Category: Regulators

  • Day 21: Bidders elude 13 cities in FM Phase III; winning price up marginally

    Day 21: Bidders elude 13 cities in FM Phase III; winning price up marginally

    NEW DELHI: With no takers for as many as 13 cities and bidding slowing down on the 21st day in the e-auction for the first batch of FM Phase III cities, the cumulative provisional winning price showed a marginal rise to touch Rs 1134 crore at the end of the 84th round.

     

    Bids continued to elude 13 cities for the 21st day today with no takers for channels in Asansol, Gulbarga, Mangalore, Mysore, Puducherry, Rajahmundry, Siliguri, Tiruchy, Tirunveli, Tirupati, Tuticorin, Vijaywada and Warangal.

     

    The number of provisional winning channels and cities remained the same as Friday (21 August), i.e.: 94 channels in 56 cities, with the total bids surpassing the cumulative reserve price by Rs 675.22 crore or 147.1 per cent against the aggregate reserve price of about Rs 459 crore.

     

    The cumulative provisional winning price has thus risen over the total reserve price of the first batch of 135 FM channels in 69 existing cities – Rs 550.18 crore – by Rs 583.90 crore or 106.1 per cent.

     

    The Auction Activity Requirement rose to 100 per cent after the 59th round on 14 August, after being 90 per cent after the 37th round on 7 August.

     

    So far, 17 cities have got provisional winning price for their channels more than 100 per cent above their respective reserve prices: Ahmedabad, Amritsar, Aurangabad, Bengaluru, Bhubaneshwar, Chennai, Delhi, Guwahati, Jaipur, Jodhpur, Kolhapur, Mumbai, Nasik, Patna, Pune, Rourkela and Varanasi, which got provisional winning bidders at prices more than double the respective reserve prices.

     

    With the provisional winning price more than nine times the reserve price, a single channel in Bhubaneshwar has undergone the most competitive bidding increment-wise.

      

    The demand in most cities fell by up to three per cent and by four per cent below the excess demand at the price in the 80th round in Hyderabad.

     

    Price Increment Algorithm for the e-Auction is based on the increment logic used by Department of Telecommunications in its auctions. As per this logic, there should be no increment for negative excess demand, some increment for zero excess demand and a fixed increment above a certain excess demand. Some increment for zero excess demand means that when demand is equal to supply, seller has right to increase price to see whether purchasers are there at increased price.

     

    The Percentage Price Increment applicable for the Next Clock Round rose to five each in Guwahati, Jodhpur and Varanasi but was just one in Allahabad. There was no change in the other cities.

     

    The provisional winning price in the top three cities reflected no change: Delhi at Rs 1.69.16 crore (for just one channel); Mumbai at Rs 122.81 crore (for two channels); and Bengaluru at Rs 109.25 crore.

     

    Kohlapur, which appeared to be the next to enter the Rs 10 crore club, remained static for the second day with Rs 9.44 crore though cities like Kanpur, Rajkot, Amritsar and Aurangabad do not seem to be far behind. 

     

    Chennai at Rs 53.38 crore, Ahmedabad at Rs 42.68 crore, Pune at Rs 42.03 crore, Jaipur at Rs 28.34 crore, Chandigarh at Rs 19.04 crore, Hyderabad at Rs 18 crore, Patna at Rs 17.89 crore, Cochin at Rs 15.04 crore and Lucknow at Rs 14 crore remained static.

  • TRAI asked to re-notify broadcasters in light of SC judgment rejecting tariff orders

    TRAI asked to re-notify broadcasters in light of SC judgment rejecting tariff orders

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has been urged to re-notify its letter to pay broadcasters dated 23 July, requesting the rates for their respective pay TV channels with prescribed MRP as well, along with the duration of advertisements shown.

     

    In a letter to TRAI chairman R S Sharma, Home Cable Networks (P) Ltd head Vikki Chodhary said, “Needless to say, the exercise needs to be conducted keeping in view the interest of the consumers at large and to also ensure a level playing field on non-discriminatory terms with parity in conducting this business.”  

     

    The regulator had asked broadcasters on 23 July to revise their wholesale tariffs, even though it had noted that the Supreme Court had declined to stay the order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) setting aside the amendments in two tariff orders, which had sought to put an inflation-linked hike of 27.5 per cent on addressable and non-addressable systems.

