Category: Cable TV

  • Tamil Nadu & DAS: Arasu issues notice against MediaPro

    Tamil Nadu & DAS: Arasu issues notice against MediaPro

    BENGALURU:  Even as the Madras High Court has warned the Telecom Regulatory Authority of India (TRAI) not to take any coercive actions against Tamil Nadu Arasu Cable TV Corporation (TACTV), the latter has taken steps to protect its interests in the state. 

    The government owned MSO issued a public notice on 25 December, cautioning subscribers that the channels under MediaPro Enterprises India (MediaPro) would be disconnected 21 days after the issue of the notice.

    Arasu has a presence in 27 districts in Tamil Nadu, having leased the headends of private MSOs there. 

    The public notice states that the MSO has decided to take this action as the aggregator is in breach of letter of acceptance and non-conclusion of price negotiation between the two.  It warns subscribers and LCOs that they may not be able to view the channels on their TV sets 21 days from the date of publication of the notice. However, the MSO informs its subscribers and LCOs that alternate channels will be available for viewing in place of these 59 channels.

    The notice has been issued under section 4.2 of the Telecom Regulatory Authority of India’s (TRAI) Telecommunications (Broadcasting and Cable Services) Interconnection Regulations 2004.

    Unconfirmed reports allege that TNACTV has been arm twisting pay channel broadcasters and distributors to pay carriage fees to make up a for a mismatch of revenue and payouts to pay channels  of about 40 percent. According to TRAI, Arasu Cable, that is still delivering its services on analogue, has about 6 million subscribers under it in Tamil Nadu making up for a huge chunk of the 13 million cable TV homes in the state.

    MediaPro was unavailable for comment at the time of filing this report. There are 59 channels listed including Star Vijay, Zee Tamizh, Asianet, Asianet Plus and several other Hindi, English and regional channels from the Star and Zee stable which MediaPro distributes. 

    Whether the impact of Arasu clipping Mediapro will be heavy or not, nobody is willing to bet. However, prima facie the channels which would be impacted would be the English entertainment and movie channels, Zee Tamizh, Star Vijay, Asianet, and to a certain extent the kids, sports, news and factual entertainment channels which go to form the Mediapro  bouquet  However, the main drivers of the bouquet Zee TV and Star Plus would be impacted marginally, since Hindi is not a preferred viewing option in Tamil Nadu. 

  • Mona Jain quits Vivaki Exchange

    Mona Jain quits Vivaki Exchange

    MUMBAI: When Lodestar UM and Cheil won the Samsung account, no one could have guessed that it would lead to Mona Jain putting down her papers from Vivaki Exchange.

    The brand’s account was earlier with Starcom MediaVest Group which it lost out to the IPG Mediabrand’s agency Lodestar UM in a multi-agency pitch.

    When indiantelevision.com contacted the CEO of the media agency, she was unavailable for comment. Jain was promoted to the position in 2011. Prior to that, she was the chief operating officer of the agency.

    Sources in the industry have confirmed the news and feel that it was kind of expected as the agency lost out to major clients in the recent past.

    Jain has more than two decades of experience in marketing communications. Over the years, she has worked with agencies such as Hindustan Thompson, Contract Advertising, Mudra Communications, ZenithOptimedia and Cheil Communications. She also has the experience of being on the ‘client side’ with short stints at Glaxo SmithKline.

  • Municipal Corp seeks to tax Bengaluru’s MSOs, ISPs

    Municipal Corp seeks to tax Bengaluru’s MSOs, ISPs

    MUMBAI: The multi-system operators (MSOs) and internet service providers (ISPs) in Bengaluru will soon have to loosen their pockets and pay tax to the Bruhat Bengaluru Mahanagara Palike (BBMP) for cabling on main roads and the arterial roads of the garden city. While initially, even the local cable operators (LCOs) were in the BBMP hit list, the body, in its meeting last week has released the LCOs from paying the taxes for using its services.

    BBMP has formed a committee to decide on the tax that both MSOs and ISPs will need to pay. The meeting was presided by the BBMP mayor B S Sathyanarayana and was attended by the BBMP chairman, MSOs and ISPs last week.

