Category: Regulators

  • MIB awaits note on Sun security clearance denial from Home Ministry before moving SC

    MIB awaits note on Sun security clearance denial from Home Ministry before moving SC

    NEW DELHI: The Ministry of Information and Broadcasting (MIB) is still awaiting detailed instructions from the Ministry of Home Affairs on rejection of security clearance to the Sun TV group, even as the Government appears to have made up its mind to file a special leave petition (SLP) in the Supreme Court challenging orders of the Delhi and Madras High Courts with regard to the Sun TV group participating in FM Phase III e-auctions.

     

    An MIB official told Indiantelevision.com that the Home Ministry had been asked earlier and also later reminded to send a detailed note on its reasons for rejection of security clearance. The official added that it is the MIB, which will file the SLP being the Ministry dealing with FM Radio and therefore it needed to be clear on the reasons for rejection of security clearance.

     

    Meanwhile, it is learnt that top officials of the Home Ministry are taking legal opinion on the issue of framing an SLP to challenge the 26 July order by the Delhi High Court and that of the Madras High Court earlier. 

     

    The Delhi High Court had allowed Red FM, which is owned by Sun TV, to participate in Phase III of the first FM e-auction, which commenced on 27 July.

     

    It is expected that the government will take the ground that the two courts had not taken into consideration: the pending criminal charges against Sun Group promoters including Kalanithi Maran, who is one of the Directors of Red FM, and the implication it has on national and economic security.

     

    Justices Badar Durrez Ahmed and Sanjeev Sachdeva of the Delhi High Court had said Clause 3.8 of the Notice Inviting Applications for the auction had reference only to the company and its directors and there is no mention of its shareholders. Both Dayanidhi Maran and Kalanithi Maran are shareholders and therefore the Clause does not apply to them.

    The Court had said Digital Radio (Delhi) Broadcasting Ltd and Digital Radio (Mumbai) Broadcasting Ltd, which run Red FM in these two cities have not been alleged to be vehicles of any transgression of law and have been functioning since 2002-2003 without there being any allegation regarding their functioning resulting in any security concerns.

  • TDSAT directs Hathway to pay Rs 14.56 crore to MSM Media Distribution

    TDSAT directs Hathway to pay Rs 14.56 crore to MSM Media Distribution

    MUMBAI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed multi system operator (MSO) Hathway Cable and Datacom to pay Rs 14.56 crore towards subscription dues to MSM Media Distribution (MSMMD) till the expiry of the agreement i.e. 31 October, 2015 in three installments.

     

    It can be noted that both Hathway and MSM have two separate deals for phase I and phase II cities. While the agreement for the phase I cities is valid till 31 October 2015, the agreement for phase II ended on 31 March, 2015. 

     

    “Hathway hasn’t paid us for the past six-seven months in phase I areas and has not renewed the deals in phase II cities. So while we have stopped signals to the platform in phase II cities, we approached the Tribunal to recover the money for phase I, where the MSO had signed a fixed fee contract with us and is now trying to come out of it,” said MSMMD executive vice president sales and marketing Makarand Palekar.

     

    The TDSAT, in its order, has said that Hathway has to honour the commitment under the memorandum of understanding (MOU) for the entire term for DAS phase I areas till its expiry i.e. up to 31 October, 2015. Accordingly, Hathway has to pay the subscription fees in accordance with the MOU. 

     

    “We will have to keep the service on in the phase I cities, considering the agreement is till 31 October, but we could not have been more patient in terms of recovering the money, which the MSO hasn’t paid for the past six-seven months,” added Palekar. 

     

    According to Palekar, close to five million homes across the country will not be able to watch MSM channels with the network being pulled off from Hathway. “There are close to 3000 MSOs and we have a cordial relation with all. The subscribers will suffer because of the MSO not signing the agreement,” concluded Palekar. 

  • TDSAT reflects on unprecedented course of MIB in Star – Arasu case

    TDSAT reflects on unprecedented course of MIB in Star – Arasu case

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) hearing a case by a local cable operator against Star India, described as ‘strange and unprecedented’ the course adopted by the Ministry of Information and Broadcasting (MIB) in responding to its question relating to denial of digital addressable system (DAS) licence to the Tamil Nadu Arasu Cable TV Corporation Ltd.

