ITV

Category: Regulators

  • Broadcasting and cable TV services grew marginally in Q2: TRAI

    Broadcasting and cable TV services grew marginally in Q2: TRAI

    MUMBAI: The Telecom Regulatory and Authority of India in its 2019 September-end quarter report has shown a marginal growth in the broadcasting and cable TV services with respect to the number of private satellite TV channels permitted by the government and pay TV channels as reported by broadcasters.

    TRAI in its performance indicator report has mentioned that there has been continuous growth in the number of private satellite TV channels subject to the government’s approval in the last five quarters.

    It reported that a total number of 910 private satellite TV channels have been permitted by the Ministry of Information and Broadcasting (MIB) for uplinking only/downlinking only/uplinking and downlinking both compared to 851 channels in the same quarter of 2018.

    With respect to quarterly growth in the number of satellite Pay TV channels, TRAI reported at least 330 pay channels, of which 232 SD and 98 HD Pay TV channels compared to 313 pay channels, of which 216 SD and 97 HD Pay TV channels in the same quarter of 2018.

    As the country achieved 100 per cent digitisation of Cable TV network, TRAI said, “This is a stupendous achievement making India as the only large country where 100 per cent digitisation of cable network has been achieved through mandatory regulations.”

    Out of top four Cable TV networks, Siti Networks has topped the chart with over 91 lakh subscribers , whereas DEN Networks stood at the fourth position with 43 lakh subscribers, TRAI report said.

    Meanwhile, GTPL Hathway and Hathway Digital had a tough fight for the second and third spot with difference of few thousands of subscribers, both had 53 lakh subscribers in September ended quarter.

    The report said that there are total 1,606 Multi System Operators (MSOs) registered with the Ministry of Information and Broadcasting (MIB), of these 1,143 MSOs are operational. It further added, there are 12 MSOs & 1 HITS (Head in the Sky) operators who have subscribers base over a million.  

    TRAI while mentioning about Direct-To-Home (DTH) services’ growth said that the DTH service has displayed a phenomenal growth and in all there four pay DTH providers in India.

    According to the report, Pay DTH has attained total active subscriber base of around 69.30 million at the end of September quarter compared to 69.45 million in the same quarter of 2018.

    Tata Sky and Dish TV locking the horns for first and second position in market share, the latter has 31.61 per cent subscribers base and former 31.23 per cent. Whereas, Airtel being at the third position has subscribers base of 23.39 per cent and Sun Direct has 13.8 per cent.

  • NTO 2.0 will affect viability of pay TV industry: IBF

    NTO 2.0 will affect viability of pay TV industry: IBF

    MUMBAI: The broadcast sector has expressed its shock and dismay with the latest notification from TRAI issued on 1 January 2020, amending the new tariff order (NTO) and interconnection regulations. Indian Broadcasting Foundation (IBF) believes that both the amendments will severely impair broadcasters' ability to compete with other unregulated platforms and adversely affect the viability of the pay TV industry.

    "IBF is disappointed at the lack of understanding shown by the regulator. It will strategise its future course of action, including evaluating legal options, based on feedback from its member channels and networks," said the body.  

    The association in its response to TRAI's consultation paper had pleaded with the regulator to adopt a "soft touch" and allow the industry to come to terms with the NTO before making further changes. "In fact, TRAI itself had acknowledged this need by proposing a two year moratorium on further regulation. It appears all IBF's pleas have been ignored. Unfortunately, in this exercise, content creators and owners have been disempowered and the entire authority has shifted to the middlemen," expressed IBF.

    IBF has conveyed that these changes will have very significant and industry growth-hampering ramifications for the broadcast sector. At a time when the economic environment is tough, this tariff order will force a lot of channels to shut down and will lead to unemployment in the sector. While the government is looking at ramping up growth, these changes will have the opposite effect for the broadcast sector just recovering from the twin shocks of NTO in the first half of 2019 and the ad slowdown business.

    IBF said that it has always believed that consumers pay for the value of the content. Post NTO, the ecosystem had just settled down with about 200 million consumers choosing their favourite channels. "We have to allow the changes to fully settle down and the market forces to prevail while resisting the temptation to continuously tinker with the regulation. The Regulator’s intent was to address infirmities in the NTO, however, it has been done solely at the cost of the broadcasting fraternity," said IBF.   

    In the last 15 years of regulating the broadcast sector TRAI has issued more than 36 tariff orders and ancillary regulations in an attempt to micromanage what is arguably the cheapest form of news and entertainment in the world. This goes contrary to the government's stated position of ensuring the "ease of doing business". While TRAI claims the amendments are in the consumers’ interest, it appears to have conveniently forsworn the interest of broadcasters. This change will only benefit the DPOs as they have been allowed to charge as much as Rs 160 for the channels that are supposed to be ‘FREE’.