    In the meeting held last week, the players have been asked to file the details immediately, says Sudhish Kumar

    “The current discussion is that the MSOs and ISPs, who use the trunk on the main road and arterial roads of Bengaluru need to make a one-time payment for using the BBMP infrastructure, which will be applicable for next 15 years,” informs Sagar E Technologies’ executive director Sudhish Kumar, who was also present during the meeting.

    Almost all the national MSOs like Hathway Cable and Datacom, DEN Networks, InCable and SitiCable along with the other MSOs operating in Bengaluru will be affected by this. “Currently, there are 11 MSOs operating in the city,” informs Kumar.

    Confirming the reports is Hathway Cable & Datacom MD and CEO Jagdish Kumar G. Pillai, “Yes, the BBMP is looking at imposing a fee for using its service. We have to submit a report, and I am discussing it with my team in Bengaluru.”

    So far, none of the players have coughed up anything to  BBMP. However, the municipal corporation is looking at generating revenue through this levy and also wants to ensure that the city is clean. “It has now asked the MSOs and ISPs to inform them of the exact number of kilometers that they are using to provide their services. This, to ensure that they can fix a price which will be paid by the MSOs and ISPs,” says he.

    Earlier, the deadline for submitting the information was 28 November; but none of the players had reported to the BBMP. “In the meeting held last week, the players have been asked to file the details immediately,” informs Kumar. Those failing to comply may find their cable wires removed.

    The BBMP has also suggested that several MSOs and ISPs can form their own consortium and apply for their own trunk. The body has claimed that at least 15,000 km of cabling has been done within the city.

    It’s good news for the LCOs who have been exempted from paying up.  “If the LCOs had to pay for using the BBMP services, the cost would increase and that would have been passed on to the subscribers. And so the mayor in the meeting clearly pointed out that the LCOs were to be kept out of this tax.”

    The municipal corporation feels that since all the MSOs also provide internet services which gives them huge revenues, it should also be shared with them. In the meeting, the mayor remarked, “If it was only cable TV service, the pricing for using the trunk could still be considered. But because they are carrying internet service business through the same trunk, they should share the revenue with the municipal corporation, which gives them the infrastructure.”

  • MCOF gets entertainment tax extension in Maharashtra

    MCOF gets entertainment tax extension in Maharashtra

    MUMBAI: The last mile operators (LMOs) in Maharashtra have got a further extension until 21 January from filing joint affidavits along with the multi-system operators (MSOs). The cable operators can also in the interim continue paying entertainment tax to the Bombay High Court, following an extension given by it today. The next hearing of the case is on 21 January.

    The Maharashtra Cable Operators Federation (MCOF) had on 13 December 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.

    The Court during the 17 December hearing gave interim relief to the LMOs from filing joint affidavits along with the MSOs. The case was up for hearing today. “The state government advocate wasn’t ready with its response and hence the case was adjourned to another date,” says advocate Sudeep Nargolkar.

    While the case is still on in the Court, the public accounts committee (PAC) of the Maharashtra state legislature has come up with the recommendation of bringing in a few amendments in the Entertainment Duty Act, 1923. The amendments have been recommended based on: one, the numerous advertisements running on cable TV networks, which according to a Times of India report runs into crores; and two, while private TV channels need to follow procedures and seek permission from the Telecom Regulatory Authority of India (TRAI) before launching a new channel, there is no body governing the channels that the cable TV operators run.

    The committee has also objected to the absence of tax that should be levied on cable TV operators for running advertisements on their network.

    The PAC has suggested measures to increase the revenue from entertainment tax. This includes: creating a database of cable and DTH viewers; decentralising entertainment tax collection at district and taluka levels; and regular inspection by both the IT department and revenue officials to find out the number of cable TV subscribers under each operator.

    The changes are being thought of at a time when the LMOs are fighting against the high entertainment tax fees.Are we in for another round of litigation? 

  • Cable operators demand a 10 year licence for better operations

    Cable operators demand a 10 year licence for better operations

    MUMBAI: If the entire digitisation process has affected any of the related bodies the most, it is the local cable operators (LCOs), who are unsure about their future completely. Keeping this in mind, the Cable Operators Federation of India (COFI) has written to the Information and Broadcasting (I&B) Minster Manish Tewari requesting him to give the LCOs a 10 year licence so that they can work on various expansion plans.

