ITV

Category: Multi System Operators

  • Hathway launches ‘Broadband Movies’ for its subscribers across India

    Hathway launches ‘Broadband Movies’ for its subscribers across India

    MUMBAI: Hathway Cable and Datacom is expanding its business. The multi system operator (MSO) has now entered into the movie streaming service. With this, the Hathway broadband customers will be able to watch high quality movies on multiple devices like smart- TVs, PCs, laptops, tablets and mobiles. This subscription service, sourced from Eros Now’s exclusive library, will be available to Hathway broadband customers across the country.

     

    After setting industry benchmark by offering 50 Mbps as the default minimum speed for broadband in Mumbai, Pune, Bangalore and Hyderabad, Hathway is now foraying into value-added services to help the customers fully enjoy the benefits of their high speed Hathway broadband.

     

    “Broadband Movies is our endeavour to provide consumers with meaningful services to make the most of their high speed connection in a completely legal and secure manner,” said Hathway MD Jagdish Kumar.

     

    “50 Mbps speeds are essential for delivering the HD quality videos that are available through the library of Eros Now,” he added.

     

    Hathway chief operating officer broadband Kunal Ramteke said, “On demand video consumption and multiple device access are no longer emerging trends, they are here and a reality. Our strategy is to deliver a holistic broadband experience. We do not just provide the connectivity but also deliver relevant services, which make the most of our 50 Mbps high speed broadband offering.”

     

    The broadband movies service is available for Hathway’s broadband customers across the country.

     

    The service is being launched with a two months free viewing period for any Hathway customer and will be available with a monthly subscription based pricing for unlimited viewing of movies.

     

  • Tony D’silva draws up wishlist for MIB

    Tony D’silva draws up wishlist for MIB

    MUMBAI: The Information and Broadcasting Minister (I&B) Prakash Javadekar wants a happy Media and Entertainment industry. And for the same, he has been meeting the members of the industry personally to understand their concerns and devise a way forward.

     

    The cable TV industry, which is currently undergoing digitisation, is looking up to the Minister for a better tomorrow. While digitisation of the 120 million cable TV homes in phase III and phase IV took a backseat with the general elections, so did the launch of the Headend in the Sky (HITS) by Grant Investrade, a 100 per cent subsidiary of Hinduja Ventures.

     

    Now with the Ministry throwing some clarity on the next two phases of digitisation, Hinduja group on Monday paid the Rs 10 crore licence fee to the Ministry to move things forward. But, this isn’t all, with this, the expectations from the Ministry has also risen.

     

    In a conversation with indiantelevision.com, IMCL MD & group CEO Tony D’silva lists down his wishlist from the new government and especially the I&B Minister.

     

    • The I&B must demonstrate its commitment to digitisation by immediately announcing the future dates of the remaining two phases.

     

    • According to me, unlike phase I and phase II of digitisation, the government should consider digitising not phases, but complete states. This will also avoid the confusion of neighbouring markets like Hyderabad / Secunderabad, Mumbai and suburbs, Delhi and surrounding markets as well as prevent piracy of signals.

     

    The advantage of doing state-wise digitisation is that if the whole state is involved, the state government can easily estimate its revenues and join forces to ensure implementation. (Similar method was followed in some other countries).

     

    • Broadcaster pricing needs to be worked out more meaningfully in states that are not yet digitised. From my understanding for most broadcasters, phase I and II contribute at least 75 per cent or more of their existing revenues that is from approximately 30 million homes. This means that the rest 25 per cent or so of their business comes from the 100 million- 120 million homes that fall in the next two phases. So when you look at the ratios, then what really should be the pricing of the broadcasters? Broadcaster pricing is the key to the success of digitisation in phase III and IV.

     

    • The broadcaster pricing has to be different. It has to be territory wise and therefore, digitising a complete state is more feasible. The MSOs, broadcasters and the TRAI can sit and discuss in an environment which is more transparent and also come up with pricing which is more viable for phase III and IV.

     

    •  The Hinduja group is committed to invest over $100 million, to set up its HITS business, which is a white label backend service provider to support the smaller operators and help them retain their business and livelihood (the industry employs a few million people), hence it’s important to support the LMO. The group has already invested a couple of crores on the project, but needs a confirmed date for digitisation, before its expense meter starts ticking (transponder payments etc).