     

    Following an order on 11 August asking the MIB to give its stand on the issue, the Ministry had sent ‘a note to the Tribunal through a messenger.’

     

    Passing its order in the presence of the Section Officer on 14 August, the Tribunal said the Ministry should send a senior level officer and also take an advocate to represent it and may additionally file an affidavit giving its point of view. It made clear that it was not accepting the note brought by the Section officer and was returning it.

     

    The Tribunal had early this month put out a notification asking broadcasters who may want to join the case to get impleaded.

     

    The application by Star India related to a cable operator giving its signals in analogue mode to Chennai – which had gone digital in the first phase – and in violation of the letter of intent by giving signals to Chennai when the agreement was only for the rest of Tamil Nadu.

     

    Listing the matter for 2 September, TDSAT also said Star India, respondent in the case filed by cable operator Thamizhaga Cable TV Communication, New Delhi, was free to negotiate with Arasu and other multi-system operators (MSOs) for areas in Chennai for DAS and outside Chennai for analogue transmission.

     

    At the same time, TDSAT chairman Aftab Alam and members Kuldip Singh and B B Srivastava said that there would be no disconnection of signals until the next date.

     

    It also directed that Indian Broadcasting Foundation (IBF) should be impleaded as a party since other broadcasters were also giving signals to Arasu for Chennai though it did not have the DAS licence. Option was also given to other broadcasters if they wanted to be impleaded.

     

    However, the Tribunal held Arasu guilty of transmitting television signals in Chennai in analogue mode, and at the same time guilty of using Star signals in the metropolis without any authorization from Star India.

  • Day 16: Bidding slow for FM Phase III as winning price touches Rs 1090 crore

    Day 16: Bidding slow for FM Phase III as winning price touches Rs 1090 crore

    NEW DELHI: Bidding has begun to slow down though the number of channels being bid for has gone up on the sixteenth day of the e-auction for the first batch of FM Phase III cities. The cumulative provisional winning price touched Rs 1090 crore at the end of the 64th round.

     

    With this, a total of 92 channels in 56 cities became provisional winning channels against their aggregate reserve price of about Rs 451 crore.

     

    Thus the summation of provisional winning prices surpassed the cumulative reserve price of the corresponding 92 channels by Rs 638.71 crore or 141.5 per cent.

     

    The cumulative provisional winning price exceeded the total reserve price of the first batch of 135 FM channels in 69 existing cities – Rs 550.18 crore – by almost 98.1 per cent.

     

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

     

    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 114.66 crore (for two channels) and Bengaluru with Rs 109.25 crore.

     

    Among cities recording more than Rs 10 crore, it rose marginally in Cochin at Rs 14.18 crore and Nasik at Rs 10.72 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.

  • MIB criticised for violating contractual norms for national film museum construction

    MIB criticised for violating contractual norms for national film museum construction

    NEW DELHI: The Ministry of Information and Broadcasting (MIB) failed to secure compliance with provisions of the contract before releasing advance payments to National Buildings Construction Corporation for the National Museum on Indian Cinemas (NMIC) leading to blocking of funds while the intended objective of commissioning the Museum for public remained unfulfilled.

     

    Rejecting the reasons given by the Ministry, the Comptroller and Auditor General has said in its latest report that the Ministry prematurely released payments without observing linkages with various milestones of construction activity and their completion. 

     

    Out of a total sum of Rs 88.11 crore released to NBCC between March 2010 and March 2011, only Rs 36.72 crore had been utilised leading to blocking of substantial sum with the NBCC.

     

    CAG said there was no provision of advance payment except payment on signing of contract between the Ministry and the NBCC.

     

    The Films Division of the Ministry had in 2010 initiated a project on turnkey basis of constructing the NMIC in the Films Division Complex at Mumbai proposed to be commissioned for public during the centenary year of Indian Cinemas in 2013. 

     

    Under the contract, the estimated cost of work was Rs 101.20 crore with expected date of completion being June 2012. 

