ITV

Category: Multi System Operators

  • Consumer fail to get adequate information on packages and so any agreement remains unilateral, says Chrome study

    Consumer fail to get adequate information on packages and so any agreement remains unilateral, says Chrome study

    New Delhi, 28 March: Even when the third phase of digitization of cable television is underway and the country is proceeding towards the final phase, the average consumer remains unaware of answers to simple questions that can be provided by the local distributor/direct-to-home operator or cable operator.

    Thus, a bilateral transaction remains unilateral as consumers pay for a certain package consisting of a series of channels but are not made aware when a package is revised, leaving them to continue paying the same amount, regardless of whether the revised price of the package is lesser.

    A Chrome DM report says that “the broadcasters and consumers are both left in the dark. Similarly, consumers may not necessarily require all the channels provided in the package, and would be watching channels worth less than the amount they are paying. For example, they may pay Rs. 400 per month, whereby their content affinity may be towards channels that cost only Rs. 250”.

    In fact, the Report says even basic questions remain unanswered despite the Telecom Regulatory Authority of India have introduced the e-CAF (Consumer Application Forms) to increase the efficiency in the system, and giving it priority by advertising on all TV channels.

    For example, few consumes know what DTH platform they use at home, the package they are subscribed to, or the channels available on those packages, as they accept a lucrative offer that comes their way and accept it without asking questions.

    The Report says these basic questions give rise to huge discrepancies on-ground, impacting the stakeholders in the scenario, in various ways; namely the government, broadcasters, cable operators and consumers.

    Interestingly, the study found that consumers are under the misconception that à la carte is only for sports channels. And though there may be curious consumers who visit respective websites to get information, they find that these may or may not be updated.

    Thus, the notion that the flow of information should be two-way is undermined as the key stakeholders – the consumers – remain uninformed.

    “The total package implementation that collectively took place in Phase I and Phase II is 16 per cent, across the digital universe, with a subscriber base of 2,90,14,214. Despite Phase I and Phase II being implemented in November, 2012 and December, 2013, respectively, the package implementation in Phase I has only been 24 per cent and 13 per cent in Phase II,” the study claims.

    PHASE
    PACKAGES IMPLEMENTED
    PACKAGES NOT IMPLEMENTED
    GRAND TOTAL
    % OF IMPLEMENTATION
    Phase 1
    20
    63
    83
    24%
    Phase 2
    32
    213
    245
    13%
    Grand Total
    52
    276
    328
    16%

    “Discrepancies have definitely arisen from the problem of package implementation. The overall scenario requires much more clarity and I always believe that this is purely contingent on basics. For instance, a leading DTH provider launches a brilliant mobile application meant to be paired with a certain set-top box – however, they go wrong by not seeding the new boxes before launching the application itself! Transparency in the system facilitates concrete addressability. If there were no electricity metres and individuals were to pay electricity bills based purely on negotiations, havoc would ensue.”

    The primary data Chrome DM collected from the ground showed some grave discrepancies. In two areas in Kolkata (Rajabazar and Radhamadhav Dutta, Garden Lane), two respondents in the respective areas are paying two separate prices to their cable operators (Rs 330 and Rs 350 respectively), whereas the former is receiving only 228 available channels and the latter is receiving 342. The respondents are not even provided with receipts.

    Chrome Data Analytics & Media founder and CEO Pankaj Krishna said that “the basics should be very carefully focused upon in order to create a strong and successful foundation upon which the rest of the infrastructure can be implemented.”

    The lack of awareness of the end-consumers and the gravity of this issue as a whole has to be addressed as early as possible if digital addressable system has to succeed, says the study.

     

  • Consumer fail to get adequate information on packages and so any agreement remains unilateral, says Chrome study

    Consumer fail to get adequate information on packages and so any agreement remains unilateral, says Chrome study

    New Delhi, 28 March: Even when the third phase of digitization of cable television is underway and the country is proceeding towards the final phase, the average consumer remains unaware of answers to simple questions that can be provided by the local distributor/direct-to-home operator or cable operator.