     

    • While we do support the government’s effort to encourage indigenisation of set top boxes (STBs), the government should also ensure that it is offered at comparative or better terms than international suppliers (price, credit facilities, repairs, servicing etc). A roadmap for future high end STBs should also be provided.

     

    • One of the key players in the value chain is the LMO. Enough by way of regulation and processes has not been done for them as yet. This needs a complete relook in light of the present situation in phase I and II markets.

     

    • I believe that one of the key objectives of digitisation is consumer choice. Government must insist on the prepaid model along with packaging of channels from day one of digitisation in phase III and IV markets, or else we will face the same problems like the ones in phases I and II.

     

    • The LMO has been the backbone of the C&S industry. In view of this, the government must find a way to encourage them to grow their business. The current licencing policy is completely against the interest of a small LMO. I fail to understand why an operator who has existed for years in the market is asked to get a fresh licence from the centre?  I can’t understand if he is a pan India operator, who already has a licence and has a registered business and is even paying his taxes, then why should digitisation change his status?

     

    If he does not comply with the guidelines, action can be taken by the regulator or the market forces will anyway drive him out of business as there are alternatives to consumers like DTH etc. This needs some immediate intervention.

     

    • The industry is heavily burdened with huge investments due to digitisation. Investments have been made in headends, backend services and STBs, among other things. I earnestly request that the C&S business be given an industry status. Also a relief from double tax: service tax and entertainment tax is needed. Reduction in import duties is also a necessity as it directly affects the customer. Also the entertainment tax needs to come down. It should be a percentage of the package the customer chooses, rather than have one set rule for all the households.

     

    • Another issue is of TRAI’s current regulation on de-aggregation. While the regulation was supposed to help the MSOs, it has had an adverse effect. So, I would like to appeal to the broadcasters and the authorities to intervene and bring about the reasonable pricing model that facilitates business. The broadcasters need to take a long term view of how they can monetise the content, because the old theory of everyone wanting to be on the basic pack cannot work anymore.
  • Hinduja group pays HITS licence fee

    Hinduja group pays HITS licence fee

    MUMBAI: Grant Investrade, which is a 100 per cent subsidiary of Hinduja Ventures, today paid the Rs 10 crore licence fee to the Ministry of Information and Broadcasting (MIB). The group is now awaiting the MIB’s letter of intent to apply for the WPC clearance. 

     
    With this, the $100 million HITS Hinduja project will start rolling out. “We made the payment today. We are eagerly waiting for the letter of intent by the MIB to proceed with the next step,” informs IMCL MD & group CEO Tony D’silva exclusively to indiantelevision.com.

     

    Following this, the company will also make the Rs 40 crore bank guarantee deposit. “We will now move towards signing agreements with the satellite provider and finalising site location,” adds D’silva.

     

    The next 10 days are going to be very busy for D’silva, who is at the helm of the HITS project. The company will start with the promotional activities, discussions with the last mile owners, creation of organisational structure, appointment of distributors and discussions with vendors in the next one week or so.

     

    “The HITS project will be up and running in the next six months,” he informs.

     

    While the HITS licence was obtained on 6 March, what took the company so long to pay the licence fee? Answers D’silva, “When we got the permission, immediately the elections dates were announced, so we lost time on that. Also we weren’t clear whether the government was committed to phase III and IV. Now since we have enough clarity, we decided to go ahead with the first step of paying the licence fee.”

     

    Through HITS, the company is looking at capturing 15-20 per cent of the 120 million households in phase III and phase IV markets. While the technology team is already in place, the others will be appointed soon.

     

    D’silva hopes to be able to create better packages for the HITS platform. “Broadcasters should consider re-pricing their channels. The packaging and bundling of channels needs to be different for phase III and IV. With phase I and II contributing to 75 per cent or more of their existing revenues that is from 30 million homes, phase III and IV which has close to 100 million homes, the broadcasters should reduce their rates to one-third of the existing rates,” he opines.

     

    Apart from HITS, the group’s IndusInd Media and Communications Limited (IMCL) will also see a major boost in terms of the number of channels the MSO currently provides. “We will be increasing the number of channel offering from the current 350 to 500. This will help us become more competitive on ground,” he says.

