Category: TRAI

TRAI: FM Radio ad revenues move up in Q2-17

BENGALURU: After the recent slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been averted, albeit marginally for Q2-17 (quarter ended 30 September 2016, current quarter) according to the data released by The Telecom Regulatory Authority of India.

According to TRAI data, radio combined ad revenues reported by 259 stations were Rs 502.13 crore or an average of Rs 1.94 lakh per station for Q2-17. This was slightly higher than the Rs 1.92 crore (combined revenue Rs 468.08 crore from 244 stations)for the immediate trailing quarter. Q2-17 ad revenue was however short by about Rs 10 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs 481.56 crore (2.04 crore per station) from 236 stations.

Please refer to Figure A below for FM Radio Ad Revenue over a five year plus period spanning a 22 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 30 September 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.

In absolute terms, combined Radio ad revenue in Q2-17 increased 4.2 percent and 7.3 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 5 percent y-o-y, but increased 1.1 percent q-o-q. The total number of stations in Q2-17 increased 9.7 percent y-o-y and 6.1 percent q-o-q.

Please refer to Figure B for y-o-y and q-o-q changes

Conclusion

Overall, despite the year-end and first quarter of a new fiscal drops, ad revenues as well as ad revenues per station show a linear increasing trend as more and more advertisers have begun to understand the value proposition this very local medium with a pan-India footprint can offer. Further, the third quarter of the fiscal (Q3, quarter ended 31 December) is also the festival quarter of the year in India – a sweet quarter as far as the radio industry is concerned. However, It remains to be seen how demonetisation has affected ad revenues for the fledgling medium for Q3-17. As mentioned above, during the third quarter of a fiscal radio ad revenues have historically been the highest.

January 2, 2017
TRAI: FM Radio ad revenues move up in Q2-17

BENGALURU: After the recent slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been averted, albeit marginally for Q2-17 (quarter ended 30 September 2016, current quarter) according to the data released by The Telecom Regulatory Authority of India.

According to TRAI data, radio combined ad revenues reported by 259 stations were Rs 502.13 crore or an average of Rs 1.94 lakh per station for Q2-17. This was slightly higher than the Rs 1.92 crore (combined revenue Rs 468.08 crore from 244 stations)for the immediate trailing quarter. Q2-17 ad revenue was however short by about Rs 10 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs 481.56 crore (2.04 crore per station) from 236 stations.

Please refer to Figure A below for FM Radio Ad Revenue over a five year plus period spanning a 22 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 30 September 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.

In absolute terms, combined Radio ad revenue in Q2-17 increased 4.2 percent and 7.3 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 5 percent y-o-y, but increased 1.1 percent q-o-q. The total number of stations in Q2-17 increased 9.7 percent y-o-y and 6.1 percent q-o-q.

Please refer to Figure B for y-o-y and q-o-q changes

Conclusion

Overall, despite the year-end and first quarter of a new fiscal drops, ad revenues as well as ad revenues per station show a linear increasing trend as more and more advertisers have begun to understand the value proposition this very local medium with a pan-India footprint can offer. Further, the third quarter of the fiscal (Q3, quarter ended 31 December) is also the festival quarter of the year in India – a sweet quarter as far as the radio industry is concerned. However, It remains to be seen how demonetisation has affected ad revenues for the fledgling medium for Q3-17. As mentioned above, during the third quarter of a fiscal radio ad revenues have historically been the highest.

January 2, 2017
Telcos’ carbon footprint: TRAI may seek reduction, green tech soon

MUMBAI: Telecom regulator TRAI is seeking to come out with a consultation paper that would review issues related to reduction in carbon footprint for the telecom infrastructure that includes mobile towers. A TRAI source said the green telecommunication discussion topics are expected to be finalised over next few weeks after a reference from the DoT (Department of Telecom.)

(Owing mainly to several policy reforms, telecom sector investments in India meanwhile are expected to reach Rs 68,000 crore (approx US$ 10 billion) this fiscal year, according to telecom secretary J S Deepak, which is approx a 670 per cent increase since FY16.)

DoT had asked TRAI to review the targets that had been stated earlier with regard to percentage of towers to be powered by hybrid energy in a time-bound manner, and the methodology of calculation of carbon footprint from the telecom networks, including base transceiver station (BTS), the TRAI source said, PTI reported.

It said that the consultation paper would be the next step in the regulator’s previous recommendations of 2011 on the subject. TRAI had recommended to the government to reduce carbon footprint by mobile operators, which was accepted by the government, and the latter had issued directions with regard to targets through use of green technologies.

However, the telecom operators had concerns about the capex related to conversion of BTS into green towers through the use of hybrid energy and other means, the source pointed out. The new consultation paper would review methodology of calculation and the milestone (of carbon footprint).