    Thus, a bilateral transaction remains unilateral as consumers pay for a certain package consisting of a series of channels but are not made aware when a package is revised, leaving them to continue paying the same amount, regardless of whether the revised price of the package is lesser.

    A Chrome DM report says that “the broadcasters and consumers are both left in the dark. Similarly, consumers may not necessarily require all the channels provided in the package, and would be watching channels worth less than the amount they are paying. For example, they may pay Rs. 400 per month, whereby their content affinity may be towards channels that cost only Rs. 250”.

    In fact, the Report says even basic questions remain unanswered despite the Telecom Regulatory Authority of India have introduced the e-CAF (Consumer Application Forms) to increase the efficiency in the system, and giving it priority by advertising on all TV channels.

    For example, few consumes know what DTH platform they use at home, the package they are subscribed to, or the channels available on those packages, as they accept a lucrative offer that comes their way and accept it without asking questions.

    The Report says these basic questions give rise to huge discrepancies on-ground, impacting the stakeholders in the scenario, in various ways; namely the government, broadcasters, cable operators and consumers.

    Interestingly, the study found that consumers are under the misconception that à la carte is only for sports channels. And though there may be curious consumers who visit respective websites to get information, they find that these may or may not be updated.

    Thus, the notion that the flow of information should be two-way is undermined as the key stakeholders – the consumers – remain uninformed.

    “The total package implementation that collectively took place in Phase I and Phase II is 16 per cent, across the digital universe, with a subscriber base of 2,90,14,214. Despite Phase I and Phase II being implemented in November, 2012 and December, 2013, respectively, the package implementation in Phase I has only been 24 per cent and 13 per cent in Phase II,” the study claims.

    PHASE
    PACKAGES IMPLEMENTED
    PACKAGES NOT IMPLEMENTED
    GRAND TOTAL
    % OF IMPLEMENTATION
    Phase 1
    20
    63
    83
    24%
    Phase 2
    32
    213
    245
    13%
    Grand Total
    52
    276
    328
    16%

    “Discrepancies have definitely arisen from the problem of package implementation. The overall scenario requires much more clarity and I always believe that this is purely contingent on basics. For instance, a leading DTH provider launches a brilliant mobile application meant to be paired with a certain set-top box – however, they go wrong by not seeding the new boxes before launching the application itself! Transparency in the system facilitates concrete addressability. If there were no electricity metres and individuals were to pay electricity bills based purely on negotiations, havoc would ensue.”

    The primary data Chrome DM collected from the ground showed some grave discrepancies. In two areas in Kolkata (Rajabazar and Radhamadhav Dutta, Garden Lane), two respondents in the respective areas are paying two separate prices to their cable operators (Rs 330 and Rs 350 respectively), whereas the former is receiving only 228 available channels and the latter is receiving 342. The respondents are not even provided with receipts.

    Chrome Data Analytics & Media founder and CEO Pankaj Krishna said that “the basics should be very carefully focused upon in order to create a strong and successful foundation upon which the rest of the infrastructure can be implemented.”

    The lack of awareness of the end-consumers and the gravity of this issue as a whole has to be addressed as early as possible if digital addressable system has to succeed, says the study.

     

  • TS Panesar: We see ARPU growing by at least 30 per cent.

    TS Panesar: We see ARPU growing by at least 30 per cent.

    With an aim to redefine, transform business dynamics and further strengthen the role of the local cable operator (LCO) in the distribution chain, Hathway has launched a special initiative – Hathway Connect. Launched in Bangalore on 28 January, Hathway Connect is designed to make the lives of LCOs easy and convenient by providing technology and support through a dedicated online portal, which will have detailed features that will allow the LCO to run his business efficiently and effectively, in turn, offering better quality and high standard customer experience. In a tete-a-tete  Hathway Cable and Datacom Limited president-video business  T S Panesar speaks on the launch of its new portal  for LCOs ‘Hathway Connect’ and how it will shape the business in the coming days:

    Q:   What’s the idea behind Hathway Connect?