     

    IMCL in the next one or one and a half months will also launch a prepaid model for its subscribers. “We are talking to other MSOs in Mumbai and the Maharashtra Cable Operators Federation (MCOF) for this. I am hoping that all the other MSOs across the country will also join us for the prepaid model,” says D’silva.

     

    The HITS model will have a complete different vertical which will cater to all the content and video on demand (VOD) services requirements. “The services will be made available to all the LMOs along with IMCL,” concludes D’silva.

  • Siticable Kolkata to launch ‘SitiBroadband’

    Siticable Kolkata to launch ‘SitiBroadband’

    KOLKATA: The average revenue per user (ARPU) of cable operators can go up only with introduction of additional services. This has been stated enough and more time for the multi system operators to take note of and move in the direction.

     

    One such MSO is Siticable Network that has decided to strengthen its broadband and value added services (VAS) offering to its consumers. The network will soon launch ‘SitiBroadband’ service in West Bengal.  

     

    Siticable currently has a cable customer base of around 12.5 lakh in the state. The MSO hopes to convert at least 10 per cent of this consumer base to ‘SitiBroadband’ service users. And to woo these consumers, Siticable will provide a combo pack and a value addition pack in the first year of the launch of the service.

     

    “We have already invested in broadband. We are working on the price and package modality. In a digital addressable era, broadband and VAS will become an important differentiated offering,” says Siticable Kolkata director Suresh Sethiya.

     

    “We are upbeat about our penetration and growth in West Bengal as our combo pack will be a value addition,” he adds.

     

    Sethiya is enthusiastic about the new offering and hopes to develop it as a second major revenue source after it moved into the new digital regime where it has more direct control over the last mile customer. “We can now explain the consumers about the new service easily,” he opines.

     

    Kolkata based cable TV analyst Namit Dave feels that broadband and value-added services will get a major boost as the country advances towards the completion of digitisation. “MSOs will roll out different packages on a vast scale going forward,” says he.

     

    For another city based analyst broadband is a promising business. “It needs less investment while promising higher revenue, Siticable is set for a new high,” he says optimistically. 

     

    As reported earlier by indiantelevision.com, Siticable, as part of enhancing its VAS offering to consumers, is also exploring opportunities to release regional movies on cable TV before they are released in the theatres to generate more revenue.

     

    Sethiya confirms that they are in talks with producers for premiere shows of regional movies on its cable channel as part of value added services. “These services can be implemented once the billing process is properly executed, which could take around six months to complete,” signs off Sethiya.

  • Digitisation has failed to show increase in ARPUs: Deloitte

    Digitisation has failed to show increase in ARPUs: Deloitte

    NEW DELHI: Although carriage fees saw a reduction of 15-20 per cent after the first two phases of digitisation, the delay in implementation of the various phases of digitisation means the promised jump in subscription revenues and average revenue per user (ARPU) has not materialized.

     

    The recently launched Digitization and Mobility: Next frontier of growth for M&E, report by Deloitte states, “One year into the implementation of digitisation, the cable and broadcast sector is still trying to iron out creases and get systems in place. The key goal of digitisation was addressability, which was expected to plug leakages in the system. While cable subscribers have been increasing, rampant under-declaration meant, Multi-System Operators (MSOs) that transmitted the signals to cable operators earned little from the large subscriber base.”

     

    In 2014, Deloitte predicts that the digital TV distribution space – both digital cable and Direct-to-Home (DTH) would find ample room for growth given the catalysing effect of digitisation and the headroom for growth provided by non-TV households in the country.

     

    The report prepared for the ASSOCHAM annual M&E meet says about 12 million set-top boxes have been seeded and 80 per cent consumer application forms have been received as of December 2013. The Telecom Regulatory Authority of India (TRAI) claims 100 per cent digitisation in DAS phase II.

     

    TRAI has also said recommendations on the new DTH licences would be brought out very soon.

     

    HITS licenses which have been issued to two players, is expected to enable digitisation in phase III and phase IV markets.

     

    Meanwhile, the report notes, “Complaints have poured in against set-top boxes. People in the city are complaining about digital set-top boxes installed in their houses and offices. Visual and sound disturbances coupled with channels going off air from time to time have left viewers unhappy.”