     

    The very next day – 24 July – the Supreme Court stayed implementation of this letter in view of appeal by Indian Broadcasting Foundation (IBF) and others challenging the order by TDSAT on Chaudhary’s petition relating to tariff.

     

    While dismissing the appeal challenging TDSAT’s order, the Supreme Court on 4 August asked TRAI to come up with new tariffs as early as possible.

     

    The Court also said the multi-system operators (MSOs) will not insist on a refund of their payments to broadcasters but will wait for the new tariff orders.

     

    Thus, the apex Court held intact the 28 April order of the Tribunal holding as ‘untenable’ the Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Eleventh Amendment) Order, 2014’ and ‘The Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Thirteenth Amendment) Order, 2014’.

     

    In his letter to Sharma, Chaudhary has drawn TRAI’s attention to observations by TDSAT that the regulator “will be well advised to have a fresh look at the various tariff orders in a holistic manner and come out with a comprehensive tariff order in supersession of all the earlier tariff orders… While doing so, it may consider all the agreements and relevant data available with it. It may consider differentiating between content, which is of a monopolistic nature as against that the like of which is shown by other channels also. It may also consider classifying the content into premium and basic tiers.”

     

  • Day 20: FM Phase III channels winning price rises marginally to Rs 1130 crore

    Day 20: FM Phase III channels winning price rises marginally to Rs 1130 crore

    NEW DELHI: Bidding on the twentieth day in the e-auction for the first batch of FM Phase III cities with the cumulative provisional winning price remained very slow, showing a minuscule rise to touch Rs 1130.51 crore at the end of the 80th round.

     

    The number of provisional winning channels and cities remained the same as yesterday: 94 channels in 56 cities, with the total bids surpassing the cumulative reserve price by Rs 671.65 crore or 146.3 per cent against the aggregate reserve price of about Rs 459 crore.

     

    The cumulative provisional winning price has thus risen over the total reserve price of the first batch of 135 FM channels in 69 existing cities – Rs 550.18 crore – by Rs 580.33 crore or 105.5 per cent.

     

    The Auction Activity Requirement rose to 100 per cent after the 59th round on 14 August, after being 90 per cent after the 37th round on 7 August.

     

    Bids continued to elude thirteen cities for the 20th day today with no takers for channels in Asansol, Gulbarga, Mangalore, Mysore, Puducherry, Rajahmundry, Siliguri, Tiruchy, Tirunveli, Tirupati, Tuticorin, Vijaywada and Warangal.

     

    The demand in most cities fell by up to three per cent and by four per cent below the excess demand at the price in the 80th round in Hyderabad.

     

    The Percentage Price Increment applicable for the Next Clock Round rose to five each in Allahabad, Guwahati, Shillong and Varanasi but was just one in Varanasi. There was no change in the other cities.

     

    The provisional winning price in the top three cities reflected no change: Delhi at Rs 1.69.16 crore (for just one channel); Mumbai at Rs 122.81 crore (for two channels); and Bengaluru at Rs 109.25 crore.

     

    Kohlapur appears to be the next to enter the Rs 10 crore club with Rs 9.44 crore, though cities like Kanpur, Rajkot, Amritsar and Aurangabad do not seem to be far behind. 

     

    Chennai at Rs 53.38 crore, Ahmedabad at Rs 42.68 crore, Pune at Rs 42.03 crore, Jaipur at Rs 28.34 crore, Chandigarh at Rs 19.04 crore, Hyderabad at Rs 18 crore, Patna at Rs 17.89 crore, Cochin at Rs 15.04 crore and Lucknow at Rs 14 crore remained static.

     

    The next round will now commence on 24 August.

  • TDSAT to examine Patna MSO’s allegations over LCOs shift

    TDSAT to examine Patna MSO’s allegations over LCOs shift

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) has appointed an Advocate Commissioner to probe allegations made by Patna-based multi-system operator (MSO) Siti Maurya Cable Network that seven local cable operators (LCOs) have been trying to migrate to another MSO.

