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TV service providers say advert regulation will hit Nepal’s economy hard


20 June 2019  

Time taken to read : 3 Minute


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KATHMANDU: Nepali television service providers and distributors have said that the Advertisement (Regulation) Bill being brought by the government will create a negative impact on Nepal’s economy.

They have argued that the implementation of the policy will cause a severe drop in revenue collected by the government though downlink permissions and from cable television distribution sector.

Over 150 foreign channels will go off the air if the policy is implemented. Closure of the foreign channels will hit the economy hard, they have argued.

At the time when the government is mulling to implement the new rule, they have said that distributing channels sans advertisement is not possible.

Chairman of Cable Television Association Sudhir Parajuli says implementing the clean feed policy is not possible as Nepal lacks own satellite.

“We don’t have own satellite to implement the policy. Indian broadcasters transmit channels with advertisements,” he said, “They have made it clear that they can’t provide a clean feed to Nepal.”

He said that if broadcaster telecasts channels without advertisement it will hike the fee customers in Nepal are currently paying.

Managing Director of Dish Media Network Sudeep Acharya said that it was inappropriate that government is mulling to implement the rule at the time when Indian broadcasters have already clarified that they can’t provide a clean feed for Nepal.

“In such scenario, our business will be seriously hit and we will be left with no alternative than shutting down our business and handing over the keys to Minister for Communications and Information Technology,” he said.

He added that if the policy is implemented customers have to pay a hefty fee which they will refuse. The government will lose revenue from operators eventually.

Chairman of Internet Service Providers’ Association of Nepal (ISPAN) Bhojraj Bhatta said that both cable and DTH operators are going through a rough time.

He was of the opinion that the new rule will deteriorate the condition of Nepali DTH and cable companies further.

“The implementation will saw customers using illegal DTHs in Nepal,” he said,” Condition of Nepali DTH and cable companies will become worse due to it.”

Service providers have said that digitalization will make revenue collection more systematic with transparency in the number of customers, channels selected by them and fee they pay.

According to service providers, a customer has been paying Rs 175-200 monthly for cable television service in Nepal which puts the market at Rs 6000-7000 million.

If the policy is implemented, the government will lose revenue and it will deteriorate Nepal’s economy.

Publish Date : 20 June 2019 21:57 PM

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