    "As per the new amendments, TRAI has reduced the cap on the MRP of individual channels, which can form part of any bouquet, to Rs 12 per month, from the earlier cap of Rs 19. Less than a year ago, TRAI itself determined that the price per channel can be Rs 19, which has now been reduced to Rs 12 without giving any logical reason. Thus making the change totally arbitrary," said IBF.  

    It also said, "Over-regulation, inconsistency and frequent changes in the regulations by the regulator has already cost the broadcast sector 10-12 million TV subscribers as per various industry estimates in 2019. These amendments will compound the problem further."

  • India Ratings: NTO 2.0 negative for broadcasters, neutral for MSOs

    India Ratings: NTO 2.0 negative for broadcasters, neutral for MSOs

    MUMBAI: Credit rating agency India Ratings (Ind-Ra) & Research believes that Telecom Regulatory Authority of India’s (TRAI) amendments to the tariff and interconnection regulation are largely negative for broadcasters and neutral for multiple system operators (MSOs).

    The rating agency, a subsidiary of the Fitch Group, said that the amendments (NTO 2.0) have focused on a reduction in the final customer price, resulting in broadcasters bearing the largest burden in the entire value chain.

    Ind-Ra in its report said that the revised regulations stipulate a reduction in a-la-carte pricing for channels and a cap on bouquet prices in line with a-la-carte prices would impact broadcasters’ profitability meaningfully.

    The regulatory had put a cap on network capacity fees (NCF) & carriage fees and a higher number of pay channels in base NCF, which sound optically negative for MSOs, but would have a marginal impact as they are broadly in line with the current on-the-ground ecosystem, said the report.

    Meanwhile, the reintroduction of discount on bouquet prices compared to a-la-carte channel prices is surprising, given that the Madras High Court had earlier ruled against it.

    The amendment directs broadcasters and distributors to submit the revised channel prices by 15 January 2020 and 30 January 2020 respectively, with full implementation from 1 March 2020.

    Ind-Ra also believes that the regulation has essentially de-risked the business model of distributors (MSOs, local cable operators (LCOs)), as their revenue stream will contain fixed NCF from subscribers and content commission from broadcasters, thereby effectively passing through content costs.

    The increase in the total number of channels under the base NCF to 200 from 100 earlier is unlikely to have any major impact, as MSOs anyways offer above 200 channels under the current price regime for NCF of INR130.

    The rating agency also added that the exclusion of mandatory channels as per the government from the bouquet of 200 channels may free-up space for additional pay channels, which may further reduce NCF for MSOs.

    MSOs earn content fees and distribution fees from broadcasters as a proportion of the content cost. MSOs’ realisations may slightly be impacted as the overall content costs and resultant content & distribution fees have also reduced.

    As the continued investment in content remains critical for broadcasters, the revised regulation capping prices of both a-la-carte channel and channel bouquet may curtail broadcasters’ ability to invest in quality content, said the Ind-Ra report.

    According to the rating agency, the risk is even higher for the sports genre, where content creation/acquisition costs can be more than in the news genre. Also, the regulation on channel prices discourages bundling weaker channels with strong anchor channels in the same bouquet.

  • TRAI releases consultation paper on net neutrality issues

    TRAI releases consultation paper on net neutrality issues

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has released a new consultation paper that deliberates on traffic management practices (TMPs) and multi-stakeholder body for net neutrality.

    Earlier, TRAI issued recommendations on 'Net Neutrality' on 28 November 2017, covering the principle of non-discriminatory treatment, application, exclusions and exceptions, loT and Specialised services, Transparency and disclosures, monitoring and enforcement etc.

    DoT conveyed that TRAI recommendations on "Net Neutrality" were considered by the government. DoT issued its principle directives on net neutrality. Further, DoT sought additional recommendations from TRAI on TMPs and composition, functions, role and responsibilities of the multi-stakeholder body for monitoring and enforcement.

    The objective of this Consultation Paper is to deliberate the issues related to traffic management practices and the multi-stakeholder body net neutrality. The paper discusses various challenges in measurement of internet traffic and compilation of reasonable traffic management practices. It discusses establishment of a framework to formulate TMPs. The paper also discusses the issues related to composition, function, governance structure of various multi-stakeholder body.

    Comments on the issues raised in the consultation paper are invited from the stakeholders by 30 January 2020 and counter comments, if any, by 13 February 2020.

    Trai

  • TRAI amends new tariff order rules for a-la-carte channel pricing and NCF

    TRAI amends new tariff order rules for a-la-carte channel pricing and NCF

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has ushered in the new year with some welcoming changes to the new tariff order framework that came into effect on 29 December 2018. Some of the major concerns found it was regarding the cap on maximum discount permissible to broadcasters while forming a bouquet, number of channels permitted in network capacity fee (NCF), applicable NCF for multi TV homes, flexibility to distribution platform operators (DPOs) in offering long term subscription plans and carriage fee payable by broadcasters to DPOs.