     

    The Commissioner Diggaj Pathak will be given a list of subscribers by D K Classic, one of the LCOs. Pathak will then go to Patna unannounced and intimate the two sides about his arrival.

     

    Along with the representatives of the MSO and the LCO, Pathak will make random visits to some of the subscribers to see whether or not the set top boxes (STBs) of the petitioner are functional at their places. In case the petitioner’s STBs at the respondent’s subscribers’ place are found to be switched off, he will find out the duration since the signal switch off. Pathak will also ascertain whether the switch off was done from the MSO’s head-end or the LCO’s.

     

    Pathak will submit the report by 28 August. He will be paid an honorarium of Rs 15,000 per day, apart from actual expenses, to be shared equally by both sides. The matter will now be heard on 3 September.   

     

    After hearing the allegations of the MSO, TDSAT chairman Aftab Alam and members Kuldip Singh and B B Srivastava were told by D K Classic that it was the MSO, which had switched off its signals. However, the MSO alleged in its petition that the LCOs had neither given the statutory notice, nor returned the STBs.

     

    Sharath Sampath, who represents D K Classic, said the LCOs did not migrate to another MSO of their own volition and initiative but Siti Maurya disconnected the supply of its signals, compelling them to take signals from another MSO. He also alleged that if his client D K Classic’s share in the carriage fee is taken into account, not only will there be no dues payable but the LCO will be entitled to receive some payments from the Siti Maurya.

  • Day 19: Kohlapur inches towards Rs 10 crore mark in FM Phase III bidding

    Day 19: Kohlapur inches towards Rs 10 crore mark in FM Phase III bidding

    NEW DELHI: After nineteen days in the bidding for the first batch of FM Phase III cities, Kohlapur with a price of Rs 9.34 crore is now inching towards the Rs 10 crore mark.

     

    Among cities recording more than Rs 10 crore, it rose marginally only in Nasik at Rs 14.66 crore. Moreover cities like Kanpur, Rajkot, Amritsar and Aurangabad are also not far behind.

     

    However, interest appeared to be flagging with the cumulative provisional winning price rising very marginally to touch about Rs 1128 crore at the end of the 76th round  on the nineteenth day.

     

    With this, a total of 94 channels in 56 cities became provisional winning channels against their aggregate reserve price of about Rs 459 crore.

     

    Thus the total bids of the provisional winning prices surpassed the cumulative reserve price of the corresponding 94 channels by Rs 669.24 crore or 145.8 per cent.

     

    The cumulative provisional winning price has risen over the total reserve price of the first batch of 135 FM channels in 69 existing cities – Rs 550.18 crore – by Rs 577.92 crore or 105 per cent.

     

    The Auction Activity Requirement rose to 100 per cent after the 59th round on 14 August, after being 90 per cent after the 37th round on 7 August.

     

    As was reported earlier by Indiantelevision.com, despite the slow down, as per Information and Broadcasting Ministry sources, the auction will continue as long as bids are received for any of the 135 channels.

     

    Bids continued to elude thirteen cities for the nineteenth day today, with no takers for channels in Asansol, Gulbarga, Mangalore, Mysore, Puducherry, Rajahmundry, Siliguri, Tiruchy, Tirunveli, Tirupati, Tuticorin, Vijaywada and Warangal.

     

    The demand in most cities fell by up to three per cent and by four per cent below the excess demand at the price in the 76th round in Hyderabad.

     

    The Percentage Price Increment (in INR) applicable for the Next Clock Round rose to five each in Guwahati, Shillong and Varanasi but was just one in Jodhpur and Kolhapur.

     

    The provisional winning price in the top three cities reflected no change: Delhi at Rs 1.69.16 crore (for just one channel); Mumbai at Rs 122.81 crore (for two channels); and Bengaluru at Rs 109.25 crore.

     

    Chennai at Rs 53.38 crore, Ahmedabad at Rs 42.68 crore, Pune at Rs 42.03 crore, Jaipur at Rs 28.34 crore, Chandigarh at Rs 19.04 crore, Hyderabad at Rs 18 crore, Patna at Rs 17.89 crore, Cochin at Rs 15.04 crore and Lucknow at Rs 14 crore remained static.

