ITV

Category: Regulators

  • Kantar gets stay on cross-shareholding norms; TAM allowed to publish ratings

    Kantar gets stay on cross-shareholding norms; TAM allowed to publish ratings

    NEW DELHI:  Kantar Market Research Services has managed to get the relief it wanted from the Delhi High Court on the cross-shareholding norms for television rating agencies.

     

    On a petition by Kantar challenging the government’s cross-shareholding norms for TV ratings agencies, the HC has stayed the operation of four sections — 1.7a, 1.7d, 16.1 and 16.2 — that relate to cross-shareholdings and to publishing of TV viewership ratings  in the Policy Guidelines for Television Rating Agencies in India.

     

    Kantar had filed the petition as the new policy would have resulted in TAM Media Research, a company it has jointly promoted with Nielsen India, having to shut operations.

     

    The court has given TAM two weeks to register itself under all the other provisions of the policy that was recently approved by the Cabinet Committee of Economic Affairs and comes into effect from 15 February.

     

    In addition, the court has also stayed the operation of a clause that prevents existing TV rating agencies from publishing viewership ratings till they company with the provisions of the policy. TAM is the only company in India providing TV viewership ratings.

     

    The Delhi High Court will hear further arguments in the case on 6 March.

     

    Meanwhile, TAM has been ordered to place on its website the list of its shareholders and also the list of its clients.

     

    The provisions of Policy Guidelines for Television Rating Agencies in India that have been stayed are:

     

    1.7 The company shall comply with the following cross holdings requirements.

     

     (a) No single company/ legal entity, either directly or through its associates or inter-connected undertakings, shall have substantial equity holding in rating agencies and broadcasters/advertisers/ advertising agencies.

     

     (d) A promoter company/member of the board of directors of the rating agency cannot have stakes in any broadcaster/ advertiser/advertising agency either directly or through its associates or inter-connected undertakings.

     

    16. PROVISIONS WITH RESPECT TO EXISTING RATING AGENCIES

     

    16.1 These guidelines shall also be applicable to the existing rating agencies.

     

    16.2 No rating agency shall generate and publish ratings till such time that they comply with the provisions of these guidelines.

     

    Click here for the updated story

  • Kantar argues TV ratings regulation requires legislative action

    Kantar argues TV ratings regulation requires legislative action

    NEW DELHI: Kantar Market Research Services, a promoter of India’s only television ratings agency TAM Media Research, said today that any action relating to fundamental rights had to be done through an act of Parliament and not by an executive order.

     

    Harish Salve, counsel for Kantar, said during the hearing on his client’s petition in the Delhi High Court against regulations for television ratings agencies that the government should have issued an ordinance and then replaced it with an act of Parliament since any attempt to regulate television ratings agencies was tantamount to interfering with the freedom of speech and expression under Article 19(1)(a). Any order curtailing fundamental rights must have statutory backing, he claimed.

     

    He said even the Telecom Regulatory Authority of India which had earlier given a report on TV ratings in 2008 and the Parliamentary Standing Committee which had considered the issue later in the same year had been of the view that the government could not tamper with the content. In any case, Salve argued that TRAI was only concerned with carriage and not content and can only make recommendations.

     

    He wondered why the Government did not act after it received the TRAI report in 2008 to push through legislation on this issue.

     

    He said the executive order under Article 73 was part of the government’s agenda to push for control of content.
     

    He said there will be a complete blackout of television viewership ratings under new government regulations since the Broadcast Audience Research Council (BARC) was still in the planning stage.
     

    He also said that the law was in any case clear that the government was a licensor for broadcasting and not TAM which was a private rating agency. As a private agency, it could not be told not to have cross-media holding.
     

    While still not granting a stay on the regulations that come into effect from 15 February, Justice Manmohan said he will continue hearing the case tomorrow but may consider ‘interim arrangements’ if the hearing lingers on.

     

    The Judge also asked Kantar to place on its website the shareholding pattern of various shareholders in TAM since the primary objection taken by Kantar is to the reference to cross-media holding in the proposed regulations.  

