The question is not if interoperability happens, it is whether it happens via broadcast networks in a way appreciated by consumers or if the Internet takes over the whole show.

Mass-carry of TV via the Internet (OTT) is still some time away for India. So, by building on what it already got, the Indian pay-TV industry can be pro-active in preparing convenience for the consumers.

'Convenience' is rich content selection, low barriers for buying and acceptable prices. But, convenience can't happen unless the consumer equipment is interoperable.

Pay-TV needed to be proprietary

In the early years of pay-TV interoperability was not on the agenda of operators. This simply as it was them that had to do the investment in the STBs anyway. Also, no regulatory framework was in place for ensuring that if one operator opened for interoperability, the competitor could refuse to do the same and thereby gain an advantage.

The pay-TV system (CAS) needs to be proprietary. However, the device the CAS/DRM security module is included in, does not. Quite the contrary, it is possible to both implement solid CAS and equipment interoperability in consumer devices.

The times they are changing

With TV anytime TV anywhere, pay-TV is moving from niche to the mainstream. It is no longer only the receive-TV-from-a-broadcast-network scenario represented by the zapper STB. Pay-TV is now just one of several applications of a Internet connected flat-screen, and a newcomer on laptops, tablets and Smartphone.

A pay-TV operator cannot expect to control consumer purchased multi-application devices. The question for the pay-TV operator/content provider rather becomes whether or not to offer the content on the multi-application devices? Device interoperability is a non-issue it is there.

Also, soon the receive-only zapper STB will be obsolete. Why not have a (Internet) connected STB when the price is similar and the content much richer? The receive-only zapper STB will only survive where the operator takes the full cost of it.

IDTVs and Connected TVs

Flat-screen TVs with integrated tuner and DVB decoder so called IDTVs have for a while been outselling decoder-less flat-screens. In some European countries IDTVs have almost 100% market share. The IDTVs feature several tuners enabling the user to choose between cable, terrestrial and satellite operators.

Currently IDTVs with Internet connection so called Connected TV, is on a sharp rising sales trend. The main point of Connected TVs is wider choice of content taken from both the broadcast TV distributors and from the Internet. With this expectation, the users will not accept the device to be stuck with a particular service provider it needs to be interoperable.
Another main point is indeed IDTV/Connected TVs not requiring (operator controlled) STBs.

The IDTV/Connected TV shift is driven by the consumer electronics giants who see proprietary elements as an obstacle to business.

CI is the solution for IDTVs

In Europe where the IDTV concept has developed furthest, the interoperability aspect is solved by the IDTVs featuring the Common Interface (CI) slot.

Pay-TV is facilitated by the pay-TV operator promoting a Conditional Access Module (CAM) that is to be plugged in the CI slot.

The CAM (and possibly a smart card in the CAM) is performing the CAS security functions otherwise performed by the STB and the smart card.

With CI, the user can get CAMs from different operators and in a (relatively) convenient way subscribe to services from several TV distributors in succession or parallel.

With Connected TVs, the CI CAM concept preserves a bridgehead for broadcast TV distributors to deliver pay-TV services. In other words, the Connected TV is not 'lost' to Internet pay-TV can still conveniently be received via broadcast networks.

Security the untouchable argument

The proponents of proprietary consumer devices often file 'security' as the reason for the consumer devices having to be under the control of the service operator.

Content security is a deep technology discussion. However, it is obvious that e.g. the Indian DTH STB interoperability solution with CI combined with smart card based CAS support embedded in the STB not weakens content security.

This as the embedded CAS performs its tasks independently of the CI. To visualize, if the signal is to be processed by the embedded CAS, it goes untouched via the CAM in the CI slot, while if the signal is to be processed by CAM in the CI slot, it is untouched by the embedded CAS.

How to rescue and at what cost

Piracy is the exploitation of a weakness in the content protection chain. Depending on what the particular weakness turns out to be, the remedy will either imply a soft upgrade or a smart card, CAM or even STB replacement.

Beyond interoperability, the CI & CAM concept is very powerful with respect to 'replaceable security': the entire CAS security regime can be replaced through the issuing of new CAMs.

For example, a (proprietary STB) software CAS having the 'root of trust' compromised or a (proprietary STB) card based CAS having the pairing mechanism broken, will require the IDTVs to be denied pay-TV services or the STBs to be replaced to restore security.

With CI, the remedy is to issue a new CAM only, and the consumer can continue using the IDTV or STB. This is cheaper and logistically easier than the alternatives.

Upkeep of CI policy benefits all

By mandating CI for DTH STBs, India was ahead of time in establishing an interoperable STB platform. Then, in 2003, CI was the only interoperability concept available.

Despite some initiatives for others, for example the US Downloadable CAS (DCAS), CI is still the only coherent scheme deployed on a wide scale.

By not allowing discontinuities in the CI policy, India has, at least for DTH, a unique opportunity to gain all parties involved:

• Lower thresholds for becoming a subscriber to pay TV services will on one hand widen the market for operators, on the other increase competition to the benefit of the consumers.

• By enabling anyone, not only someone, to manufacture and sell consumer devices, the ultimate effect of competition is lower prices for the consumer. In turn this increases volume as more people can afford pay-TV devices and services.

Recommendations
At this stage, it is therefore recommended that India not only preserves the CI policy for DTH STBs, rather takes a further step by mandating CI also for other types of STBs and, in line with Europe, for IDTVs.

With such CI basis in place, one can add CI extensions like CI+ for wider applications, and support other form factors like micro-SD card CEA-2040, CI based on microSD.

Glitches in the CI policy may erode this basis for interoperability to the detriment of both consumers and broadcast pay-TV operators. The latter may be side-lined by Internet convenience if the broadcast pay-TV market is split in proprietary fragments.