ITV

Category: Multi System Operators

  • DAS: The Chennai conundrum

    DAS: The Chennai conundrum

    MUMBAI: The country may have entered the third and fourth phases of digitisation, but one of the major metros, Chennai, seems to be lagging behind in the digitisation process from phase one onwards. However, it is time for them to buck up as the Telecom Regulatory Authority of India (TRAI) may soon start cracking the whip on broadcasters, MSOs and LCOs in Chennai if they fail to comply with the digital addressable system (DAS) or digitisation norms, leading to severe repercussions.

    In a meeting organised on 9 December by the TRAI with the three stakeholders, the Regulator said that it has already notified the TV channels in Chennai that are still transmitting analogue signals. The deadline to implement DAS was 1 November 2012, but despite the entire framework such as interconnection, quality of service and consumer complaint redressal and tariff being in order, the stakeholders haven’t really followed the process,TRAI reiterated.

    One of the biggest hurdles in the implementation of digitisation is the dispute between the regulator, the information and broadcasting ministry and the Jayalalithaa-led Tamil Nadu government controlled Arasu Cable corporation that it should be given a DAS licence.

    Arasu Cable, that delivers cable TV services to almost half the subscribers in the city, was revived in 2011 and rapidly grew under the alleged patronage of the Jayalalithaa government.

    A TRAI consultation paper on monopoly in the cable TV sector released in June 2013 put it very aptly: “The Government of Tamil Nadu has incorporated Tamil Nadu Arasu Cable TV (TACTV) Corporation Ltd. on 02.09.2011 for distribution of cable TV in Tamil Nadu. It has taken over 27 Headends from the private MSOs. TACTV Corporation is providing cable TV services with most pay channels at a cost of Rs 70 per month to the public through local cable operators. Prior to this, another MSO, M/s KAL (Sumangali) Cable, which is a subsidiary of the Sun group, had dominance in the cable TV services in Tamil Nadu. However, KAL Cable continues to be dominant in Chennai city, where TACTV has not been registered as an MSO under DAS. Interestingly, channels of the Sun group, an integrated player providing both broadcasting and distribution services, were not available on the TACTV network for quite some time.”

    TRAI had then made it clear 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.

    The TRAI consultation paper had estimated that Tamil Nadu has 1.3 crore cable TV homes out of which 50 lakh are subscribers of Arasu. Other estimates are that Chennai has 38 lakh cable TV homes and seven lakh DTH homes. These estimates put Arasu’s subscriber base at 14 to 15 lakh.
    Recent reports claim that the dominant MSO had even ordered a large shipment of STBs in June this year, but has not gone ahead since it has not been issued a DAS licence. Since Arasu is still delivering analgoue signals, most other MSOs too have been tardy on switching over to DAS completely, fearing they would alienate their subscribers.

    In the meeting that the regulator had with the MSOs on 9 December, it ordered them to stop analogue signals and implement complete digitisation. It directed the MSOs to get the Subscriber Management System (SMS) in place with details of customers including their choice of channels.

    It also hurled another missive at broadcasters, clearly ordering them to provide their signals only to those MSOs that are registered for providing cable TV services through DAS. MSOs have been cautioned to ensure that only digital transmissions are provided through their network and Customer Application Forms (CAFs) are collected soon.

    TRAI has stated that it will closely monitor the progress of digitisation in the city and will also consider taking strict action against those who do not follow the protocol.
    Even customers have been advised to ensure that they receive cable TV connection only from operators supplying DAS signals or face a blackout of their TV screens.

    TRAI has also urged them to duly fill the CAFs at the earliest and submit them to their local operators. If they fail to do so, MSOs will be compelled to cut off transmission of those consumers, failing which they may will be in breach of law.

    In Chennai, out of the 38 lakh cable TV homes, only four lakh STBs have been seeded. This leaves nearly 34 lakh houses receiving analog signals.