     

    The three respondents Union of India, the Telecom Regulatory Authority of India (TRAI) and the News Broadcasters Association (NBA) have filed their affidavits and will present their views tomorrow on Kantar’s petition for an interim stay. 

     

    Salve, who concluded his arguments today, said Kantar did not have any cross-holding in the broadcasting sector. He claimed that TAM was operational in 37 countries.
     

    Senior counsel Mukul Rohatgi, who also represented Kantar, said the committee that recommended BARC had itself admitted that TAM was the best rating agency in the country, and had not made any recommendations with regard to cross-media holdings.

     

    During the last hearing, the judge had wanted to know why TAM was not present itself, and Salve said that the issue of cross-media holdings mentioned in the guidelines affected Kantar which was a major shareholder and not TAM.

  • TRAI’s lifeline for content aggregators

    TRAI’s lifeline for content aggregators

    The Telecom Regulatory Authority of India’s  latest notification of regulations for content aggregators has attempted to curb their muscling power, even as it has allowed them to continue as agents carrying out the same function.

     

    TRAI on Monday notified amendments to its regulations barring content aggregators from bundling of channels belonging to different broadcaster groups and mandated broadcasters to themselves sign Reference Interconnect Offers (RIOs) with Distribution Platform Operators (DPOs). The broadcasters have, however, been allowed to appoint authorised agents to market their bouquets, which could be the existing aggregators.

     

    The amended regulations change the status of content aggregators from entities that aggregated television channels and marketed them in bundled packages to television distribution platforms to that of agents of broadcasters.

     

    But the role of content aggregators may not change radically. Content aggregators as agents of broadcasters might still be able to perpetuate their dominance, though in a slightly diluted form.

     

    The concerns flagged by TRAI vis-?-vis the business of content aggregation were:

     

    a. Top three content aggregators – MediaPro Enterprise India, IndiaCast UTV Media Distribution, MSM Discovery – controlled 58.6% of the total pay TV market.

    b. Content aggregators forced all-channel bouquets on the DPOs, validated by the fact that even though the largest bouquets offered by the aggregators in their RIOs are in the range of 13 to 20 channels, the agreements entered into are for a package of channels consisting of almost all the channels they are authorised to distribute.

    c. Content aggregators grossly discriminated against independent DPOs, charging 62 per cent to 85% more than DPOs which are established by broadcasting groups.

     

    The outcome of the amendments to the TRAI regulations could be the following:

     

    a. End of the era of clout wherein aggregators used to bundle channels of various broadcaster groups into  package cluster and thrust them down the DPOs throats.

    b. Making it obligatory for broadcasters to publish RIOs will result in relative transparency of pricing of channels.

    c. The margin of discrimination against independent DPOs may substantially get narrowed.

    d. The existence of content aggregators gets erased from the regulatory point of view. The regulations make the broadcasters responsible for the actions of content aggregators, now described as authorised agents of broadcasters.

     

    The issues the amendments have not addressed:

     

    a. By allowing channels from broadcasters within a corporate group to be packaged, the TRAI has allowed weak channels to piggyback on highly dominant  and popular channels. This could lead to problem and conflict in future when these networks swell as they add more and channels.

    b. Agents have been allowed to sell channels of different broadcaster groups though as separate bouquets. This does not completely eliminate the bargaining power of agents. They can bargain with DPOs for weak bouquets in exchange for a supposedly more favourable deal on dominant bouquets.

    c. Though TRAI made a mention of the undue advantage enjoyed by content aggregators owned by broadcasters, it stopped short of clamping down on the cross-holding norms for them, meaning it has continued to allow different broadcast networks to own a distribution agent.

    d. Independent DPOs will still be discriminated against, though the scale of bias against them is expected to significantly narrow.

     

    The amended regulations may have shaken up content aggregators. For the past six months, executives working in these companies were filled with trepidation that they would be forced to shut down their operations. But by allowing them to continue as agents, the TRAI has offered them a lifeline.

