US embassy cable - 05NEWDELHI6837

UNCLAS SECTION 01 OF 02 NEW DELHI 006837 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECPS, EINV, PREL, IN, External Political Relations 
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 
------------------------------------------- 
 
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