    Will cable TV operators, broadcasters, and MSOs change the status quo and possibly face the ire of the state? They have not dared to challenge its might for the past year or so. On one side is the telecom regulator which is glaring down on them; on the other there is the state government has made its intentions clear when it asked the centre that Arasu be given a DAS licence. A conundrum if there ever was one.

    Will TRAI’s current warning turn out to be just what it is?

  • Hathway-MCOF show way forward on digitisation

    Hathway-MCOF show way forward on digitisation

    MUMBAI: The government-mandated DAS has been in limbo for a few months now. Even as set top boxes have rolled out in phase I and phase II towns, the issue of Consumer Application Forms (CAFs), despite claims by all, has yet to be resolved completely with the collections of these falling short of the mark. Then multisystem operators (MSOs) and last mile operators (LMOs) have been having a faceoff with the latter claiming ownership of their subscribers, while the MSOs have been insisting that they are pouring in investments hence they have the right to the cable TV viewer.

    But now a ray of hope seems to be emerging from behind the dark clouds with at least a couple of MSO working on what could be a model which could provide a solution to the vexatious problem of who owns the cable TV consumer: the MSO or the LMO? And in the process it would most likely give a real impetus to the realisation of the financial benefits of digitisation, and encourage its acceptance and spread nationally.

    Indiantelevision.com gives you an exclusive peep at what is being planned by one of the MSOs – the Viren Raheja-led Hathway Cable & Datacom – with the Arivnd Prabhoo-led Maharashtra Cable Operators’ Federation (MCOF).

    The two met on 5 December and agreedin principle that the MSO will share its subscriber management system (SMS) with its last mile operators – albeit in a limited capacity. Hathway, through this initiative, has taken a step forward in allowing the LMOs to bill the end consumers.

    “It is a great and welcoming move by Hathway,” says MCOF president Arvind PrabhooThe meeting between the duo was a result of the letter sent by MCOF to all MSOs, as a move to ensure smooth rollout of digitisation. It should be noted that MCOF had written to all MSOs after the Telecom Regulatory Authority of India (TRAI) gave MSOs the final deadline for starting gross billing by 15 December and submitting CAFs by 31 December.

    Calls to Hathway officials did not get a response. But sources close to India’s most evolved cable TV MSO admitted to indiantelevision.com that “yes, we have given the LMOs the right to bill and become the owners of their consumers. They are our trade partners and we want their rights to be maintained. And yes we want them to conduct their business using our SMS.”

    Hathway, apparently, has suggested two options to take things forward.

    The first is for smaller LMOs who who have a few 100 subscribers. The MSO says it could handle the billing for them. The LMO will function as the collection agent, earning a commission in the process for the subscribers who are part of his network. Hathway will be responsible for taxes in this case – including entertainment tax and service tax, wherever applicable.

    The second option is for larger LMOs with subscribers running into thousands and tens of thousands. These LMOs will be permitted to log online into the Hathway SMS with a unique ID and password and manage their subscribers, and even generate bills for them. If they choose this option, then they will be responsible for all the taxes and paperwork.

    Says the source close to Hathway.: “This system not only maintains the rights of the LMO over their consumers, but also makes the operation simpler for us. If we have to bill, activate, deactivate or change plans for all subscribers, we will have to set up those many call centres and infrastructure. It is easier for the customer as well, since for them the LMO is the touch point.”

    Hathway has been holding road shows all over Maharashtra to educate LMOs about its process and explaining to them that each of them can activate or deactivate boxes assigned only to them. Sessions have been held in Mumbai, Pune, Pimpri, Aurangabad, among other cities.

    However, there are still a couple of issues which have to be clarified and agreed upon between MCOF and Hathway. The first is in the area of revenue shares between the MSO and the LMOs. While Hathway has proposed a graded 60:40 to 57:43 split between MSO and LMOs, the latter would like it to be higher – say in the region of 45 per cent- in favour of the cable operators.

    The second issue that needs finalisation is: in whose name should the bill be raised – the LMO or Hathway?

    MCOF and Hathway are expected to meet this week to resolve these and any other issues that could crop up as well.