     

    Under clause 7 of the contract, the payment to NBCC was to be based on actual cost of all the works of the project and it included all the costs as paid to contractors/suppliers etc. Payments to NBCC were to be released on completion of various milestones as specified in the contract. 

     

    NBCC had to submit report for requirement of funds and while submitting the invoice it had to certify that it had completed the activity as per schedule. In terms of clause 10 of the contract, NBCC had to submit quarterly report indicating physical and financial progress of the work.

     

    The CAG examination of records disclosed that the Ministry in contravention of the terms of contract, released funds to NBCC without linkages with the specific milestones as provided in the contract. It also did not ascertain the actual progress of work before releasing payments.

     

    CAGt also observed that the required statutory approval from Municipal Corporation of Greater Mumbai was obtained by the Ministry only in August 2013. The Ministry had thus released more than 85 per cent of the estimated project cost (Rs 88 crore out of Rs 101 crore) even before obtaining the required statutory approval.

     

    It was also noted that NBCC could incur expenditure of only Rs 36.72 crore out of released amount of Rs 88.11 crore as of December 2014, resulting in blocking of substantial sums for different durations during the period March 2010 to December 2014.

     

    When this was pointed out, the Ministry said in February this year that since the project was to be completed before Centenary Celebration of Indian Cinema in 2013, the Ministry had relaxed/modified the milestones of construction of NMIC, before releasing the funds to NBCC through FD. It also said the NBCC opened a separate Bank Account for the NMIC project. The bank interest was being credited to that account. 

     

    The construction work of the Museum was in progress and according to the revised timeline for completion, the Museum was to be completed and handed over by December 2015.

     

    But CAG noted that the reply of the Ministry did not address the issue of premature release of funds without synchronising the payments with the progress of work. 

     

    Furthermore, the fact remained that the Ministry failed to secure compliance with the provisions of the contract before releasing advance payments to NBCC leading to blocking of funds while the intended objective of commissioning the National Museum on Indian Cinemas for public remained unfulfilled.

  • No plans to remove 12 mins ad cap for TV channels: TRAI sources

    No plans to remove 12 mins ad cap for TV channels: TRAI sources

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) is not considering any move to do away with the advertising cap of 12 minutes per hour for all television channels.

     

    A TRAI source told Indiantelevision.com that even otherwise, a notification issued by the Authority can only be amended through another notification after the issuance of a consultation paper and consultation with stakeholders.

     

    When his attention was drawn to the reported statement of a union minister to the effect that the ad cap served no purpose, the source said that TRAI had not received any instructions in this regard and would in any case take its own decision. He also drew attention to the fact that the matter was pending in court.

     

    Meanwhile, the National Cable & Telecommunication Association and the Malwa Cable Operator Sangh have urged the Authority not to consider a blanket rolling back of its own decision – Standards of Quality of Service (Duration of Advertisements in Television Channels) Regulations 2012 – of an ad cap of 12 minutes per hour for all TV channels.

     

    In separate but similar letters to TRAI chairman R S Sharma, the two bodies have said that it is imperative to appreciate the difference between those channels, which charge subscriptions and those that are free to air (FTA) before any decision is taken.

     

    In their letters, Vikki Choudhary and Rahul Rawat who head the two organisations respectively have said it is important to categorise TV channels into three groups – FTA channels, FTV (Free To View) channels and Pay TV channels.

     

    The FTA and the FTV channels do not charge any subscription while Pay TV Channels charge a monthly subscription fee from consumers, collected through the Distribution Platform Operators (DPOs).

     

    They have therefore said there should be no advertisement duration permitted on these Pay TV channels. The duo pointed out that this is also an international norm and a logical way of doing the TV channel broadcast business worldwide.

  • I&B secy Bimal Julka stresses value of social media in reaching out to people

    I&B secy Bimal Julka stresses value of social media in reaching out to people

    NEW DELHI: Information and Broadcasting Ministry Secretary Bimal Julka has said social media initiatives of the government had provided people a platform to communicate directly with the government through methods such as Crowdsourcing, which encouraged such innovations.

     

    He stressed the need for qualitative information flow and interface of citizens with the communication strategy of the government. “This has led to people centric communication and facilitated enhanced outreach and visibility of government communication across platforms,” he said.