    TSP:  Digital technology is driving our lives, the whole world is moving towards technology enabled delivery and consumption. The cable TV industry in India is also moving towards complete digitization. Keeping in mind the changed environment, it is important for us to ensure that our entire cable TV distribution chain is technologically oriented and upgraded to keep with the current trends. We want our LCO partners to be empowered and be strengthened with technology to grow further and keep pace with the demands of the consumers.  Overall, the objective is to offer a value proposition to the customers and give them a best-in-class experience.

    Q:  How do you think it’s different and how will it impact the LCOs?

    TSP:  The entire distribution chain in cable still works heavily on a B2B model with almost 90 per cent of the business taking place through the local cable operator. Until now, there has been no real initiative to strengthen the LCOs’ business, provide them with tools to bring a change in operations and improve customer service. Hathway Connect is a breakthrough approach where we are building technology through a dedicated portal to give the LCO a window to compete with the consumer driven DTH business. It’s time that we recognize the role of the LCO in the cable value chain, the country’s geography is vast and it’s through the LCO, that customers get to watch the best entertainment and information on TV. We cannot deny this reality and hence, as a responsible market leader, we have taken the mantle of upgrading and enhancing the LCO as an entity and providing him full access to control his business through technology. We are confident that it will have a positive impact on LCOs and customers as well as prove to be a game changer in the cable industry.

    Q:   What are the key aspects of the Hathway Connect initiative?

    TSP:   More than just a portal, Hathway Connect is a transformational initiativeand a detailed foray into empowering our LCO partners and the business overall through technology. With this dedicated portal, the LCO will have a host of powerful features that will make his life easy and convenient. Some of the key aspects that the portal offers to the LCO are online activation of new customers (E-CAF), package management, account balance management including integration with Bill desk, customer prepaid option, sending customized notifications to subscribers, specialized LCO helpdesk, Self-care through mobile APP amongst many others, which will help them to upgrade operations, create efficient and seamless processes, aid in effective monitoring, improve customer service and build a more robust business down-the-line. Sitting in his office, the LCO can now control his operations with just a click, manage his entire customer base with utmost ease, thus, reducing operational costs. The E-KYC is technology mandate of TRAI and Hathway is the first MSO to comply and launch it to digitally store consumer data. Further, the LCO has the access to handle his customers with all possible data points, tools and incentives and communication which will enhance the standard of services to customers.

    Q:  How do you envision the LCO in the digital regime?

    TSP:  Since the advent of cable TV in India, the LCO has been the driving force in building this industry brick by brick over the past decade and a half. LCOs connect the length and breadth of the country in a way that even DTH cannot match. The LCOs interaction with consumers on a one-to-one level and the personal experience he offers goes a long way back which makes him the heart of our business. Despite several questions raised on the existence of the LCO post digitization regime and his role diminishing forward, he continues to be that vital cog for MSOs in covering the wide geography of the country and would be even more critical in DAS 3 and 4 implementation, which would cover the interiors and heartland of India. The LCO will continue to exist and grow and our endeavour is to support and strengthen them with technology.

    Q:   How are you marketing this new initiative to the LCO fraternity?

    TSP:  We are promoting ‘Hathway Connect’ in a big way across our LCO partners. A dedicated portal has been developed and aesthetically designed in sync with our corporate brand look with enhanced features available for usage. To orient the LCOs, we are doing orientation sessions and welcome initiatives to introduce the programme to them in the most effective manner. In addition, training sessions on the portal and various features are being conducted on one-on-one level. We launched Hathway Connect in Bangalore on 28 January 2016 amidst a gathering of top LCOs and the portal was made Live on 1 February. Going forward, we are planning to roll-out Hathway Connect in the western region on 1 April followed by rest of the regions to make a Pan-India impact.

    Q:   Do you think the LCO is ready for this change?

    TSP:  There is no option but to embrace technology and adopt it in the best possible manner. The environment around us is changing rapidly and becoming competitive. Cable has been in existence since the last decade and half and has pioneered this industry. Today, DTH poses a challenge built mainly on cutting-edge technology and superior customer service, however, cable with its vast geographical strength and connect with the last mile has a big advantage which is still not explore to the fullest. The LCO has to realise his strength and we as pioneers in the business have taken this step to change their mind set, approach and give them the solution to become more competitive.