    “Hathway is the only MSO that has taken a step forward and has shown interest in resolving issues. Other MSOs have yet not approached us for any meeting,” says Prabhoo.
    Prabhoo need not worry. The floodgates may open sooner than he expects.

  • Cable TV subscribers unhappy with raised subscription fees

    Cable TV subscribers unhappy with raised subscription fees

    KOLKATA: Indiantelevision.com has done a series of reports on the concerns of local cable operators (LCOs) and multi system operators (MSOs) around the process of digitisation.

    However, what we haven’t touched upon yet is the response of city-based cable TV consumers to DAS, especially the 30 to 50 per cent increase in subscription charges over the past two months.
    Cable subscribers in Barasat, Hooghly, Khardah, some parts of Salt Lake and northern Kolkata – regions that fall under DAS 1 – are learnt to be fuming over LCOs’ decision to randomly increase subscription rates.

    So much so, some of them are refusing to pay subscription fees while others are willing to pay just the fees, sans the service tax and amusement tax components and without getting proper bills from the LCOs.

    Cable Operators Digitalisation Committee of the Association of Cable Operators convener Swapan Chowdhury says: “Customers were expecting to get the bills and now, on not getting the bills, are upset. Some are not willing to pay even the monthly rental.”

    Analyst Namit Dave feels customers who were used to paying on an average Rs 60 – Rs 90 during the analogue regime are uncomfortable shelling out higher viewing charges.

    According to cable ops in Shyam Bazaar and north Kolkata, customers who used to pay Rs 120 per month are raising a hue and cry when asked to pay Rs 150 as monthly rental.

    “We really do not know how to explain things and convince people,” said a cable operator.

    Barasat resident Tumpai Das argued that the sudden increase of subscription fee from Rs 150 to Rs 280 was unjustified.

    “The local cable operators have not added anything new in terms of quality in connection or channels. They have started collecting this amount for the past two months. If they are not controlled, soon they may hike again,” he rues.

    “We are not being issued a valid bill. When we ask for a bill, they just write it in a white paper and issue it. If the cable operators are not controlled, they would fleece us to any extent. We would have no other option but to opt for DTH connection if they hike the charges further,” says a retired teacher from Hooghly.

    Meanwhile, Cable Operators Sangram Committee general secretary Apurba Bhattacharya feels that going forward the situation is unlikely to change unless billing begins.

  • Cable TV subscribers unhappy with raised subscription fees

    Cable TV subscribers unhappy with raised subscription fees

    KOLKATA: Indiantelevision.com has done a series of reports on the concerns of local cable operators (LCOs) and multi system operators (MSOs) around the process of digitisation.

    However, what we haven’t touched upon yet is the response of city-based cable TV consumers to DAS, especially the 30 to 50 per cent increase in subscription charges over the past two months.

    Cable subscribers in Barasat, Hooghly, Khardah, some parts of Salt Lake and northern Kolkata – regions that fall under DAS 1 – are learnt to be fuming over LCOs’ decision to randomly increase subscription rates.

    So much so, some of them are refusing to pay subscription fees while others are willing to pay just the fees, sans the service tax and amusement tax components and without getting proper bills from the LCOs.

    Cable Operators Digitalisation Committee of the Association of Cable Operators convener Swapan Chowdhury says: “Customers were expecting to get the bills and now, on not getting the bills, are upset. Some are not willing to pay even the monthly rental.”

    Analyst Namit Dave feels customers who were used to paying on an average Rs 60 – Rs 90 during the analogue regime are uncomfortable shelling out higher viewing charges.

    According to cable ops in Shyam Bazaar and north Kolkata, customers who used to pay Rs 120 per month are raising a hue and cry when asked to pay Rs 150 as monthly rental.

    “We really do not know how to explain things and convince people,” said a cable operator.

    Barasat resident Tumpai Das argued that the sudden increase of subscription fee from Rs 150 to Rs 280 was unjustified.