  • TRAI says 44% of DTH subscribers inactive

    TRAI says 44% of DTH subscribers inactive

    MUMBAI: Direct-to-home television service providers appear to be having a tough time retaining their subscribers. A large portion of their registered subscribers are inactive.

     

    Of the total registered subscriber base of 60.71 million of the six DTH companies as on 30 September, 2013, the number of active subscribers was just 34.26 million (or 56 per cent), according to the Telecom Regulatory Authority of India’s quarterly report titled ‘The Indian Telecom Services Performance Indicators’.

     

    The DTH subscriber base as on 30 September 2013 was three per cent more than a quarter ago.

     

    The report said the number of internet subscribers (excluding internet access by mobile devices) has increased 1.38 per cent  from 21.89 million at the end of June 2013 to 22.19 million at the end of September 2013.

     

    The number of broadband subscribers has also risen. The figure went up from 15.20 million in June to 15.35 million in September, thus registering a quarterly growth of 0.99 per cent and year-on-year (y-o-y) growth of 4.52 per cent. That apart, the number of narrowband subscribers (except internet access by mobile devices) increased from 6.69 million to 6.84 million, registering a quarterly growth of 2.25 per cent from a quarter ago.

     

    The report also mentions that the number of private satellite TV channels as permitted by the Information and Broadcasting Ministry is 784, of which 187 are pay channels. The maximum number of TV channels (Pay, FTA and Local) being carried by any of the reported Multi System Operators (MSOs) is 218 whereas in the conventional analogue form, maximum number of channels being carried by any of the reported MSOs is 100 channels.

     

    As per the report, the number of telephone subscribers has decreased from 903.09 million at the end of June 2013 to 899.86 million at the end of September 2013, thus registering a negative growth of 0.36 per cent over the previous quarter. “This reflects y-o-y negative growth of 4.03 per cent over the same quarter last year,” states the TRAI report.

     

    The report also highlights a net decline of 2.78 million telephone subscribers during the quarter. “The total wireless (GSM + CDMA) subscriber base has decreased from 873.36 million to 870.58 million, registering a negative growth rate of 0.32 per cent over the previous quarter. The y-o-y negative growth rate of wireless subscribers for September is 3.97 per cent,” says the report.

     

     The number of subscribers who accessed internet using a mobile device is 188.20 million during the quarter ending September 2013.

  • Delhi HC to further hear Kantar case tomorrow; hints at an interim arrangement

    Delhi HC to further hear Kantar case tomorrow; hints at an interim arrangement

    NEW DELHI: The deadline for implementing the TV ratings agencies policy is inching closer. But Kantar Market Research Services, a shareholder of current and only ratings agency TAM, had decided that it had to challenge the guidelines in the Delhi High Court.

     

    While still not giving it a stay order today, the court has decided that it will continue hearing the case. The next date of hearing is tomorrow. Kantar counsel today argued that the directive of the ministry on TV ratings guidelines had been done under an executive action, which can be questioned in a court of law. Counsel for Kantar also said that since the Broadcast Audience Research Council (BARC) was still under formation, there would be a total blackout if TAM is not allowed to function.

     

    Justice Manmohan while hearing the case remarked that though he was in favour of concluding the hearing before 15 February, he would ‘consider issuing an interim arrangement if the hearing goes on longer than that date’. 15 February is when the guidelines will become effective.

     

    The three respondents Union of India, the Telecom Regulatory Authority of India (TRAI) and the News Broadcasters Association (NBA) will present their case on Kantar’s petition for an interim stay order tomorrow. 

     

    Click here for the updated story

  • TRAI ends aggregation of content from different broadcaster groups

    TRAI ends aggregation of content from different broadcaster groups

    Updated – 08:05pm

    MUMBAI:  Aggregation of television content from various broadcasters will soon be history and content aggregators will be able to act only as agents of broadcasters.

    These are the provisions in the amended regulations notified by the Telecom Regulatory Authority of India (TRAI) today.