    Let’s not forget, consumer demands are increasing, they are more informed and smart and technology and quality has to be top notch. If we need to be competitive and grow, change is required. We, at Hathway, have transformed our business significantly over the past couple of years which has taken us ahead of competition. It’s time for our LCO partners to upgrade and change to strengthen themselves.

    Q:  How do you see Cable growth in the coming year and how much of a role will ‘Hathway Connect’ play in this?

    TSP:  As I mentioned earlier, today as one of the leading MSO and broadband company, we reach over 1.2 crore cable subscribers with a digital base of over 96 lakh and 30 lakh broadband homes passed. Our business has evolved manifold and the kind of steps that we have taken in the last one year has clearly taken us notches ahead of competition, be it initiatives for implementing DAS, packaging foray and now Hathway Connect. Cable TV has the potential to grow profitably, provided the industry upgrades with technology to make processes and operations easy and convenient. We have always taken risks and introduced new steps to grow the revenue pie, Hathway Connect is also a big step in that direction.

    Today, the LCO is our biggest asset and if we can transform them, there is a robust business ahead of us and we see ARPU growing by at least 30 per cent.

  • TS Panesar: We see ARPU growing by at least 30 per cent.

    TS Panesar: We see ARPU growing by at least 30 per cent.

    With an aim to redefine, transform business dynamics and further strengthen the role of the local cable operator (LCO) in the distribution chain, Hathway has launched a special initiative – Hathway Connect. Launched in Bangalore on 28 January, Hathway Connect is designed to make the lives of LCOs easy and convenient by providing technology and support through a dedicated online portal, which will have detailed features that will allow the LCO to run his business efficiently and effectively, in turn, offering better quality and high standard customer experience. In a tete-a-tete  Hathway Cable and Datacom Limited president-video business  T S Panesar speaks on the launch of its new portal  for LCOs ‘Hathway Connect’ and how it will shape the business in the coming days:

    Q:   What’s the idea behind Hathway Connect?

    TSP:  Digital technology is driving our lives, the whole world is moving towards technology enabled delivery and consumption. The cable TV industry in India is also moving towards complete digitization. Keeping in mind the changed environment, it is important for us to ensure that our entire cable TV distribution chain is technologically oriented and upgraded to keep with the current trends. We want our LCO partners to be empowered and be strengthened with technology to grow further and keep pace with the demands of the consumers.  Overall, the objective is to offer a value proposition to the customers and give them a best-in-class experience.

    Q:  How do you think it’s different and how will it impact the LCOs?

    TSP:  The entire distribution chain in cable still works heavily on a B2B model with almost 90 per cent of the business taking place through the local cable operator. Until now, there has been no real initiative to strengthen the LCOs’ business, provide them with tools to bring a change in operations and improve customer service. Hathway Connect is a breakthrough approach where we are building technology through a dedicated portal to give the LCO a window to compete with the consumer driven DTH business. It’s time that we recognize the role of the LCO in the cable value chain, the country’s geography is vast and it’s through the LCO, that customers get to watch the best entertainment and information on TV. We cannot deny this reality and hence, as a responsible market leader, we have taken the mantle of upgrading and enhancing the LCO as an entity and providing him full access to control his business through technology. We are confident that it will have a positive impact on LCOs and customers as well as prove to be a game changer in the cable industry.

    Q:   What are the key aspects of the Hathway Connect initiative?

    TSP:   More than just a portal, Hathway Connect is a transformational initiativeand a detailed foray into empowering our LCO partners and the business overall through technology. With this dedicated portal, the LCO will have a host of powerful features that will make his life easy and convenient. Some of the key aspects that the portal offers to the LCO are online activation of new customers (E-CAF), package management, account balance management including integration with Bill desk, customer prepaid option, sending customized notifications to subscribers, specialized LCO helpdesk, Self-care through mobile APP amongst many others, which will help them to upgrade operations, create efficient and seamless processes, aid in effective monitoring, improve customer service and build a more robust business down-the-line. Sitting in his office, the LCO can now control his operations with just a click, manage his entire customer base with utmost ease, thus, reducing operational costs. The E-KYC is technology mandate of TRAI and Hathway is the first MSO to comply and launch it to digitally store consumer data. Further, the LCO has the access to handle his customers with all possible data points, tools and incentives and communication which will enhance the standard of services to customers.

