Cable TV to go digital after cabinet nod for HITS

In what could prove to be a major benefit for TV viewers, the union cabinet on Thursday approved an information and broadcasting ministry proposal for setting up a 'headend-in-the-sky' (HITS) platform for multi-system operators (MSOs) – or cable operators - to distribute digitalised television broadcast signals.

HITS will enable subscribers to use the same set top box across the country and still receive digital quality viewing. It is also expected to bring more competition and better digital quality, along with a larger bouquet of channels and value-added services like movies on demand, the I&B ministry said in a statement.

With some four applications for HITS operations already pending with the ministry, the latter is hoping to see HITS service providers roll out services within a year.

The new policy would allow HITS operators to uplink signals only from India, and seeks to permit total direct and indirect foreign investment up to an unprecedented 74 per cent. Neither in cable nor in direct-to-home is such a high level of FDI permitted. But prior approval of the FIPB will be required if FDI crosses the current 49 per cent limit.

I&B minister Ambika Soni said the policy will provide an enabling regulatory environment for digitisation. The ministry hopes that through this route, costs for digitisation will come down. The system will not be made mandatory.

HITS technology enables the broadcast of numerous TV channels from a single satellite system after aggregating them on the ground from different satellites.