    “The local cable operators have not added anything new in terms of quality in connection or channels. They have started collecting this amount for the past two months. If they are not controlled, soon they may hike again,” he rues.

    “We are not being issued a valid bill. When we ask for a bill, they just write it in a white paper and issue it. If the cable operators are not controlled, they would fleece us to any extent. We would have no other option but to opt for DTH connection if they hike the charges further,” says a retired teacher from Hooghly.

    Meanwhile, Cable Operators Sangram Committee general secretary Apurba Bhattacharya feels that going forward the situation is unlikely to change unless billing begins.

  • Unbundling channel rates a danger to TV ecosystem?

    Unbundling channel rates a danger to TV ecosystem?

    MUMBAI: In the midst of the digitisation process in India, several issues continue to be left unanswered. One such being the matter of unbundling of channels for which the Telecom Regulatory Authority of India (TRAI) issued a consultation paper asking suggestions from stakeholders regarding the same but no decision was reached after that. There is however a rift between MSOs and aggregators on the issue with the MSOs favouring it and aggregators being against it.

    The real question is whether or not it will benefit everyone including the broadcasters, MSOs, aggregators and finally the consumer. 

    A report on the situation in the US by investment banking and asset management firm Needham and Co’s entertainment analyst and MD Laura Martin says, unbundling of cable TV rates could well be a recipe for disaster for all concerned. In the report, Martin has taken a look at the issue from the consumer’s perspective and its consequences for them and for the ecosystem. 

    Martin’s report reveals that US households pay about $720 per year for 180 channels out of which they watch just 18. Consumers would like to pay $30 per month to watch these 16-20 channels. As compared to this, in India, annual rates are a paltry $30-$60 per annum for anywhere between 120 channels to 200 plus channels. 

    Martin argues that if consumers wanted to have all 180 channels as a la carte, their annual spending would increase to $1260, i.e, 75 per cent higher than the current price. 

    Here’s how it goes: cable TV channels in the US generate $56 billion from advertising and $45 billion from subscribers, while pay TV distributors pocket $30 billion, if one goes by last year’s figures. She estimates that if there was unbundling about 124 channels out of these 180 would be wiped out as they would not be in a position to have an average of the 165,000 viewers which Martin estimates are needed to break even on each cable TV channel’s $280 million per annum investment. Her view is that niche channels would simply disappear.

    The decrease in channel choices, points out Martin, would also mean that approximately $80 to $113 billion would be lost in consumer value and the government would lose $20 billion in taxes. It will also put the US, which is already dealing with a high unemployment rate of 7.3 per cent in October 2013, at a risk of losing 1.4 million additional jobs.

    She also warns that if these 180 channels do not create content that is engaging young Americans in the 18-34 year age group, there might be no traditional linear television left in 10 years. Viewers are resorting to cord-cutting and migrating increasingly to online for their entertainment to services such as Hulu, Netflix, Big Frame, Defy Media, Fullscreen, Machinima, Maker Studios,etc. According to a statistics portal Statistica, 43 per cent of Americans between the ages of 18 and 34 preferred Netflix as compared to 46 per cent of paid subscribers who chose cable.

  • MSOs feel the heat in Kolkata

    MSOs feel the heat in Kolkata

    KOLKATA: It seems to be a really difficult time for the multi system operators (MSOs) in Kolkata. We have learnt that Kolkata Cable & Broadband Pariseva Ltd has been asked to pay a hefty amount to the government authorities as it has been avoiding the tax payment for quite some time.

    In another case, former CEO and managing director of Digicable Comm and now the head of the Kolkata operations of Hathway, Amit Nag, who was recently denied anticipatory bail by the Supreme Court, is allegedly untraceable. Sources indicate that the investigation may reach some other senior officials in the national MSO if he does not show up.

     
    Last week indiantelevision.com reported that two officials from Kolkata Cable & Broadband Pariseva Ltd – managing director Bijoy Kumar Agarwal and director Prasun Kumar Das – were arrested as the firm had not paid service tax to the tune of Rs 5.52 crore to the government exchequer.