     

    Julka said this in discussions with Queensland University of Technology, Australia vice chancellor Professor Peter Coaldrake, here today.

    “The communication paradigm has undergone a shift with a 360 degree approach being adopted to address the communication needs and challenges,” he said.

     

    He also referred to flagship schemes of the government namely Digital India, Skill India, Make In India, which had provided an opportunity to media units to reach out to defined target audiences. 

      

    He specifically highlighted the use and effectiveness of initiating Talkathons, which provided a direct interface with the people leading to effective citizen centric communication. “Such initiatives would encourage a culture of inclusive and participative decision making,” he said.
     

    During the meeting, Julka and Professor Coaldrake reviewed the current training mechanism between the Ministry and QUT with regard to in-service training of Indian Information Service officers. Both agreed that the future training agenda should include contemporary issues related to media and communication studies. They emphasized that Skill Development was critical for in-service training of officers handling government communication.

  • TDSAT questions MIB over DAS licence denial to Tamil Nadu’s Arasu Cable

    TDSAT questions MIB over DAS licence denial to Tamil Nadu’s Arasu Cable

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT), on 14 August, asked the Ministry of Information and Broadcasting (MIB) to file an affidavit in a matter where the root issue is about the denial of digital addressable system (DAS) licence to Tamil Nadu Arasu Cable TV Corporation (TACTV).

     

    While the MIB had presented a note through a section officer, TDSAT refused to accept it and wanted the ministry to file a proper affidavit.

     

    Listing the matter for 2 September, TDSAT also said that Star India, respondent in the case filed by cable operator Thamizhaga Cable TV Communication, New Delhi, was free to negotiate with Arasu and other multi-system operators (MSOs) for areas in Chennai for DAS and outside Chennai for analogue transmission.

     

    At the same time, it said that there would be no disconnection of signals until the next date.

     

    TDSAT also directed that the Indian Broadcasting Foundation (IBF) should be impleaded as a party since other broadcasters were also giving signals to Arasu for Chennai though it did not have the DAS licence. Option was also given to other broadcasters if they wanted to be impleaded.

     

    During the hearing earlier this week, TDSAT chairman Aftab Alam and members Kuldip SIngh and B B Srivastava wondered why the Central Government had failed to take a decision on giving DAS licence to Arasu. It had therefore directed that the Ministry be impleaded in the case.

     

    At the same time, it had held that Arasu (TACTV) was guilty of transmitting television signals in Chennai, which had adopted DAS in the first phase – in analogue mode, and at the same time guilty of using Star signals in the metropolis without any authorisation inter-connect agreement with Star India.

     

    The Tribunal was told by TACTV that it had applied for a DAS licence as far back as July 2012 but the government had failed to take a decision despite an order of the Madras High Court in December 2013 asking the Centre to take a decision on the application of TACTV for grant of it’s license “in the soonest possible time.”  

     

    Noting that there is no compliance with the direction of the Court even after more than a year and half, the Tribunal felt it was imperative to know the stand of the Government for a proper adjudication of the matter.

     

    The Tribunal did not accept the argument by TACTV in the last hearing that it had negotiated with Star India for the entire state since the Letter of Intent (LOI) was only for the rest of Tamil Nadu barring Chennai.

  • Day 15: FM Phase III winning price touches Rs 1079 crore; bidding moderate

    Day 15: FM Phase III winning price touches Rs 1079 crore; bidding moderate

    NEW DELHI: Bids remained modest though greater interest was shown in some more channels on the fifteenth day of the e-auction for the first batch of FM Phase III cities as the cumulative provisional winning price touched Rs 1079 crore. However, the overall progress showed only mild signs of rise at the end of the 60th round.

     

    With this, a total of 91 channels in 56 cities became provisional winning channels against their aggregate reserve price of about Rs 449 crore.

     

    Thus, the cumulative provisional winning price exceeded the total reserve price of the first batch of 135 FM channels in 69 existing cities – Rs 550.18 crore – by almost 90 per cent.

     

    While Delhi continued to show a rise, Mumbai overtook Bengaluru although the latter also showed a moderate increase after being static yesterday. The Auction Activity Requirement continued to remain at 90 per cent, raised after the 37th round on 7 August.