  • MSOs facing problems in signing interconnect deals with b’casters to inform TRAI by 24 August

    MSOs facing problems in signing interconnect deals with b’casters to inform TRAI by 24 August

    NEW DELHI: With just over four months left for implementation of Phase III of the Digital Addressable System (DAS) for cable operators, the Telecom Regulatory Authority of India (TRAI) has asked multi-system operators and broadcasters to expedite signing of inter-connect agreements.

     

    Apart from pointing out that it had placed on its website a standardized form for this, TRAI stressed that the rules provide that an agreement has to be signed by registered MSOs with broadcasters within 60 days of receiving a request.  

     

    TRAI said it had notified a comprehensive regulatory framework encompassing interconnection, quality of service, consumer complaint redressal regulation and tariff orders for implementation of   DAS.

     

    The MSOs who have been granted registration for providing cable TV services through DAS are required to enter into interconnection agreements with pay TV broadcasters for re-transmission of pay TV channels to subscribers.

     

    The Regulatory framework for DAS provides that every broadcaster shall provide the signals of TV channels to an MSO in accordance with its reference interconnect offer or as may be mutually agreed, within 60 days from the date of receipt of the request.

     

    The Authority said that in case the request for providing signals of TV channels is not agreed to, the reasons for such refusal to provide signals will be conveyed to the person making a request within 60 days from the date of request. 

     

    The MSOs who have approached pay TV broadcasters for providing signals of TV channels in accordance with the provisions of the interconnection regulations but have not been able to enter into interconnection agreements even after the passage of 60 days from the date of making request and also not received the reasons for not entering into interconnection agreement from the broadcaster may write to TRAI by 24 August through e-mail at das@trai.gov.in for initiating action in such cases according to the TRAI Act.

     

    As the cutoff date for Phase-III areas – 31 December – is fast approaching, the registered MSOs were advised by TRAI to make a written request to the broadcasters of pay channels for provisioning of the signals of TV channels as per their business requirement, so that they get signals of pay TV channels well before the cutoff date.

     

    The Authority said it had taken a number of initiatives to facilitate timely signing of interconnection agreements between broadcasters and MSOs. The Authority and broadcasters have uploaded standardised application form and contact details on their respective websites. For the convenience of the stakeholders, the details have also been uploaded on TRAI website.

  • Day 18: FM Phase III bids price rises marginally to Rs 1123 crore

    Day 18: FM Phase III bids price rises marginally to Rs 1123 crore

    NEW DELHI: The eighteenth day of the bidding in the e-auction for the first batch of FM Phase III cities appeared to slump as the cumulative provisional winning price touched about Rs 1123 crore at the end of the 72nd round.

     

    With this, a total of 94 channels in 56 cities became provisional winning channels against their aggregate reserve price of about Rs 459 crore.

     

    Thus the total bids of the provisional winning prices surpassed the cumulative reserve price of the corresponding 94 channels by Rs 664 crore or 144.7 per cent.

     

    The cumulative provisional winning price has thus risen over the total reserve price of the first batch of 135 FM channels in 69 existing cities – Rs 550.18 crore – by 572.68 crore (104 per cent).

     

    The Auction Activity Requirement rose to 100 per cent since 14 August, after being 90 per cent after the 37th round on 7 August.

     

    Information and Broadcasting Ministry sources said the channel allocation stage will continue as long as bids are received for any of the 135 channels.

     

    Bids continued to elude 13 cities for the 19th day today with no takers for channels in Asansol, Gulbarga, Mangalore, Mysore, Puducherry, Rajahmundry, Siliguri, Tiruchy, Tirunveli, Tirupati, Tuticorin, Vijaywada and Warangal.

     

    The demand in most cities fell by up to three per cent and by four per cent below the excess demand at the price in the 72nd round in Hyderabad.

     

    The Percentage Price Increment (in INR) applicable for the Next Clock Round rose to five each in Allahabad, Guwahati, Nasik and Varanasi but was just one in Jodhpur and Srinagar.

     

    The provisional winning price in the top three cities remained the same: Delhi at Rs 1.69.16 crore (for just one channel); Mumbai at Rs 122.81 crore (for two channels); and Bengaluru at Rs 109.25 crore.

     

    Among cities recording more than Rs 10 crore, it rose marginally only in Nasik to Rs 13.29 crore.

