ITV

Category: TRAI

  • Spectrum bid: Six e-auction rounds held; bidders commit Rs 60,000 crore

    Spectrum bid: Six e-auction rounds held; bidders commit Rs 60,000 crore

    NEW DELHI: Six rounds of bidding were completed in the auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands, which began today. 

     

    The bidding has taken place in all bands, according to the Communications and Information Technology Ministry.

     

    At present, a value of approximately Rs 60,000 crores has been committed by bidders against the value (at reserve price) of around Rs 49,000 crores of provisionally won spectrum.

     

    However, spectrum is still available and bidding for this will re-commence tomorrow.

     

    The estimated revenue from the auction of spectrum is targeted at Rs 64,840 crore (excluding 2100 MHz spectrum) of which Rs 16,000 crore is expected to be realized in the current financial year.

     

    The reserve price approved is Rs 3646 crore pan-India per MHZ in 800 MHz, Rs 3980 crore for 900 MHz band pan India excluding Delhi, Mumbai, Kolkatta, and Jammu and Kashmir; Rs 2191 crore pan India (excluding Maharashtra and West Bengal) in 1800 MHz band.

     

    A meeting of the Union Cabinet chaired by Prime Minister Narendra Modi had, early in January, approved the proposal of the Department of Telecom to proceed with auction in 800, 900 and 1800 MHz bands.

     

    The quantum of spectrum to be put to auction was 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Thus a total of 380.75 MHz in 800,900 and 1800 MHz was being put to auction. 

     

    Payment terms, eligibility criteria and auction objectives shall be as in the previous auction of February 2014.

     

    The Cabinet had also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later.

     

    Later that month on 15 January, the Telecom Regulatory Authority of India opined that clubbing the 2100 MHz band spectrum with the spectrum of other bands for auction in February will be defeated if sufficient spectrum is not made available in the 2100 MHz band.

     

    “A split auction of 2100 MHz (one in February 2015 and remaining say, in December 2015 after availability from Defence Ministry) will artificially increase the market price of 2100 MHz in February because of the severe supply constraint. The 15 MHz of spectrum in the 2100 MHz spectrum being vacated by the Defence Ministry should be auctioned in view of the in-principle agreement reached with MoD, even if it is not available immediately,” TRAI had said.

     

    The Authority reiterated that in the auction of 2100 MHz band spectrum, an auction-specific cap should be placed that no bidder would be permitted to bid for more than two blocks in a local service area if three to four blocks are available in that local service area.

     

    TRAI had said there was no change in the reserve prices for spectrum in the 2100 MHz bands from what were recommended earlier.

     

    It said that the Department of Telecom is responsible to ensure that the spectrum being auctioned is either interference free or to share information upfront about the areas where interference is likely to occur so that the telecom service providers participating in the auction can take informed decision.

     

    These views were given to the DoT in Clarifications/Reconsideration of Recommendations on ‘Valuation and Reserve Price of Spectrum: 2100 MHz Band’. 

  • TRAI suggests interoperability methods for DTH consumers; issues draft tariff order

    TRAI suggests interoperability methods for DTH consumers; issues draft tariff order

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has issued a draft Tariff Order (TO) for consultation with stakeholders prescribing a framework for commercial interoperability of Customer Premises Equipment (CPE) offered by the Direct-to-Home (DTH) operators to their subscribers.

     

    In the DTH sector, as on date, CPEs deployed by one operator may not be compatible with the network of another operator and a subscriber cannot migrate to another operator or platform without re-investing in another CPE.

     

    TRAI has placed the Draft on its website along with a Consultation Paper and wants views of stakeholders by 13 March, 2015.

     

    DTH services in India have been growing at a rapid pace since they were introduced in 2003. As on December 2014, the number of registered pay DTH subscribers has reached a figure of 73 million. The number of private DTH operators has also grown from one operator in 2003 to six operators today. These operators have launched their services at different points of time, deploying different transmission and compression standards and encryption solutions.