     

    The letter was sent to the minister on 18 December. However, the association still awaits a response.

     

    What is notable is that when COFI earlier met the minister on 29 October along with the Cable Operator Association of Gujarat and Rajkot, member of parliament, Mohan Bavaliya requesting for a 10 year licence for the LCOs, Tewari had accepted the proposal, but there was no development on the issue thereafter.

     

    In the absence of a response, the association has resorted to sending a reminder letter to Tewari.  

     

    “You had assured us that the licensing for registered cable operators will be for 10 years at par with the multi-system operators (MSOs) and direct-to-home (DTH) operators and that ‘registration’ for LCOs in post offices will cease,” writes COFI in the letter.

     

    The move, according to the association president Roop Sharma, will help cable operators show more interest in upgradation of technology and expanding business. “When the MSOs and DTH players have been given 10 year licence citing security of business as a reason, why should the LCOs not be given such a security,” she says.

     

    While the MSOs and DTH operators are given the licence by the I&B Ministry, “the LCOs are the only distributers of content without a licence and have registration in post offices for more than 20 years”, states the letter.

     

    MSOs currently have to pay Rs one lakh for a 10 year licence. “The LCOs are anyway paying Rs 1000 to the post office for one year registration. So why not charge them for a 10 year licence? At least this will guarantee them security,” informs Sharma.

     

    In fact, the LCOs have become more certain about attaining a 10-year license because as per the new DAS rules, the LCO has to seek permission from the MSO for renewal of the yearly post office registration. Though the association hasn’t received any response to the letter, Sharma says, “We will soon meet the minister again.”

     

  • Why Assam cable operators are going on strike?

    Why Assam cable operators are going on strike?

    MUMBAI: It was in September that the Assam Power Distribution Company Limited (APDCL) sent out its first circular, making it mandatory for cable operators in the state to pay Rs 25 per electric pole per month, with the deadline being 7 October. However, the cable operators had requested APDCL to lower the rate as they would earn revenue from many other service providers who are using the electric poles as well.

     

    But all their efforts seem to have gone in vain as the APDCL seems unconvinced on the issue. After reviewing the request made by the operators in October, while APDCL has reserved its views on the other parts of Assam and lower Guwahati, it has asked the operators in Guwahati Metro to pay Rs 25 per electric pole every month starting 15 January.

     

    The decision which was taken in a meeting held on 17 December is set to affect more than 250 cable operators providing cable TV service in Guwahati Metro area. The operators represented by Greater Guwahati Cable TV Operators’ Association (GGCTOA) general secretary Md Iquebal Ahmed were asked to file a confirmation letter accepting the fee module.

     

    However, while they didn’t follow what they were asked to, around 100 cable operators met on 19 December to discuss the issue and have decided to switch off cable TV signals today from 4 pm – 9 pm.

     

    Apparently, GGCTOA held a press conference on Sunday and made an announcement about the same.

     

    The operators in Guwahati Metro area have refused to pay Rs 25 per pole per month. “Though we have been told that the electric poles will be given exclusively to us and that we can even give it to advertisers to put up hoardings, or collect revenue from the broadband or telecom operators who are also using the pole, but this is all verbal. Nothing has been given to us in writing,” informs Ahmed.

     

    There are approximately 2.8 lakh electric poles in Guwahati Metro area, of which around 1.8 lakh poles are being used by the cable operators. The matter is currently being handled by APDCL Lower Assam division CGM commercial P. Buzarbauah. “We need a written agreement of all that has been proposed in the meeting. When we asked for it, we were asked to sign the letter first. But, how can we be sure that whatever has been said will be followed later,” he says.

     

    Also the APDCL has given no clarity on who will be collecting the money from the operators and also the advertiser who uses the electric pole to put the hoarding. GGCTOA has also requested the APDCL to directly deal with operators to collect the fee. “We had asked them to sign an agreement with each cable operator, so that they can directly be made responsible for payment or non-payment of the fee. But, the APDCL is passing the buck on to us,” informs Ahmed.

