to meet the required objective.
Major reason behind this is the heavy duty on import of Set Top Boxes (STB) and and on the other hand, the increase dollar rupee parity.
All success and benefits of digital revolution are subject to affective policies of PEMRA that support and encourage the stakeholders to accept and implement the transition/switchover.Since most of the developed nations have been and many developing countries in planning and implementing new policy for digital switch over, their experiences can serve as guideline for Pakistan.A set top box is a basic requirement to ensure digitisation in Pakistan, keeping in view the benefits, what will all stakeholders be availing from this transition.
The challenges faced by Pakistan as to transition from analog to digital services are enormous.
One of such challenges is the increased financial burden of purchasing a STB to avail the services and content that is already available on TV.
In order to make a digital revolution, successful, It should be understood that there are endusers or viewers who are the final arbiter of digital TV adoption and their capacity to purchase. STB would play a pivotal role in their decision making process.
Paragraph moreover, in order to deal with the tax leakage associated with cable TV industry and to cater the need of growing number of TV channels, digitisation is the only solution so that customer can be tracked for services and tax accountability.
Further more, PEMRA has issued over 135+ licences to TV channels. With further plan to increase this number by having auctioned 45 more satellite TV licenses. Whereas, an analog system can hardly carry only 67 channels. So broadcasters are having issues with respect to airing of channels, and do not reach out to public at large.
In such scenarios Condition Access System with CAS, keep customer tracking and provide the real visibility of digital customer base of the industry. This will not only help to control over revenue leakages related to cable TV licenses but will also help federal and provincial tax authorities to ensure proper tax collection.
It is, therefore, suggested to only allow CAS certified Set Top Boxes from renowned vendors for import. If we look at the global scenario, in USA, Department of Commerce, National Telecommunications and Information Administration (NTIA) , launched analog to digital converter box Coupon program,worth $.5 billion, which were designed to help the transition to digital. According to research from news and the money spent on providing subsidy for the digital transition would pay off in the long run. Since the important thing to remember is that the transition would bring a lot of benefits in future for electronic media industry.
In order to promote the media industry as well as ensuring transition from analogue to digital, it is imperative that an STB having exorbitant customs and regulated duties of 42%, is big hurdle in transition from an allow to digital television services. Therefore, federal government must provide this tax exemption for the import of STB is for ensuring transition from analogue to digitisation. It will also help in implementing ITU standards as obligatory on member countries.