ITV

Category: Regulators

  • SC stays TRAI directive on wholesale tariff revision to broadcaster till August

    SC stays TRAI directive on wholesale tariff revision to broadcaster till August

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI), which is currently headless, faced an embarrassing situation when the Supreme Court asked it not to give effect to its direction asking broadcasters to roll back the 27.5 per cent tariff hike for non-addressable areas until the next hearing.

     

    The matter has been fixed for next hearing on 4 August.

     

    The regulator had just yesterday asked broadcasters 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.

     

    Effectively, this comes as a major relief to broadcasters who will not have to revise the wholesale tariff to those that existed before the implementation of the two tariff orders, which had been struck down by TDSAT.

     

    The directive was given when appellants Indian Broadcasting Foundation (IBF), Star India, Vijay Television, Viacom18 and Sun TV sought early hearing of their challenge to the TDSAT order of 28 April.

     

    The appellants have sought stay on the ground of wholesale price index. They also sought to argue that there was consultation prior to issuance of the Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Eleventh Amendment) Order, 2014’ and ‘The Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Thirteenth Amendment) Order, 2014’ and these were not strictly Tariff orders.

     

    Holding the Tariff orders as ‘untenable’, TDSAT had said TRAI “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.”

  • Broadcasters satisfied with inter-connect agreements negotiations with MSOs

    Broadcasters satisfied with inter-connect agreements negotiations with MSOs

    NEW DELHI: Broadcasters, who met officials in the Telecom Regulatory Authority of India (TRAI) have expressed satisfaction over negotiations with multi system operators (MSOs) for entering into inter-connect agreements with them.

     

    The meeting was in keeping with a commitment made by TRAI at the last meeting of the Task Force for implementation of Phase III of the Digital Addressable System (DAS).

     

    The broadcasters included Star India and TV18, who expressed satisfactory progress in their meetings with MSOs. 

     

    It is learnt that TRAI also met MSOs in this connection.

     

    This was the second meeting with broadcasters after the last Task Force meeting held on 23 June.

  • TRAI asks pay broadcasters to revise wholesale tariff, even as matter pending in SC

    TRAI asks pay broadcasters to revise wholesale tariff, even as matter pending in SC

    NEW DELHI: Fifty-four pay broadcasters were today asked by the Telecom Regulatory Authority of India (TRAI) to revise their wholesale tariff for the non-CAS (Conditional Access System) and DAS (Digital Addressable System) areas to what existed before the coming into force of the two tariff orders that have been set aside by the Telecom Disputes Settlement and Settlement Tribunal (TDSAT).

     

    TRAI, which also met some of the broadcasters in a meeting today, said the revised tariff should be filed with the Authority within 10 days from the date of receipt of the letter.

     

    The TDSAT order had been challenged before the Supreme Court, which on 16 May declined to stay the order 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.

     

    TDSAT chairman Aftab Alam and member Kuldip Singh said in their order of 28 April that the ‘The Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Eleventh Amendment) Order, 2014’ and ‘The Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Thirteenth Amendment) Order, 2014]’ were “untenable.”

     

    The Tribunal also said it thought that TRAI “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.”

     

    In its letter placed on its website, TRAI said that the increase of 27.5 per cent in non-addressable systems had led to a similar increase in addressable systems in accordance with the provisions of the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff Order of 21 July, 2010.

     

    TRAI in the Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Eleventh Amendment) Order of 31 March, 2014 allowed an inflationary increase of 15 per cent in the wholesale prices for non-addressable systems over the prices prevailing as on 31 March, 2014 to be effective from 1 April, 2014 and 12.5 per cent with effect from January 2015 under the Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Thirteenth Amendment) Order of 31 December, 2014. 

  • Kalanithi Maran responds to court summons on SpiceJet tax evasion case

    Kalanithi Maran responds to court summons on SpiceJet tax evasion case

    NEW DELHI: In response to summons issued by a Delhi court in cases of tax evasion related to SpiceJet, of which Sun Group chairman Kalanithi Maran is non-executive chairman, the media owner embroiled in several controversies, has said that him and his company are not “tax dodgers.”

