The government has asked broadcasters to lower pay channel rates under the conditional access system and submit a revised price list by August 14, when the CAS implementation committee is scheduled to meet again.

The broadcasters have also been asked to set the margins for multiple service operators.

In June, when the broadcasters had first announced the prices of their pay channels, the government had rejected the same on the ground that they were too high.

The government had said the combined monthly bill for all channels, both pay and free-to-air, should not exceed Rs 200 under CAS.

Subsequently, the government softened its stand and said the Rs 200 ceiling would be applicable only to free-to-air and popular channels. The not-so-popular channels could be priced separately, it added.

The broadcasters had also indicated that they did not want a confrontation on channel pricing and would bring down the rates.

According to industry sources, the broadcasters are working on a new pricing scheme, wherein they will offer a channel at different rates in different areas.

They may also offer discounts to customers for selecting bouquets instead of individual channels.

The government is expected to allow broadcasters to go ahead with these plans.

The government has been repeatedly asserting that after the introduction of CAS, consumers should be spending less on cable TV bills.

The pricing issue is perceived to be a sensitive one as the Bharatiya Janata Party is facing elections in four states this year.

Many in the party believe that if CAS leads to a rise in cable TV bills, it will affect the party's electoral prospects.

In fact, Prime Minister Atal Bihari Vajpayee has asked Information and Broadcasting Minister Ravi Shankar Prasad to ensure that CAS does not lead to a higher financial burden for consumers.