    Q:  How do you envision the LCO in the digital regime?

    TSP:  Since the advent of cable TV in India, the LCO has been the driving force in building this industry brick by brick over the past decade and a half. LCOs connect the length and breadth of the country in a way that even DTH cannot match. The LCOs interaction with consumers on a one-to-one level and the personal experience he offers goes a long way back which makes him the heart of our business. Despite several questions raised on the existence of the LCO post digitization regime and his role diminishing forward, he continues to be that vital cog for MSOs in covering the wide geography of the country and would be even more critical in DAS 3 and 4 implementation, which would cover the interiors and heartland of India. The LCO will continue to exist and grow and our endeavour is to support and strengthen them with technology.

    Q:   How are you marketing this new initiative to the LCO fraternity?

    TSP:  We are promoting ‘Hathway Connect’ in a big way across our LCO partners. A dedicated portal has been developed and aesthetically designed in sync with our corporate brand look with enhanced features available for usage. To orient the LCOs, we are doing orientation sessions and welcome initiatives to introduce the programme to them in the most effective manner. In addition, training sessions on the portal and various features are being conducted on one-on-one level. We launched Hathway Connect in Bangalore on 28 January 2016 amidst a gathering of top LCOs and the portal was made Live on 1 February. Going forward, we are planning to roll-out Hathway Connect in the western region on 1 April followed by rest of the regions to make a Pan-India impact.

    Q:   Do you think the LCO is ready for this change?

    TSP:  There is no option but to embrace technology and adopt it in the best possible manner. The environment around us is changing rapidly and becoming competitive. Cable has been in existence since the last decade and half and has pioneered this industry. Today, DTH poses a challenge built mainly on cutting-edge technology and superior customer service, however, cable with its vast geographical strength and connect with the last mile has a big advantage which is still not explore to the fullest. The LCO has to realise his strength and we as pioneers in the business have taken this step to change their mind set, approach and give them the solution to become more competitive.

    Let’s not forget, consumer demands are increasing, they are more informed and smart and technology and quality has to be top notch. If we need to be competitive and grow, change is required. We, at Hathway, have transformed our business significantly over the past couple of years which has taken us ahead of competition. It’s time for our LCO partners to upgrade and change to strengthen themselves.

    Q:  How do you see Cable growth in the coming year and how much of a role will ‘Hathway Connect’ play in this?

    TSP:  As I mentioned earlier, today as one of the leading MSO and broadband company, we reach over 1.2 crore cable subscribers with a digital base of over 96 lakh and 30 lakh broadband homes passed. Our business has evolved manifold and the kind of steps that we have taken in the last one year has clearly taken us notches ahead of competition, be it initiatives for implementing DAS, packaging foray and now Hathway Connect. Cable TV has the potential to grow profitably, provided the industry upgrades with technology to make processes and operations easy and convenient. We have always taken risks and introduced new steps to grow the revenue pie, Hathway Connect is also a big step in that direction.

    Today, the LCO is our biggest asset and if we can transform them, there is a robust business ahead of us and we see ARPU growing by at least 30 per cent.

  • Den to sell entire stake in Star Den JV to Star

    Den to sell entire stake in Star Den JV to Star

    BENGALURU: Den Networks Limited (Den) has informed the bourses that it has entered into an agreement to sell its entire fifty per cent stake in its joint venture Star Den Media Services Private Limited (Star Den) to its partner Star India Private Limited (Star India). The agreement price for Den’s stake is Rs 40.35 crore. Star owns an equal share in the JV.

