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Category: TRAI

  • TRAI recommends high reserve prices for spectrum auction; TSPs unhappy

    TRAI recommends high reserve prices for spectrum auction; TSPs unhappy

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today recommended rates for auction of spectrum in the 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands.

     

    Earlier, TRAI chairman R S Sharma had said that the auction may be conducted in May or June this year.

     

    The base spectrum price per MHz for Delhi metro will be Rs 1,595 crore for 700 MHz, Rs 848 crore for 800 MHz, Rs 399 crore for 1800 MHz, Rs 554 crore for 2100 MHz, Rs 143 crore for 2300 MHz and Rs 143 crore for 2500 MHz band.

     

    TRAI said the base spectrum price per MHz for Karnataka (including Bangalore) will be Rs 740 crore for 700 MHz, Rs 303 crore for 800 MHz, Rs 558 crore for 900 MHz, Rs 185 crore for 1800 MHz, Rs 328 crore for 2100 MHz, Rs 98 crore for 2300 MHz and Rs 98 crore for 2500 MHz band.

     

    One TSP, who did not want to be named, told Indiantelevision.com that the prices were prohibitive and the government may be asked to reconsider the recommendations.

     

    The Authority reiterated its earlier recommendation that APT700 band plan should be adopted for the 700 MHz (698-806 MHz) spectrum band with FDD based 2×45 MHz frequency arrangement.

     

    TRAI has also recommended that entire available spectrum (2x35MHz) in the 700 MHz band should be put to auction in the upcoming auction.

     

    The Authority said test schedule for the roll-out obligations testing for 700 MHz should be released within a period of one year from the date of completion of auction in this band.

     

    The same roll-out obligations, which were imposed on the successful bidder of spectrum in 800 MHz, 900 MHz, 1800 and 2100 MHz band in the auctions held in 2015, should be prescribed for these spectrum bands in the upcoming auctions for new entrants. The Authority also said no fresh roll-out obligation should be imposed on existing service providers who are already operating their services in 800, 900, 1800 or 2100 MHz band, in case they acquire additional block of spectrum in the same band.

     

    The Authority recommended that the same eligibility criteria that have been made applicable for other bands viz. 800 MHz, 900 MHz, 1800 MHz and 2100 MHz band in January 2015 NIA should be made applicable for 2300 MHz and 2500 MHz bands. The same eligibility criteria should also be made applicable for 700 MHz band also.

     

    Partial spectrum available in Bihar, Rajasthan and North-East LSAs should not be put to auction till such time it becomes available at least in 75 per cent of total number of districts of the LSA including the State capital(s).

     

    The Authority recommended that DoT, in coordination with Defence and the TSPs, should complete the harmonisation process in the 1800 MHz band before upcoming auctions so that the entire spectrum that is made available due to this exercise is placed for bidding. The available spectrum must be put to auction in contiguous blocks, preferably in the block of 5 MHz.

     

    It recommended that the 1800 MHz band administratively assigned spectrum to Aircel in Haryana and MP, and Tata in HP should be taken back. The Authority also recommended that the 800 MHz band be administratively assigned spectrum to Tata in WB and Quadrant in Punjab should be taken back. This spectrum should also be put to upcoming auction.

     

    The Authority recommended that DoT, in coordination with Defence and the TSPs, should complete the harmonisation process in the 1800 MHz band before upcoming auctions so that the entire spectrum that is made available due to this exercise is placed for bidding. The available spectrum must be put to auction in contiguous blocks, preferably in the block of 5 MHz.

     

    The Authority recommended that DoT should ensure that the spectrum surrendered by TTSL is not kept idle and takes appropriate legal remedies to put it in the upcoming auction.  

     

    Additionally, the entire available spectrum in 2100 MHz band, including spectrum taken back from STEL, should be put to auction.

     

    Spectrum in 700 MHz band should be offered in the block size of 5 MHz (paired). In case a TSP is able to win more than one block of spectrum in the upcoming auctions, it should be allocated spectrum in contiguous blocks.

     

    In case a TSP is able to win more than one block of spectrum in 2100 MHz band, it should be allocated spectrum in contiguous blocks. Similarly, if the TSP already having spectrum in the 2100 MHz band, acquires additional carrier, it should be ensured that all its carriers are contiguous.  

     

    Spectrum in the 2300 MHz and 2500 MHz bands should be put to auction in the block size of 10 MHz (unpaired). Currently, spectrum trading in 2300/2500 MHz band is permitted in the block size of 20 MHz. The Authority also recommended that after network synchronisation of all the TDD networks, spectrum trading in 2300/2500 MHz band should be permitted in the blocks of 10 MHz.