     

    “According to what the body has proposed, it is GGCTOA which will need to collect the pole fee from operators and submit it to APDCL. But how am I responsible if say of the three operators who are using the pole for laying cable wires, two pay the electric pole usage fee, while one doesn’t? So we are demanding that the APDCL signs an agreement with operators directly and not hold us responsible,” he adds.

     

    After waiting for almost two months, while decision is still pending for other regions of Assam, Guwahati Metro region cable operators are surely unhappy. “We even plan to meet Assam Industries & Commerce, Power (Electricity) and Public Enterprises minister Pradyut Bordoloi and also chief minister Tarun Gogoi in order to resolve the issue,” concludes Ahmed.

     

  • FTC penalises Time Warner Cable $1.9 million for violating pricing rule

    FTC penalises Time Warner Cable $1.9 million for violating pricing rule

    MUMBAI: Time Warner Cable (TWC) has agreed to pay a $1.9 million civil penalty to settle the Federal Trade Commission (FTC) charges as it allegedly violated the risk-based pricing rule by failing to send notices to subscribers.

    TWC has been accused of demanding upfront payments or deposits from subscribers with negative credit reports, according to FTC. Under the rule, finalised in 2011, creditors have to notify the customers of higher charges that are based on less-than-favourable credit histories.

    “Beginning Jan. 1, 2011, through at least March 5, 2013, TWC failed to provide consumers who paid a deposit or other pre-payment with a notice, as set forth in the Risk-Based Pricing Rule, that the deposit requirement was imposed based on information in the consumer’s credit report,” assistant U.S. attorney Ellen Blain wrote in the complaint that was filed Thursday at U.S. District Court for the Southern District of New York.

    According to FTC, TWC, the second largest cable MSO in the US, is the first company to face charges after the pricing rule was amended in 2011.

  • MSO Alliance launches ad campaign on monthly billing

    MSO Alliance launches ad campaign on monthly billing

    MUMBAI: Soon consumers will find bills coming to them for using cable TV service. And the message will be reaching them loud and clear through a print campaign that was launched today in the New Delhi edition of The Times of India and Navbharat Times. The print campaign which aims at educating consumers of monthly billing reads: “Attention Digital Cable TV subscribers- Now pay as per your selected channel pack. Get a cable TV bill from your MSO every month starting December 2013.”

    The campaign is an initiative of the multi-system operator (MSO) Alliance that comprises national players: DEN Networks, Hathway Cable & Datacom, Siti Digital Cable Television and InCableNet. The MSO Alliance also has announced that the subscribers who have got a set top box (STB), submitted the ‘Know-Your-Client’ details and channel package selection, will get a bill for their cable TV service every month. The first bill will be generated for the month of November. The new facility has been introduced in keeping with the Telecom Regulatory Authority of India’s (TRAI) regulation on starting gross billing from December.    

    “This move is important as it will ensure that there are no additional or random charges levied on the subscribers. Our viewers will thus pay only for what they watch and they must insist on a bill from their local cable operator or MSO at the time of monthly payment,” said MSO Alliance secretary and DEN Networks CEO S.N Sharma. 

    As per the TRAI regulations, subscribers will get 15 days from the date of the bill to make their payment. In case the subscriber fails to make the payment after the expiry of the due date of payment, the MSO or the affiliate LCO has the right to charge interest on the outstanding amount.

    The Union Government and the TRAI had rolled out a four-phased plan for digitisation of cable TV across India early last year. Phases I & II of this process covering Delhi, Mumbai, Kolkata and 38 other major cities have already been completed. According to the Ministry of Information and Broadcasting, over 26 million STBs were installed in these cities, over 70 per cent of which were by digital cable companies.

  • MCOF-MicroScan broadband package for Maharashtra LMOs

    MCOF-MicroScan broadband package for Maharashtra LMOs

    MUMBAI: We have often heard broadband delivered over cable TV is pure moolah. Now, last mile operators (LMOs) in the western state will also be able to pocket some of that courtesy the Maharashtra Cable Operator Federation (MCOF) and Mumbai-based MircoScan Computers which signed a proposal on 17 December to promote a special purpose vehicle (SPV) under the name SCOPE.