    The TRAI has barred content aggregators from signing Reference Interconnect Offers (RIOs) with Distribution Platform Operators and said broadcasters themselves will now need to publish the Reference Interconnect Offers (RIOs) and also enter into interconnection agreements with Distribution Platform Operators (DPOs).

    TRAI has now clearly defined the roles of the broadcaster, the channel aggregator and the DPOs which include the multi-system operators.

    Broadcasters have six months to sign RIOs with DPOs themselves and current content aggregators like Media Pro, IndiaCast UTV Media Distribution and One Alliance will only be able to function as agents of broadcasters.

    TRAI has allowed a broadcaster to appoint an agent for signing the RIOs, but clearly stating that the agent can only act in the name of and on behalf of the broadcaster.

    The regulator in the notification clearly mentions that the appointed agent cannot alter the bouquets as offered in the RIO of the broadcaster and if one agent acts as an authorised agent of multiple broadcasters, individual broadcasters need to ensure that such agents do not bundle channels or bouquets with other broadcasters, TRAI said.

    TRAI has, however, provided relief to broadcaster groups by allowing more than one company belonging to the same group to bundle their channels into packages.

    Broadcasters will have to file amended RIOs and interconnection agreements with the regulator.

    According to TRAI, currently around 239 pay channels (including HD and advertisement-free channels) are offered by 55 pay broadcasters. These channels are distributed by 30 broadcasters/aggregators/ agents of broadcasters.

    “The distribution business of 58.6 per cent of the total pay TV market available today is controlled by the top three aggregators,” the TRAI said, referring to Media Pro, IndiaCast and One Alliance.

    TRAI feels that the bouquets offered by aggregators comprise popular channels of multiple broadcasters they represent. Thus, leaving DPOs with no option, but to subscribe to these bouquets and then push these channels to the consumers to recover costs.

    Analysis of bouquets offered by Aggregators

    “This shows that aggregators are offering bouquets comprising as many as 20 channels of six broadcasters. Another bouquet, comprising 13 channels, has channels drawn from 9 broadcasters,” says TRAI through its published report.

    Explaining further the TRAI paper says, “Media Pro has mostly entered into agreements with MSOs for around 65 channels out of the 76 pay channels it distributes. These MSOs include both smaller independent MSOs as well as MSOs operating at national level. Similarly, IndiaCast and MSM Discovery have mostly entered into agreements for around 30 (out of 36 channels being distributed by it) and 20 channels (out of 28 channels being distributed by it) respectively. This substantiates the allegation of the DPOs that the large aggregators are virtually compelling them to enter into agreements to subscribe to almost all of their channels.”  

    The regulator has also found that majority of the channels distributed by the aggregators belong to broadcaster groups who own or control the aggregator. “90.7 per cent- Media Pro, 58 per cent IndiaCast and 57 per cent- MSMD.” 

    According to the regulator, the rates being charged from non-vertically integrated DPOs are, in some cases, higher by 62 per cent as compared to the vertically integrated DPOs.

    “The situation becomes even worse in the case of relatively smaller non- vertically integrated DPOs in which case the rates charged are higher by about 85 per cent as compared to the vertically integrated DPOs.”

    TRAI feels that the amendment will not only ensure a better spread of popular channels in different bouquets available to the DPOs but would also reduce the number of less popular channels pushed on to such bouquets.

    “Even in case a DPO fails to arrive at an agreement with a particular broadcaster the opportunity of finalising agreements with other popular broadcasters is not lost. Thus, DPOs would be placed in a much better position to carry out their businesses,” TRAI said.

    “The interconnect regulations aim at making available the content to DPOs in a transparent and non-discriminatory manner. For this, it is important that the offerings of the broadcasters are available in the public domain. This is why broadcasters have been mandated to publish an RIO prescribing the technical and commercial terms for making available their TV channels to the DPOs,” it says.

  • 786 licensed Indian channels as on 31 January

    786 licensed Indian channels as on 31 January

    MUMBAI: The MIB has released the list of permitted private satellite TV channels in India as on 31 January, 2014.