     

    In DTH services, a subscriber needs Customer Premises Equipment (CPE) to be connected with the television set for reception of programmes as the signal received at his premises is in digital form and encrypted. CPE consists of an outdoor unit comprising a dish antenna, Low Noise Block Converter with Feed-horn (LNBF), cable and connectors. The indoor unit primarily comprises a Set-Top-Box (STB) along with a remote control. Since variegated technologies co-exist, the CPEs deployed by one operator may not be compatible with the network of another operator, hampering migration of the subscriber from one operator to another; in case the subscriber wishes to migrate, he cannot do so without re-investing in another CPE.

     

    The Authority says the interests of subscribers in this regard can be largely protected through the provision for commercial interoperability of CPEs. Commercial interoperability provides for a viable exit option to the subscribers in case they want to switch operator /platform.

     

    The draft is aimed at striking a balance between the interests of the consumers and that of the service providers, as well as to curb piling up of e-waste on account of CPEs.

     

    The draft provides for declaration of the price of all types of CPEs, installation and activation charges and applicable taxes on CPEs by the DTH operators; mandatory offering of standard scheme for all type of CPEs on a standalone basis by DTH operators, specifying separately the price of CPE, taxes, other charges etc; flexibility to DTH operators to offer other schemes; and flexibility to DTH operators to offer brand new as well as refurbished CPEs.

     

    This paper also refers to provision of buy-back/refund option in all the offered schemes, including bundled schemes for CPEs; mechanism for buy-back/refund in the standard and other schemes for CPEs; provision of lock-in period for the purpose of refund in the offered schemes for CPEs if the subscriber wants to switch from one operator to the other; applicability of buy-back/refund option for all types of offered CPEs; option for the DTH operators to redeploy the surrendered CPEs; mechanism for registration of request for surrender of connection; and time-limit to settle refund/buy-back claims of the subscribers.

     

    Click here to read the full consultation paper

  • FM Radio phase III: TRAI to hold Open House on reserve price for auction

    FM Radio phase III: TRAI to hold Open House on reserve price for auction

    NEW DELHI: An Open House meet will be organised on reserve price for auction of FM Radio channels in new cities in Delhi on 9 March.

     

    This follows a consultation paper by the Telecom Regulatory Authority of India (TRAI) on 6 February. It has already received some comments.

     

    TRAI recommended that the reserve price for FM Radio channels in phase III should be 0.8 times of the valuation of FM Radio channels in that city.

     

    The authority body suggested a reserve price of Rs 5 lakh per city, for FM Radio channels in 11 border cities in phase III.

     

    The regulator also asked if stakeholders agree with the proposed approach and methodology for determination of the valuations of FM Radio channels in 253 new cities in phase III.

     

    The Ministry sent a reference dated 16 December, 2014 to the Authority seeking recommendations of TRAI on reserve prices for 831 FM Radio channels in 264 new cities in the phase III. With this, the private FM Radio operations would be permissible in 350 cities.

     

    Comments and views of the stakeholders on the issues related to estimation of the reserve prices for auction of FM Radio channels in new cities were to be sent latest by 25 February.

     

    TRAI said that for FM channels in 253 new cities, the reserve price can be fixed at 80 per cent of the derived valuations.

     

    For 11 new cities classified in the ‘Others’ category, no reference price is available from phase-II as no city was available in this category in that phase. These cities have population figures of less than one lakh and are located in the border areas of Jammu and Kashmir (J&K) and the North- Eastern (NE) States. The Cabinet approved the RP for each of these 11 cities as Rs 5 lakh.

     

    These cities are of strategic importance. The availability of FM Radio broadcasting service in these far-flung areas can also be used for Emergency Warning Services (EWS) with the specific approval and guidance of the local district administration. When the reserve price of Rs 5 lakh per city set for these cities in phase III, the policy is compared with the proposed RPs for ‘D’ category cities of NE and J&K, it appears to be reasonable to encourage the participation of a large number of prospective bidders. The inherent design of an ascending e-auction process would anyway ensure that the true market value of the FM Radio channels in each city is discovered during the process of auction. So the RP for each of these 11 new cities may be Rs 5 lakh.