TRAI had, in 2011, sought industry views on issues such as — how should the carbon footprint of the telecom industry be judged; how should carbon credit policy be evolved, and the time-frame for implementing.

It had sought views on issues such as what proportion of non-grid power supply to towers in rural areas could be anticipated to be through renewable sources of energy, and a relevant metric for certifying a product as green. It had also sought from the industry an estimate of the carbon footprint of the mobile, fixed and broadband networks.

TRAI had, in the paper, noted that the growing infrastructure required more electricity. Part of the power came from the grid and remainder through burning of fossil. Both sources contributed to negative eco effects.

January 2, 2017
Telcos’ carbon footprint: TRAI may seek reduction, green tech soon

MUMBAI: Telecom regulator TRAI is seeking to come out with a consultation paper that would review issues related to reduction in carbon footprint for the telecom infrastructure that includes mobile towers. A TRAI source said the green telecommunication discussion topics are expected to be finalised over next few weeks after a reference from the DoT (Department of Telecom.)

(Owing mainly to several policy reforms, telecom sector investments in India meanwhile are expected to reach Rs 68,000 crore (approx US$ 10 billion) this fiscal year, according to telecom secretary J S Deepak, which is approx a 670 per cent increase since FY16.)

DoT had asked TRAI to review the targets that had been stated earlier with regard to percentage of towers to be powered by hybrid energy in a time-bound manner, and the methodology of calculation of carbon footprint from the telecom networks, including base transceiver station (BTS), the TRAI source said, PTI reported.

It said that the consultation paper would be the next step in the regulator’s previous recommendations of 2011 on the subject. TRAI had recommended to the government to reduce carbon footprint by mobile operators, which was accepted by the government, and the latter had issued directions with regard to targets through use of green technologies.

However, the telecom operators had concerns about the capex related to conversion of BTS into green towers through the use of hybrid energy and other means, the source pointed out. The new consultation paper would review methodology of calculation and the milestone (of carbon footprint).

TRAI had, in 2011, sought industry views on issues such as — how should the carbon footprint of the telecom industry be judged; how should carbon credit policy be evolved, and the time-frame for implementing.

It had sought views on issues such as what proportion of non-grid power supply to towers in rural areas could be anticipated to be through renewable sources of energy, and a relevant metric for certifying a product as green. It had also sought from the industry an estimate of the carbon footprint of the mobile, fixed and broadband networks.

TRAI had, in the paper, noted that the growing infrastructure required more electricity. Part of the power came from the grid and remainder through burning of fossil. Both sources contributed to negative eco effects.

January 2, 2017
TRAI violations query: Reliance Jio mum on ‘response’

MUMBAI: Reliance Jio chose not to respond to queries regarding its reply to TRAI that was expected today (29 December) in connection with questions raised against alleged violations in extending its free offer till 31 March 2017 much beyond its introductory offer. After two emailed queries and phone calls from indiantelevision.com, Jio chose not to respond.

Airtel had last week filed a petition before TDSAT (Telecom Disputes Settlement and Appellate Tribunal) accusing TRAI of being ‘sleeping trustee’ and a ‘mute spectator’ to the violations carried out by Jio. Airtel had filed the petition after TRAI questioned Jio over its extended free services as Happy New Year offer.

Reliance Jio had sought time till 29 December before it responds to the above-mentioned query.

Soon after Jio announced its offer earlier this month, TRAI came up with a statement assuring that it will closely examine the new offer. However, TRAI failed to come to any conclusion on its examination which is why Airtel then filed the petition.

As a result, TRAI asked Jio company to explain why its extended free services should not be seen as a violation of existing regulation which restricts promotional offers to 90 days.

Jio, in a meeting with TRAI, had reportedly said that the latest offer was different from the previous offer as, in the former, the company provided 4GB of free data per day, but in the latter case, it restricted the free internet up to 1GB under Fair Usage Policy. Jio also stressed the fact that in the new offer if the data limit was exhausted, then one had to buy recharge vouchers, which was not the case in the initial offer.

The petition was presented before the TDSAT bench last Friday, where TRAI sought 10 additional days to take a decision. The next date of hearing has been set on 6 January whereas Jio was expected to respond by 29 December.

December 29, 2016
TRAI violations query: Reliance Jio mum on ‘response’

MUMBAI: Reliance Jio chose not to respond to queries regarding its reply to TRAI that was expected today (29 December) in connection with questions raised against alleged violations in extending its free offer till 31 March 2017 much beyond its introductory offer. After two emailed queries and phone calls from indiantelevision.com, Jio chose not to respond.