     

    Denying that any company in the Sun Group is in arrears in payment of taxes, Maran said that “there have been several occasions when tax authorities have awarded trophies and honoured Sun TV Network with citations for exemplary compliance and for topping the region in terms of highest tax payments.”

     

    “The companies of the Sun Group collectively and me in my personal capacity pay more than Rs 600 crore as taxes annually to the national exchequer,” he added.

     

    Referring to the media reports regarding SpiceJet, Maran said, “I am confident that the Honorable Courts will render justice to us.”

     

    “Given that the Sun group companies and I have been the topic of several malicious and misleading stories fed to the print media by certain people, it appears that this action too may have been motivated by ulterior motives to tarnish the image and reputation of the Sun Group and me,” he added. 

  • Madras HC permits Sun Group’s Suryan FM to participate in auction

    Madras HC permits Sun Group’s Suryan FM to participate in auction

    MUMBAI: Following the Delhi High Court’s interim order, which permitted Red FM to attend mock auctions for Phase III, a directive has been issued by the Madras High Court, allowing Suryan FM to participate in the actual FM auctions.

     

    With this, Sun Group’s Kal Radio, which runs Suryan FM, will now participate in the auctions. Sun Group earlier challenged the Union Ministry’s decision of not giving the company security clearance, due to which the Information and Broadcasting (I&B) Ministry failed to include Sun Group in the pre-bidders list for the Phase III auctions process.

     

    No official statement was issued at the time of filing this report, as the Network is awaiting the hard copy from High Court. Justice M Sathyanarayanan passed the order on the petition filed by the company.

     

    A few days ago, the networks – Digital Radio Broadcasting and Kal Radio, approached the Delhi and Madras High Courts seeking judicial directive on the Ministry’s decision to keep them away from the auctions.

     

    Mock auctions for Phase III are scheduled to take place on 22 and 23 July, 2015, while the actual auction will begin from 27 July, 2015.

     

    P S Raman, senior counsel had appeared on behalf of the petitioner. He pointed out that Dayanidhi Maran is not a shareholder in any of these companies, and that he is under serious charges, and not the company or its subsidiaries. The reason for denial by the Ministry was in line with allegations of Dayanidhi Maran’s holding in the companies. Raman also argued that restriction is against the fundamental rights of freedom of expression.

     

    He also stated that there is no clause in the Indian Telegraph Act, 1885, where there is a mention of security clearance.

     

    The Sun Group counsel also pointed out that Reliance’s Big FM was permitted to take part in the auctions even though the network was under serious charges as well.

     

    On the other hand, Additional Solicitor General G Rajagopalan pointed fingers at the group’s promoters facing serious economic offences. According to the Centre, it will not go down well with the people of the country, if the network was permitted to participate in bidding of licenses.

     

    Meanwhile, the final verdict from the Delhi High Court is expected to be revealed on 24 July.

  • Rajya Sabha panel approves GST with minor changes, several parties attach dissent notes

    Rajya Sabha panel approves GST with minor changes, several parties attach dissent notes

    NEW DELHI: Even though the Rajya Sabha Select Committee on the Goods and Services Tax (GST) gave its green signal today, the going will not be easy in view of the fact that the opposition – which is in a majority in the house – may ultimately have its way.

     

    The Committee endorsed almost all the provisions and also agreed to demands of parties like the Trinamool Congress for a five-year compensation to states. 

     

    Chaired by the Bharatiya Janata Party’s Bhupender Yadav, changes were suggested in some clauses pertaining to compensation, and levy of one per cent additional tax by the states on inter-state supply of goods. 

     

    The government plans to implement GST from April next year, which has been pending for several years with every Finance Minister making promises. The GST is expected to provide great relief as it will subsume within itself many other taxes being levied at present like excise, service tax, and local levies. 

     

    The report placed in the House today contains dissent notes from Congress, AIADMK and Left parties, which have expressed their opposition to the GST Constitution Amendment Bill in the existing form. 

