Category: Regulators

  • Radio City reports higher revenue & profits for first quarter

    BENGALURU: India FM Radio company Music Broadcast Limited (MBL) or Radio City reported higher revenue and improved profits for the quarter ended 30 June 2017 (Q1-18, current quarter) as compared to the corresponding quarter of the previous year (Q1-17). The company reported 17.3 per cent higher total income for Q1-18 at Rs 703.1 million as compared to Rs 628.4 million in Q1-17. Total comprehensive income (TCI) for Q1-18 increased 42.3 per cent to Rs 108.4 million (14.5 per cent of Total Income) from Rs 76.2 million ((11.9 per cent of Total Income) in Q1-17.

    MBL’s operating profit (EBIDTA inclusive of other income) in the current quarter increased 13.7 per cent to Rs 217.7 million (29 per cent of Total Income) from Rs 191.5 million (30 per cent of Total Income) in the corresponding quarter of the previous year. Profit after Tax or PAT in Q1-18 also increased 42.3 per cent to Rs 108.4 million (14.5 per cent of Total Income) from Rs 76.2 million (11.9 per cent of Total Income) in Q1-17.

    Total Expenditure for Q1-18 increased 11.7 per cent to Rs 584 million (77.9 per cent of Total Income) from Rs 522.7 million (81.8 per cent of Total Income) in Q1-17. Other expense in Q1-18 increased 9.9 per cent to Rs 258.2 million (34.4 per cent of Total Income) from Rs 234.9 million (39.8 percent of Total Income) in the corresponding year ago qurter.

    MBL paid 10.9 per cent more towards license fees for Q1-18 at Rs 51.9 million (6.9 per cent of Total Income) as compared to Rs 46.8 million (7 per cent of Total Income) in Q1-17. Finance Costs in the current quarter declined 5.6 per cent to Rs 38.6 million (5.1 percent of Total Income) from Rs 40.9 million (6.4 per cent of Total Income) in Q1-17. Employee Costs in the current quarter increased 10.4 per cent to Rs 171.3 million (22.8 per cent of Total Income) from Rs 155.2 million (24.3 per cent of Total Income) in the previous year.

    The company added eleven new stations acquired during Phase III auctions. All the 11 stations were operational for the entire quarter with utilization levels in new stations of 25 to 35 per cent. MBL says that 5 out of the 11 new stations were running at more than 30 per cent utilisation levels.

    Company speak

    Commenting on the results MBL director Apurva Purohit, said, “We have been able to deliver margins of approximately 32 per cent and show growth of 16 per cent despite additional operating cost of the new stations. This is because of rate hike in the legacy stations as well as better than expected utilization in the new markets. Our strategy of profitable growth and not bidding high costs for acquisition in Phase III along with maintaining lowest cost per million is delivery results. Going ahead in the future I see better utilization in our new stations supported by increased
    utilization and price hike in our legacy stations. We are confident on maintaining our current level of EBITDA margins
    and achieve our long term goal of profitable leadership.”

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  • TV channels’ failure to start in a yr: 18% permits cancelled

    NEW DELHI: Action is taken whenever a channel which has been given permission to uplink fails to do so within a year, the Parliament has been told.

    Under the roll-out obligations for operationalisation of private satellite TV channels furnished under the clauses 2.5.1 and 3.5.1 of uplinking policy Guidelines 2011 and 5.9 of downlinking policy guidelines 2011, the applicant companies are required to operationalise the permitted TV channels within a year from the date the permission is granted by the MIB.

    Minister of state for information and broadcasting Rajyavardhan Rathore has said that whenever an instance comes to the notice of the ministry where the company fails to fulfil the roll-out obligation, action is taken against the company under the clauses 2.5.2 and 3.5.2 of uplinking guidelines and clause 5.9 of downlinking Guidelines which entails the forfeiture of PBG and cancellation of permissions.