     

    Chennai at Rs 53.38 crore, Ahmedabad at Rs 42.68 crore, Pune at Rs 42.03 crore, Jaipur at Rs 28.34 crore, Chandigarh at Rs 19.04 crore, Hyderabad at Rs 18 crore, Patna at Rs 17.89 crore, Cochin at Rs 15.04 crore and Lucknow at Rs 14 crore remained static.

  • FTII impasse continues, 5 students arrested & released on bail for rioting

    FTII impasse continues, 5 students arrested & released on bail for rioting

    NEW DELHI: Film and Television Institute of India (FTII) director Prashant Pathrabe has justified his action in calling in the police after he was gheraoed for close to nine hours last night (18 August) by students.

     

    Speaking to Indiantelevision.com, Pathrabe said that the students verbally abused him and even termed him as inefficient for not being able to resolve their problem with regard to the appointment of Bharatiya Janata Party member and TV actor Gajendra Chauhan as FTII chairman.

     

    He said that he had attempted to pacify the students and requested them not to resort such tactics but to no avail. He was confined to one room and was verbally assaulted. 

     

    Five students, who were arrested in a post-midnight swoop and sent to judicial custody, were then released on bail this evening (19 August).

     

    The police said the students had been charged with rioting and damaging property amongst other charges.

     

    Pathrabe said there were around 40 students who were protesting against what they alleged was “irrational and unjustified” pro-rata course project assessment of the 2008 batch.

     

    The police crackdown came after the 72-day old agitation in which a section of the students are opposing the appointment of Chauhan.

  • TRAI open house: Broadcasters root for tariff distinction between subscribers

    TRAI open house: Broadcasters root for tariff distinction between subscribers

    MUMBAI: With an aim to get the broadcasters’ viewpoint on tariff issues related to commercial subscribers, the Telecom Regulatory Authority of India (TRAI) held an open house discussion in Delhi on 18 August.

     

    While welcoming the open house initiative held under TRAI chairman Ram Sewak Sharma, the Indian Broadcasting Foundation (IBF) member channels discussed issues including differentiation between domestic and commercial subscribers for provision of TV signals, the criteria for drawing distinction between ordinary subscribers and commercial subscribers, tariff framework both at wholesale and retail levels, transparency and accountability in value chain to effectively minimise disputes and conflicts among stakeholders and engagement of broadcasters in the determination of retail tariffs for commercial subscribers.

     

    IBF president and Star India CEO Uday Shankar said, “It is inconceivable that any sector regulator would actually equate five star hotels and commercial establishments with domestic consumers as far as tariffs are concerned. But that’s exactly what TRAI has done with rates for pay TV channels. I am not sure what exactly the regulator is trying to achieve with the present dispensation, i.e. five star hotels availing TV content at subsidised rates especially when they charge a leg and arm for a room, a meal or even a bottle of water? It appears to be a case of misguided regulatory zeal. I hope better sense prevails and the regulator does what is in the interest of its primary stakeholders, i.e. broadcasters and distribution platforms and not five star and four star hotels.”

     

    IBF secretary general Girish Srivastava added, “In keeping with the priorities of the current government of improving ease of doing business in India, such fixation is not warranted and forbearance should be the way forward. We believe that the regulator will factor that putting a ceiling on tariff will not help in promoting and protecting the interests of the ordinary consumers but will serve as an aberration to the growth story of the sector. Broadcasters have been unvarying and undeviating on this front and the regulator will hopefully keep this in mind before deciding on a regulation.”

     

    According to Multiscreen Media Limited general counsel Ashok Nambissan, commercial and residential subscribers are two completely different categories. “The residential subscriber consumes television content for his or her own use whereas the commercial subscriber provides television content for his customers to propagate the business of his establishment. Tariff regulation in today’s age is an anomaly: in any event it should not exist for commercial subscribers as a category whether at the wholesale or retail level and should be left to the market,” he said.