    “This is a joint venture with Microscan which will help provide high speed broadband service to all LMOs,” says MCOF president Arvind Prabhoo. Microscan is an ISP and fibre infrastructure provider to telcos in Mumbai and Pune.

    “Broadband until now wasn’t well structured in the LMO universe,” points out Prabhoo, who had earlier, in September during the India Digital Operators Summit 2013 (IDOS) organised by Indiantelevision.com in Goa mentioned about the huge pipeline lying with the LMOs which was being unutilised. “We needed an internet service provider to partner with us to provide high speed internet to serve consumers in a better way,” he reveals.

      
    Microscan provides fiber to the homes under an arrangement with Sterlite Technologies and MCOF has pooled in LMO fibre rings for optimising mutual resources. “SCOPE will offer true high speed broadband services under BOLT, the trade mark announced by it a few weeks ago,” says Prabhoo. 

    The deal was signed between Prabhoo and Microscan managing director Sandeep Donde on Tuesday. “This is set to alter the broadband service space in a major way,” adds Prabhoo.

    Microscan, which was established in 1996, by engineer turned entrepreneur Donde has more than 450 km of underground fibre. “The partnership will help us provide standardised broadband services to the existing 1500 MCOF members and also those who join later,” he informs.

    Microscan will provide an internet speed ranging between 2 mbps-50 mbps to the end user with a compression ratio of 1:1 or 1:8 as per their choice. “We have our own infrastructure across Maharashtra. This is a strategic partnership with MCOF, through which we will provide internet connection to all its members,” says Donde.

    According to Prabhoo, it is the broadband service that will give a push to the ARPUs for cable TV operators. “Broadband will help LMOs monetise customers.”

    Donde assures that the internet speed available will be standardised and at a lower price. “The rates could vary from Rs 300 to Rs 2,000 to the end customer,” informs Donde.

    Says Prabhoo, “Though the service tariff is low in comparison to other players providing the service, the LMOs will make more money than in any other arrangement they would have entered into.” 

    Not disclosing the revenue share model, Donde says, “We are still working on it.”

    The LMOs through Microscan can enjoy services like, ‘thin client internet connections’, ‘local area cloud’ and ‘content anywhere.’ “We will also be providing value added services like video-on-demand,” informs Donde. 

    Microscan, which has MSO DigiCable as one of its clients, incidentally holds a DAS license in 38 cities and an IPTV license for Mumbai. 

    “What we are offering is certainly a treat for cable TV subscribers and which may be a threat for legacy players,” concludes Prabhoo.

  • UCN to offer Dolby Digital Plus on its HD STBs

    UCN to offer Dolby Digital Plus on its HD STBs

    MUMBAI: Dolby Laboratories has announced that UCN, one of Maharashtra’s leading multi-system operators (MSOs), has selected Dolby Digital Plus as the audio codec for its HD set-top boxes. With Dolby Digital Plus, UCN HD subscribers will experience the capability of up to 7.1 channels of surround sound, designed to transform the way people experience their favorite sports, movies, and television programs.

    “With the onset of the digitization in India, the broadcast industry is evolving with a promise to deliver enhanced quality services to the end consumer. This association with Dolby is an excellent opportunity for us to combine a great HD picture with superior Dolby surround sound. We have always aimed to deliver the best cinematic entertainment experiences for our subscribers,” said UCN director Ajay Khamankar.

    With UCN’s HD set-top boxes featuring Dolby Digital Plus, consumers will be able to enjoy Dolby surround sound by connecting their home theater to their HD set-top box and the HDTV, giving them the best TV viewing experience at home. UCN will offer a complete entertainment experience across a bouquet of channels including the Star HD network, Colors HD, Movies Now HD, Discovery HD, NGC HD, and many more.

    “Our collaboration with UCN marks an important milestone in the adoption of Dolby Digital Plus in India’s Cable TV services, which is undergoing a massive transformation with the ongoing digitization. At Dolby, we strive to bring to life superior entertainment experiences for audiences using innovative technology. With Dolby Digital Plus, UCN will bring an exceptional entertainment experience to their consumers —from sports, drama, reality TV, and movies—right into their living rooms,” said Dolby Laboratories India country manager Pankaj Kedia.