ITV

Category: Multi System Operators

  • Manthan Partners with Magnaquest Product SURE!

    Manthan Partners with Magnaquest Product SURE!

    MUMBAI: ManthanBroadband Services Pvt. Ltd, one of the leading MSOs in India, has signed up a 10-year deal with SURE!, a Magnaquest product, to provide comprehensive cloud-based Subscription Lifecycle Management that include Billing, CRM, and end-to-end Managed Services, the two companies announced today.

    In one of the first-of-its kind deal in the MSO space, Magnaquest will host the entire infrastructure of the application, and manage it for Manthan as part of their Managed Services Contract. This Software-as-a-service (SaaS) business model is backed by globally-proven Magnaquest Operations support.

    SURE!, Magnaquest’s award-winning and globally proven combination of BSS, OSS and Managed Services will align perfectly with Manthan’s installation goal of over 3.6 million STBs by 2014 across the states of Bengal, Orissa, Assam, Jharkhand and Meghalaya. SURE! will also complement the focus of Manthanin transforming the entire network to address next generation digitization requirements and provide best customer experience.

    Speaking about the global search for the right Subscriber Management, Billing and Managed Services partner, Mr.Gurmeet Singh, Director, Manthan Broadband Services, said, “We were looking for a provider of international quality, a solution that is robust for geometric expansion and growth, and at the same time, flexible to support us in various business approaches, fast innovation and dynamic market models. We were looking for a partner with a technology that would not fail, but also bring in domain-edge, strategic approach and business insights support to mutually-nurture in taking the right strides over a long period of time.”

    “The reasons for selecting SURE!, from Magnaquest, are many including their undisputed global leadership in Media & Entertainment domain for SMS, international-class solutions, a rapidly scalable technology, and even more significantly – the ability and willingness to completely take up the responsibility of planning, creating, deploying and managing our entire technology infrastructure, while meeting our future requirements as we grow in the new era of digitized Indian Pay TV market” he said.

    “Having evaluated various global players in the space and considered the value-edge in the offerings of all Subscription Lifecycle Management companies, we had no doubts in going ahead with SURE! because of its client-centric DNA, ability to think for our end-subscribers, speed and flexibility, optimized costs, its ‘Pay-as-you-grow’ model and, the brand promise,” Mr. Singh said. “We are sure SURE! will help us in our overall mission to become one of India’s most-loved provider of home and mobile entertainment connectivity.”

    “We are very excited to be chosen by Manthan, one of the fastest growing regional MSOs in the country, after a global search for a strategic technology and consulting partner. We are looking forward to a great relationship and supporting Manthan’s leadership in attaining their ambitious goals with our proactive and comprehensive value offerings. We have a promise to improve ARPU and enable loyalty from subscribers, growth readiness and total operations management. It is a partnership that can change the game for end-users, making their experience of entertainment connectivity truly world-class and best-in-class.,” said Rajiv Debbad, Director – Business Development, SURE!

    “We have delivered our subscriber management and billing solutionon SaaS platform to Manthanin flat 3 week’s time. We are amongst a handful of players in the world poised and ready to harness the Subscription Revolution underway. SURE! is more than a product, platform or suite of industry-focused niche solutions-set. It is a brand, a faith, a promise to optimize technology for the success of your business,” Mr. Debbad said.

     

  • DEN, Hathway and InCable get interim relief on ent tax

    DEN, Hathway and InCable get interim relief on ent tax

    MUMBAI: The big four  of Indian cable TV – DEN Networks, Hathway Cable and Datacom, InCable and Siti Cable – heaved a sigh of relief as 21 January ended. The reason: the Delhi High Court – which was hearing their appeal seeking to restrain the state government’s entertainment tax authorities from taking any coercive action against them for not paying entertainment tax – gave them relief, if at least for some time. The  HC passed an interim order, forbidding the tax folks  from taking any steps  against  three of the MSOs – Den, Hathway and InCable.

     

    The cases that were heard in one day saw the appeals of  DEN and Hathway being joined  together while InCable and Siti Cable presented its case separately.  With the order coming into effect, MSOs have been relieved of the duty of collecting entertainment tax from the LCOs and submitting it to the government till the judgment on the case is passed. The next hearing will be on 13 March.

     

    The respondent (the entertainment tax collection authorities) have been given four weeks to file its reply to the case. In the meanwhile, its hands are tied. However, what was not clear at the time of writing whether  the onus is back on the LCOs to pay the tax to the government.