    At the time of filing of this report, buoyed the news of the stake sale, Den shares were up 15.20 per cent from the previous close on the Bombay Stock Exchange (BSE), with each equity share having face value of Rs 10 being traded at Rs 95.50 as compared to yesterday’s close rate of Rs 82.90 and a total traded quantity of 2.1 lakh. The intraday high price of the share was Rs 99.20. The share had opened at Rs 83.75 today at the start of the trading day. The 52 week high price of the share was Rs 169 and the 52 week low was Rs 60.50.

  • Den to sell entire stake in Star Den JV to Star

    Den to sell entire stake in Star Den JV to Star

    BENGALURU: Den Networks Limited (Den) has informed the bourses that it has entered into an agreement to sell its entire fifty per cent stake in its joint venture Star Den Media Services Private Limited (Star Den) to its partner Star India Private Limited (Star India). The agreement price for Den’s stake is Rs 40.35 crore. Star owns an equal share in the JV.

    At the time of filing of this report, buoyed the news of the stake sale, Den shares were up 15.20 per cent from the previous close on the Bombay Stock Exchange (BSE), with each equity share having face value of Rs 10 being traded at Rs 95.50 as compared to yesterday’s close rate of Rs 82.90 and a total traded quantity of 2.1 lakh. The intraday high price of the share was Rs 99.20. The share had opened at Rs 83.75 today at the start of the trading day. The 52 week high price of the share was Rs 169 and the 52 week low was Rs 60.50.

  • Hinduja Ventures declares 175 per cent interim dividend for FY-2016

    Hinduja Ventures declares 175 per cent interim dividend for FY-2016

    BENGALURU: Hindustan Ventures Limited (HVL), the holding company of one of India’s largest integrated media companies, – IndusInd Media & Communications Limited (IMCL) and Grant Investrade Limited which has launched the headend in the sky (HITS) platform, announced an interim dividend of 175 per cent (Rs 17.50 per equity share of face value of Rs 10) for the current financial year.  The dividend will result in a pay out of Rs 4329.53 lakh. (100,00,000 = 100 lakh = 10 million = 1 crore)

    HVL had announced a standalone net profit after tax of Rs 86.41 crore for the nine month period ended December 31, 2015 as compared to a PAT of Rs 74.82 crore in the corresponding year ago period. The interim dividend will be paid on or after March 29, 2016.

    HVL’s HITS platform was launched on September 16,2015 by the Union Minister of Finance, Corporate Affairs and Ministry of Information & Broadcasting Arun Jaitley, under the brand name NXT DIGITAL. The Hinduja‐HITS Network will enable seamless transition from analogue to digital in phase III and IV markets.

    At the time of filing of this report, share price of HVL on the Bombay Stock Exchange was up by Rs 12, or 2.88 percent higher than the previous close of Rs 416 with a total turnover of 2.65 lakh. The share had opened today at Rs 425, with a high if Rs 428 and a low of Rs 421.50.

  • Hinduja Ventures declares 175 per cent interim dividend for FY-2016

    Hinduja Ventures declares 175 per cent interim dividend for FY-2016

    BENGALURU: Hindustan Ventures Limited (HVL), the holding company of one of India’s largest integrated media companies, – IndusInd Media & Communications Limited (IMCL) and Grant Investrade Limited which has launched the headend in the sky (HITS) platform, announced an interim dividend of 175 per cent (Rs 17.50 per equity share of face value of Rs 10) for the current financial year.  The dividend will result in a pay out of Rs 4329.53 lakh. (100,00,000 = 100 lakh = 10 million = 1 crore)

    HVL had announced a standalone net profit after tax of Rs 86.41 crore for the nine month period ended December 31, 2015 as compared to a PAT of Rs 74.82 crore in the corresponding year ago period. The interim dividend will be paid on or after March 29, 2016.

    HVL’s HITS platform was launched on September 16,2015 by the Union Minister of Finance, Corporate Affairs and Ministry of Information & Broadcasting Arun Jaitley, under the brand name NXT DIGITAL. The Hinduja‐HITS Network will enable seamless transition from analogue to digital in phase III and IV markets.