Airtel had last week filed a petition before TDSAT (Telecom Disputes Settlement and Appellate Tribunal) accusing TRAI of being ‘sleeping trustee’ and a ‘mute spectator’ to the violations carried out by Jio. Airtel had filed the petition after TRAI questioned Jio over its extended free services as Happy New Year offer.

Reliance Jio had sought time till 29 December before it responds to the above-mentioned query.

Soon after Jio announced its offer earlier this month, TRAI came up with a statement assuring that it will closely examine the new offer. However, TRAI failed to come to any conclusion on its examination which is why Airtel then filed the petition.

As a result, TRAI asked Jio company to explain why its extended free services should not be seen as a violation of existing regulation which restricts promotional offers to 90 days.

Jio, in a meeting with TRAI, had reportedly said that the latest offer was different from the previous offer as, in the former, the company provided 4GB of free data per day, but in the latter case, it restricted the free internet up to 1GB under Fair Usage Policy. Jio also stressed the fact that in the new offer if the data limit was exhausted, then one had to buy recharge vouchers, which was not the case in the initial offer.

The petition was presented before the TDSAT bench last Friday, where TRAI sought 10 additional days to take a decision. The next date of hearing has been set on 6 January whereas Jio was expected to respond by 29 December.

December 29, 2016
Wi-fi proliferation, Net Telephony discussion in January

NEW DELHI: The open house discussion in the capital on the Telecom Regulatory Authority of India’s consultation paper on “Proliferation of Broadband through Public Wi-Fi Networks” which was earlier slated for 20 December has now been rescheduled for 9 January 2017 to get greater participation in view of the importance attached to public Wi-Fi systems.

The issuance of this paper on 13 July 2016 was followed by reactions and then a workshop in Bengaluru.

Through a set of 12 questions, the Authority had sought to get the opinion of stakeholders including internet and telecom service providers on how best Wi-fi (an acronym for Wireless Fidelity) can grow in the country.

At the outset, the regulator had noted that the growth of Internet penetration in India and realisation of its full potential is closely tied to the proliferation of broadband services. “Broadband” is currently defined to mean a data connection that is able to support interactive services, including Internet access, with the capability of a minimum download speed of 512 kbps. It therefore refers to a means of delivering high-speed Internet access services.

Later, on 16 November, TRAI issued a second paper on model for nation-wide interoperable and scalable wi-fi networks.

Earlier, TRAI had said it realised the importance of public Wi-Fi networks as complementary to existing landline and cellular mobile infrastructure in improving broadband penetration and adoption of Digital India.

Meanwhile, TRAI has also scheduled on 12 January 2017 an open house discussion on internet telephony based on its paper of 22 June 2016 issued after noting that unified IP based backbone and the benefits associated with the converged telecom access scenario has enabled service providers to launch more and more converged services such as Internet Telephony, IPTV, Mobile TV etc. In the Consultation Paper, Trai had also pointed out that use of Internet Protocol (IP)-based networks, including the Internet, continues to grow around the world due to the multitude of applications it supports and particularly due to Voice Over IP (VoIP). IP-based networks are capable of providing real-time services such as voice and video telephony as well as non real-time services such as email and are driven by faster Internet connections, widespread take-up in broadband and the emergence of new technologies.

Also read:

Public Wi-Fi: TRAI plans to evolve model, releases paper

Wi-fi proliferation: Discussion on 20 Dec

TRAI gives 2nd extension to Internet telephony consultation

December 24, 2016
Wi-fi proliferation, Net Telephony discussion in January

NEW DELHI: The open house discussion in the capital on the Telecom Regulatory Authority of India’s consultation paper on “Proliferation of Broadband through Public Wi-Fi Networks” which was earlier slated for 20 December has now been rescheduled for 9 January 2017 to get greater participation in view of the importance attached to public Wi-Fi systems.

The issuance of this paper on 13 July 2016 was followed by reactions and then a workshop in Bengaluru.

Through a set of 12 questions, the Authority had sought to get the opinion of stakeholders including internet and telecom service providers on how best Wi-fi (an acronym for Wireless Fidelity) can grow in the country.

At the outset, the regulator had noted that the growth of Internet penetration in India and realisation of its full potential is closely tied to the proliferation of broadband services. “Broadband” is currently defined to mean a data connection that is able to support interactive services, including Internet access, with the capability of a minimum download speed of 512 kbps. It therefore refers to a means of delivering high-speed Internet access services.

Later, on 16 November, TRAI issued a second paper on model for nation-wide interoperable and scalable wi-fi networks.

Earlier, TRAI had said it realised the importance of public Wi-Fi networks as complementary to existing landline and cellular mobile infrastructure in improving broadband penetration and adoption of Digital India.