     

    Although the MSOs are receiving the tax from LCOs, they claim they aren’t getting the full amount. Hence, the balance amount normally has to be coughed up by the MSO whether it is paid the same or not by the LCO. This is pretty unfair, they have stated.

     

    The  MSOs approached the Delhi HC as  the inexplicable  pressure was being thrust on them to cough up taxes.

  • Four national MSOs file writ petition against Ent Tax

    Four national MSOs file writ petition against Ent Tax

    MUMBAI: Entertainment tax has become a bothersome issue for both MSOs and LCOs. Right from the amount of tax levied to ownership of collection, state government mandates have got the two cable TV factions locking horns. While government regulations mandate MSOs to collect tax from the LCOs and submit it, the LCOs would rather take the onus on themselves.

     

    Four Indian national MSOs – Den, Hathway, Siticable and InCable have filed separate writ petitions in the Delhi HC to challenge several aspects of the entertainment tax being imposed as well as the tax collecting authority’s stance towards the MSOs in the state of Delhi.  The cases are all set to be heard today in a joint hearing.

     

    While Hathway Cable & Datacom was put through an enquiry on its own premises, others have decided to legally protect themselves before something similar happens to them. Siticable claims that it has been fulfilling all duties effectively. An ex parte order was taken out against it for non compliance in April and May 2013 which Siticable had appealed against. When that didn’t go very far, it decided to lodge its writ petition seeking redressal and  justice.

     

    Siticable’s first hearing was yesterday when the lawyer on behalf of the tax authority asked for a day’s time to come up with its side of the case. “We had deposited the tax and had also filled the form 10 as per requirements. Yet the authorities were after us. So we went to court to request that no coercive action be taken by them ,” says Siticable CFO Sanjay Goyal.

     

    Hathway is of the opinion that entertainment tax collection is a duty that has been undertaken by the LCOs for several years now and that is how it should be. Its writ petition states that the order passed against it was unreasonable.

     

    MSOs say that they are alright with collecting the tax and passing it on to the department but traditionally it had been the job of the LCO to do that. However, in case of  a lapse of payment by the LCO, the MSO should not be asked to cough up the remaining money is what they say.

     

    The case will come up for hearing today. Who knows whether the Delhi High Court will give a stay order or decide on its fate tomorrow itself.

  • Now, MSOs to collect entertainment tax in Maharashtra

    Now, MSOs to collect entertainment tax in Maharashtra

    MUMBAI: Cable operators in Maharashtra have been fighting tooth and nail to reduce the Rs 45 entertainment tax (ET) levied on them by the state government but nothing seems to be working. Now, in a fresh move, the state cabinet has approved an amendment which makes the multi-system operators (MSOs) responsible for the collection of ET from the Last Mile Owners (LMOs).

     

    Earlier, the onus was on the LMOs, who were supposed to collect the ET along with the service tax and give it to the state. In December, the Maharashtra Cable Operators Federation (MCOF) moved the Court challenging the Maharashtra state government’s amended gazette resolution (GR) regarding entertainment tax. According to the amended GR, it was mandatory for the LMOs to file a joint affidavit with the MSOs while paying entertainment tax. However, last month the Bombay High Court ordered an interim stay on the amended gazette resolution (GR) of ET.

     

    MSOs and LMOs are all wondering whether this amendment will come into effect or  will it be regarded as as contempt of court, since the High Court’s stay order is in place. As of now, no notification or communication has been issued to the parties involved. “We can only comment after the notification is passed. But we wonder what will happen since the matter is sub judice and the LMOs are stating that it is their business to deposit the tax,” says Hathway president Milind Karnik.
     

    Indusind Media (InCable) managing director  Ravi Mansukhani is puzzled about  the government’s move.  “”How can they pass this?,” he asks. “The case is pending in several courts.” But he adds that he is  “absolutely fine if the LMOs want to do it. It will be difficult for us to reach out to subscribers the way they do. The reason why the government has taken this step is  because it is easier to collect it from a few MSOs rather than so many LMOs”

     

    MCOF is looking at approaching either the High Court or the Supreme Court depending on the circumstances. “We will definitely not comply and will continue giving the tax to the High Court only,” says MCOF task manager Bobby Shah.

     

    The Maharashtra government expects MSOs in the state to give their customers bills that will include an additional Rs 45 as entertainment tax besides the service tax of 12.36 per cent following the notification. “Majority of people will have to shed more money for the cable TV service while a few will have to give marginally more than what they are currently paying,” says Shah.

