Cable companies wage price war
By Ajay Banerjee
Tribune News Service

CHANDIGARH, July 17 — Even as the war between India and Pakistan in Kargil is drawing to a close, a new kind of war — entailing unbelievable price cutting and stiff competition — is on in the city.

Cable television companies beaming satellite channels to thousands of homes in Chandigarh, Panchkula and SAS Nagar, are fighting their own brand of price war with cable TV connections being provided at the lowest-ever rates.

In certain areas of the city and its surrounding areas, a cable TV connection is reportedly being provided for as low as Rs 25. Another price quoted for a cable connection is Rs 50. In some cases, a package deal of Rs 100 for a period of three months is also being offered to keep the viewer hooked as also to “keep” the subscriber. Freebies are also being thrown in as the war hots up with allegations of cutting of cable wires by the rivals flying around.

At the moment, the city is being served by two main cable TV companies — the Siti channel and the combined cable operators network (C-Con). Also in the running are Sky TV that has joined hands with C-Con in telecast in the south western sectors and a small operator who has his own independent network.

The main companies have sub-operators in the sectors to whom the companies provide the signal at a fixed per connection cost. This cost varies according to the number of connections. More the number of connections, less the cost.

The price cutting is such that it’s impossible to believe as to how these companies are staying afloat as the owners of satellite channels ask for money on a per connection basis. Though there is no set formula to know the number of subscribers, the companies have deputed their men to collect the revenue.

The money varies from channel to channel and in case of ESPN, a sports channel, it can go up to Rs 7 per connection.

In case of a film-based channel like the Zee Cinema, the charges are Rs 4.50. Other channels like the National Geographic, Discovery, CNBC, Star World, Star Plus, Star Movies, TNT, Cartoon Network and CVO are all pay channels. In total the cable TV companies pay anything between Rs 35 and Rs 47 per connection to several pay channels just to receive the signal and the broadcast it through the operators.

How long can this price war go on? With such a whopping sum going towards pay channels, can the companies remain in business with such under cutting? Industry sources say under declaration of number of channels is the norm. No one except the local advertisers know what is the exact number of connections that are at least three to four times the actual declaration.

This under-declaration allows cable TV companies to pay less to the pay channels, thus in a way facilitating the price war, sources said.

Proprietor of C-Con, Mr Maninder Singh Lovely, claims to have cut down on overheads to run his business. He says: “Siti channel uses its country wide muscle to get huge discounts from the pay channels by claiming more connections, thus has to pay less on a per connection basis.”

Mr Sandeep Bansal, of Siti channel, is more realistic about the business: “Our rivals are not realising the outcome of this price war in which the satellite channels are making money at our cost”. Ideally we should go together on one platform to talk to the pay channels, is his idea of ending the so-called suicidal price war. He says: “The number of connections of our rivals have not been reviewed by the pay channels for long, thus allowing him an advantage of paying for lesser number of connections”.

In his opinion the future is that the subscriber pays for what he watches. The system is called “pay per view” in the cable industry and it would mean if a subscriber wants to watch 10 or 15 particular channels then he pays only for what is beamed to his house. The system to segregate the channels as per the requirement of the subscriber is under test in some cities of the country.

Dam with tourism potential
From Vishal Joshi
From Our Correspondent

CHANDIGARH, July 17 — A large water body in the Shivalik foothills forest area with a wildlife is present near Perch village, about 7 km from the PGI. It is a potential tourist place.

At Perch, a dam had been constructed to store rain water for irrigation of the nearby villages. Despite its proximity to Chandigarh, the area is neglected as very few visitors come here.

According to Mrs Vini Mahajan, Managing Director, PTDC, the department has a project to develop the area and would welcome any private party willing to do the work.

She said that the dam site has the potential to attract tourists. The area is ideal for water sports and nature walks. But for any such project, prior approval of the state Forests and Irrigation Departments is needed.

The dam has an approach road from Khudda-Lahora, near the PGI, but it is in bad shape. A metalled road to the spot is the first step for the promotion of tourism. Water flows over the road and further breaks it. Causeways can be constructed to save the road.

Sources revealed that the forest in the area belongs to villagers under Sections 4 and 5 of the Land Preservation Act, 1900, and it is believed to be the reason behind the poor response to establish any tourism here.

Mr H.S. Gujral, Conservator of Forests, Shivalik range, says that nod from the Central Government is required to start any project under the Forest Conservation Act, 1980. So far, no agency has approached them with any idea to develop tourism in the area.

To exploit such forest areas for the purpose of tourism, 'eco-tourism' should be adopted. Elaborating the term, Mr Gujral said tented accommodation should be promoted instead of carrying out any construction in the forest area. While enhancing the tourism prospects, it will also protect forest and wildlife.

‘Private sector should aid tourism’
Tribune News Service

CHANDIGARH, July 17 — A former Tourism Minister of Himachal Pradesh, Major Vijai Singh Mankoatia (retd), today advised students to develop confidence to face the challenges which they think could be formidable in shaping their career.

He was speaking at a panel discussion organised by the ITFT-Chandigarh on career opportunities in the fast-developing tourism and hospitality industry as part of the ‘’Explore India Millennium Year’’ celebrations. He said tourism and hospitality industry which had vast potential for development and offers numerous employment opportunities, had not been given its due place by the central and state governments.

The former minister said the government policies and plans for tourism development should be practical in nature. He advised the youth to have a vision for the future. Instead of running after government jobs, the youth should set up their own independent ventures.

Major Mankotia invited the private sector to come forward in a big way to promote tourism in the country. He said India is endowed with rich cultural heritage and myriad attractions which should be harnessed in promoting tourism. He said, however, political and economical stability is necessary for the tourism industry to flourish.

Mr K.V. Simon, Regional Vice-President of the Educational Institute of American Hotel and Motel Association, said accommodation, recreation and amusement and game parks, travel and facilitation centres, conventions and conferences, meetings and event management are important segments of tourism industry which offer abundant opportunities for employment.

Chairman of the Committee of Indian Association of Tour Operators, Mr S.K. Gupta said tourism development in the country would get further boost when Indian Tourism Service equivalent to IAS, comes into force. He asked students to imbibe “KASH” among themselves which stands for knowledge, aptitude, skills and habits of honesty, intelligence and basic truth.

A consultant ITC and a travel writer, Mr Rabindra Seth explained various opportunities in the field of media for those who have flair for writing. Photography could also be taken up as a side activity or as a main occupation, he said.

The Deputy General Manager of the State Bank of India, Mr V.K. Gupta, elaborated the Gyan Jyoti Scheme for financial assistance to the students for pursuing higher education in India and overseas. He said tourism and hospitality industry were being rated high by the bank for sanctioning educational loans to the aspirants.