     

    Existing provision of a cap of 25 per cent of the ‘total spectrum assigned’ in 700/800/900/1800/ 2100/2300/2500 MHz bands and 50 per cent within a given band in each of the access service area shall apply for total spectrum holding by each TSP.

     

    The roll-out obligations to be imposed for licensees who acquire access spectrum in 700 MHz band should be: all towns/villages having population of 15,000 or more but less than 50,000 to be covered within five years of effective date of allocation of spectrum for access services and all villages having population of 10,000 or more but less than 15,000 to be covered within seven years of effective date of allocation of spectrum; to prevent, duplication of infrastructure, a TSP should also be permitted to fulfil the obligations by sharing network of other operator to the extent permissible as per guidelines/instructions applicable from time to time.

     

    The Authority recommended that the quantum of test fee for the purpose of roll-out testing requirements may be reduced to 20 per cent of the existing rates for testing in the block headquarters (for phase 3, 4 and 5 of the rollout obligations) and similarly for testing of coverage in rural SDCAs.

  • TRAI recommends high reserve prices for spectrum auction; TSPs unhappy

    TRAI recommends high reserve prices for spectrum auction; TSPs unhappy

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today recommended rates for auction of spectrum in the 700 Mhz, 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz, 2300 Mhz and 2500 Mhz bands.

     

    Earlier, TRAI chairman R S Sharma had said that the auction may be conducted in May or June this year.

     

    The base spectrum price per MHz for Delhi metro will be Rs 1,595 crore for 700 MHz, Rs 848 crore for 800 MHz, Rs 399 crore for 1800 MHz, Rs 554 crore for 2100 MHz, Rs 143 crore for 2300 MHz and Rs 143 crore for 2500 MHz band.

     

    TRAI said the base spectrum price per MHz for Karnataka (including Bangalore) will be Rs 740 crore for 700 MHz, Rs 303 crore for 800 MHz, Rs 558 crore for 900 MHz, Rs 185 crore for 1800 MHz, Rs 328 crore for 2100 MHz, Rs 98 crore for 2300 MHz and Rs 98 crore for 2500 MHz band.

     

    One TSP, who did not want to be named, told Indiantelevision.com that the prices were prohibitive and the government may be asked to reconsider the recommendations.

     

    The Authority reiterated its earlier recommendation that APT700 band plan should be adopted for the 700 MHz (698-806 MHz) spectrum band with FDD based 2×45 MHz frequency arrangement.

     

    TRAI has also recommended that entire available spectrum (2x35MHz) in the 700 MHz band should be put to auction in the upcoming auction.

     

    The Authority said test schedule for the roll-out obligations testing for 700 MHz should be released within a period of one year from the date of completion of auction in this band.

     

    The same roll-out obligations, which were imposed on the successful bidder of spectrum in 800 MHz, 900 MHz, 1800 and 2100 MHz band in the auctions held in 2015, should be prescribed for these spectrum bands in the upcoming auctions for new entrants. The Authority also said no fresh roll-out obligation should be imposed on existing service providers who are already operating their services in 800, 900, 1800 or 2100 MHz band, in case they acquire additional block of spectrum in the same band.

     

    The Authority recommended that the same eligibility criteria that have been made applicable for other bands viz. 800 MHz, 900 MHz, 1800 MHz and 2100 MHz band in January 2015 NIA should be made applicable for 2300 MHz and 2500 MHz bands. The same eligibility criteria should also be made applicable for 700 MHz band also.

     

    Partial spectrum available in Bihar, Rajasthan and North-East LSAs should not be put to auction till such time it becomes available at least in 75 per cent of total number of districts of the LSA including the State capital(s).

     

    The Authority recommended that DoT, in coordination with Defence and the TSPs, should complete the harmonisation process in the 1800 MHz band before upcoming auctions so that the entire spectrum that is made available due to this exercise is placed for bidding. The available spectrum must be put to auction in contiguous blocks, preferably in the block of 5 MHz.

     

    It recommended that the 1800 MHz band administratively assigned spectrum to Aircel in Haryana and MP, and Tata in HP should be taken back. The Authority also recommended that the 800 MHz band be administratively assigned spectrum to Tata in WB and Quadrant in Punjab should be taken back. This spectrum should also be put to upcoming auction.

     

    The Authority recommended that DoT, in coordination with Defence and the TSPs, should complete the harmonisation process in the 1800 MHz band before upcoming auctions so that the entire spectrum that is made available due to this exercise is placed for bidding. The available spectrum must be put to auction in contiguous blocks, preferably in the block of 5 MHz.

     

    The Authority recommended that DoT should ensure that the spectrum surrendered by TTSL is not kept idle and takes appropriate legal remedies to put it in the upcoming auction.  

     

    Additionally, the entire available spectrum in 2100 MHz band, including spectrum taken back from STEL, should be put to auction.

