Monday, August 21, 2006

Why to give a Free color T.V. to every Indian.

Recently the main opposition party in Tamilnadu released its election manifesto for the coming legislative assembly polls. Among other freebies which are common to Indian politics it also promised a free color Television to every household.

On the face of it, it sounds crazy in a state which is still unable to provide basic healthcare and education to all of its people. But, and for many good reasons, this is one of the best things that any political party has promised in recent memory and it should be replicated by other governments and corporate. Here's how it will benefit everyone and save cost and increase tax revenues for the government.

For those who fear about the feasibility of such free distribution, compare it with the free mobile handset scheme that Reliance came up a few years ago. Today a 14 inch color T.V. costs lower than what a mobile used to cost three years ago. The government will earn back(if it has to) from the increased tax and cost savings.

Consider the following.

Today T.V. is the best medium to educate people, not just literacy (for adult/middle age illiterates) but also about health issues. Tamilnadu has the highest cases of HIV in India. Giving T.V. to everyone will help achieve the objectives of government in education and health. Secondly, T.V. will also increase political and social awakening. News channels in India are always eager to show govt. apathy, corruption, crime etc. They are even able to force the govt. into action. With T.V. reaching the lowest rung of the society, their problems and issues will find a wider audience in the society and the govt. This may even improve the law and order conditions as petty crimes are a part of everyday life in slums. Then, by watching programs (also in other language) will improve the language/communication skills of the poorest. This will have a significant impact on their productivity and the kind of jobs they get. This is highly beneficial to the economy as every household employs domestic labor.

On the economic side, the consumer will be the biggest beneficiary. Same as free mobile scheme of reliance lowered the prices in telecom, a T.V. in every household will bring down the cost of cable T.V. With increased penetration and a wider audience the channels will be able to bargain better prices from the advertisers. This increased penetration will also help companies to market their products to this segment which was till now difficult to reach out to. For example, FMCG companies selling soaps/toothpaste etc. will see a increase in sales. Lastly and quite obviously, all the increased economic activity will be taxed by the govt. and will get its share of the pie.

For the social and economic upliftment of people, T.V. is the best tool available today. Cable or DTH (Direct to Home)/ companies can take a few lessons from this scheme. I think if RIL/ADAE would have come with a DTH company, they would have surely given away the T.V. for free.

Date: 02 April 2006

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