CRICKET CONCERNS: GOI'S PROPOSED SATELLITE TV

UNCLAS SECTION 01 OF 02 NEW DELHI 006837

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECPS EINV PREL IN
SUBJECT: CRICKET CONCERNS: GOI'S PROPOSED SATELLITE TV
POLICIES

REF: NEW DELHI 6655


1. (SBU) Summary: Minister of Information and Broadcasting
Jaipal Reddy told A/DCM on September 2 that US broadcasters'
concern on proposed new GOI restrictions on satellite uplink
policies (reftel) was misplaced, as New Delhi's only interest
was in ensuring that India's rural poor would have access to
high-interest cricket matches. The final policy will likely
be more liberal than the "maximalist" position adopted for
negotiating purposes, Reddy reported. Companies that have
existing satellite uplink contracts outside of India would be
allowed to keep those contracts, provided they register a
local firm in India to represent them. End Summary.

Cricket Rights: "It Won't Hurt Anyone"
--------------


2. (SBU) Acting DCM used a September 2 meeting with I and B
Minister Jaipal Reddy to double track the Ambassador's
message to Defense Minister Mukherjee (reftel) regarding the
potentially adverse impact of India's proposed satellite
uplink rule. Noting that India accounts for 80% of
cricket-related advertising revenues worldwide, Reddy
explained the GOI's concern that the 50 million television
households in India without cable be able to watch
high-interest international cricket matches. This issue came
to a head during the 2004 Indo-Pak cricket series, leading to
a Supreme Court ruling to force free-to-air transmission.
The new rule is intended to regularize this 2004 judgment.
Reddy (protect) stated that the proposed compulsory
feed-sharing with national broadcaster Doordarshan (DD) would
occur only for "sports of national interest" as occurs in the
UK and Australia, and would involve a process of consultation
involving the rights holders, to include a formula under
which DD would "pay back" the rights owners. "We'll devise a
formula not to hurt anyone," he commented, adding that the
"maximalist" position in the note sent by his ministry to
broadcasters was intended to set an outer limit for
discussion, not indicate the final policy.

Satellite Uplink: Existing Outside Feeds OK
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3. (SBU) Reddy explained that broadcasters with existing
long-term contracts for satellite uplink facilities outside
of India would not be forced to switch to an Indian uplink
facility. However, all firms broadcasting into India would
be required to register a business entity in India, and
thereby be accountable to Indian laws. Although the pending
proposal introduced by the previous NDA government requires
Indian uplink facilities, Reddy does not intend to keep that
requirement. In some regards, the new regime would be less
restrictive than current rules, Reddy stated, pointing out
that foreign news broadcasters would no longer need to apply
for licenses to cover specific events, but would be able to
receive annual permission to transmit from India, provided
they send the feed though a designated "teleport."

Comment: GOI Policy a Promising Step
--------------


4. (SBU) Foreign broadcasters in India -- including ESPN,
Discovery, and Star -- have kept Embassy updated on their
concerns over the threat of being forced to allow
uncompensated audience access to programming such as popular
cricket matches, for which rights they have paid dearly.
Minister Reddy's assurances of consultations involving the
rights holders and a formula to assure adequate payback are
encouraging. Also notable is his strong focus on cricket, to
the exclusion of most other sporting events. For now we
expect the GOI will follow through in a manner fair and
acceptable to the rights-holding broadcasters.


5. (U) Visit New Delhi's Classified Website:
(http//www.state.sgov/p/sa/newdelhi)
MULFORD