     

    Spectrum in 700 MHz band should be offered in the block size of 5 MHz (paired). In case a TSP is able to win more than one block of spectrum in the upcoming auctions, it should be allocated spectrum in contiguous blocks.

     

    In case a TSP is able to win more than one block of spectrum in 2100 MHz band, it should be allocated spectrum in contiguous blocks. Similarly, if the TSP already having spectrum in the 2100 MHz band, acquires additional carrier, it should be ensured that all its carriers are contiguous.  

     

    Spectrum in the 2300 MHz and 2500 MHz bands should be put to auction in the block size of 10 MHz (unpaired). Currently, spectrum trading in 2300/2500 MHz band is permitted in the block size of 20 MHz. The Authority also recommended that after network synchronisation of all the TDD networks, spectrum trading in 2300/2500 MHz band should be permitted in the blocks of 10 MHz.

     

    Existing provision of a cap of 25 per cent of the ‘total spectrum assigned’ in 700/800/900/1800/ 2100/2300/2500 MHz bands and 50 per cent within a given band in each of the access service area shall apply for total spectrum holding by each TSP.

     

    The roll-out obligations to be imposed for licensees who acquire access spectrum in 700 MHz band should be: all towns/villages having population of 15,000 or more but less than 50,000 to be covered within five years of effective date of allocation of spectrum for access services and all villages having population of 10,000 or more but less than 15,000 to be covered within seven years of effective date of allocation of spectrum; to prevent, duplication of infrastructure, a TSP should also be permitted to fulfil the obligations by sharing network of other operator to the extent permissible as per guidelines/instructions applicable from time to time.

     

    The Authority recommended that the quantum of test fee for the purpose of roll-out testing requirements may be reduced to 20 per cent of the existing rates for testing in the block headquarters (for phase 3, 4 and 5 of the rollout obligations) and similarly for testing of coverage in rural SDCAs.

  • TRAI amends internet directions in consonance with DoT’s broadband definition

    TRAI amends internet directions in consonance with DoT’s broadband definition

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has proposed an amendment to its direction relating to internet services to bring it in consonance with the new definition of broadband given by the Department of Telecom.

     

    The Department on 18 July, 2013 said, “Broadband is a data connection that is able to support interactive services including Internet access and has the capability of the minimum download speed of 512 kbps to an individual subscriber from the point of presence (POP) of the service provider intending to provide Broadband service.”

     

    TRAI had on 27 July, 2012 directed the service providers to provide broadband services in a transparent manner.

     

    In order to ensure transparency in delivery of internet and broadband services and to protect interests of consumers of the telecom sector and to facilitate further growth of internet and broadband services in India, TRAI now intends to direct all telecom service providers providing broadband (wire-line or wireless) services to provide on their website and also in all advertisements published through any media, the following information in respect of all broadband tariff plans offered under Fair Usage Policy.

     

    TRAI has sought views of stakeholders by 1 February with counter comments, if any, by 8 February.

     

    For Fixed broadband service, TSPs should indicate data usage limit with specified speed; speed of broadband connection upto specified data usage limit; and speed of broadband connection beyond data usage limit.

     

    For Mobile broadband service, data usage limit with specified technology (3G/4G) for providing services; technology (3G/4G) offered for providing broadband services up to specified data usage limit; and technology (2G/3G/4G) offered for providing broadband services beyond data usage limit.

     

    TSPs should also provide information to both new and existing subscribers on their registered email address and through SMS on their mobile number registered with the service providers; and ensure that download speed of broadband service provided to the fixed broadband subscriber is not reduced below 512 kbps in any broadband tariff plan; provide alert to the subscriber when his data usage reaches 80 per cent of the data usage limit under his plan and ensure that such alert is provided to the fixed broadband subscriber at each login after data usage crosses the said limit of eighty percent; and send alert to the subscriber either through SMS or Unstructured Supplementary Service Data (USSD) on his mobile number, registered with the service provider or to his registered email address, each time when the data usage by the subscriber reaches eighty per cent and hundred per cent of the data usage limit under his plan.

     

    The TSPs should also furnish compliance report by in a transparent manner.

     

    At the outset, TRAI says it has been entrusted with discharge of certain functions, inter alia, to regulate the telecommunication services, protect the interests of service providers and consumers of the telecom sector, lay-down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers so as to protect interest of the consumers of telecommunication services.

  • TRAI amends internet directions in consonance with DoT’s broadband definition

    TRAI amends internet directions in consonance with DoT’s broadband definition

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has proposed an amendment to its direction relating to internet services to bring it in consonance with the new definition of broadband given by the Department of Telecom.

     

    The Department on 18 July, 2013 said, “Broadband is a data connection that is able to support interactive services including Internet access and has the capability of the minimum download speed of 512 kbps to an individual subscriber from the point of presence (POP) of the service provider intending to provide Broadband service.”