    In order to “protect the interests of consumers," TRAI has modified certain provision of the new regulatory framework.

    A-la-carte prices

    TRAI has  addressed the issue of huge discounts in the formation of bouquets by broadcasters vis-a-vis sum of a-la-carte channels – in the new dispensation it  has prescribed following twin conditions to ensure that the price of a-la-carte channels does not become "illusionary":

    i) the sum of the a-la-carte rates of the pay channels (MRP) forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part

    ii) the a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.

    Additionally, the authority decided that only those channels with an MRP of Rs 12 or less will be permitted to be part of the bouquet offered by broadcasters.

    New NCF rules

    NCF related issues were another area of concern for consumers, says the TRAI.  It has examined various provisions in detail and accordingly mandated the provision of 200 channels in maximum NCF of Rs 130 excluding taxes per month. In addition, it has also been decided that channels declared mandatory by the Ministry of Information and Broadcasting will not be counted in the number of channels in the NCF. DPOs have also been mandated that they will not charge more than Rs 160 per month for giving all channels available on their platform.

    Consumers have also highlighted huge charges taken by DPOs in the form of NCF for a multi-TV home. TRAI has decided that in case of multi-TV home where more than one TV connection is working in a home in the name of one person, will charge maximum 40 per cent of declared NCF for second and additional TV connections. The authority has also permitted DPOs to offer discounts on long term subscriptions which is for six months or more.

    Carriage Fee

    TRAI also considered the concern of broadcasters regarding huge carriage fees being charged by DPOs. The authority has mandated that MSOs, HITS operators, IP TV service providers will not havea  target market bigger than state or union territory as the case may be. In addition, a cap of Rs 4 lakh per month has been prescribed on carriage fee payable by a broadcaster to a DPO in a month for carrying a channel in the country.

    Flexibility to DPOs

    The authority has also considered giving more flexibility to DPOs to place the TV channels in electronic programme guides (EPG) and mandated that channel of a language in a genre will be kept together while placing channels on the guide.  Such EPG layout is to be mandatorily reported to TRAI and no change in this can be done without prior approval of the authority. This will address the concerns of the broadcasters to a great extent to protect them as it will not allow DPOs to frequently change the LCN of the television channel in case they do not agree to their mandates.

    Regulator speak

    “The amendments carried out through the consultation process has left the basic contours of the new regime untouched and the broadcasters/DPOs will continue to enjoy the flexibility in carrying out their businesses. The review exercise has been limited to certain consumer-friendly measures and to balance the interest of stakeholders. The revisions strive to ensure that the objectives of the existing framework get fulfilled to great extent,” TRAI said in a release.

    TRAI went on to say that the NTO framework is quite successful in establishing harmonised business processes in the sector, level-playing-field, bringing-in transparency in TV channel pricing, reducing litigations among stakeholders and providing equal opportunities to smaller MSOs. “As a result, there is a pronounced reduction in disputes among stakeholders as well as entry barriers. The transparency has ushered better tax compliance thereby improving government revenue. However, the intended choice to consumers to select what they want has got scuttled due to various issues during the implementation,” it said.

    The amendments provide appropriate time to stakeholders for implementation. Broadcasters are required to publish revised MRP of a-la-carte channels and bouquets on their website by 15 January 2020 and DPOs are required to publish revised DRP of a-la-carte channels and bouquets on their website by 30 January 2020. Consumers will be able to benefit as per the amended provisions with effect from 1 March 2020. The authority is of the view that the amendments will usher in better consumer offerings, more flexible tariff schemes and more choices for consumers. Overall, the amendments are expected to result in healthier & structured growth of the Broadcasting and Cable Services sector.

    Two consultation papers were issued on 16 August 2019 and 25 September 2019 in order to address concerns regarding pricing of channels in the new tariff order era. 

  • MIB grants registration to 11 MSOs in Dec 2019

    MIB grants registration to 11 MSOs in Dec 2019

    MUMBAI: The Ministry of Information and Broadcasting (MIB) has published a document listing all the registered multi system operators (MSO) in the country. As per the document, there are 1616 registered MSOs in India as on 31 December 2019.

    Eleven MSOs were granted registration in the month of December 2019. A total of 150 MSOs were granted registration in the years 2019. Surprisingly, just one MSO, Sharma Cable Network, was granted registration in the entire of 2018 as per the document.