    After the permission for uplinking of a channel is issued by the ministry, the Wireless Planning and Coordination Wing, Department of Telecom, assigns frequency spectrum (bandwidth) to the teleport operators to enable them to uplink such TV channels,  Rathore said.

    The minister said a total number of 1078 permissions had been issued for uplinking and downlinking of private satellite TV channels as on 30 June last, out of which 195 permissions (18 per cent approximately) have been cancelled so far.

    Rathore said the typical value of bandwidth/data rate required to transmit (uplink/downlink) TV channels are calculated in two categories of transmission are:

    TV Broadcasting with platform bit rates per channel (in Mbps)

    Typical

    SDTV with MPEG-2 3

    SDTV with MPEG-4 1.5

    HDTV with MPEG-2 16

    HDTV with MPEG-4 8

     

  • TRAI seeks conclusive views on ease of doing broadcast biz

    NEW DELHI: Noting that a business-friendly environment is a pre-requisite for the growth of a nation and makes a country a favorite business destination particularly with the fast changing regulatory framework for the media and entertainment sector,the Telecom Regulatory Authority has issued a consultation paper on the ease of doing business in broadcasting based on views received by it on a pre-consultation paper issued on 19 April this year.

    Responses to the paper, which poses around 18 questions to stakeholders, have to be sent by 28 August with counter-comments if any by 11 September 2017.

    Noting that the M and E sector in India is one of the fastest growing sectors, TRAI has noted that It not only leads to employment generation but also helps in the growth and development of an economy.

    The economic liberalisation measures initiated in the early 1990s had focused on reduction of regulatory burden on enterprises as an underlying objective of the reform process. The Government has launched an ambitious programme of regulatory reforms aimed at making it easier to do business in India. The programme aims to pinpoint the bottlenecks and ease them to create a more business-friendly environment. The efforts have yielded some results with India ranked at 130 according to the World Banks’ Doing Business report. But, there is still huge scope for further improvements.

    TRAI notes that the IMF has branded India as the brightest spot in the Global Economy. Several Global Institutions have projected India as the leading destination for FDI in the World and a number of recent global reports and assessments, show that India has considerably improved its policies, practices and economic profile. It is expected that enabling policies and determination to continue with economic reforms, various initiatives taken by the Government such as Make in India, Smart City Mission, Skill India Mission, Digital India, etc. would further spur the growth of the economy.

    The pre-consultation paper on the ease of doing business in broadcasting which covered all media came just a few months after a similar paper on telecom. In the new era of convergence, the two sectors are expected to complement each other.

    The aim is also to remove entry barriers by laying down well defined and transparent procedures and processes thereby creating level playing field and competition in the sector and to facilitate innovation and technology adoption for providing better quality of services to the consumers to steer further growth of the sector by attracting investment through investor friendly policies

    Subjects to be covered are related to processes and procedures for obtaining permission/license/registration for the following broadcasting services and subsequent compliance connected with these
    permissions.

    The fields include:

    (a)Uplinking of TV channels
    (b) Downlinking of TV channels
    (c) Teleport services
    (d) Direct-to-home services
    (e) Private FM services
    (f) Headend-in-the sky services
    (g) Local Cable Operators
    (h) Multi System Operators
    (i) Community Radio Stations

    The questions raised are:

    1. Is there a need for simplification of policy framework to boost growth of satellite TV industry? If yes, what changes do you suggest in present policy framework relating to satellite TV channels and why?
    2.  Is there a need in present policy framework relating to seeking permission for making changes in the name, logo, language, format, etc. related to an operational satellite TV channel? If so, what changes do you suggest and why?  Is there a need for simplification of policy framework to boost growth of satellite TV industry? If yes, what changes do you suggest in present policy framework relating to satellite TV channels and why?
    3. Do you agree witb some of the stakeholders comments at the pre-consultation stage that Annual Renewal Process of TV channels needs simplification?
    4. Do you agree with stakeholders’ comments that coordination with multiple agencies/ Government departments related to starting and operating of a TV channel can be simplified? If so, what should be the mechanism and framework for such single window system?
    5. Is present framework of seeking permission for temporary uplinking of live coverage of events of national importance including sports events is complicated and restrictive? If yes, what changes do you suggest and why?
    6. Do you feel the need to simplify policy framework for seeking permission/license for starting and running of following services:  
    (iii) Teleport services
    (iv) DTH service
    7. As per your understanding, why open sky policy for Ku band has not been adopted when it is permitted for ‘C’ band? What changes do you suggest to simplify hiring of Ku band transponders for provision of DTH/HITS services?
    8. What are the operational issues and bottlenecks in the current policy framework related to:
    (iii) Teleport services
    (iv) DTH service
    How these issues can be simplified and expedited?  
    9. What are the specific issues affecting ease of doing business in cable TV sector? What modifications are required to be made in the extant framework to address these issues?
    10. Is there a need to increase validity of LCO registration from one year? In your view, what should be the validity of LCO registration?  
    11. What are the issues in the extant policy guidelines that are affecting the ease of doing business in FM sector? What changes and modifications are required to address these issues?
    12. Is there a need to streamline the process of assignment of frequency by WPC and clearances from NOCC to enhance ease of doing business? What changes do you suggest and why?
    13. What are the reasons for delay for allocation of frequencies by WPC? What changes do you suggest to streamline the process?
    14. What are the key issues affecting the indigenous manufacturing of various broadcasting equipment and systems. How these issues can be addressed?
    15. Is there any other issue which will be relevant to ease of doing business in broadcasting sector? .
    16. Are there any issues in conducting trial projects to assess suitability of a new technology in broadcasting sector?  
    17. What should the policy framework and process for consideration and approval of such trial projects?

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  • TRAI issues directions to prevent TSPs from blocking spectrum

    NEW DELHI: Taking note of the huge wastage due to blocked spectrum causing inconvenience to consumers, the Telecom Regulatory Authority of India has directed that a Unified Access Service (UAS) licensee must surrender such spectrum immediately upon closure of wireless access services if he decides to close down its wireless access services which were being provided through the administratively assigned spectrum.

    In its directions issued today related to closure of access services, TRAI says a UAS licensee should be permitted to discontinue any of the services, permitted under the scope of licence without the need to surrender the licence.

    In case of closure of access services through any technology in the entire service area or a part of it, the TSP should be mandated to give a 60 days notice to the licensor and TRAI and 30 days notice to its effected subscribers, clearly stating the options available to the subscribers, including that of Mobile Number Portability (MNP) facility.

    The Authority has recommended various time-lines to be followed by Department of Telecom/WPC and the Licensee in the spectrum trading process. These timelines will bring greater clarity and certainty in the entire process of spectrum trading. If the entire spectrum in all bands is being sold by a licensee and will result in discontinuation of services, recommended timelines will remove uncertainties and facilitate the TSPs to given 60 days notice to DoT/TRAI and 30 days notice to its subscribers.

    If a subscriber wants to switch from one technology to other, within the same TSP, the same should not come under the definition MNP.  

    At the outset, TRAI has said that due to adoption of market based spectrum management, the continuance of access service is now no longer assured. Recently, there have been cases where due to reasons such as licensee failing to re-acquire its spectrum holding in a band on expiry of its license validity period; change of technology deployed by licensee; sale of entire spectrum holding through spectrum trading; roaming arrangement coming to an end; etc., there has been closure of access services being provided by the licensee. As a result subscribers had to face lot of inconveniences.

    The directions are aimed at ensuring that subscribers are not put to undue hardships due to closure of access services.

    The Authority had suo-motu issued a Consultation Paper on “Issues related to closure of Access Services” on 30 November 2016 seeking the comments of the stakeholders and an Open House Discussion was held on 28 April 2017 at New Delhi.

