Why conditional access remains contentious

BY James Gordon| IN Law and Policy | 22/07/2002
Why conditional access remains contentious

Why conditional access remains contentious

 

With the amendment bill which would have introduced conditional cable access withdrawn from the Rajya Sabha last week, and with cable operators in Delhi are threatening a blackout, cable TV reform remains contentious

 

James Gordon

New Media Consultant

The ¿Cable Television Networks (Regulation) Amendment Bill, 2002¿ which will amend the principal Cable Act of 1995 and introduce the Conditional Access System (CAS) has already been passed in the Lok Sabha in May 2002, after a three hour debate. The bill was withdrawn from the Rajya Sabha last week but could be introduced again this week (22 July 2002). A House Select Committee was requested by M. Kapil Sibal (Congress) on the grounds of conflicting interests, but the demand has not yet been conceded.

Even as the broadcast industry has alleged that the analogue set top box, central to the CAS rollout, can easily be tampered with and hence the issue of piracy of signals cannot be addressed through the present CAS system, cable operators in Delhi are threatening a cable blackout if CAS is not introduced soon. While regulation is imminent, several aspects of conditional access need to be understood.

Piracy

It is indeed true that encryption for CAS has encountered severe hacking throughout the television world in the last six months. Major systems belonging to Rupert Murdoch and Canal Plus have been hacked, and not only in the USA and UK.

"Conditional Access" means "pay", which means "encryption" (or scrambling), with "de-scrambling" for those who have paid. Millions of dollars of television programming has been "stolen" thanks to the hacking of smart cards used by the major broadcasters for analogue CAS. The codes necessary for "breaking" these systems have been posted on the Internet.

Pay systems such as "iTV DIGITAL" in the UK (1 million homes using the Canal Plus, ¿Mediaguard¿ SECA technology) have gone bankrupt. Canal Plus Technologies makes smart cards for more than 12.5 million set-top boxes around the world.

Murdoch¿s News Corp owns 79.2% of NDS, a company which provides smart cards for - amongst others - Direct-TV in the USA and BSKYB in the UK. NDS¿ Videoguard has also been hacked (see The Guardian (UK). Direct-tv is having to replace 10 million cards at a cost of $100 million, according to the New York Post. The ¿reverse engineering¿ process necessary to break these codes have been posted on the Internet.

Those responsible for the publishing of such codes are alleged to be competitor pay systems who paid hackers to discover the codes and publish them. (e.g. NDS publishes C+ codes). Canal Plus is asking for a Jury Trial, and damages of US$3 billion, in a California court where News Corp has been formally charged. Canal Plus claims that their codes were hacked by an NDS owned laboratory near Haifa, in Israel then posted on the net.