     

    However, the operators are still protesting against the high ET rate and want it to be reduced. “The amendment is not bothering us much, but what is important is the high rate of entertainment tax that needs to be brought down,” says Cable Operators and Distributors Association (CODA) president Anil Parab.

     

    MOS ABS Seven Star CMD Atul Saraf says that he is fine with collecting ET from the LMOs. “But the amount needs to be reduced to just Rs 10 to Rs 15 so that the customer isn’t burdened with the extra cost,” he opines.

     

    Now, it’s a wait and watch situation if the Maharashtra cabinet’s decision is regarded  as contempt of court, or if it will come into effect from the date of notification! Whatever happens, it’s surely going to bring clarity on the revenue that the government earns. 

  • Kolkata MSOs anticipate cooperation from LCOs in two months

    Kolkata MSOs anticipate cooperation from LCOs in two months

    KOLKATA: The multi-system operators (MSOs) have started gross billing for the month of December from 7 January in Kolkata and are hopeful that the local cable operators (LCOs) who at present are showing some resistance will eventually fall in line in the next two months.

     

    The MSOs in the meanwhile are educating consumers about gross billing by publishing advertisements in newspapers. The ads request consumers to make the payment against a bill only.

     

    “We have started the billing process. Customers are happy, but the operators do not want the billing to be in place. There might be some resistance but eventually things will fall in line,” said Siticable Kolkata director Suresh Sethia.

     

    While another MSO said that the company is having meetings with operators and trying to convince them of the benefits of digitisation.

     

    “We are talking to the LCOs and asking them to hike the bill which will include amusement tax and service tax. Even consumers have to understand that they have to pay taxes now,” said the MSO.

     

    When the MSOs were asked about the disbursement of the bills, some said they have given the bills to LCOs in compact disk (CD), while others like SitiCable said that they have uploaded the bills on their system and the LCOs can easily take the printouts.

     

    However, the LCOs in Kolkata have made it clear that they will not distribute the bills unless the revenue sharing model and other details are discussed.

     

    Cable Operators Digitalisation Committee of the Association of Cable Operators convener Swapan Chowdhury said, “The MSOs who are giving the bills on CDs to LCOs need to give a hard copy of the bills as printing will also involve cost.”

    It seems the LCOs are serious about every single penny and are not in a mood to give up easily!

  • DEN’s Manchanda: Consumers will drive phase III & IV digitisation

    DEN’s Manchanda: Consumers will drive phase III & IV digitisation

    MUMBAI: The government mandate to digitise roughly 130 million Indian cable TV homes has been progressing in stops and starts over the past year. But with phase I and phase II  almost complete and billing starting or expected to start soon, industry is now gearing up for the third and final fourth phases. And India’s cable cowboy and leading MSO Den Networks’ CMD Sameer Manchanda believes that the process is going to be smoother and easier in the smaller towns and hinterland India. 

     

    “It is the consumer who wants digitisation in phase III and phase IV,” said DEN Networks CMD Sameer Manchanda in an interview to CNBC TV 18 today. “Seeing the success of phase I and phase II, it’s the consumer in these smaller towns and rural India who are pushing for the digitisation.” 

     

    The ministry of information and broadcasting has declared 31 December 2014 as the sunset date for analogue cable TV. And along with that TRAI has been prodding and pushing the rickety cable TV architecture to upgrade quickly.

     

    Manchanda told the business channel that the government mandate combined with the consumer push, will result in digitisation being completed nationally in the next 15 months, giving leeway for a three month delay.

     

    “We are one of the largest players, with a fairly high share of cable TV homes,” said Manchanda during the course of the interview.

     

    90 million of the 130 million TV homes nationally are delivered TV services via cable, he pointed out adding that  “while 20 million homes have already been digitised in phase I and II, around 70-75 million are left to undergo the process in phase III and IV,” he added. 

     

    DEN Networks has seeded around 5 million set top boxes – a 25 per cent share of this 20 million digitised universe – and will need to digitise another eight million analogue homes in phase III and phase IV areas.  “Of course we will be expanding and have raised money for the same. So we will be doing much more in the remaining phases,” he said. 

     

    Though Manchanda acknowledged the competition is coming in from the direct-to-home (DTH) players, he still believes that consumers prefer cable TV over DTH in digitised environment. “In the 42 towns which have so far been digitised, we have seen that 70-72 per cent is cable while 28-30 per cent is DTH, if you leave Chennai out. We do understand there is competition.  But what we have seen in phase I and II – and I believe the same will play out  in phase III and IV –  is that  in a digital universe viewers  are preferring cable TV,” he revealed.