    Also Read:

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  • Orders reserved by Madras HC on TRAI jurisdiction case

    Orders reserved by Madras HC on TRAI jurisdiction case

    NEW DELHI: The Madras High Court today reserved orders on the Star India-Vijay TV challenge to the jurisdiction of the Telecom Regulatory Authority of India to issue tariff orders.

    The court received a compliance report from its registry that all parties had filed their written submissions.

    Earlier last week, the Authority had said it would file its written submissions only after scrutinizing those of the broadcasters, after which the broadcasters had been directed to serve their submissions to TRAI the same day (27 July) .

    Thus submissions have been filed by the petitioners Star India and Vijay TV, respondent TRAI, and intervenors All India Digital Cable Federation (AIDCF) and Videocon d2h.

    Arguments on the hearing which commenced late last month had concluded on 19 July and all parties had been asked to file written submissions.

    Star India and Vijay TV’s challenge to the jurisdiction of TRAI to issue tariff orders is on the ground that content comes under the Copyright Act.

    In the hearing on 19 July 2017, the Court had refused to accept an affidavit by the Indian Broadcasting Foundation  (IBF).

    Although the Supreme Court had in early May while staying the tariff order directed the Madras High Court to complete hearing within four weeks, the High Court had commenced hearing only in the last week of June.

    Meanwhile, TRAI TV reference interconnect offer (RIO) and Quality of service order (QoS) came into effect from 2 May following the order of the High Court. (However, the Tariff order comes into effect only from 2 September 2017.)

    Apart from the Tariff order which had originally been issued on 10 October last year, the regulator also issued the DAS Interconnect Regulations which had been issued on 14 October last year, and the Standards of Quality of Service and Consumer Protection (Digital Addressable Systems) Regulations which had been issued on 10 October last year.

    The orders can be seen at:

    http://trai.gov.in/sites/default/files/Tariff_Order_English_3%20March_2017.pdf
    http://www.trai.gov.in/sites/default/files/QOS_Regulation_03_03_2017.pdf
    http://www.trai.gov.in/sites/default/files/Interconnection_Regulation_03_mar_2917.pdf 

    Also Read:

    Decks cleared for TRAI tariff order implementation as HC declines stay (updated)

    TRAI jurisdiction case listed for 31 July to peruse compliance report

  • Star India-TRAI jurisdiction case to come up in Madras HC today

    Star India-TRAI jurisdiction case to come up in Madras HC today

    NEW DELHI: The Star India-Vijay TV case challenging the jurisdiction of the Telecom Regulatory Authority of India is scheduled to come up for hearing in the Madras High Court today after TRAI was to file its written submission after scrutinising those of the broadcasters.

    Counsel for both the broadcasters had objected to the statement by the TRAI counsel P Wilson refusing to file and serve written submissions. After hearing all sides, the bench had directed the broadcasters to serve their submissions by 5 pm on 27 July to TRAI and the interveners All India Digital Cable Federation and Videocon d2h.

    It asked TRAI to serve its submissions on the other parties the next day — 28 July. Thereafter, the court was on Monday scheduled to take note of the compliance of submission of the written statements from the court registry. Meanwhile, both interveners filed their submissions in Court.

    Arguments had concluded in the matter on 19 July and the matter had been posted for today for filing of written submissions. Star India and Vijay TV’s challenge to the jurisdiction of TRAI to issue tariff orders is on the ground that content comes under the Copyright Act.

    In the hearing on 19 July 2017, the Court had refused to accept an affidavit by the Indian Broadcasting Foundation. Although the Supreme Court had in early May while staying the tariff order directed the Madras High Court to complete hearing within four weeks, the High Court had commenced hearing only in the last week of June.

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  • IPL: BCCI tells SC rights bidding process under way, hearing on 22 Aug

    IPL: BCCI tells SC rights bidding process under way, hearing on 22 Aug

    MUMBAI: The Supreme Court sent a legal notice to the Board of Control for Cricket in India (BCCI)  enquiring why the IPL media rights auction has not taken place online. And, BCCI told the court that e-auction of rights was not possible and that the court should not intervene as the bidding process was already under way.