    According to sources, the company has not paid the tax even after regularly collecting it from consumers and thus it has now been asked to pay around Rs 11-13 crore including the fine in the next 20-25 days.

    In the case of Nag, we have learnt that the national multi service operator Digicable had lodged an FIR against Nag alleging misuse of position and sharing of confidential data and digital materials like set top boxes and fibre optic wires.

    Siticable Kolkata director Suresh Sethia disclosed that Nag had allegedly deleted some sensitive data even when he was with Indian Cable Network Co (a Siticable affiliate in Kolkata) and now he has done the same with Digicable.

    Apparently, Nag had applied for a bail plea which was also rejected by division bench of Calcutta High Court.

    Sethia says: “We had filed a case against him on 1 January 2010 for deleting sensitive data like line diagrams and sharing of confidential data with competitors. Digicable has also complained of the same offence. In our case, the charge sheet was already filed in April 2013. In case of Digi, his bail request is cancelled and now he is absconding.”

    All this seems to be turning against the MSOs as the business community has even got a warning from the finance minister P Chidambaram that the government may arrest and prosecute the ‘chronic’ service tax evaders.

  • MSO MD, director behind bars for not paying service tax

    MSO MD, director behind bars for not paying service tax

    KOLKATA: Two officials of a Kolkata-based multi service operator (MSO) Kolkata Cable & Broadband Pariseva Ltd were arrested today, as the firm had not paid service tax to the tune of Rs 5.52 crore to the government exchequer.

    The arrest of the two officials of Kolkata Cable & Broadband Pariseva Ltd came close on the heels of Union Finance Minister P Chidambaram’s visit to the city two days ago.

    Talking tough, Chidambaram on Tuesday warned the business community here that the government would use provisions of arrests and prosecutions against ‘chronic’ service tax evaders.

    KK Jaiswal, service tax commissioner of Kolkata, on Thursday said two persons, namely Bijoy Kumar Agarwal, managing director, and Prasun Kumar Das, director of Kolkata Cable & Broadband Pariseva Ltd, were arrested.

    “The firm, engaged in providing service as an MSO, is collecting service charges regularly. Investigation revealed that they have collected service tax around Rs 5.52 crore, but have not deposited the same to the government. This is a cognizable offence and punishable upto seven years of imprisonment. Both the persons have been produced before the Alipore Court,” Jaiswal addressed at a media interaction.

    He said the amount of tax was due for the period of 2008-09 to 2012-13.

    “Steps are being taken to recover the amount,” Jaiswal added.

    Earlier, Chidambaram said the government had arrested 13 people across the country in connection of tax evasions.

  • Sky adds 4oD catch-up service to NOW TV Box

    Sky adds 4oD catch-up service to NOW TV Box

    MUMBAI: Channel 4’s 4oD has become the latest terrestrial catch-up TV service to launch on Sky’s NOW TV Box, which already offers access to BBC iPlayer and Channel 5’s Demand 5.

    Shows such as Homeland, Marvel’s Agents of S.H.I.E.L.D. and Made in Chelsea as well as box sets from classic series such as Black Books, Father Ted and Peep Show are now available on demand for owners of the NOW TV Box. This adds more than 3,000 hours of content to the service for customers to enjoy at no extra cost. NOW TV also offers catch-up entertainment from Sky Atlantic, Fox, Discovery and Comedy Central.

    NOW TV director Gidon Katz commented in a report: “The NOW TV Box provides millions of people with the opportunity to transform their regular TV into a Smart TV for less than a tenner. There is now even more to watch. The launch of 4oD means the NOW TV Box delivers an even bigger choice of on-demand TV. It’s available alongside flexible pay-as-you-go access to must-see sport, the latest movies you missed at the cinema and the TV shows everyone’s talking about. Offering convenient, contract-free accesses to such outstanding content, no wonder that NOW TV Boxes have been flying off the shelves.”