    All the granted registrations are valid for a period of 10 years. The name of the companies that were added in the registration list in December includes Sri Laxmi Narasimha Swamy Communication; DVR Siti Digital; M.D. Cable Network; Blue Star Cable Services; Unify Netsol pvt ltd.; Feroz Digital Networks; Shiva Sai Laxmi Communications; Array Access Digital Services; Realtouch Cable & Broadband pvt ltd.; Shiv Cable Network and Golleshwar

    You can access the full list here

  • MIB addresses Congress MP Manish Tewari’s query on govt’s ad spends

    MIB addresses Congress MP Manish Tewari’s query on govt’s ad spends

    MUMBAI: Congress MP Manish Tewari, asked the Ministry of Information and Broadcasting (MIB) to reveal details about the yearly amount spent by the Government of India (GOI) on print, broadcasting, social media and outdoor advertisements between 26 May 2014 and 30 September 2019 on 29 November. He also has asked for details about the amount spent on ads in foreign media.

    Tewari inquired about the Government’s advertising share in the revenue streams of the top 20 Indian media firms between 04 April 2014 and 09 September 2014.

    MIB minister Prakash Javadekar replied “The Bureau of Outreach and Communication (BOC) releases notices, tenders, auctions, recruitments, etc. and also undertakes awareness campaigns and dissemination of information about the government schemes and programmes through various media.”

    Javadekar wrote in his reply that the details about the release of advertisements on various media between the said dates are available on BOC’s website.

    He explained that the revelation of per sq cm rate of ads in print media has increased from Rs. 42.31 to Rs. 62.13, but the average per year print media space of advertisements given by the BOC between FY 2014-15 and 2018-19 has reduced during NDA’s rule from Rs. 11.88 crore sq cm to Rs. 10.95 crore sq cm in UPA II rule between FY 2009-10 and 2013-14.

    Javadekar lastly said that GOI does not maintain details about the Indian media companies. He also emphasised that the Ministry does not issue advertisements in foreign newspapers and TV channels.

  • DPIIT to issue clarification on capping FDI in digital media

    DPIIT to issue clarification on capping FDI in digital media

    MUMBAI: Amid certain stakeholders raise concern over government’s decision to allow 26 per cent FDI in digital media sector, the Department for Promotion of Industry and Internal Trade (DPIIT) is likely to issue a clarification soon on the same, Economic Times reported.

    According to some stakeholders, the idea to cap FDI (foreign direct investment) in digital media sector to 26 per cent must be clarified  by government as these stakeholders, who were looking to raise funds through FDI is now put on hold.

    There are two main concerns stakeholders have raised and sought clarification: 1) How the FDI policy of the sector would treat news aggregators, and 2) what would happen to those digital media companies where overseas investment is over 26 per cent

    Taking the views of the Information and Broadcasting Ministry on the issue, the DPIIT is expected to issue clarification shortly, Economic Times said quoting sources.

    In this regard, Deloitte India partner Jehil Thakkar had said that the clarity needed was on how to treat cases of television broadcasters that stream news online, but are allowed 49 per cent FDI.

    He questioned, “What happens to those, whether they qualify fewer than 26 per cent or 49 per cent (FDI)? What happens to news websites which are 100 per cent foreign entity?”

  • TRAI extends deadline for comments on ‘transparency in publishing of tariff offers’

    TRAI extends deadline for comments on ‘transparency in publishing of tariff offers’

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has extended the deadline for stakeholders to submit their comments on the consultation paper on ‘Transparency in Publishing of Tariff Offers’ by next year 23 January.

    TRAI had issued a consultation paper on ‘Transparency in Publishing of Tariff Offers’ on 27 November 2019. And, the original date for receiving written stakeholders’ comments was fixed on 26 December 2019 and counter comments by 9 January 2020.

    TRAI decided to extend the deadline because the stakeholders have sought extension of time for sending their comments on the consultation paper on transparency in publishing of tariff offers.

    Accepting industry’s request, TRAI has decided to extend the last date for submission of written comments up to 2 January 2020 and counter comments by 6 February 2020.

    The regulatory also made a point that no further request for extension would be entertained.

    Earlier last month, TRAI had sought public views on enhancing transparency in disclosure of phone services rates and mooted an idea of introducing tariff calculator to help customers find the best plans to suit their usage.

    The move came after TRAI received a significant number of complaints from individual consumers on a lack of transparency in disclosure of tariff information.

  • I&B ministry asks private satellite channels to telecast content cautiously

    I&B ministry asks private satellite channels to telecast content cautiously

    MUMBAI: Ministry of Information and Broadcasting (MIB) has issued an advisory to all private satellite channels regarding the telecast of content in compliance with the programme codes. MIB has also noted that it has observed some TV channels telecasting content not according to specific programme codes mentioned in an earlier advisory dated 11 December.

    MIB has reiterated that all TV channels may abstain from showing any content which is likely to instigate violence or contains anything against maintenance of law and order or which promotes anti-national attitudes; contains anything affecting the integrity of the nation; criticises, maligns or slanders any individual in person or certain groups, segments of social public and moral life of the country.

    All private satellite channels have been asked to compile with the advisory strictly.