     

    It also notes that “in the haste to install set-top boxes in the city, cable operators have overlooked a crucial step – that of filling in the Cable Access Form (CAF) before installation of the device. The purpose behind mandating DAS was to identify the actual number of cable viewers in the country. But with most customers not filling in the form, the purpose still remains defeated.”

     

    “With penetration of TV in India standing at approximately 65 per cent, at present, the country has close to 80 million non-TV households, which presents a key opportunity for the television distribution players. This low level of penetration holds a great potential for players to increase their subscribers and revenues. Drivers such as rising incomes, decreasing household size, multi TV phenomenon and rising urbanisation would only provide a further fillip.”

     

    Noting that the government’s digitisation mandate is “slowly but steadily progressing towards its target,” the report says the television distribution space is abuzz with prospects, albeit it would call for investments and improvements, especially from the digital cable players. All metros except Chennai have been largely digitised and the phase II of digitisation, which covers 38 cities, is also nearing completion. Phase III and IV of digitisation targets December 2014 for their completion. This would mean digitisation of additional 40 to 50 million households in the balance towns.”

     

    The report also says that phase III aims to focus on digitisation of all urban areas (municipal areas). Given the extensive coverage of MSOs and LCOs in such areas, digital cable is expected to make the most in the relatively densely populated areas, notwithstanding the churn of subscribers to DTH. In the first phase of digitisation, DTH operators were able to grab 20 per cent of subscribers converting them from analog to digital.

     

    Phase IV aims to focus on digitisation for the rest of India, which predominantly aims at rural areas and tier II cities. DTH is expected to gain the most in areas with sparse population and inadequate cable infrastructure.

     

    Digitisation phases, scope and affected subscribers

    Digitisation phase               Scope                                        Subscribers affected (million)

    Phase I                            Delhi, Mumbai, Kolkata, Chennai        8-10

    Phase II                           All cities with population > 1 million   12-14

    Phase III                          All urban areas (Municipal areas)        30-35

    Phase IV                         Rest of India                                               22-25

    Source: Industry discussions

     

    DTH, as a sector, had started off by concentrating on rural areas, which were deprived of cable infrastructure and gradually also entered the urban markets. However, they are still strong in rural markets.

     

    Given the complexity of the exercise across the country and the rate at which television penetration is growing (MPA expects India to have 183 million pay-TV homes by 2020); the scale of undertaking of digitisation will be a big challenge.  

     

    But it says analysts and sector professionals agree the future looks promising with the lessons learnt from phases I and II.

  • Cable bills in Kolkata to see a 15 per cent hike from 1 August

    Cable bills in Kolkata to see a 15 per cent hike from 1 August

    KOLKATA: Cable TV viewers in the Kolkata Municipal Area (KMA) will have to face another price hike in their cable TV bills, starting 1 August. This, after the Telecom Regulatory Authority of India (TRAI) hiked the tariff ceiling by 15 per cent for broadcasters.

     

    While consumers in the region have still been coping with the price hike after TRAI made gross billing mandatory, multi system operators (MSOs) are now all set to increase the channel package rates by 15 per cent.  

     

    That apart, more than 31 lakh cable TV homes in Kolkata may witness both channel addition and deletion. A few favourite channels can also be included in the new package with additional charges. However, MSOs have assured that the rentals for the Janata Pack will remain unchanged.

     

    Most MSOs linked the price rise to the TRAI regulation on tariff hike.

     

    Siticable Kolkata director Suresh Sethiya said, “After the price defreeze proposed by the regulator, that is 15 per cent, April onward, when MSOs now sit with broadcasters for renewal of channel contracts, they will have to shell out more money compared to the previous contracts. We can’t take the pinch on ourselves as we don’t have enough resource to fall back upon. Therefore cable rents are bound to go up in the range of 15-20 per cent from 1 August.”
     

    “We have no other option but to increase the channel package rates as the broadcasters have started bargaining a lot,” said a small MSO operating in Kolkata.  

     

    An official from KCBPL-GTPL, referring to the directive of Train on Subscriber Management System (SMS) and online up gradation said, “We are bound to increase the price as we have to show the bill and pay tax on that. Secondly, to follow the new bill delivery system of TRAI, we will incur additional costs in terms of software development and manpower.”