    The auction process for IPL media rights is in progress up to 28 August, and the rights would operate for a period of five years. BJP MP Subramanian Swamy had, on 11 July, filed a petition before the apex court asking why broadcast rights for cricket matches would not be sold through e-auction. He had mentioned that the BCCI should have gone for e-auction since a huge amount of Rs 300 billion was at stake.

    The court had directed the board to respond in two weeks.

    The bench, comprising Justices AM Khanwilkar and Dipak Misra, has asked the Committee of Administrators (CoA), appointed by it, to assist the apex court in deciding the issue. The next hearing is now scheduled for 22 August.

    IPL’s TV broadcast rights were held by Sony Pictures Networks till the 10th edition which concluded in June. The Internet and mobile rights were awarded to Novi Digital Entertainment Pvt. Ltd (Hotstar), a unit of Star India, for a period of three years to 2017.

    Singapore-based World Sport Group pocketed the IPL broadcasting rights for 10 years in 2008 by investing US$ 918 million. A year later, the contract was replaced when Sony Group (through Multi Screen Media Pvt. Ltd) paid US$ 1.63 billion for the nine-year broadcasting rights. The auction process was delayed last year on the Supreme Court’s directive to first comply with the Lodha panel reforms.

    Facebook, Reliance Jio, Twitter, Sony Pictures Network India and Star India were some of the major companies who picked up the tender document. While the television broadcast rights for the Indian subcontinent is for 10 seasons (up to 2027), the digital rights are valid for five seasons and the international media rights also are for five seasons.

     

    Also Read: IPL: Media rights race hots up after IMG renews events deal

    Swamy seeks transparency in IPL media rights through SC

    IPL tendering process to commence 17 July; bidding to be fierce

  • No plan for one-stop broadcast authority at present, says Rathore

    NEW DELHI: The Government has said there was no plan to set up a one-stop regulatory authority to receive complaints against broadcasting of programmes on private radio and television channels in violations of the code, thus ending the practice of self regulation.

    Minister of state for information and broadcasting Rajyavardhan Rathore was answering a question in the Parliament where a member had wanted to know if a single body would be set up to end the practice of self-regulation.

    Meanwhile, ruling out pre-censorship of private TV channels, the minister had last week listed the various steps being taken to prevent violation.

    Rathore had said that under the existing regulatory framework, all programmes and advertisements telecast on private satellite TV channels and transmitted/re-transmitted through the Cable TV network are required to adhere to the Programme and Advertising Codes prescribed under the Cable Television Networks (Regulation) Act, 1995 and Cable Television Network Rules, 1994 framed thereunder.

    The Act prescribes that all programmes and advertisements telecast on such TV channels including regional language channels should be in conformity with the prescribed Programme Code and Advertising Code enshrined in the said Act and the rules framed thereunder, which contain a whole range of parameters to regulate programmes and advertisements including the content aimed at instigating communal violence and fear in the minds of common people on TV channels.

    The Ministry has set up Electronic Media Monitoring Centre (EMMC) to monitor the content telecast on private TV channels with reference to the violation of Programme and Advertising Codes.

    An Inter-Ministerial Committee (IMC) has also been set up in the Ministry to look into the specific complaints or suo-motu take cognizance against the violation of Programme and Advertising Codes. The IMC has representatives from the Ministries of Home Affairs, Defence, External Affairs, Law, Women and Child Development, Health & Family Welfare, Consumer Affairs, Information & Broadcasting and a representative from the industry in Advertising Standards Authority of India (ASCI). The IMC meets periodically and recommends action in respect of violation of Programme and Advertising Codes by private TV channels.

    Apart from this, the Ministry has also issued directions to States to set up District level and State level Monitoring Committees to regulate content telecast on cable TV channels. 

