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Category: Regulators

  • TRAI to meet telecom players next month to fix 2019 agenda

    TRAI to meet telecom players next month to fix 2019 agenda

    MUMBAI: To fix the agenda to be taken up in next calendar year, Telecom Regulatory Authority of India (TRAI) is expected to meet telecom industry players next month. The discussion, which is now an annual feature, is likely to involve a wider set of players in the telecom sector this time including operators, infrastructure providers and others.

    “The meeting will take place next month. We will talk to them and ask them about the items they think should be taken up in the next calendar year,” TRAI chairman RS Sharma said on Monday on the sidelines of an interactive session on ‘New Regulatory Framework for Broadcasting and Cable Services’, according to a PTI report.

    As Sharma noted, this time it would not be limited to telecom service providers alone but a broader consultation to figure out the new areas to be deliberated next year.

    While the regulatory body launched a consultation to explore the regulatory framework for OTT apps like WhatsApp, Facebook and Google Duo that provide calling and messaging services similar to that by telcos, he also added that TRAI will be able to finalise its views on the issue of a regulatory framework for OTT players in the coming 5-6 months.

    Supreme Court recently dismissed a petition challenging TRAI’s March 2017 regulations and tariff order paving the way for implementation of the order for the broadcast sector. Sharma while addressing the interactive session said the new comprehensive framework for the sector entailing tariffs, service quality and interconnect aspects, is aimed at “growth”.

    “It is not aimed at hurting players but ensuring growth of the sector in an orderly manner and keeps the interest of stakeholders in mind,” Sharma said.

    Local cable operators and multi system operators raised concerns on issues ranging from operationalising the new norms to ‘a la carte rates’. He urged players to give the new framework a fighting chance along with cautioning that technological changes, which improve service quality and enhance capacity, can also be disruptive.

  • TRAI releases paper on OTT expanding its definition

    TRAI releases paper on OTT expanding its definition

    MUMBAI: India’s telecom and broadcast regulator TRAI today released another consultation paper on OTT services seeking to expand the definition of the sector and also the regulator’s jurisdiction over a sector hitherto “unregulated”.

    “Would inter-operability among OTT services and also inter-operatability of their services with TSPs services promote competition and benefit the users? What measures may be taken, if any, to promote such competition? Please justify your answer with reasons.” Questions like these in the paper hint that the government and the regulator are looking at regulations for the OTT services that would include both audio and video services.

    Earlier,    the    Authority  issued   a   consultation   paper  on    Regulatory Framework for  Over-the-top (OTT) services on  the   27th of  March, 2015, which also included questions  on  the   principles of  net neutrality, reasonableness of traffic management practices, non-price based discrimination  of  services and  transparency  requirements.  Due to the large  number   of   issues  and  their  complexity, it   became   difficult  to deliberate upon and  conclude all  of  them  together. Therefore, Authority decided to  deal with related issues in  separate parts, keeping focus on  a core  set  of issues  each time. Accordingly, the  following actions have been taken:

    a. The  Authority issued regulations on  Prohibition of Discriminatory Tariffs for  Data Services Regulations,  2016.

    b. Recommendations on provisioning of free data given to Government on  19th December  2016,

    c. Recommendations on  Net  Neutrality to  Government on   Nov  28,

    2017.

    d. Recommendations on privacy, security, and data ownership issues in the telecom sector submitted to Government on  July 16,  2018.

    3.     Questions relating to the potential market failures in each segment, the appropriate tools to address those failures and the costs and benefits of any possible regulatory interventions have also been investigated.

    4.  Keeping in  v1ew the fast evolving nature of the  sector,  it is also considered useful to   examine  OTI related aspects, after taking into account the changes that have taken place since March, 2015.

    5.  The objective of  this Consultation Paper is to  analyse and discuss the  implications of  the  growth of  OTis;  the  relationship between OTI players and TSPs; the similarity, if any, between services provided by  the TSPs and  OTI  players;  changes  that  may be   required in the current regulatory framework to  govern these entities; and the manner in  which such changes should be  effected . While preparing this consultation paper, information collected by    the   Authority in response to previous consultations has also been used. It  may also be   noted that current consultation is not intended  to  revisit regulations  or   recommendations given  by the  Authority earlier on  OTI, which had broader implications and were  therefore concluded first following due consultation and diligence.