     

    Since DAS has yet not been implemented on ground in any area, subscribers are suffering. “LCOs have started taking full package charge from subscribers in the name of TRAI. But, sadly the same is not being passed on to us. While the LCOs are making good profit and broadcasters are earning more and more, MSOs are still suffering from the financial crunch. In the past few months, our financial health has gone from bad to worse. Questions are now being raised on our existence in the future,” concluded another MSO operating in the region.

  • DEN Networks selects STMicroelectronics for STBs

    DEN Networks selects STMicroelectronics for STBs

    MUMBAI: Enhancing its set top boxes (STBs) and gateways for its six million subscribers, DEN Networks has tied up with STMicroelectronics (ST), the global semiconductor manufacturer and supplier of system on chip (SoC) ICs.

     

    Using this technology in DEN’s new HD zapper boxes, it is looking at growing its customer base and revenues as well. The STiH273 (Palma) integrates a field-proven and widely deployed digital video broadcast-cable (DVB-C) demodulator that has been optimised to work with high-performance external controller area networks (CANs) and silicon tuners to meet the stringent RF-performance requirements of the Indian cable networks.

     

    The STiH273 (Palma) also delivers high-quality Faroudja video, 3DTV support, connectivity, and advanced security schemes with all the latest conditional access system (CAS) support, including NSK2.

     

    Manufactured in 40nm process technology, the chipset supports an enhanced processing engine with integrated on-chip features that simplify set-top box design, enable operators to take advantage of lower-cost memories, and minimize system power consumption.

     

    “Our new high-definition digital set-top boxes leverage STMicroelectronics’ feature-packed and flexible SoC ICs, providing an ideal platform for us to deliver innovative value-added services to our customers,” said DEN Networks COO MG Azhar.

     

    He further added: “The STiH273 SoC is clearly the right choice for our latest generation of set top boxes with the right power, versatility, and features to meet our market needs. We are confident that the chipset will help us in creating both enhanced customer satisfaction and sustaining our leadership edge in India.”

     

    “As a leading Cable MSO in India, DEN Networks sets the trend for technology, modernisation, and radical transformation, and ST is proud to contribute to DEN’s strategic intent. DEN Networks’ selection of ST’s technology underlines our core competencies and reiterates our commitment to this fast-growing market through localization and cooperation with our India partners,” said STMicroelectronics regional vice president for greater China and south Asia region and director for India Design Center Vivek Sharma.

  • A bumpy ride for gross billing in Kolkata

    A bumpy ride for gross billing in Kolkata

    KOLKATA: It’s been five months, since multi system operators (MSOs) started gross (consumer) billing. However, according to cable industry sources, consumers in certain pockets of the Kolkata Municipal Area (KMA) are unwilling to accept bills or pay the billed amounts.

     

    On the other hand, there are three to four MSOs that have not yet handed over bills to the local cable operators (LCOs), and are instead uploading them to their servers and asking LCOs to take print outs thereof and give it to customers, sources inform.

     

    MSOs are meeting regularly to discuss smooth rollout of gross billing in KMA, given that both West Bengal and central government authorities have asked them to expedite the billing process. “Since the billing process hasn’t kicked off in the way it should have, we are meeting on a regular basis to discuss issues like billing, collection and disputes among operators among others,” said a MSO on condition of anonymity.

     

    Another source argued that MSOs that have not yet started the package could not have started the billing process either, so how can their gross billing be acceptable?

     

    A GTPL-KCBPL official said that the company was facing collection issues in localities such as Sobha Bazaar among others in the KMA. “The problems include billing, area disputes etc,” informed another MSO.

     

    “MSOs are billing the full amount of the package but actually, they are getting a much lesser amount in hand. This problem needs to be solved first,” said yet another MSO on condition of anonymity.

     

    A city-based cable analyst meanwhile said, “Billing is a mess as LCOs are not willing to collect the billed amount and consumers are not willing to pay.”

     

    Kolkata has nearly 30 lakh cable homes where till mid-January, MSOs were issuing ad hoc bills.

  • Kolkata MSOs to increase channel package rates

    Kolkata MSOs to increase channel package rates

    KOLKATA: A revision in channel package rates is on the cards following the Telecom Regulatory Authority of India’s (TRAI) directions to multi system operators (MSOs) last week to ensure delivery of bills to subscribers by hand, post or email as opted for by them, and provide within 45 days an online payment option in their subscriber management system (SMS) for subscribers to pay their bills in the first phase of the digital addressable system (DAS).