     

    The 13 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 per cent in Bengaluru, Chandigarh, Cochin, Guwahati, Jodhpur, Kanpur, Mumbai and Nasik.

     

    The highest Provisional winning price was in Delhi at Rs 169.16 crore (for just one channel), followed by Mumbai at Rs 112.40 crore (for two channels) and Bengaluru with Rs 107.10 crore, showing marginal increase as compared to yesterday.

     

    Among cities recording more than Rs 10 crore, it rose sizeably in Chennai at Rs 53.38 crore and Pune at Rs 42.03 crore and marginally in Jaipur at Rs 28.34 crore, Chandigarh at Rs 19.04 crore, Cochin at Rs 13.63 crore and Nasik at Rs 10.61 crore.

     

    Ahmedabad at Rs 42.68 crore, Hyderabad at Rs 18 crore, Patna at Rs 17.89 crore and Lucknow at Rs 14 crore remained static.

     

    e-Auction for the first batch of private FM Radio phase III channels began on July 27, 2015. Four rounds of bidding are held. The auction is being closely monitored and supervised by senior officials to maintain integrity of the process.

     

    The first batch auction will pave the way for onset of FM Phase III regime, which will bestow many new facilities on the operators. In Phase III, license will be for 15 years as against 10 years in Phase II.

     

    Total FDI / FII allowed in new regime is 26 per cent as compared to 20 per cent in Phase II. An operator in Phase III regime may own upto 40 per cent of channels in the same city subject to three different operators in the city, whereas earlier policy provided for only one channel per operator per city. The new regime also gives an operator facility to network its own channels within the country.

     

    Unlike Phase II, Phase III regime permits operators to carry news bulletins of All India Radio in unaltered form on mutually agreed terms and conditions with Prasar Bharati.

     

    As the government has rejuvenated its approach towards North Eastern part of India with its ‘Act East’ policy, FM phase III policy provides much needed support to the FM radio broadcasting services in cities of North Eastern part of India as in the cities of Jammu & Kashmir and island territories, with provision of annual fee of the channels in these areas at half the rates for first three years, besides Prasar Bharati Infrastructure at half the lease rentals.

     

    The ongoing auction is a Simultaneous Multiple Round Ascending (SMRA) e-auction, which is being conducted online from Auction Control Room No. 404 B Wing, Shastri Bhawan by C 1 e-auctioneers.

  • TRAI plans open house before finalising tariff recos for commercial subs

    TRAI plans open house before finalising tariff recos for commercial subs

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) will be holding an Open House meeting relating to tariff issues for commercial subscribers on 18 August.

     

    Following directions by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) earlier this year that there was need for a fresh look at tariff orders, TRAI had issued a new paper on “Tariff issues related to Commercial Subscribers” exactly a month earlier. Stakeholders were asked to give their comments by 31 July and counter-comments by 7 August.

     

    The Open House is the final stage before TRAI makes recommendations on the issue.

     

    In the paper, TRAI asked commercial subscribers whether there is need to define and differentiate between domestic subscribers and commercial subscribers for provision of TV signals and the basis for such classification.

     

    The regulator had also asked if there was a need to enable engagement of broadcasters in the determination of retail tariffs for commercial subscribers on a case-to-case basis.

     

    TRAI wanted to know how it can be ensured that TV signal feed is not misused for commercial purposes wherein the signal has been provided for non-commercial purpose.

     

    It has asked if there was a need to have a different tariff framework for commercial subscribers (both at wholesale and retail levels) and what should be the suggested tariff framework for commercial subscribers (both at wholesale and retail levels).

     

    Following the Supreme Court’s order of 16 April, 2014, TRAI had notified the Telecommunication (Broadcasting and Cable) Services (Second) tariff (Twelfth Amendment) order & the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Fourth Amendment) order on 16 July, 2014.

     

    These two tariff amendment orders prescribing the tariff framework for commercial subscribers were challenged before TDSAT, which in its order of 9 March, 2015 had set aside these Tariff Amendment Orders. TRAI was asked to examine the issue afresh and come out with a new tariff dispensation for commercial subscribers within six months from the date of its order.