    6.  Comments on the issues raised in the consultation paper are invited from the stakeholders by  10.12.2018 and counter comments, if any,  by 24.12.2018. 

  • MIB extends feedback deadline date on mandatory sports feed sharing norms

    MIB extends feedback deadline date on mandatory sports feed sharing norms

    MUMBAI: Ministry of Information and Broadcasting (MIB) has extended the deadline to give feedback on the draft sports broadcasting signals (Mandatory Sharing with Prasar Bharti) (Amendment) Bill, 2018 till 31 December 2018. In an earlier notification dated 17 October, it said that feedback must be given within a month to enable telecast of “Sporting events of national importance’ on mandatory channels of Doordarshan via cable/DTH/ IPTV operators.

    As per provisions of the Sports Act, the live feed received by Prasar Bharati from the content rights owners or holders is only for the purpose of re-transmission of the said signals on Doordarshan’s own terrestrial and DTH network (DD FreeDish) and not for
    cable operators or other distribution networks. The ad sales is also done by private companies after taking the pubcaster into confidence with the additional ad revenue shared between the rights holding TV channel and DD.

    Viewers, who do not have DD FreeDish [pubcaster Doordarshan’s FTA DTH platform] or Doordarshan’s terrestrial network, are either unable to watch these sporting events of national importance or are compelled to watch these sporting events on highly priced sports channels.

    Additonally, private DTH platforms and MSOs/LCOs were barred from showing DD's non-terrestrial channels that re-transmitted the shared feeds, after the August 2017 Supreme Court ruling, for the duration of that particular event and it was stressed upon also by Prasar Bharati fearing adverse reaction from the apex court.

    The extension notice reads: “Reference this Ministry's earlier notice dated 17.1 0.201 8 seeking feedback / comments on Draft Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) (Amendment) Bill, 2018, it is informed that the deadline for receiving feedback/comments from General Public/Stakeholders on the said draft Bill, 2018 to enable telecast of 'Sporting events of National importance'on mandatory channels of Doordarshan via Cable /DTH /IPTV Operators has been extended by this Ministry till 31 .12.2018.”

  • MIB gives permission to two new channels – Khalsa and Nireekshana TV

    MIB gives permission to two new channels – Khalsa and Nireekshana TV

    MUMBAI: The Ministry of Information and Broadcasting (MIB) after being lenient for couple of months in awarding channel licenses, is back to being strict. In the month of October, two new channels received licenses while none saw their licenses cancelled as on 31 October 2018.

    The two channels are Khalsa channel and Nireekshana TV. Nexgen Telelinks got the permission for uplinking and downlinking Khalsa channel (non-news) in Hindi and all Indian scheduled languages on 9 October 2018. Shopping Zone India TV got the permission for uplinking and downlinking Nireekshana TV (non-news) in Tamil, Malayalam, Kannada, Telugu and scheduled Indian languages on 18 October 2018.  

    On the other hand, Jain TV, PBN (earlier Samachar 24X7) and Dheeran TV channels, which were present in the list of permitted private satellite TV channels in the list up to 30 September 2018, were not in the new list till 31 October 2018.

    The 14 licenses which were cancelled earlier by MIB due to security denial by Ministry of Home Affairs (MHA) are still now under stay order from the court.

    After cancelling permission to 252 channels, the number of private satellite TV channels having valid permission in India stands at 866 as on 31 October 2018. 483 channels are non-news channels and the remaining 383 are news channels.

    Of the 868 permitted private satellite channels, TV channels permitted for uplinking from India and also to downlink into India are 766 among which 362 are news channels and 404 are non-news channels. 11 non-news channels and five news channels are permitted for uplinking from India but not downlink into the country. 84 TV channels are uplinked from abroad which only have downlinking permission in India. This category includes 15 news and 69 non-news channels.