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    Punjab govt. studying Arasu & other regulatory models on distribution 

    TRAI can only regulate transmission, not broadcast material: Star tells Mds HC

  • TRAI jurisdiction case listed for 31 July to peruse compliance report

    NEW DELHI: The Madras High Court has listed for 31 July 2017 the Star India-Vijay TV’s challenge to jurisdiction of the Telecom Regulatory Authority of India after the latter said it would file its written submission only after scrutinising those of the broadcasters.

    Counsel for both the broadcasters objected to the statement by TRAI Counsel P Wilson refusing to file and serve written submissions.

    After hearing all sides, the bench directed the broadcasters to serve their submissions by 5 pm today to TRAI and the interveners All India Digital Cable Federation and Videocon d2h.

    It asked TRAI to serve its submissions on the other parties tomorrow. Thereafter, the Court will on Monday take note of the compliance of submission of the written statements from the court registry.

    Meanwhile, both interveners filed their submissions in Court today.

    Arguments had concluded in the matter on 19 July and the matter had been posted for today for filing of written submissions.

    Star India and Vijay TV’s challenge to the jurisdiction of TRAI to issue tariff orders is on the ground that content comes under the Copyright Act.

    In the hearing on 19 July 2017, the Court had refused to accept an affidavit by the Indian Broadcasting Foundation..

    Although the Supreme Court had in early May while staying the tariff order directed the Madras High Court to complete hearing within four weeks, the High Court had commenced hearing only in the last week of June.

    Meanwhile, TRAI TV reference interconnect offer (RIO) and Quality of service order (QoS) came into effect from 2 May following the order of the High Court. (However, the Tariff order comes into effect only from 2 September 2017.)

    Apart from the Tariff order which had originally been issued on 10 October last year, the regulator also issued the DAS Interconnect Regulations which had been issued on 14 October last year, and the Standards of Quality of Service and Consumer Protection (Digital Addressable Systems) Regulations which had been issued on 10 October last year.

    The orders can be seen at:
    http://trai.gov.in/sites/default/files/Tariff_Order_English_3%20March_2017.pdf
    http://www.trai.gov.in/sites/default/files/QOS_Regulation_03_03_2017.pdf
    http://www.trai.gov.in/sites/default/files/Interconnection_Regulation_03_mar_2917.pdf 

    Also Read:

    Decks cleared for TRAI tariff order implementation as HC declines stay (updated)

    Star India case questioning TRAI jurisdiction over content postponed 

  • Publicise ‘Mission Indradhanush’ & GST, broadcasters told

    NEW DELHI: All satellite television and private FM channels have been asked by the government to give adequate publicity to ‘Mission Indradhanush’ launched to expand immunisation coverage to all children across India.

    The broadcasters have been asked by the ministry of information and broadcasting to give publicity in a befitting manner pro bono as part of their corporate social responsibility activities, keeping in view the significance and meaningfulness of this cause.

    All private satellite TV channels have also been asked to give adequate publicity to the Goods and Services Tax which became effective on 1 July 2017. The ministry has put on its website some scrolls that can be run by the TV channels.

    The Indradhanush Mission is aimed at children who are either unvaccinated, or are partially vaccinated against seven vaccine preventable diseases which include diphtheria, whooping cough, tetanus, polio, tuberculosis, measles and hepatitis B.

    The Ministry notes that the electronic media has always been in the forefront to carry such message as “it is a powerful tool to reach out to the people across the country.”

    “ln order to make this mission a success, it has been felt that support, assistance and contribution of private TV channels and FM radio channels will be of immense use,” the Ministry has said.

    The notes by Amit Katoch who is director (broadcasting) in the Information and Broadcasting Ministry has said the GST Cell is organising a GST Awareness campaign named ‘Manthan’ and has suggested some scrolls that should be run. 

    Also Read:

    GST webpage created on PIB website

    ‘Info & cyber insecurity’ biggest risk in biz ops: Survey

    Maharashtra CM supports film industry’s demand for 18% GST