  • Subscription rates in DAS phase III & IV expected to be half of that in first two phases

    Subscription rates in DAS phase III & IV expected to be half of that in first two phases

    NEW DELHI: The subscription revenue from phase III and IV areas of Digital Addressable System (DAS) is expected to be between 20 to 30 per cent as compared to 70 to 80 per cent from phase I and phase II areas.

     

    Therefore, channel pricing in phase I and II areas need to be decided for areas under phase III and phase IV so that multi-system operators can plan operation in these areas.

     

    This was stated during the fifth Task Force meeting on phase III and IV held recently under the chairmanship of Information and Broadcasting Ministry additional secretary J S Mathur and attended among others by DAS adviser Yogendra Pal.

     

    Pal informed the meeting that while the centre had sought from all states and union territories (UT) the district wise data of urban areas to be covered in phase III with number of households, only Chhatisgarh and Uttar Pradesh had responded.

     

    Similarly, only around 15 states and UTs had responded to the query about nodal officers, both at State level and district level.

     

    Only Gujarat had responded to the query about nomination of one LCO association from each State and UT for the LCO sub-group.

     

    The states of Maharashtra and Andhra Pradesh are still to respond to the query about nomination of a local cable operator association to the Task Force.

     

    Mathur directed that copies of the letters written to State Governments in this regard may be provided to the nodal officers present in the meeting to expedite the pending nominations/data.

     

    Referring to procurement plans and stock of Set Top Boxes (STB) requirements of phase III, the MSOs said they had limited inventory of STBs. Procurement of STBs is taking place according to earlier orders and no new orders have been placed by the national MSOs either with foreign suppliers or indigenous STB companies.

     

    The MSOs stated that they are making arrangements for finances for procurement of STBs for phase III. The position with regard to availability of funds would be clear by the end of February.

     

    At the outset, Mathur said digitisation in phase I and II has been possible due to active cooperation and support of State Governments.

     

    A Representative of Consumer Electronics and Appliances Manufacturers Association stated that they had called a meeting with MSOs in December 2014 but the response was not good. None of the major MSOs attended this meeting. He mentioned that indigenous STB manufacturers are ready to discuss all issues with MSOs anywhere and anytime.

     

    Mathur advised the MSOs to have a meeting with indigenous STB manufacturers to sort out all the issues. He said the Ministry was also planning to hold a meeting with the Small Industries Development Bank of India (SIDBI) on the demand of long-term financing.

     

    When MSOs raised the difficulty of signing agreements with broadcasters, a representative of the Telecom Regulatory Authority of India (TRAI) stated that broadcasters cannot deny signal to MSOs once they are DAS compliant. He suggested MSOs should make a formal written request to the broadcasters for the signal according to the regulations. He added that broadcasters should enter into agreements with MSOs for distribution of content without waiting for the cutoff date.

     

    A representative of a consumer forum stated that computerized billing was not happening in phase I and II areas. He added that CAF forms should be filled before installation of an STB.

     

    For publicising the extension in date for applying for MSO registration for operation in phase III areas, it was suggested that broadcasters run a scroll on their channels. It was also suggested that MSOs download a video spot made by the Ministry and play it on their local channels.

     

    The MSO representatives were told to share the data of existing MSOs operating in analogue regime with the Ministry. The representative of ASSOCHAM wanted that the broadcasters should be apprised for the same.

     

    Regarding publicity campaign, Joint Secretary (Broadcasting) R Jaya said all stakeholders must contribute in spreading awareness about ongoing digitisation in the country. She suggested MSOs should run audio visual ads on their local channels. She also suggested spreading awareness through handbill or printed ads on monthly bills issued by LCOs to the consumers. She called upon broadcasters to plan publicity campaign on their channels.

     

    FICCI, Cll and ASSOCHAM were asked to draw up a plan for workshops for public awareness campaign.

     

    Mathur re-emphasized the need to mount an awareness campaign by all stakeholders particularly the broadcasters. He also asked all the MSOs to begin discussions with indigenous STB manufacturers to meet the deadlines of phase III of December 2015 and phase IV of December 2016.