    According to a report published by the Information & Broadcasting Ministry (I&B Ministry), as of 31 January, 2014, the number of permitted private satellite TV channels in the country stands at 786; out of which 389 are news and current affairs channels, while the remaining 397 are non-news and current affairs ones.

    An earlier report published by the I&B Ministry pegged the number of permitted private satellite TV channels in India as on 2 December, 2013 at 784, with 395 of these being non-news and current affairs channels, implying two non-news and current affairs channels have been added to the list between 2 December, 2013 and 31 January, 2014.

    Out of the 786 channels, 664 TV channels have been permitted for uplink as well as downlink from India. 31 TV channels permitted for uplink but not downlink in India and 91 channels have been permitted only to downlink into India (uplinked from aboard).

     

    Of the 786 permitted private satellite TV channels in the country, 369 news channels and 295 non-news channels have both up-linking and down-linking permission, four news and 27 non-news channels have permission only to uplink, while 16 news and 75 non-news channels have permission just to down-link

    Sometime ago, indiantelevision.com had reported how the I&B Ministry – already under the scanner for being too liberal in issuing licenses to broadcasters – was exercising restraint in a damage control exercise of sorts.

    It doesn’t come as a surprise that the Ministry official list released on 20 December, 2012 had 848 permitted private satellite TV channels which has gone down to 786 in the latest list.

  • TRAI: Phase I and II CAF collection nearing completion

    TRAI: Phase I and II CAF collection nearing completion

    MUMBAI: When the entire process of digitisation started in the country, nobody would have thought it would be such a tough nut to crack and there would be a slippage of so many deadlines. Recently, the Telecom Regulatory Authority of India (TRAI) warned the multi-system operators (MSOs) and subscribers in the digital addressable system (DAS) Phase I and II towns that enough was enough and that they had better get going on finishing the task of submitting the Customer Application Forms (CAFs) with two deadlines – on 27 January for 23 cities and on 31 January for eight cities – once again proving elusive.

    The caning seems to have worked well as everything is getting back on track now. A TRAI official informs that the work in the Phase I and II of Digital Addressable System (DAS) is near completion. Cities with 27 January as the deadline – Rajkot, Surat, Vadodara, Faridabad, Mysore, Aurangabad, Nasik, Pimpri-Chinchwad, Pune, Sholapur, Amritsar, Ludhiana, Jaipur, Jodhpur, Agra, Allahabad, Ghaziabad, Kanpur, Lucknow, Meerut, Varanasi, Chandigarh and Howrah – have almost been  100 per cent  penetrated with active set top boxes (STBs). Almost 85 per cent work has been done (as of 29 January) in areas with 31 January as the deadline that includes cities such as Patna, Ahmedabad, Ranchi, Bengaluru, Kalyan-Dombivali, Nagpur, Navi Mumbai and Thane.

    MSOs have been given two to three additional days post the deadline to submit their compliance reports to TRAI.

     

    “We are in touch with the MSOs on a daily basis and nearly 99.7 per cent has been completed as per the deadlines. If subscribers have failed to fill the forms, MSOs have cut off connections, saving TRAI’s time and also saving themselves from any action against them,” informs a TRAI official.

    However, Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo says that only 70 to 75 per cent work has been completed in the second deadline areas, while in Navi Mumbai hardly 30- 40 per cent work is done.

    A cable operator from Airoli says, “We had got CAF forms in the beginning till about June last year. After that it stopped coming to us.”

     

    But Siti Cable COO Anil Malhotra says that almost 90 per cent work has been completed and the subscribers who fail to fill the forms by tonight will have to face a TV blackout. “Scrolls have already been running to make them aware about it and thus we are sure that we will reach 100 per cent compliance soon,” he remarks.

     

    Hathway Cable and Datacom CEO Jagdish Kumar claims that in these areas Hathway has reached near about 100 per cent. “By 27 December, almost 90 per cent work was done, while the rest had to face a disconnection. Few customers came back to fill the forms and others switched to DTH,” he says. In the next eight cities, about 80 per cent of forms have been collected and fed into the system.

