With the Telecom Regulatory Authority of India recommending the postponement of the conditional access system, cable companies and broadcasters are expected to reach an amicable settlement on subscription rates and distribution margins.

The regulator on Monday recommended that the government to postpone the CAS rollout till a regulatory framework to govern the broadcasting sector is prepared.

According to industry sources, both cable companies and broadcasters have realised that an agreement needs to be reached as a difference in opinion could hamper both their business interests. Sources said informal discussions would start soon.

Problems relating to the rollout of CAS began when broadcasting companies and cable distribution companies failed to reach an agreement over channel subscription rates as well as distribution margins.

"We are of the view it would be in the interest of both the parties that a settlement is reached on the rates. Talks with the companies would be initiated soon," said a leading cable distribution company.

Broadcasting companies are of the view that with the decision to postpone CAS till the regulator works out a legal frame work to govern the sector is a right move in the direction.

"With an effective regulation, the sector would be governed in a much better way. Besides, issues relating to rates and tariffs should also be settled," said a senior executive with a top Indian broadcaster.