     

    TRAI had on 27 July, 2012 directed the service providers to provide broadband services in a transparent manner.

     

    In order to ensure transparency in delivery of internet and broadband services and to protect interests of consumers of the telecom sector and to facilitate further growth of internet and broadband services in India, TRAI now intends to direct all telecom service providers providing broadband (wire-line or wireless) services to provide on their website and also in all advertisements published through any media, the following information in respect of all broadband tariff plans offered under Fair Usage Policy.

     

    TRAI has sought views of stakeholders by 1 February with counter comments, if any, by 8 February.

     

    For Fixed broadband service, TSPs should indicate data usage limit with specified speed; speed of broadband connection upto specified data usage limit; and speed of broadband connection beyond data usage limit.

     

    For Mobile broadband service, data usage limit with specified technology (3G/4G) for providing services; technology (3G/4G) offered for providing broadband services up to specified data usage limit; and technology (2G/3G/4G) offered for providing broadband services beyond data usage limit.

     

    TSPs should also provide information to both new and existing subscribers on their registered email address and through SMS on their mobile number registered with the service providers; and ensure that download speed of broadband service provided to the fixed broadband subscriber is not reduced below 512 kbps in any broadband tariff plan; provide alert to the subscriber when his data usage reaches 80 per cent of the data usage limit under his plan and ensure that such alert is provided to the fixed broadband subscriber at each login after data usage crosses the said limit of eighty percent; and send alert to the subscriber either through SMS or Unstructured Supplementary Service Data (USSD) on his mobile number, registered with the service provider or to his registered email address, each time when the data usage by the subscriber reaches eighty per cent and hundred per cent of the data usage limit under his plan.

     

    The TSPs should also furnish compliance report by in a transparent manner.

     

    At the outset, TRAI says it has been entrusted with discharge of certain functions, inter alia, to regulate the telecommunication services, protect the interests of service providers and consumers of the telecom sector, lay-down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers so as to protect interest of the consumers of telecommunication services.

  • TRAI makes interconnect agreements mandatory between broadcasters & MSOs

    TRAI makes interconnect agreements mandatory between broadcasters & MSOs

    NEW DELHI: In view of several multi-system and local cable operators supplying signals even in the absence of an agreement, the Government today said that it was mandatory for the broadcaster of pay channels to enter into written interconnection agreement (ICA) for retransmission of its pay channels irrespective of whether subscription fee is paid by the MSO to the broadcaster.
     
    The Telecom Regulatory Authority of India (TRAI) today released the Telecommunication (Broadcasting and Cable Services) Interconnection (DigitalAddressable Cable Television Systems)(Sixth Amendment) Regulations 2016 in this regard.  
     
    The amendment provides for sufficient time (minimum sixty days) for entering into new interconnection agreement before the expiry of existing ICA between the service providers for retransmission of TV signals.
     
    It was made clear that after this amendment, no scope will be available in the name of mutual negotiations for continuing the provisioning of TV signal after expiry of the existing ICA. 
     
    MSOs have been mandated to inform the consumers in the event of failure to execute new ICA, about date of expiry of its existing ICA and disconnection of TV channels, fifteen days prior to the expiry of existing ICA to enable the consumers to take informed decision in respect of their choice. 
     
    At the outset, TRAI said it was observed from the interconnection details submitted by the service providers that signals of TV channels are being provided by several broadcasters to MSOs and MSOs to LCOs even in the absence of valid ICA in writing. 
     
    It was also observed that continuation of retransmission of signal without valid ICA, on the pretext of continued mutual negotiations, often results in disputes and sometimes abrupt disconnection, which affects the quality of service to the consumers. 
     
    In this regard, the draft sixth amendment was released for consultation on 3 November last and an Open House Discussion (OHD) was held on 11 December. 
     
    The amendment was issued after considering the stakeholder’s comments and in-house analysis.
     
    TRAI noted that a few stakeholders expressed their concern, stating that the timeline of 60 days for starting of negotiation will bring practical difficulties and inconvenience at the ground level in view of the large number of service providers across the country. 
     
    This concern has been addressed by adding the word “at least” before 60 days in the amendment thereby they can start negotiations any time prior to 60 days. Moreover, several broadcasters and MSOs do their mutual agreements for all its operating areas or pan-India basis simultaneously. 
     
    A few stakeholders had suggested that similar provision may be made in the regulations for non-DAS areas and also in other platforms such as DTH. In this context it was mentioned that the delay in renewal of ICA is predominantly observed between broadcasters and MSOs in areas where Digital Addressable Cable System has been implemented. 
     
    However, TRAI noted that the stakeholders’ request may be taken up while reviewing interconnection regulations as a whole, in future, when such need arise.
     