    At the time of filing of this report, share price of HVL on the Bombay Stock Exchange was up by Rs 12, or 2.88 percent higher than the previous close of Rs 416 with a total turnover of 2.65 lakh. The share had opened today at Rs 425, with a high if Rs 428 and a low of Rs 421.50.

  • Kochi Cable TV Operators protest levy of Rs ten per connection as entertainment tax by local corporation

    Kochi Cable TV Operators protest levy of Rs ten per connection as entertainment tax by local corporation

    New Delhi: Over 500 cable operators including some multi system operators in Kochi today demanded the scrapping of the entertainment tax on cable connections, insisting that they were providing an essential service to the consumer. Led by the Kochi Cable TV Operators Association, the protesters who marched to the office of the Kochi Municipal Corporation presented a memorandum to both the Mayor and the Deputy Mayor. Describing it as a draconian move, the memorandum on behalf of two associations says that the local cable operators are already burdened with a lot of taxes, and that the consumer will refuse to reimburse the tax

    An LCO told indiantelevision.com that they had demanded a complete scrapping of the Rs ten per connection levied upon them. The levy had been imposed by the corporation in its budget last month. The budget proposed to generate Rs. 2 crore by collecting entertainment tax of Rs 10 for each connection from cable TV operators.

    A delegation of Cable TV Operators Association met Chief Minister Oommen Chandy and Minister for Urban Affairs Manjalamkuzhi earlier this week with a petition seeking their intervention to persuade the local body to drop the plan.The Kerala Cable TV Federation also submitted a memorandum to the Mayor, Deputy Mayor and Opposition leader with a similar demand.

    The Federation State president E. Jayadevan said since almost all households in the Kochi Corporation have a cable TV connection, the move to collect entertainment tax is just a ploy by the corporation to tax every household albeit indirectly through cable TV operators.

    “The high cable TV penetration in the state is owing to the reasonable prices charged by small and medium operators. The taxation move will force us to hike the rent, thus distancing subscribers from us leaving the field wide open for direct-to-home operators, who are out of this tax net,” he said.

    The Federation said the tax may even force many subscribers to turn to direct-to-home operators and affect the LCOs business. Furthermore, other local bodies would also be tempted to follow suit.

  • Kochi Cable TV Operators protest levy of Rs ten per connection as entertainment tax by local corporation

    Kochi Cable TV Operators protest levy of Rs ten per connection as entertainment tax by local corporation

    New Delhi: Over 500 cable operators including some multi system operators in Kochi today demanded the scrapping of the entertainment tax on cable connections, insisting that they were providing an essential service to the consumer. Led by the Kochi Cable TV Operators Association, the protesters who marched to the office of the Kochi Municipal Corporation presented a memorandum to both the Mayor and the Deputy Mayor. Describing it as a draconian move, the memorandum on behalf of two associations says that the local cable operators are already burdened with a lot of taxes, and that the consumer will refuse to reimburse the tax

    An LCO told indiantelevision.com that they had demanded a complete scrapping of the Rs ten per connection levied upon them. The levy had been imposed by the corporation in its budget last month. The budget proposed to generate Rs. 2 crore by collecting entertainment tax of Rs 10 for each connection from cable TV operators.

    A delegation of Cable TV Operators Association met Chief Minister Oommen Chandy and Minister for Urban Affairs Manjalamkuzhi earlier this week with a petition seeking their intervention to persuade the local body to drop the plan.The Kerala Cable TV Federation also submitted a memorandum to the Mayor, Deputy Mayor and Opposition leader with a similar demand.

    The Federation State president E. Jayadevan said since almost all households in the Kochi Corporation have a cable TV connection, the move to collect entertainment tax is just a ploy by the corporation to tax every household albeit indirectly through cable TV operators.

    “The high cable TV penetration in the state is owing to the reasonable prices charged by small and medium operators. The taxation move will force us to hike the rent, thus distancing subscribers from us leaving the field wide open for direct-to-home operators, who are out of this tax net,” he said.

    The Federation said the tax may even force many subscribers to turn to direct-to-home operators and affect the LCOs business. Furthermore, other local bodies would also be tempted to follow suit.