     

    Cable, according to Manchanda, in the last one year, has added roughly 85 -90 per cent of the homes that got digitised in the 42 towns.

     

    Addressing the question on the coming in of 4G in India, Manchanda said, “As far as 4G goes, I see cable TV and 4G complementing each other. Digitisation has provided us the bedrock for further change like elsewhere in the world and deliver internet and broadband. So far, India has witnessed speeds like 512 kbps, but here we are talking of speeds of 100 mbps and beyond. And we will be leapfrogging technology like offering ethernet on wire or cable and Docsis 3.0. .We will be launching broadband in March-April. I see a complete revolution coming in with broadband and cable TV companies offering triple play services.”

     

    With television here to stay and going to HD and 3D and video getting denser, Manchanda believes the need for fixed bandwidth from consumers at home will rise. “Indian cable TV companies are in an advantageous position as they are the only ones having a wire going into homes – apart from MTNL and BSNL. Hence they will be moving in the way cable companies in the US, Korea have,” Manchanda told the channel. 

     

    Citing Comcast, the largest media and cable company which also offers telecom services as an example, Manchanda said that India is going to be moving in the same direction in the next three to five years. “It would change the way education, video and everything else on the internet is done,” he said.

  • MSOs to meet in Kolkata on gross billing

    MSOs to meet in Kolkata on gross billing

    KOLKATA: Kolkata based multi-system operators (MSOs) mean business and how? Well! The fact that they have not been able to start gross billing in the city on the time as directed by the Telecom Regulatory Authority of India (TRAI, they have decided to meet on 3 January and discuss the smooth rollout of gross billing in the KMA area.

    “Since the local cable operators affiliated with us are not ready to distribute the bills thinking that this might make them delivery boys, we have called up the meeting to discuss on the matter and come up with ways to ensure that gross billing begins in Kolkata,” said a MSO.

    Some last mile operators (LMOs) have decided to not allow gross billing in Kolkata DAS I area, said another MSO. “The billing system will bring transparency and organise the business but some operators are opposing it,” he said.

    “We were prepared for a long time with the bills slated to be put up on the system. Since some MSO’s were not ready we had to wait,” said Siticable Kolkata director Suresh Sethia.

    Sources on the condition of anonymity questioned that while a few MSOs like DEN Networks and Digicable among others have not yet started the package, how can they start the billing process?

    While another source questioned how MSOs who have achieved around 70-80 per cent CAF submit compliance report for gross billing?

    When the Cable Operators Digitalisation Committee of the Association of Cable Operators convener Swapan Chowdhury, was contacted, he said: “The government is putting pressure on the MSOs to start gross billing so that it can collect tax easily. No one is concerned about the operators.”

    “We will not allow gross billing to start till all the issues like licensing conditions, unworkable revenue share model and agreement with the MSOs are resolved,” concluded a LCO.

  • MSOs meet; decide to start gross billing in Mumbai soon

    MSOs meet; decide to start gross billing in Mumbai soon

    MUMBAI: The national multi-system operators (MSOs) don’t want any more delay in starting the gross billing in the phase I cities. While gross billing has already begun in Delhi and Kolkata, the MSOs who have been facing resistance from the last mile operators (LMOs) in Maharashtra, met today in Mumbai to decide on the means to implement billing in the city.

    The four MSOs: Hathway Cable & Datacom, DEN Networks, IMCL and SitiCable have unanimously decided to authorise the LMOs to bill their consumers. “The LMO wants ownership of their consumers, and we have decided to give them that,” informs a MSO present during the meeting.

    The MSOs during the meeting decided that they will generate the bill and hand it over to the LMOs, who can further give it to the subscribers. “We will start the process in the next couple of days. Consumers will receive the bill for the month of December,” he adds.

    While the decision on who collects the entertainment tax is still pending with the Bombay High Court, the MSOs have decided to go ahead and complete the process of gross billing in Mumbai and submit the compliance report to the Telecom Regulatory Authority of India (TRAI), the deadline for which was 31 December. “We will submit the compliance report, once the billing process starts,” says the MSO.

    But what happens if the consumer pays the bill through a cheque? “Well! It is up to the subscriber, they can either sign the cheque in the name of the MSO or the LMO. But considering that the entertainment tax needs to be paid by the LMOs, it will be preferable that the subscriber signs it in the name of the LMO. The LMO will pay us the collection after deducting his revenue share,” he informs.