  • SK Gupta moved to broadcasting in TRAI, N Parameswaran to look after network services

    SK Gupta moved to broadcasting in TRAI, N Parameswaran to look after network services

    NEW DELHI: S K Gupta, who was until now looking after broadband issues in the Telecom Regulatory Authority of India (TRAI), has been made the Principal Advisor in charge of Broadcasting issues.

     

    He thus takes the place of N Parameswaran, who will now be looking after network services and licensing as Principal Advisor.

     

    Telecom Ministry sources confirmed that the term of Parameswaran in TRAI is to expire later this year. He has been in the telecom sector since January 1980. He played a key role in the liberalisation of the telecom sector in India. He was the first executive director of the Information & Communication Technologies Authority, Mauritius, wherein he set up the Authority and facilitated the liberalisation of the ICT sector. He has held various positions in Department of Telecom and MTNL.  He joined TRAI in 2007 and was looking after broadcasting since 2009.

     

    The term of TRAI chairman Rahul Khullar is also expiring in May this year. A 1975 batch IAS officer of Delhi cadre, Khullar succeeded J. S. Sarma in May 2012 for a three-year term. 

  • Mobile subscribers continue to contribute to broadband growth in the country

    Mobile subscribers continue to contribute to broadband growth in the country

    NEW DELHI: Thanks to a growth of 5.16 per cent among mobile device users (phones and dongles) during December 2014, there was a growth of 4.28 per cent with the number of broadband subscribers increasing from 82.22 million at the end of November 2014 to 85.74 million at the end of December 2014.

     

    The subscribers of mobile subscribers grew from 66.56 million to 69.99 million, according to a report by the Telecom Regulatory Authority of India ITRAI) based on inputs by service providers.

     

    There was a minimal growth of 0.56 per cent from 15.23 million to 15.32 million amongst wired subscribers, while the number of fixed wireless subscribers remained static at 430,000.

     

    The top five service providers constituted 87.24 per cent market share of total broadband subscribers at the end of December 2014. These service providers were Bharti Airtel (19.19 million), BSNL (18.90 million), Vodafone (16.65 million), Idea Cellular (12.95 million) and Reliance Communications Group (7.11 million).

     

    (Wireless subscribers with less than 1MB data usage in a month have not been considered as internet/broadband subscribers by Reliance Communication Group and Idea Cellular)

     

    As on 31 December 2014, the top five Wired Broadband Service providers were BSNL (9.98 million), Bharti Airtel (1.41 million), MTNL (1.13 million), Atria Convergence Technologies (0.61 million) and YOU Broadband (0.42 million).

     

    The top five Wireless Broadband Service providers were Bharti Airtel (17.78 million), Vodafone (16.64 million), Idea Cellular (12.95 million), BSNL (8.92 million) and Reliance Communications Group (7.00 million). 

  • TRAI seeks views on methodology for calculating reserve price of FM phase III

    TRAI seeks views on methodology for calculating reserve price of FM phase III

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has recommended that the reserve price for FM radio channels in phase III should be 0.8 times of the valuation of FM radio channels in that city.

     

    In a consultation paper on the subject of reserve price at the request of the Information and Broadcasting Ministry, TRAI suggests reserve price of Rs 5 lakh per city, for FM radio channels in 11 border cities in phase-III.

     

    The regulator has also asked if stakeholders agree with the proposed   approach/methodology for determination of the valuations of FM Radio channels in 253 new cities in phase-III.

     

    The Ministry sent a reference dated 16 December 2014 to the Authority seeking recommendations  of TRAI on reserve prices for 831 FM radio channels in 264 new  cities in the phase-III. With this, the private FM radio operations would be permissible in 350 cities.

     

    Comments/views of the stakeholders on the issues related to estimation of the reserve prices for auction of FM radio channels in new cities should be sent latest by 25 February.

     

    TRAI has said that for FM channels in 253 new cities, the Reserve Price can be fixed at 80 per cent of the derived valuations.