    TRAI is already in the process of finalising a model ICA to ensure smooth transition to DAS.
  • Q1-2016 TRAI report: Radio industry performance improves

    Q1-2016 TRAI report: Radio industry performance improves

    BENGALURU: The Telecom Regulatory Authority of India (TRAI) released combined advertisement (Ad) revenues of 239 private FM radio stations for the quarter ended 30 June, 2015 (Q1-2016) a few days ago. There were a total of 243 radio stations in the India as on that date. 

    Trends across 16 consecutive quarters (four fiscal years) 

    Please refer to Figures A and B below. The all India simple average revenue per radio station and the QoQ and YoY (year on year) change has been calculated using TRAI data – the overall ad revenue mentioned by TRAI divided by the number of radio stations, which have reported revenue numbers to TRAI.

    As has been the trend over the period mentioned above, Q1 of a year is generally the leanest quarter in terms of ad revenue as per TRAI data. The second quarter – Q2 has the next lowest average ad revenues per station. Over the last two consecutive years FY-2014 and FY-2015, the highest ad revenue per radio station per year has been reported for the third quarter (Q3), while in FY-2012 and FY-2013, the highest ad revenue was reported in Q4, so there is a tie for the first and the second highest quarters in terms ad revenue per station between Q3 and Q4.

    For the year ended 31 March, 2015 (FY-2015), this website had mentioned that the numbers reported by the radio industry for the year were the probably the best (Indiantelevision link, Radioandusic link) so far. Despite an 8.88 per cent QoQ (quarter on quarter) fall in average ad revenue per station in Q1-2016, the ad average revenue per station of Rs 1.65 crore is the best yet for the first quarter over a period of four years. In Q1-2015, YoY ad revenue grew 11.90 per cent. Hence historical trends indicate that FY-2016 could be an even better year in terms of average revenue per station and overall revenues.

    Note (1): (a)100,00,000 = 100 lakh = 10 million = 1 crore

    (b) The author has taken the liberty to introduce a measure – average revenue per radio station. This is a rough yardstick and may not necessarily be indicative of a station or a networks performance, because factors such as geography and market conditions within the area of operations are among many of the factors that will also determine performance.

    (c) This report is skewed more towards general financial numbers in terms of revenue and results, and not operational performance.

    The TRAI report for Q1-2016

    As per the TRAI report for Q1-2016, the total advertisement revenues reported by 239 radio stations was Rs 393.9 crore or Rs 1.65 crore per station. In the immediate trailing quarter of Q1-2016, that is, for Q4-2015 (quarter ended 31 March, 2015), the combined advertisement revenues reported by 241 radio stations was Rs 435.89 crore or Rs 1.81 crore per station, hence the above mentioned QoQ drop of 8.88 per cent (Rs 0.16 crore) in ad revenue per station. For Q1-2015 (quarter ended 30 June, 2014 or Q1-2015), 241 radio stations reported combined ad revenues of Rs 354.97 crore or Rs 1.47 crore per station, or the above mentioned YoY growth of ad revenue per station of 11.90 per cent or Rs 0.18 crore per station in Q1-2016.

    Please refer to Fig A. The slope of the simple linear trend line (the dotted black line with a red end in Fig A below) projects that the average ad revenue per station in Q2-2016 should be about Rs 1.78 crore, which would be significantly higher than the Rs 1.66 crore reported for Q2-2015. How much this figure is in line with the actual number depends upon the numbers reported by the radio companies and revealed by TRAI. But, if one were to go by the published Q2-2016 results of some of the players in this report, the combined revenues of these sample player has gone up in double digits Q2-2016 as compared to Q1-2016, and of course are higher than those reported for Q2-2015.

    Further, Figure B below indicates that QoQ fall in ad revenue per station in Q1-2016 was the second steepest fall during a 13 quarter period starting Q1-2013 (Q1-2013 as compared to Q4-2012) until Q1-2016. The steepest QoQ fall in ad revenue per station was in Q1-2013 at 9.95 percent during the same period. The highest YoY rise in ad revenue per station was in 21.31 percent in Q2-2014. Q4 is another quarter that has seen QoQ dips in ad revenue per station in FY-2014 and FY-2015. YoY, ad revenue per station has always increased between Q1-2012 and Q1-2016.

    Let us look at how a few radio networks performed:

    Note (2):  (a) This report considers PAT posted by two radio companies (ENIL – Radio Mirchi, 32 radio stations; Jagran Prakashan – Radio City – 20 radio stations), along with operating results of DB Corp (My FM, 17 stations); B. A.G.Films (Radio Dhamaal, 10 stations); HT Media (Fever FM, four stations); and TV Today (Oye! FM, six stations), or a total of six radio networks that represent 89, or 36.63 per cent of the 243 private FM radio stations in Q1-2016.