     

    Another leading MSO, Den Networks is also claiming to have achieved 100 per cent compliance for the two dates. Says Den Networks CEO S N Sharma, “In these cities we have complied fully and sent the report to TRAI. We have data of all subscribers and for those who haven’t sent them, their cable connections have been cut off.”

     

    A bright day for digitisation doesn’t look far if the above numbers are to be believed. While few exceptions are always there, most of the stakeholders are taking it seriously. And if the MSOs continue at the same pace and work towards achieving the goal diligently, by February, the work for phase III and IV will kick off.

  • Cabinet decides spectrum acquired will be charged at 5% of AGR

    Cabinet decides spectrum acquired will be charged at 5% of AGR

    NEW DELHI: The Union Government has approved that spectrum acquired in the current auction will be charged at five per cent of the AGR.

     

     In cases of combination of existing spectrum in this band and spectrum acquired through the auction, the weighted average will apply to the entire spectrum held by the operator in 900 MHz and 1800 MHz band.

     

    The Cabinet also said the licensees who do not acquire spectrum in this auction shall continue to pay spectrum usage charge (SUC) according to the existing slab rate.

     

    As 800 MHz spectrum is not being auctioned in the forthcoming auction and the recommendation of the Telecom Regulatory Authority of India (TRAI) has been sought for the reserve price, the decision in respect of Code Division Multiple Access (CDMA) spectrum will be taken at an appropriate time.

     

    In respect of Broadband Wireless Access (BWA) spectrum acquired through auction in 2010, SUC will continue to be charged, as per present practice, and the operator would be required to report the revenue earned from BWA spectrum separately.

     

    The Cabinet noted that as a matter of policy, it is desirable to move to a flat rate SUC and adoption of a weighted average would provide a path for such transition.

     

    A spokesperson said the decisions are expected to improve the bidding sentiment in the forthcoming auction.

  • No stay order for Kantar for now: Delhi HC

    No stay order for Kantar for now: Delhi HC

    NEW DELHI: It was just a week ago that one of the shareholders of TAM – Kantar Market Research decided to move the High Court against the TV ratings guidelines. Now, as the case was taken up in the Delhi High Court today, the issue has become a little clearer.
     

    According to the HC, Kantar won’t get a stay order on the petition for now just because the deadline to make the TV ratings guidelines is effective from 15 February. However, Judge Manmohan said that Kantar’s case will be heard again on 11 February and a final decision will be taken then.
     

    Counsel for Kantar, Harish Salve argued that the stay order was necessary as the guidelines were not framed under any statute of law. Additional Solicitor General Rajeev Mehra, appearing on behalf of the Union of India, said that the guidelines had been recommended by the Telecom Regulatory Authority of India (TRAI) which was a statutory body. The judge also remarked the same. Both Mehra and the counsel for TRAI accepted the notice and agreed to file their affidavits within time.

     

    The other big development in the case was the inclusion of the News Broadcasters Association (NBA) also coming as an intervener and joining the case as the third respondent apart from the Union of India and the TRAI. NBA counsel, A J Bhambhani pointed out that TAM only covered about 8000 homes in India, which doesn’t cover all the TV homes and thus isn’t a complete survey.
     

    Interestingly, the judge curious to know why instead of TAM approaching the court, a stakeholder Kantar has taken the step. To this, Salve said that the move was taken as Kantar is a major shareholder in TAM and the guideline related to cross holding affects Kantar and not TAM.

     

    Responding to a question posed by the judge, Salve said that TAM had nothing to gain by pushing up the TRPs. Its clients were advertisers and broadcasters and not the common viewer. Any rigs in ratings would be strongly protested against, he said. Salve also brought to the fore that regulations or guidelines need to be placed before the Parliament for approval.
     

    The case will now be heard once again on 11 February with Kantar fighting it out against the government, TRAI and the NBA.