     

    The GST Bill, which has already been approved by the Lok Sabha where the ruling party is in majority, will now be taken up by the Rajya Sabha for discussion. Being a Constitution Amendment Bill, it has to be approved by two-thirds of the members present and voting. 

     

    The Committee has suggested that the provision in the bill that provided Centre “may” compensate states for a period up to five years for any revenue loss be substituted by a commitment for compensation for five years. 

     

    In a clause relating to levy of one per cent additional tax by states, the committee suggested that the levy should only be on “all forms of supply made for a consideration.”

     

    It, however, retained the representation of the Centre and States at the proposed level at one-third and two-third despite demand to reduce Centre’s representation to one-fourth. 

  • Verdict on interim plea strengthens belief in judicial system: Red FM

    Verdict on interim plea strengthens belief in judicial system: Red FM

    NEW DELHI: Red FM said today that the directive of the Delhi High Court to allow it to participate in mock auctions for FM Radio Phase III has strengthened the company’s belief in the judicial system.

     

    The company also said that it was happy that the court had taken cognizance of its pleas to allow it to participate in the mock auctions.

     

    In a brief statement, Red FM said, “We have always maintained that our business is a professionally managed entity and it’s unfair to penalize a well-run, successful business and its employees. We also strongly believe that not allowing us to participate the phase III auctions is an attack on media freedom.”

     

    As was earlier reported by Indiantelevision.com, the Court fixed the next date of hearing for 24 July while giving the interim order today.

     

    While the mock auctions are being held on 22 and 23 July, the main e-auction begins from 27 July for the first batch.

  • Radio Mirchi gets I&B nod to purchase Oye FM

    Radio Mirchi gets I&B nod to purchase Oye FM

    MUMBAI: Radio Mirchi FM’s mother company Entertainment Network (India) Limited (ENIL) has received the Information and Broadcasting (I&B) Ministry’s nod to purchase TV Today Network’s (TVTN) four radio stations, which owns 104.8 FM Oye.

     

    This includes the company’s radio business in Amritsar, Jodhpur, Patiala and Shimla.

     

    The purchase will be subject to fulfilment of conditions specified by I&B Ministry, execution of relevant documents with TVTN and completion of all other relevant formalities.

     

    It can be noted that ENIL had signed the non-binding memorandum of understanding (MoU) with TV Today Network for the purchase of seven radio stations. However, on 13 February, 2015 and 8 May, 2015, I&B Ministry declined its approval on the grounds that the proposed sale by TVTN and proposed purchase by ENIL is not in conformity with the FM Radio Guidelines.

     

    With this approval, the shares of ENIL saw a hike of close to 17 per cent in intraday trading on the Bombay Stock Exchange (BSE) to touch a life high of Rs 849 on 22 July.

  • Red FM to participate in mock auctions; Delhi HC to hear case on 24 July

    Red FM to participate in mock auctions; Delhi HC to hear case on 24 July

    NEW DELHI: The Delhi High Court has allowed Red FM owned by Digital Radio Broadcasting Ltd, which is part of the Sun Group, to take part in mock auctions for the third phase of FM auctions to be held on 22 and 23 July.

     

    Justice Badar Durrez Ahmed and Sanjeev Sachdeva issued notice to the Government and said it would hear the matter on 24 July.

     

    The order came after Government counsel Sanjeev Narula told the Court that it was not possible for the Information and Broadcasting (I&B) Ministry to postpone the main FM auctions. He said the entire process had been lined and any postponement will have a cascading effect.

     

    The Court had yesterday (21 July) asked the Centre to consider deferring the auctions as it heard a plea by Digital Radio Broadcasting against the government’s decision.

     

    Meanwhile, the Madras High Court said it would announce its orders on 23 July. The court had reserved its orders after prolonged hearing yesterday and had initially said that the orders would be pronounced today (22 July).

     

    Red FM is among the prime bidders in the phase III of FM auctions covering 135 radio channels in 69 cities.