    (b) While Q3 for the current fiscal (Q3-2016) has already ended on 31 December,2015 and financial results will be declared by the players in a few weeks times, individual Q2-2016 (quarter ended 30 September, 2015) results have already been reported by them. The Q2-2016 numbers of individual players in this report have been obtained from their filings with regulatory bodies, the TRAI number for Q2-2016 has been extrapolated and could prove to be inaccurate.

    (c) Revenues for the sample stations mean Total Income from Operations and generally include ad revenue and other operating revenues.

    (d) Phase III and other radio stations acquisitions: ENIL has received permission from the Ministry of Information & Broadcasting (MIB) to acquire four stations from TV Today Network Limited (Oye! FM), viz., those at Amritsar, Patiala, Shimla and Jodhpur – which the company says have been/will be re-branded and re-launched shortly as Mirchi, adding to its North India network strength. With another seven stations acquired in phase III auctions, the core Mirchi brand will now be available in 43 cities. There are/will be a total of 39 FM radio stations that Jagran Prakashan Limited currently has. This includes the existing 20 radio stations plus 11 stations acquired in phase III auctions and eight radio stations under the brand Radio Mantra. Radio Mantra was earlier operated by Shri Puran Multimedia, Jagran’s promoter group. Besides, the group also runs a web radio network with 21 web radio streams under Planetradiocity.com. During the Phase III auctions, DB Corp (My FM) acquired 14 frequencies, through which MY FM will extend its presence to seven states and 30 cities with 31 stations. HT Media acquired 10 radio frequencies during phase III auctions, taking its total radio stations to 14. However these changes are not considered here, for this report pertains to the period before the new stations were acquired.

    Entertainment Network India Limited (ENIL) that operates brand Radio Mirchi is the only separately listed radio company in India and one of the most profitable ones by far. Other stations/radio brands of consequence, whose results are within the public domain have been considered in this report.

    Please refer to Figure C below. The curved black line with a red extrapolated end (curve D in Figure C below) indicates the all India average ad revenue per station as per TRAI data. Three radio networks had average revenue per station that has consistently been higher than the all India average. Revenue per station was the highest in the case of Fever FM (Curve A in the Figure C below) at Rs 6.13 crore in Q1-2016 and 7.34 crore in Q2-2016, followed by Radio Mirchi (Curve B in Fig C below) with Rs 3.17 crore in Q1-2016 and Rs 3.63 crore in Q2-2016. Radio City (Curve C in Fig C below) also reported average revenue per station of Rs 2.37 crore in Q1-2016 (43.64 per cent more than the all India average ad revenue per station of Rs 1.65 crore) and Rs 2.78 crore in Q2-2016.

    The other three – Dhamaal (Curve G in Fig C below), My FM (curve E in Fig C below) and Oye! FM (curve F in Fig C below) reported lower average revenue per station than the industry average ad revenue per station.

    In Q1-2016, the combined revenues of the six players fell 15.86 per cent (fell Rs 37.51 crore) QoQ to Rs 199.01 crore from Rs 236.51 crore, a drop that was significantly higher than the 8.88 per cent QoQ fall in the average ad revenue per station based on TRAI numbers. Also, YoY, the combined revenue reported by these stations increased by 7.15 per cent from Rs 185.73 crore, much lower than the 11.90 per cent YoY growth in ad revenue per station as per TRAI numbers. These combined QoQ numbers have been significantly pulled down by the 18.38 per cent QoQ drop (Rs 22.87 crore drop) in Radio Mirchi’s revenues in Q1-2016. Combined YoY increase has not been as sharp as compared to the industry average, because all the players reported lower revenue growth rates in Q1-2016 as compared to Q1-2015 than the growth rate of the all India average ad revenue per station.

    The lowest QoQ fall in percentage terms in Q1-2016 was by Fever, which saw revenues drop 5.03 per cent (drop of Rs 1.30 crore), while the highest drop was 36.85 per cent (drop of Rs 1.44 crore) in the case of Oye! FM.

    The highest YoY percentage growth in Q1-2016 among the six players in this report in revenues was by Radio City at 10.19 per cent (Rs 4.38 crore), while Oye! FM reported a YoY decline of 26.74 per cent (Rs 0.9 crore) in revenues in Q1-2016.

    For Q2-2016, the six networks reported 15.55 per cent QoQ growth in combined revenues to Rs 229.95 crore from Rs 199.01 crore. YoY, combined revenue of the six networks in percentage terms in Q2-2016 increased 10.27 per cent (increased by Rs 21.42 crore). Dhamaal saw the highest YoY revenue growth in Q2-2016 at 25.93 per cent (0.46 crore), while Mirchi saw the highest YoY growth in Q2-2016 in absolute rupees at Rs 12.13 crore (11.65 per cent). Oye! FM saw a YoY decline in revenues of 38 per cent (declined 1.60 crore) in Q2-2016.