    The decision has been taking to brings everything on track. “The decision on entertainment tax will come sooner or later. But, that cannot deter us from getting the process rolling,” says the operator.

    At the meeting, the revenue share for the pay and free channels was also discussed. “These are commercial discussions. We have almost reached on an agreement for that as well. And our plan of revenue share is better than the one suggested by the TRAI,” says the MSO.

    But, are the LMOs completely convinced as well? “We will be meeting Hathway and IMCL on 4 January to discuss the fine points. Our concern is that the ownership of consumer should be with the LMOs. We will discuss with them the billing format and also get clarity on whose name the bill is being generated. The heading of the bill should have the name of the LMO and not the MSO. We will not allow that,” says Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

    However, the MSOs have suggested that the bills generated from the MSO will have the name of the LMO, while that generated from the LMO to the subscriber will have the name of the subscriber. “This is a welcome move. But, we still need to discuss the finer points tomorrow,” adds Prabhoo.

    In the meeting to be held between MCOF and the MSOs on Saturday, finer points like additional cost of bill printing, distribution and collection will also be discussed. “These are additional liabilities of DAS in the absence of the interconnect agreement and also unfair revenue share and hence need to be discussed,” concludes Prabhoo.

  • National MSOs to meet in Mumbai on gross billing issue

    National MSOs to meet in Mumbai on gross billing issue

    MUMBAI: The national multi-system operators (MSOs) are meeting on 3 January in Mumbai to discuss the smooth rollout of gross billing in Maharashtra. While the deadline set by the Telecom Regulatory Authority of India (TRAI) to achieve 100 per cent customer application forms (CAFs) for phase II cities and submitting compliance report for gross billing for phase I cities came to an end on 31 December 2013, the MSOs have been unable to start gross billing in Maharashtra. The meeting has been called to discuss on the matter and come up with ways to ensure that gross billing begins in the state.

    “Since the issue of entertainment tax, which is supposed to be included in the bills generated to the consumer, is in the Bombay High Court, we cannot start gross billing in the state. We will be meeting on Friday to discuss issues at hand,” informs a MSO who will be attending the meeting.

     The MSOs are claiming to have achieved 90-95 per cent CAF and also submitted the compliance report for Delhi and Kolkata to TRAI. “But, the situation is a little different in Maharashtra,” admits the MSO.

    While no independent MSO will be a part of the meeting, the national players operating in Maharashtra: Hathway Cable & Datacom, DEN Networks, SitiCable and InCable will meet tomorrow.

    But, the last mile operators (LMOs) have decided to not allow gross billing in Maharashtra. “The case is anyways in the Bombay High Court and so the MSOs cannot start gross billing in the state. Though Hathway has verbally agreed to give partial access to its subscriber management system (SMS) to the LMOs and said that while it will bill the LMOs, the latter can bill the subscriber, thus being the owner of its subscriber, there has been no response from DEN and IMCL on the same,” informs Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

    “We will not allow gross billing to start in Maharashtra till all the issues are resolved,” adds Prabhoo.

  • Financial books of some Kolkata MSOs should be audited: Analysts

    Financial books of some Kolkata MSOs should be audited: Analysts

    KOLKATA: At a time when some multi-system operators (MSOs) in Kolkata are stuck in a legal battle with the government authorities over non-payment of taxes, city-based analysts feel that the financial books of some MSOs should be duly audited.

    “Some MSOs should be audited by the authorities as non-payment of taxes is causing loss to the state as well as central exchequer,” says a cable TV analyst Mrinal Chatterjee.

    Last year, in August 2013, Kolkata-based MSO Kolkata Cable & Broadband Pariseva Ltd (KCBPL) managing director Bijoy Kumar Agarwal was arrested for evading service tax payment to the tune of Rs 5.52 crore. Agarwal was arrested during a raid conducted by the service tax officials probing the alleged financial irregularities of the MSO.

    Says a local cable operator (LCO), “All these years, it was the LCOs who were held responsible for all the deeds and misdeeds. Now digitisation has helped in unfolding the truth that even the MSOs are resorting to unfair means to do their business. The government authorities must look into the matter seriously.”

    Trouble for operators in Kolkata seems to be intensifying. Before it was the Telecom Regulatory Authority of India (TRAI) and now they are being closely monitored by the tax inspectors, police authorities and even the judiciary.