     

    Zee Entertainment president – legal & regulatory A. Mohan opined, “All along it has been TRAI’s consistent stand that there is a distinction between ordinary and commercial subscribers and the same has been recognised by various judicial forums such as the Hon’ble TDSAT and the Hon’ble Supreme Court of India.  This stand of TRAI is also reflected in various tariff orders of TRAI, except the last one, that the tariff applicable to commercial subscribers is under forbearance. Since the commercial establishments will use the television services for commercial exploitation, whether directly or indirectly, the tariff applicable for ordinary subscriber, which is frozen since the year 2004 (which is a subsidised tariff) cannot be applied to commercial subscribers.”

     

    Star India president – legal & regulatory Deepak Jacob said, “The Supreme Court has time and again in sectors such as oil and gas and power, clearly upheld the principles of differential tariffs for commercial and domestic subscribers. The rationale of differentiation is based on an understanding of motive and purpose i.e. commercial establishments have a clear profit motive and that the end usage is for a valuable benefit that accrues to and is built in to the charges paid by the consumer. It is also important that the regulator respects the mandate of Parliament and acts in accordance with laws laid down by the legislature by ensuring that the TRAI regulations/tariff orders are not in derogation of or repugnant to the provisions of Copyright Act, which is the principle legislation that governs content owners including broadcasters. The Copyright Act unequivocally provides for a separate dispensation in so far as commercial establishments are concerned and hence we hope that the regulator keeps the same in mind while formulating the new tariff regime.”

     

    BBC India COO Naveen Jhunjhunwala added, “We strongly advocate a distinction between ordinary and commercial subscribers as far as tariff is concerned since the place of viewing the TV signal and type of usage of TV signals is inherently different in both these categories. Having a global presence, we have seen that the regulators have left determination of tariffs to forbearance thereby ensuring dynamic competition.  With Government focus on making India an easier place to do business, leaving things to market forces will ensure growth and be in line with international scenario.” 

  • Day 17: FM Phase III bidding picks pace; winning price touches Rs 1116 crore

    Day 17: FM Phase III bidding picks pace; winning price touches Rs 1116 crore

    NEW DELHI: Bidding showed mild signs of picking pace as the number of channels being bid for also increased on the day seventeen of the e-auction for the first batch of FM Phase III cities. The cumulative provisional winning price touched about Rs 1116 crore at the end of the 68th round.

     

    With this, a total of 93 channels in 56 cities became provisional winning channels against their aggregate reserve price of about Rs 458 crore.

     

    Thus the summation of provisional winning prices surpassed the cumulative reserve price of the corresponding 92 channels by Rs 657.59 crore or 143.5 per cent.

     

    The cumulative provisional winning price has more than doubled at 102.8 per cent than the total reserve price of Rs 550.18 crore for the first batch of 135 FM channels in 69 existing cities.

     

    The Auction Activity Requirement rose to 100 per cent since 14 August, after being 90 per cent after the 37th round on 7 August.

     

    Information and Broadcasting Ministry sources said the channel allocation stage will continue as long as bids are received for any of the 135 channels.

     

    The thirteen cities for which bids have still not come are Asansol, Gulbarga, Mangalore, Mysore, Puducherry, Rajahmundry, Siliguri, Tiruchy, Tirunveli, Tirupati, Tuticorin, Vijaywada and Warangal.

     

    The demand in most cities fell by up to three per cent and by four per cent below the excess demand at the price in 60th round in Hyderabad.

     

    The Percentage Price Increment (in INR) applicable for the Next Clock Round was just one in Bengaluru, Chandigarh, Cochin, Guwahati, Jodhpur, Kanpur, Mumbai and Nashik.

     

    The highest provisional winning price in Delhi remained the same for the second consecutive day at Rs 169.16 crore (for just one channel), but rose marginally in Mumbai at Rs 122.81 crore (for two channels) while it was static in Bengaluru.

     

    Among cities recording more than Rs 10 crore, it rose marginally in Cochin at Rs 15.04 crore and Nasik at Rs 10.94 crore.

     

    Bengaluru with Rs 109.25 crore, Chennai at Rs 53.38 crore, Ahmedabad at Rs 42.68 crore, Pune at Rs 42.03 crore, Chandigarh at Rs 19.04 crore, Jaipur at Rs 28.34 crore, Hyderabad at Rs 18 crore, Patna at Rs 17.89 crore and Lucknow at Rs 14 crore remained static.