     

    However, the percentage by which channel package rates will go up is not exactly known.

     

    Kolkata has nearly 30 lakh cable homes and till mid-January, MSOs were issuing ad-hoc bills to subscribers. According to several LCOs, despite having implemented gross (consumer) billing in the Kolkata Municipal Area (KMA) since January, end consumers are not willing to pay billed amounts to LCOs.

     

    When contacted, Siticable Kolkata director Suresh Sethia said, “Package rates will soon be revised. There are instances where consumers are not getting bills from LCOs. The law of the land is the same for everyone. So, we have to courier bills to end users and this involves costs.”

     

    “We are happy that TRAI is trying to make the system more transparent,” Sethia added.

     

    An MSO on condition of anonymity said, “We will have to depute collection agents and provide them with a salary or collection commission, whatever they think is better as LCOs are not able to collect money from end consumers. But we can’t use this as an excuse and will ensure we adhere to the TRAI rules, however cash-strapped we are.”

     

    A cable expert expressed the view that package rates will have to be increased as post implementation of DAS broadcasters have started bargaining a lot and have proposed to charge a much higher rate than before.

     

    “MSOs are bound to increase the price as they have to show the bill and pay the tax on that. Also, to follow the new bill delivery system of the TRAI, additional costs will be incurred in terms of software development and manpower. To justify that, they may increase the price,” said Incubators Group chairman Kaushlendra Singh Sengar.

     

    Sengar informed that the Regulator had also asked MSOs to ensure that an electronic acknowledgement is sent to subscribers on their registered mobile numbers or email addresses within 30 days of making the payment to the service provider.

     

    A cable analyst, Mrinal Chatterjee, begged to differ, “Cable TV operation is not telecom operation. Here, LCOs also work. MSOs have no network of their own but depend on last mile connectors. Customers are the clients of the LMO, so how can MSOs send bills to them?”

     

    Other industry sources argued that some MSOs didn’t even have an SMS in place so how could they start an online payment option in the SMS.

     

    Still other sources opined that MSOs and LCOs need to address the issues together. “Now it seems the authorities want to remove the LCOs from this trade altogether, but it is not that easy to do so,” said an LCO on condition of anonymity.

  • Arasu should be given DAS licence, Jayalalithaa tells Modi

    Arasu should be given DAS licence, Jayalalithaa tells Modi

    NEW DELHI: Tamil Nadu Chief Minister J Jayalalithaa has once again raised the issue of granting a digital addressable system licence to Arasu Cable TV Corporation, which is owned by the state government.

     

    While the demand was raised before Prime Minister Narendra Modi when she called on him yesterday, it is expected that this matter would be referred to Information and Broadcasting Minister Prakash Javadekar for consideration.

     

    However, the Telecom Regulatory Authority of India (TRAI) has in two different consultation papers in 2008 and December 2012 given its opinion against state-owned multi-system operators or broadcasters getting licences.

     

    Ministry sources told indiantelevision.com that licences have not been issued to any state-owned organisation for running cable TV networks as TRAI had recommended that neither state-owned, local bodies nor religious organisations should be permitted to own TV channels.

     

    Earlier this year, then I&B Minister Manish Tewari had told Parliament that Arasu Cable TV Corporation had applied on 26 November 2007 for grant of MSO registration in CAS notified area of Chennai and had been granted provisional permission on 2 April 2008, subject to the report of TRAI on the issue of whether to allow state governments/PSUs and other entities to enter into broadcasting activities.

     

    Thus, Arasu had been given permission on the ground that it would automatically lapse if the Ministry decides against allowing state governments/PSUs and other entities into broadcasting activities, including MSO/Cable operations.

     

    In April last year, the Madras High Court had been informed by TRAI that Central and  State government ministries, departments, companies and undertakings should not be allowed to enter into the business of broadcasting or distribution of television channels. 

     

    Justice S. Rajeswaran was hearing writ petitions filed by the Tamil Nadu Arasu Cable TV Corporation seeking Digital Addressable System (DAS) licence to it for Chennai Metro and for the other parts of the State.