  • TRAI, telco chiefs to meet in December over OTT regulation

    TRAI, telco chiefs to meet in December over OTT regulation

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) is scheduled to meet top executives of telcos in the month of December. The meeting is being lined up in order to discuss plans for 2019. The regulator may also issue a consultation paper next week on whether over-the-top (OTT) apps such as Skype, WhatsApp and Google Duo should be regulated.

    Speaking to Economic Times, TRAI chairman Ram Sewak Sharma said, “We are going to call chief executives of telecom service providers in the month of December to actually finalise the agenda and roadmap for the next year.”

    The regulator will also separately meet the Indian broadcasting industry stakeholders and multiple system operators, informed Sharma.

    As these apps are already being regulated under the Information Technology Act, telcos have demanded that OTT communication apps should be brought under a regulatory regime similar to theirs since they provide comparable services without the liabilities associated with being a licence holder.

    TRAI chairman confirmed that they were coming out with a consultation paper next week as the final document was almost ready.

  • SC upholds TRAI Act over Copyright Act in tariff order case

    SC upholds TRAI Act over Copyright Act in tariff order case

    MUMBAI: The two-judge bench of the apex court with Justices Rohinton Fali Nariman and Navin Sinha dismissed the Star India’s appeal against Telecom Regulatory Authority of India’s (TRAI) recent tariff order. The principal area of the argument by the broadcaster was that the pricing of the content cannot be regulated by TRAI as it comes under the Copyright act. The verdict has clearly pronounced that the as TRAI Act is in public interest, it should prevail over the Copyright Act.

    “The best way in which both statutes can be harmonised is to state that the TRAI Act, being a statute conceived in public interest, which is to serve the interest of both broadcasters and consumers, must prevail, to the extent of any inconsistency, over the Copyright Act which is an act which protects the property rights of broadcasters. We are, therefore, of the view that, to the extent royalties/compensation payable to the broadcasters under the Copyright Act are regulated in public interest by TRAI under the TRAI Act, the former shall give way to the latter,” the Supreme Court order said.

    The 123-page judgment read that a copyright is meant to protect an owner’s work (original or re-broadcasted) and isn’t concerned with the interest of the end user or consumer and hence does not fall under the purview of the Copyright Act. It is the TRAI Act that needs to focus on the consumers’ interest.

    The Supreme Court added that the Copyright Act will operate within its own sphere giving broadcasters full flexibility to change royalty or compensation. On the other hand, TRAI does not, in substance, impinge upon these acts. It even observed that broadcasters have freedom to provide their own choice of content and arrange their own pricing as long as they aren’t discriminatory or force subscribers to choose either bouquets or a-la-carte.

    In the Supreme Court order, it was also noted that one of the functions of the authority, is to “facilitate competition and promote efficiency in the operation of telecommunication services (which includes broadcasting services) so as to facilitate growth in such services.”

    The tariff order has been the subject matter of extensive discussions between TRAI, all stakeholders and consumers. The order read further that the focus of TRAI has always been to provide a level playing field to both broadcaster and subscriber.

    Though the impending ruling led to lack of clarity, all the major broadcasters published their Reference Interconnect Offers along with the line of the order. As Star India was the petitioner, it did not publish its RIO.

    “The SC order has empowered consumers across the nation. While the overall media and entertainment landscape has been evolving rapidly, it is for the first time in 26 years that such a strong and positive step has been taken to eradicate the lack of transparency in the cable and broadcast value chain,” ZEE and Essel Group chairman Subhash Chandra commented.

    “This is the watershed moment we have all been waiting for. We feel that the new framework will bring in much needed transparency, parity, promote exercising of choice for the consumer and ensure orderly growth of the sector. The onus is now on all service providers to put their best foot forward and keep consumer interest in mind by complying with the required initial timelines and activities at the earliest,” AIDCF president Rajan Gupta said.

    While along the same line TRAI chairman RS Sharma said it is a big win for consumers as per a PTI report, the verdict undoubtedly has far-reaching impact in broadcast industry.