     

    For 11 new cities classified in the ‘Others’ category, no reference price is available from phase-II as no city was available in this category in that phase. These cities have population figures of less than one lakh and are located in the border areas of Jammu and Kashmir (J&K) and the North- Eastern (NE) States. The Cabinet approved the RP for each of these 11 cities as Rs 5 lakh.

     

    These cities are of strategic importance. The availability of FM radio broadcasting service in these far-flung areas can also be used for Emergency Warning Services (EWS) with the specific approval and guidance of the local district administration. When the reserve price of Rs 5 lakh per city set for these cities in phase-III, the policy is compared with the proposed RPs for ‘D’ category cities of NE and J&K, it appears to be reasonable to encourage the participation of a large number of prospective bidders. The inherent design of an ascending e-auction process would anyway ensure that the true market value of the FM radio channels in each city is discovered during the process of auction. So the RP for each of these 11 new cities may be Rs 5 lakh.

     

    The Consultation Paper noted that the non-refundable one time entry fee (NOTEF) for FM radio channels in all the cities coming up during phase III is to be discovered through an ascending e-auction. The phase-III policy guidelines provides the mechanism for migration of existing FM radio operators from phase-II to phase-III regime.

     

    According to the decision of the Empowered Group of Ministers (EGoM), the Ministry had in April 2013 sought recommendations of TRAI on the migration fee to be charged from existing phase II operators on their migration to the phase-III regime of FM radio. Broadcasting authority sent its recommendations on ‘Migration of FM Radio Broadcasters from phase-II to phase-III’ on 20 February 2014.

     

    The methodology for determination of the reserve prices for auction of FM Radio channels   was already finalised by the Government. In its recommendations of 20  February 2014, the Authority recommended that the methodology for determining the reserve prices for fresh (new) cities (where no private FM radio channels are operational) in phase-III should be reconsidered as the current methodology might jeopardize the auction.

     

    Thereafter, MIB decided to seek fresh recommendations of the Authority on reserve prices for new cities in phase-III and also make the 2011 census data applicable for identification and categorisation of the new cities. Based on the 2011 census data, MIB has identified 37 additional cities where 112 private FM radio channels are proposed to be put up for auction. This is in addition to the already identified 227 new cities earlier earmarked for FM radio expansion as per the 2001 census data. Further, based on the 2011 census data, MIB has also upgraded the category of 11 new cities that were already mentioned in the phase-III policy guidelines dated 25 July 2011. Thus, there are now, in 264 (227+37) new cities, a total of 831 FM radio channels that are to be put up for auction.

  • Broadband continues upward spiral as narrowband declines in June-Sept 2014

    Broadband continues upward spiral as narrowband declines in June-Sept 2014

    NEW DELHI: The number of narrowband Internet subscribers declined from 190.31 million at the end of June 2014 to 178.67 million at the end of September 2014, showing a quarterly decline of 6.12 per cent.

     

    However, the quarterly report of the Telecom Regulatory Authority of India (TRAI) ending September 2014 shows the number of Broadband Internet subscribers increased from 68.83 million at the end of June to 75.73 million at the end of September with a quarterly growth of 10.03 per cent.

     

    The report says as at the end of September 2014, there were a total of 187 pay channels as reported by broadcasters for which the wholesale channels rates have been taken on record. During the quarter ending September 2014, the rate of Raj Music Kannada channel was taken on records.

     

    In non CAS areas, the maximum number of television channels being carried by any reporting multi-system operator was 400, whereas the maximum number of channels being carried by any reporting MSO was 100 in conventional analogue form.

     

    Apart from All India Radio, there were 243 private FM radio stations in operation at the quarter ending September 2014, according to information supplied to TRAI by the Information and Broadcasting Ministry.

     

    Apart from the free DTH service of Doordarshan, Freedish, there are six private DTH operators. All the six private DTH operators are offering pay DTH services.

     

    The total numbers of registered and active subscribers being served by these six private DTH operators as reported to TRAI were 70.33 million and 39.13 million respectively as on 30 September 2014.