Meanwhile, TRAI has also scheduled on 12 January 2017 an open house discussion on internet telephony based on its paper of 22 June 2016 issued after noting that unified IP based backbone and the benefits associated with the converged telecom access scenario has enabled service providers to launch more and more converged services such as Internet Telephony, IPTV, Mobile TV etc. In the Consultation Paper, Trai had also pointed out that use of Internet Protocol (IP)-based networks, including the Internet, continues to grow around the world due to the multitude of applications it supports and particularly due to Voice Over IP (VoIP). IP-based networks are capable of providing real-time services such as voice and video telephony as well as non real-time services such as email and are driven by faster Internet connections, widespread take-up in broadband and the emergence of new technologies.

Also read:

Public Wi-Fi: TRAI plans to evolve model, releases paper

Wi-fi proliferation: Discussion on 20 Dec

TRAI gives 2nd extension to Internet telephony consultation

December 24, 2016
Maintain status quo on broadcast guidelines, Madras HC tells TRAI

NEW DELHI: The Madras High Court today ordered that the Telecom Regulatory Authority of India (TRAI) should maintain status quo with regard to any tariff orders or regulations for the broadcast sector.

The Court directed that the stay will be in place till 12 January when the case comes up for hearing.

The Madras HC order came on a petition filed by Star India and Vijay TV on the ground that the TRAI orders are in conflict with the Copyright Act 1957. As a result of this court order and pending the full hearing of the case, TRAI would not be able to pass any guideline for issues such as broadcast tariff, broadcast interconnect, and quality of services.

A TRAI spokesperson said that although it was still waiting to receive the order from the Court, one immediate result would be that the draft tariff and interconnect guidelines issued by the regulator will be subject to the order of the court in this regard.

A few months ago, TRAI had issued draft guidelines on tariff interconnect and quality of service, while TRAI chairman RS Sharma had told indiantelevision.com earlier this month that the regulator would come out with its final recommedation by the end of the year.

It may be recalled that the Indian Broadcasting Foundation had also said in reaction to the TRAI drafts that the exercise was in direct conflict with the provisions of the Copyright Act.

The comments had been stated in the comments to the Telecommunication (Broadcasting and Cable Services) Interconnection (Addressable Systems) Regulations 2016; the Telecommunication (Broadcasting and Cable Services) (Eighth) (Addressable Systems) Tariff Order 2016; and the Standards of Quality of Service) and Consumer Protection (Digital Addressable Systems) Regulations 2016.

The IBF has said the Copyright Board is fully empowered to adjudicate upon disputes between any person and Content or Broadcast Reproduction Rights owners. Hence the Copyright Act and Rules provide for protection, monetisation, enforcement and adjudication procedures for all copyrightable work and broadcast reproduction rights.

Also read:

DAS 4 deadline extended to 31 Mar

December 23, 2016
Maintain status quo on broadcast guidelines, Madras HC tells TRAI

NEW DELHI: The Madras High Court today ordered that the Telecom Regulatory Authority of India (TRAI) should maintain status quo with regard to any tariff orders or regulations for the broadcast sector.

The Court directed that the stay will be in place till 12 January when the case comes up for hearing.

The Madras HC order came on a petition filed by Star India and Vijay TV on the ground that the TRAI orders are in conflict with the Copyright Act 1957. As a result of this court order and pending the full hearing of the case, TRAI would not be able to pass any guideline for issues such as broadcast tariff, broadcast interconnect, and quality of services.

A TRAI spokesperson said that although it was still waiting to receive the order from the Court, one immediate result would be that the draft tariff and interconnect guidelines issued by the regulator will be subject to the order of the court in this regard.

A few months ago, TRAI had issued draft guidelines on tariff interconnect and quality of service, while TRAI chairman RS Sharma had told indiantelevision.com earlier this month that the regulator would come out with its final recommedation by the end of the year.

It may be recalled that the Indian Broadcasting Foundation had also said in reaction to the TRAI drafts that the exercise was in direct conflict with the provisions of the Copyright Act.

The comments had been stated in the comments to the Telecommunication (Broadcasting and Cable Services) Interconnection (Addressable Systems) Regulations 2016; the Telecommunication (Broadcasting and Cable Services) (Eighth) (Addressable Systems) Tariff Order 2016; and the Standards of Quality of Service) and Consumer Protection (Digital Addressable Systems) Regulations 2016.

The IBF has said the Copyright Board is fully empowered to adjudicate upon disputes between any person and Content or Broadcast Reproduction Rights owners. Hence the Copyright Act and Rules provide for protection, monetisation, enforcement and adjudication procedures for all copyrightable work and broadcast reproduction rights.

Also read:

DAS 4 deadline extended to 31 Mar

December 23, 2016