    Earlier in the Madras High Court, division bench consisting of Justice M Sundar J and Chief Justice Indira Banerjee gave a spilt verdict. While M Sundar’s ruling was in favour of Star India, a third judge upheld the tariff order except certain riders.

  • AIDCF welcomes Supreme Court judgement which upholds TRAI jurisdiction

    AIDCF welcomes Supreme Court judgement which upholds TRAI jurisdiction

    MUMBAI: In the matter of the new Tariff Order and Interconnection Regulations as notified by TRAI in March 2017, the Supreme Court has today upheld the jurisdiction of TRAI to frame the above mentioned regulations. It may be recalled that the issue of TRAI jurisdiction was subsequently challenged by Star India and Vijay Television in the Supreme Court after their appeal to Madras High Court was turned down by 3rd judge, Hon’ble Mr. Justice M.M. Sundresh.

    This marks a new era for the Broadcasting sector and also the end of a long wait for the new framework to finally get effectuated. Most service providers have already started working towards meeting the timelines as specified by TRAI in their circular dated 3rd July 2018.

    Mr. Rajan Gupta, President of AIDCF, while welcoming the judgement of the Hon’ble Supreme Court said that – “This is the watershed moment we have all been waiting for.

    We feel that the new framework will bring in much needed transparency, parity, promote exercising of choice for the consumer and ensure orderly growth of the sector. The onus is now on all service providers to put their best foot forward and keep consumer interest in mind by complying with the required initial timelines and activities at the earliest.”

    ABOUT All India Digital Cable Federation (AIDCF) is India’s apex body for Digital Multi System Operators (MSOs). The federation works towards the overall growth of the sector and creates an environment for not only complete digitisation of cable TV under regulatory guidelines but also delivers the benefits of digital services including broadband and other value added services to the people of India thus fulfilling the dream of ‘True Digital India.’

    AIDCF is the official voice for the Indian digital cable TV industry and interacts with ministries, policy makers, regulators, financial institutions and technical bodies. It also provides a platform for discussion and exchange of ideas between these bodies and the service providers, who share a common interest in the development of digital cable TV in the country. It also collaborates with other industry associations such as IBF, CII, FICCI, ASSOCHAM association etc., with the objective of presenting an industry consensus view to the government on crucial issues relating to the growth and development of the industry.

    Members of AIDCF have a market share of more than 75% in the Cable TV Industry.

  • TRAI wins tariff order case in Supreme Court

    TRAI wins tariff order case in Supreme Court

    MUMBAI: The Telecom Regulatory Authority of India has come out victorious in the long running battle on whether pricing of content comes under its purview. The Supreme Court has finally given the long-awaiting verdict on Star India versus Telecom Regulatory Authority of India case on tariff order while arguments related to the case ended on October 11. A source close to the development informed Indiantelevision.com that the ruling is in favour of TRAI.

    Speaking on the verdict Zee and Essel Group chairman Subhash Chandra said, "I am extremely glad to note the Supreme Court’s order and I think it is THE best thing that could have happened to the industry, the players in the value chain and the consumers at large. We at ZEE & Essel Group have always focused on keeping our consumers as our first priority and I am very glad that the Supreme Court’s order has empowered the consumers across the nation. While the overall media & entertainment landscape has been evolving at a rapid pace, it is for the first time in 26 years that such a strong & positive step has been taken to eradicate the lack of transparency in the entire value chain of the broadcast & cable industry. It will certainly help the LCOs, MSOs and the broadcasters.”

    Zee Entertainment Enterprises Ltd (ZEEL) was first out of the blocks in publishing the RIO, declaring the MRP and nature of channels in connection with its tariff order , which had a 31 August deadline. The Punit Goenka-led company was followed by TV18 Broadcast Ltd ( TV18) and Sony Pictures Networks India Private Ltd (SPNI), who adhered to the regulator’s directive on 4 September. Later, Disney India, Turner India International, Sun TV Networks have also published their RIOs in compliance with the order.