    Channel 4 director of commercial and business development Laurence Dawkin-Jones added: “Bringing 4oD on the NOW TV Box represents the latest device launch in a busy year for Channel 4 that has seen us extend our content reach to many new platforms. We’re always looking for new places we can ensure our viewers can enjoy our popular on-demand service, and are delighted to add this to the portfolio.”

  • Comcast, TWC likely to close acquisition deal

    Comcast, TWC likely to close acquisition deal

    MUMBAI: Time Warner Cable and Comcast Corp are likely to close an acquisition deal that could be worth $58 billion. It is learnt that the duo are in informal discussion for the same.

     

    Several pay TV operators have showed interest in acquiring Time Warner Cable. While so far it was Charter Communications that was eyeing the operator, now several media reports are hinting towards a possible acquisition by Comcast.

     

    Charter has been on the hunt for an acquisition, as John Malone, who controls 27 per cent in the company through Liberty Global, looks to bootstrap Charter’s growth. With 4.3 million subscribers, mergers and acquisitions has become an ongoing strategy for Charter. It should be noted that earlier in the year, Charter bought Optimum West from Cablevision for $1.6 billion.

     

    Media reports suggest that Comcast and Charter could, however, buy Time Warner Cable together, and divide its holdings, as they did with Adelphia Communications back in 2006. Comcast could take the New York City operation and gain a more valuable presence there, while Charter could gain dominance in LA.

     

    Consolidation in the cable industry is likely as MSOs look to gain enough size to have a card to play against content owners regarding programming costs considering that no media company could be economically viable if they lose 33 per cent of the country’s pay-TV subscribers.

     

    One way or another, TWC will likely be bought by someone. It lost 306,000 video subscribers in the third quarter after a month-long blackout of CBS and Showtime in a retransmission dispute.

     

    TWC currently has 11 million customers, and Comcast has 21 million; together, they would serve about a third of the nation’s pay-TV subscribers.

  • DAS Phase II MSOs get 29 November deadline for activating SMS

    DAS Phase II MSOs get 29 November deadline for activating SMS

    MUMBAI: The noose is tightening around those operating in digital addressable system (DAS) phase II areas. The Telecom Regulatory Authority of India (TRAI) today stated that MSOs have until 29 November 2013 – less than 10 days from today to complete the process of collecting the consumer application forms (CAFs) with information which includes the name, address, choice of channels and bouquets and entering the information into their subscriber management systems (SMS).  They have been directed to have the SMS operationalised by then and also submit a compliance report.

     

    The direction states that the SMS system has to comply with the digital addressable cable TV system requirements as mentioned in regulation 20 of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations, 2012, for ensuring efficient and error-free service to the subscribers by recording and providing individualised preferences for channels, billing cycles or refunds.

     

    It is to be noted that the regulator had first on 26 April directed the MSOs to ensure that the SMS is operationalised and the signals of TV channels are transmitted to only those subscribers whose details such as name, address, choice of channel and bouquets etc are entered into the SMS. The MSOs were also directed to disconnect TV signals of the subscribers whose details were not entered into the SMS system and allow such subscribers to surrender their set top boxes. The MSOs had then been asked to furnish compliance report by 7 May.

     

    Again on 19 July, the Authority convened a meeting of the MSOs operating in Mumbai, Kolkata and other 38 cities covered under DAS phase-II to review the progress of implementation of DAS, wherein the MSOs were asked to collect the CAFs, complete in all respects, including choice of channels/ services and enter the complete details of the subscribers in the SMS by 20 September.  The regulator had even issued a letter on 23 July directing MSOs to ensure compliance and communicate the same to the LCOs and furnish the report in the given deadline. But with the MSOs failing to comply yet again, the regulator again held a meeting on 25 September with the MSOs to review the progress of implementation of digitization in DAS phase II cities. The MSOs in this meeting had requested for the extension of the deadline to 15 November. Once again, they slipped on that deadline.
    With the new sunset date being set as 29 November, can we expect compliance or another extension?