  • Use of educational broadcasting channels should be via Prasar Bharati: TRAI

    Use of educational broadcasting channels should be via Prasar Bharati: TRAI

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has reiterated its earlier recommendations regarding further strengthening the maintenance of an arm’s length relationship between Prasar Bharati and the government and ensuring functional independence and autonomy of Prasar Bharati.

     

    TRAI said that the non-commercial use of direct-to-home by the central and state governments for educational purposes should be done through the Prasar Bharati route through suitable agreements between Prasar Bharati and the concerned central/ state governments.

     

    Responding to a letter from the Information and Broadcasting Ministry in this regard on 31 October last year, TRAI said Prasar Bharati should ensure that content dissemination through such non-commercial educational channels comply with the code and conduct of broadcasting established in India such as Programme code, AIR code etc. and the content disseminated through such channels should be such that it can form part of any regular Prasar Bharati channel.

     

    As the transponder capacity is a scarce resource, the allocation of transponder capacity to central/state governments for running DTH educational channels on a non-commercial basis should be done in a very careful and judicious manner, said TRAI.

     

    It should not lead to a situation where transponder capacity is kept idling on one hand when on the other hand service providers are kept waiting for the same, thereby adversely impacting the expansion and improvement of quality of their services.

     

    The authority had given its recommendations to the government on the issues relating to entry of certain entities into broadcasting and distribution activities on 12 November 2008 and subsequently on 28 December 2012 in response to the references received from the Ministry. The original recommendations and the clarifications provided later clearly opposed the entry of central and state governments in the broadcasting and distribution activities. These recommendations of the authority were arrived at taking into consideration the relevant constitutional provisions, constituent assembly debates, judicial pronouncement of the Supreme Court, report of the Sarkaria Commission on Centre State Relations, international practices and the views of stakeholders.

     

    The Ministry’s reference was about the use of a specific technology for a specific application by the central / state governments and ‘in essence boils down to enabling broadcasting/ distribution by the central and state governments.

  • Ad cap conflicts with fundamental rights: Arun Jaitley

    Ad cap conflicts with fundamental rights: Arun Jaitley

     

    NEW DELHI: Reiterating that the government is not inclined to interfere in the content or the business of media entities, Information and Broadcasting minister Arun Jaitley has said he is not in favour of a cap on advertising for TV or print media. 

    In the first J S Verma Memorial Lecture, Jaitley wondered how a 12-minute cap could be reconciled with the fundamental right of freedom of speech.

    “It will be music to the years of media persons. My ministry, a couple of years ago, came out with a statutory law that no channel will telecast advertisements beyond so many minutes. I have been struggling, in my own mind, since then as to how this meets the challenge of Article 19(1)A,” Jaitley said. 

    The ad cap law brought in by the Telecom Regulatory Authority of India (TRAI) has been legally challenged and the matter is pending in court. 

    Jaitley was also in favour of increasing FDI in media from the current cap of 26 per cent, saying when foreign newspapers were anyway available online in India, there was no point opposing the move. He said, “The debate over whether foreign media should be allowed to establish in the country and the extent of foreign equity has been made irrelevant by technology. Today, sitting here, I can access any newspaper in the world over internet.” 

    Referring to the financial pressure on modern media, he said, “The financial model of most media organizations is becoming challenging. The cost of news distribution has become huge. Cost of circulation is high. Most are unable to sustain. This is leading to consolidations and mergers. Those with deep pockets are acquiring media.” 

     

    The minister said that the media, in the spirit of fairness, must carry a disclaimer with respect to news where there was a conflict of interest. 

    Jaitley said financial pressure on media affected the quality of news and its credibility. Because of this, media houses spend less and less on news collection, hire less reporters who are not paid well, he said.

     

    He stressed on the challenge posed by digital media to the traditional forms of news dissemination and pointed out how newspapers and magazines abroad were shutting down in favour of digital platforms. He, however, said that the revenue model for digital media was not clear and it was still evolving. 

     

    He also raised the issue of cross-media ownership and said in his concluding remarks that it was an issue that needed to be debated. “Most jurisdictions world over ban cross-holdings in the media. Can all mediums be vested with one person? How is larger public interest going to be impacted by this? It should be debated,” Jaitley said.