    Speaking on the news, AIDCF president Rajan Gupta said, “This is the watershed moment we have all been waiting for. We feel that the new framework will bring in much needed transparency, parity, promote exercising of choice for the consumer and ensure orderly growth of the sector. The onus is now on all service providers to put their best foot forward and keep consumer interest in mind by complying with the required initial timelines and activities at the earliest.”

    The TRAI tariff orders, first contested in Madras High Court by the petitioners, were cleared by the Chennai court with certain riders after hearings that continued almost over 16 months in front of a two-member bench

    After the Madras HC had given a thumb up to TRAI tariff order, and both the petitioners and the defendant (TRAI) had filed caveats in the Supreme Court, the regulator had bowled a googly saying that its tariff order would come into effect from 3 July 2018 as all judicial compliances had been completed.

    According to TRAI, implementation of the new regulatory framework will “bring in transparency”, enable provisioning of affordable broadcasting and cable TV services for the consumer and, at the same time, “would lead to an orderly growth of the sector”.

  • MIB proposes to change mandatory sports feed sharing norms

    MIB proposes to change mandatory sports feed sharing norms

     NEW DELHI: In what could have far reaching effects on the financial viability of sports TV channels or streaming platforms, which acquire exlcusive rights for sporting events for the India region spending billions of dollars, the government proposes to amend rules relating to mandatory sharing of feeds of sports of national importance with not only the pubcaster, but with other distribution platforms. Reason for proposed changes: people with less purchasing power should not lose out on the sporting excitement.

    “…viewers, who do not have DD FreeDish [pubcaster Doordarshan’s FTA DTH platform] or Doordarshan’s terrestrial network, are either unable to watch these sporting events of national importance or are compelled to watch these sporting events on highly priced sports channels and, thus, the very objective with which the Parliament had enacted the Sports Act has been defeated,” Ministry of Information and Broadcasting (MIB) said in a notice issued on 17 October 2018, adding that public comments were invited within a month on the changes proposed in the relevant regulation relating to sharing by rights holding private TV channels of broadcasting feed with the pubcaster.

    As per provisions of the Sports Act, the live feed received by Prasar Bharati from the content rights owners or holders is only for the purpose of re-transmission of the said signals on Doordarshan’s own terrestrial and DTH network (DD FreeDish) and not for
    cable operators or other distribution networks. The ad sales is also done by private companies after taking the pubcaster into confidence with the additional ad revenue shared between the rights holding TV channel and DD.

    Though the sports rule was legislated in 2007, the shared signals on DD were sometimes donloaded by distribution platforms from satellite-delivered channels and re-transmitted not only in India but also in some neighbouring countries. Seeing this trend, Star India, which was investing heavily in sports, had moved the courts and in August 2017 got a favourable ruling from the Supreme Court that ruled the shared feed of sporting events of national importance, as mandated by the government, can only be re-transmitted on DD terrestrial network and DD FreeDish to avoid piracy and possible loss of revenue for the rights holder.

    Additonally, private DTH platforms and MSOs/LCOs were barred from showing DD's non-terrestrial channels that re-transmitted the shared feeds after the August 2017 Supreme Court ruling for the duration of the that particular event and it was stressed on also by Prasar Bharati fearing adverse reaction from the apex court.

    Within few  days of the SC ruling favouring the rights holding TV channel or broadcaster and few days before the lucrative IPL cricket rights bids were opened last year, Jawahar Goel, chairman and MD of Dish TV, India's first DTH platform started by the Zee group, raised an alarm on Star's emerging cricket monopoly.
    In a hard-hitting letter, addressed to various Indian government organisations, including MIB, regulator TRAI and the anti-monopoly authority, Goel had alleged that combined with the financial muscle and near-monpoly over cricket for India region, Star's acquistions will impact "every stakeholder in the broadcasting industry, starting from the distributors of  TV channels". Star India finally outplayed other bidders for the IPL rights for the next five years in 2017 by coughing up a whopping $2.4 billion.

    In the light of recent developments in the distribution segment of the Indian broadcast system, MIB's latest move gains importance. So, what's the proposed amendment being sought to be inserted in the 

    Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) (Amendment) Bill, 2018?