    Fig D below indicates the operating results of four of the six networks considered in this report and Profit after tax (PAT) for the other two. While Mirchi has reported the highest profit after tax, far surpassing the operating results or EBIDTA reported by the other five, it is Fever FM that is likely to be the most profitable one, considering that during the period under consideration, it had only four radio stations in its network.

  • e-governance should work towards creating & sustaining a vibrant ecosystem for growth: Prasad

    e-governance should work towards creating & sustaining a vibrant ecosystem for growth: Prasad

    NEW DELHI: Noting that Information Communication Technology (ICT) is the tool of development and progress, which is the very ethos and purpose of e-Governance, Communications and Information Technology Minister Ravi Shankar Prasad said, “The thrust of good governance is on creating and sustaining an ecosystem which fosters strong and equitable development.”

     

    In a message on Digital India at the start of the e-Governance week, Prasad said, “The foundation of a strong, prosperous nation is built on the quality of governance that it provides to its citizens. The recent rapid advances in ICT have made e-Govemance a very potent tool for ushering in an era of good governance.”

     

    He added that “Citizen-First” is the mantra, motto and guiding principle. “We are committed to bridge the digital gap between the ‘haves’ and ‘havenots’,” he said.

     

    “With this vision in mind, we bunched the “Digital India” Programme that will create a strong communication and IT infrastructure for enabling e-services like e-banking, e-Commerce, e-education, e-governance, e-entertainment, e-health etc. across the country to give a new fillip to the inclusive growth of Indian economy,” he added.

     

    Good Governance is the key to a nation’s progress, he said adding that Prime Minister Narendra Modi had emphasised “Minimum Government, Maximum Governance” on more than one occasion, which can help in easy, effective and economical governance.

  • Regulation & development of telecom sector must be blended, Prasad tells TRAI

    Regulation & development of telecom sector must be blended, Prasad tells TRAI

    NEW DELHI: Communications and IT Minister Ravi Shankar Prasad said that the telecom regulator Telecom Regulatory Authority of India (TRAI) needs to understand that regulation and development of the telecom sector must be blended and the regulator should be made accountable to the Parliament.

     

    He said digital power, accelerated by smart phones in the hands of young people, has enormous potential to drive ‘Digital India’ and achieve the dreams of aspirational India.

     

    While the programme currently focuses on digital delivery of health, education, grocery and tourism services, “there is a need to promote e-health, e-education, e-internet, e-tourism and e-commerce,” he said while addressing the 88th Annual General Meeting of FICCI  over the weekend. 

     

    Prasad said, “‘Digital India’ should be empowered by private sector participation as it will provide a roadmap where good service and good productivity will also give good returns.”

     

    He also stressed on the importance of quick and fair decision making. Initiatives undertaken include strengthening the e-highway, expanding the optical fibre network and opening of BPOs centres in smaller cities and towns. 

     

    The Minister mentioned about measures being taken to improve the Indian postal service. He said that the massive postal network in the rural areas should be converted into community service centres and the postal department should be scaled up to provide e-commerce services and should be aggressively persuaded to enter into baking segment.

  • TRAI to meet stakeholders to discuss DAS issues on 18 December

    TRAI to meet stakeholders to discuss DAS issues on 18 December

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has called a meeting of stakeholders – primarily broadcasters and multi system operators (MSOs) – on 18 December to sort out any problems relating to agreements in order to ensure a smooth transition to Phase III of Digital Addressable System (DAS) by 31 December, 2015.
     
    This information was given to the 12th DAS Task Force meeting presided over by its chairman and Information and Broadcasting Ministry special secretary J S Mathur this week. Joint Secretary (Broadcasting) R Jaya was also present.
     
    Broadcasters and MSOs were told categorically that there would be no extension of the deadline for Phase III and analogue signals should be switched off from 1 January, 2016 in all urban areas of the country. The final phase covering the rest of India will be completed by 31 December, 2016.
     
    TRAI had earlier asked all stakeholders to apprise it of any problems arising out of finalising agreements amongst various stakeholders.
     
    While Jaya referred to public awareness campaigns carried out by the Ministry, the broadcasters presented a report about the publicity campaigns that they have been carrying on both television and radio.
     
    TRAI also informed the Ministry about the meetings held with stakeholders since the last Task Force meeting on 22 September.
  • TRAI‘s Draft of interconnect agreement out; seeks counter-comments by Jan 7

    TRAI‘s Draft of interconnect agreement out; seeks counter-comments by Jan 7

    New Delhi: With an aim of reducing disputes and because the regulations for pacts between multisystem operators and local cable operators can only be entered into on the basis of interconnect agreements, the Telecom Regulatory Authority of India (TRAI )today issued a draft Model and Standard Interconnection Agreement for offering cable TV services through Digital Addressable Systems (DAS) .