     

    The Ministry had last week issued a list of 21 bidders, which did not include the Sun Group’s Red FM, and then sent a formal communication to the Group on 15 July that it had been denied permission.

     

    The Court has been asked to direct the Centre to permit Sun Group to migrate to the Phase-III regime by allowing it to resubmit the application dated 20 March, 2015 to participate in the auction.

     

    The petitions also said the company was not involved in any dispute with the nation’s security, nor had it broadcast anything that affected the security of the nation.

     

    The petition alleges that the order denying permission had been issued “carelessly, with total non-application of mind and in a cavalier fashion, totally unmindful of its consequences and repercussions not only on Sun TV but also on the entire broadcasting and media industry.”

     

    Apart from the denial to participate in Phase III FM auctions, the order also implied that the sister companies of the Sun Group would be compelled to close down FM radio stations, totalling 45 across the nation, the petitioners said.

     

    “Non-inclusion of the company’s name on the list is nothing but closing the entire FM stations run by it for extraneous, illegal and mala fide reasons,” the petitions said.

     

    It has pointed out that the Indian Telegraph Act does not make any mention of security clearance, and licence can be terminated or denied only if there is violation of the terms of the agreement including any defaults in payment.

     

    Clause 2.2(b) of the Information Memorandum and Clause 3.2(b) of the Notice Inviting Application says only a company controlled by a person convicted for an offence involving moral turpitude or money laundering or drug trafficking or terrorist activities or is declared as insolvent will not be eligible to apply. The petitioners said there was nothing in the rules to deny permission to the Sun Group, which is controlled by the Maran brothers. 

  • Sun Group’s entry order in FM Phase III auctions expected on 22 July in Delhi & Chennai HC

    Sun Group’s entry order in FM Phase III auctions expected on 22 July in Delhi & Chennai HC

    NEW DELHI: The Delhi High Court today (21 July) asked counsel for the Union of India to get instructions on whether the auctions for FM Phase III will be postponed or whether the Sun Group will be permitted to take part.

     

    The Court adjourned the hearing of the main case and the application for stay to tomorrow to allow government counsel to get instructions. Senior Counsel Kapil Sibal presented the case for Sun Group.

     

    The Group has sought a stay on the order of the Information and Broadcasting (I&B) Ministry in this regard. The Ministry had last week issued a list of 21 bidders, which did not include the Group’s Red FM, and then sent a formal communication to the Group on 15 July that it had been denied permission.

     

    In Chennai, the Madras High Court reserved its orders on the interim application for stay and is expected to pronounce its verdict tomorrow (22 July). 

     

    The Court has been asked to direct the Centre to permit Sun Group to migrate to the Phase-III regime by allowing it to resubmit the application dated 20 March, 2015 to participate in the auction.

     

    The petitions also said the company was not involved in any dispute with the nation’s security, nor had it broadcast anything that affected the security of the nation.

     

    The petition alleges that the order denying permission had been issued “carelessly, with total non-application of mind and in a cavalier fashion, totally unmindful of its consequences and repercussions not only on Sun TV but also on the entire broadcasting and media industry.”

     

    Apart from the denial to participate in Phase III FM auctions, the order also implied that the sister companies of the Sun Group would be compelled to close down FM radio stations, totalling 45 across the nation, the petitioners said.

     

    “Non-inclusion of the company’s name on the list is nothing but closing the entire FM stations run by it for extraneous, illegal and mala fide reasons,” the petitions said.

     

    It has pointed out that the Indian Telegraph Act does not make any mention of security clearance, and licence can be terminated or denied only if there is violation of the terms of the agreement including any defaults in payment.

     

    Clause 2.2(b) of the Information Memorandum and Clause 3.2(b) of the Notice Inviting Application says only a company controlled by a person convicted for an offence involving moral turpitude or money laundering or drug trafficking or terrorist activities or is declared as insolvent will not be eligible to apply. The petitioners said there was nothing in the rules to deny permission to the Sun Group, which is controlled by the Maran brothers.