    The relevant portion of the amendment being proposed for which stakeholders' comments have been invited reads: “No content rights owner or holder and no television or radio broadcasting service provider shall carry a live television broadcast on any cable and/or Direct-to-Home network and/or IPTV and/or terrestrial network or radio commentary broadcast in India of sporting events of national importance, unless it simultaneously shares the live broadcasting signal, without its advertisements, with the Prasar Bharati to enable them to re-transmit the same on its own terrestrial network and Direct-to-Home network and on other television distribution platforms/networks where is it mandatory to broadcast mandatory channels notified by the Union Government under Section 8 of the Cable Television Networks (Regulation) Act, 1995 in such manner and on such terms and conditions as may be specified.”

    At present, Star India and Sony Pictures Networks India — the latter has a partnership with ESPN that got a divorce from Star for sports channels in 2012 — are two networks that own and manage sports channels in India. However, in recent times digital players like Facebook, Reliance Jio, Amazon and Alibaba-controlled Indian digital wallet company PayTM have shown interest and bid for cricket properties in India. Facebook also won the India rights for La Liga football that was streamed free on the digital platform, while being sub-licensed to Sony for normal TV broadcast.

    However, an industry observor pointed out that apart from the fact that the pubcaster's DD FreeDish platform could get further hit financially if the proposed changes are legislated, it was also highlighted  that what could have further spurred the government into action is that after TRAI's new tariff regime kicked in last month, most broadcast companies and TV channel managers converted FTA TV channels into pay channels  depleting further the basic FTA bouquet aimed at people with low purchasing power.

    It would be interesting to watch how this proposed change plays out with stakeholders.

  • TDSAT asks SPN, Tata Sky to reach an agreement in 4 weeks

    TDSAT asks SPN, Tata Sky to reach an agreement in 4 weeks

    MUMBAI: The Telecom Disputes Settlement Appellate Tribunal (TDSAT) has heard the case on the recent commercial dispute between Sony Pictures Networks India (SPN) and Tata Sky on a failed negotiation. TDSAT heard the case on 11 October and advised the parties to take four weeks to try and reach a mutually acceptable negotiated agreement. Moreover, it also rejected the relief sought by Sony Pictures Networks seeking Tata Sky to carry all its channels.

    “The other interim prayer is to direct the parties to enter into negotiations for a period of at least four weeks. The prayer is with a view to enable the parties to enter into fresh negotiations so as to arrive at a mutually acceptable agreement based on negotiations,” the tribunal said. Even if required, the parties may seek extension of this period as per the order.

    SPN issued a disconnection notice to leading DTH platform Tata Sky on 7 September which was followed by a public notice on 10 September. Following the development, the latter proposed a RIO based agreement effective 30 September midnight for 10 channels only out of which just two channels was accepted by the former.

    Dushyant  Dave,  learned  senior  counsel  appearing  on  behalf  of  the SPN   raised   the  grievance   that  Tata Sky  has  not  been  fair   to  those customers   and   subscribers  who  were   earlier   viewing  the  channels   of  the petitioner  because  it  required  the  viewers   to  give  a  missed  call  on  a  given number  in case  they  wanted  to  view  the  relevant  channel  even  out  of  the  10 channels  selected  by the respondent.

    Kapil Sibal, on behalf of Tata Sky, submitted that if SPN was guided by consumer interest it would not have given a notice of disconnection while the parties had been negotiating renewal of the previous contract of Rs 800 crore. The court also noted that SPN asked for Rs 1700 crore even after losing the IPL rights to Star.

    “On a careful perusal of the relevant materials noted above,  we are of the view that now when the parties are being governed by terms of petitioner's RIO for which respondent has sent its acceptance and such agreement is effective from 01.10.2018 after notice to the viewers and subscribers,  it would not be in the interest of justice or equity to grant any interim relief so as to reintroduce the old agreement even for a period of four weeks as per the interim prayer,” the tribunal said after hearing both the parties.