     

    Stakeholders have been asked to give their comments and counter-comments on the draft latest by 31 December and 7 January respectively.

     

    The interconnection regulation further provides that the interconnection agreement between the MSO and its linked LCO shall have the details of various activities rendered by LCO and MSOs, and the revenue settlement between the parties for these services. The regulatory framework applicable for DAS also provides that the revenue share between LCO and MSO shall be as determined by mutual agreement. In case the MSO and the LCO fail to arrive at mutual agreement, TRAI has mandated the subscription revenue share between the MSO and the LCO as a fall back arrangement.

     

    The model is the outcome of interactions with MSOs and LCOs in the various parts of the country between January and October this year, with the objective of enhancing awareness about the regulatory framework among stakeholders and to assess the compliance of the regulatory framework.

     

    During these interactions, the stakeholders raised the issue that the terms and conditions of the agreement offered by the MSO were one sided and do not provide a level playing field to the LCOs. Often the obligation of both the parties for meeting the quality of service norms prescribed in the QoS regulation was not clearly defined in the interconnection agreement and due to which, in the event of dispute between the MSO and the LCO, the quality of service was adversely affected.

     

    The existing regulation and tariff orders applicable for DAS may also require suitable amendments to incorporate necessary provisions relating to Model and Standard Interconnection Agreements between the MSO and the LCO, TRAI said in a consultation paper.

     

    The Model and Standard Interconnection Agreements contains mandatory provisions to ensure the compliance of the regulatory framework available for DAS. The proposed draft consists of a Model Interconnection Agreement (MIA) and Standard Interconnection agreements (SIA) in a single document, namely draft model and standard interconnection agreements.

     

    The draft contains necessary terms and conditions, to ensure the compliance of the regulatory framework available for DAS, and to provide a level playing field to the MSOs and the LCOs. The draft agreement also lists roles and responsibilities as well as rights and obligations of each party separately.

     

    While notifying the regulatory framework in 2012, TRAI did not formulate SIA and left it to market forces as there could be various relationship models between the MSOs and the LCOs. It was envisaged that this would provide enough flexibility to the stakeholders while transitioning from analogue un-addressable systems to digital addressable systems.

     

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    In cases where the revenue settlement was mutually agreed between the MSO and the LCO, the MIA part of the draft agreement would be applicable. In other cases where the revenue settlement could not be agreed mutually between the MSO and the LCO; and it wasdecided to continue relationship based on the fall back subscription revenue share arrangement as prescribed in the tariff order, the SIA part of the draft agreement would be applicable. 

     

    Apart from clauses 10 to 12 of the proposed draft agreement, which relate to roles and responsibilities of the MSOs and the LCOs, billing, and revenue settlement, other clauses would remain same in the final Model and Standard Interconnection Agreement.

     

    In clause 10 of the proposed draft agreement, some of the roles have been clubbed together to assign common responsibility of these roles either to the MSO or to the LCO. Splitting of these roles may cause inconsistencies and gaps in delivery of satisfactory services to the consumers. However at consultation stage, the stakeholders can provide their valuable comments on re-grouping of roles, if felt necessary, with justifications.

     

    In case of the SIA, the responsibilities for various roles shall be fixed as per column 4 of the clause 10 of this draft agreement after considering the comments of the stakeholders. Similarly the billing and revenue settlement responsibilities shall also be fixed as per clause 11 and 12 respectively of this draft agreement after considering the comments of the stakeholders. Accordingly, all the terms and conditions of SIA which include the revenue share settlement conditions also, shall be standardised after prescription of SIA. No additions, deletions, and or alteration would be permitted thereafter in SIA terms and conditions.

     

    In the case of the MIA, the responsibilities for various roles to be finalised in clause 10 of this draft agreement, can be mutually agreed by the parties and recorded in writing in the column 3 of clause 10 of this draft agreement. In this case, column 4 of the clause 10 of this draft agreement would not be applicable. Similarly the billing and revenue settlement responsibilities shall also be agreed mutually as per clause 11 and 12 of this draft agreement respectively and recorded in writing in the agreement. No deletions, and/or alteration would be permitted thereafter in MIA terms and conditions. However, the parties, through mutual agreement, may add certain additional terms and conditions subject to such terms and conditions do not dilute, override, and or alter the existing terms and conditions. In case of any conflict between the existing terms and conditions of the prescribed MIA, and new terms and conditions added through mutual agreement by the parties; the existing terms and conditions of the prescribed MIA shall prevail.