Category: TRAI

TRAI issues consultation paper on regulating local TV channels

MUMBAI: The Telecom Regulatory Authority of India (TRAI) is going to look at putting in place regulations relating to local TV channels now.

In a consultation paper released today, the TRAI has sought stakeholders’ opinions on the regulatory framework that could be drawn up for local content channels in order to put them on a par with TV channels that are broadcast via satellite.

The ministry of information and broadcasting (MIB) – through its secretary Uday Kumar Verma (in January 2013) – had asked the regulator to come up with its recommendations for the same.

The TRAI consultation paper states that MSOs, LCOs, DTH operators, HITS and IPTV service providers (all called as distribution platform operators – or DPOs- henceforth) are running local channels aka platform services (PS) that don’t have the MIB’s permission. Some channels that are transmitted by the DPOs through the PS channels have content similar to regular TV channels.

TRAI has made it clear in the consultation paper that DAS has changed the context for DPOs and their PS as far as cable TV operators are concerned. The reason: with digitization, it is only the MSOs who can transmit encrypted signals from their headends on cable TV networks; LCOs can no longer transmit their own local ground based channels.

The regulator states that there has been a debate on whether PS channels can be considered as a conventional TV channel or a value added service (VAS) because broadcast TV channels are charaterised by continuous dissemination of content in a push mode to all subscribers through DPOs. On the other hand, PS channels provide content in a pull mode triggered by a specific need or demand of consumers.

TRAI has queried whether stakeholders agree with the following definition of a PS and if not then to suggest an alternative: “PS are programs transmitted DPOs exclusively to their own subscribers and does not include Doordarshan channels and TV channels permitted under downlinking guidelines.”

Programmes on PS

PS generally includes music, movies, news, devotional, entertainment, local news, live events, teleshopping, kids programs, serials, documentaries, regional programs, local plays, infotainment, market news, educational, and interactive games.

TRAI has asked stakeholders to provide their views on whether a PS channel cannot transmit news or current affairs, coverage of political events, programmes already shown on DD or other TV channels, international/national and state level sporting events or games like IPL, Ranji Trophy. Whether what it shows can include programmes such as movies, VOD, interactive games, coverage of local events and festivals, traffic, weather, educational/ academic programs (such as coaching classes), information regarding examinations, results, admissions, career counseling, availability of employment opportunities, job placement, Public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts etc. as provided by the local administration, Information pertaining to sporting events excluding live coverage, live coverage of sporting events of local nature i.e. sport events played by district level (or below) teams and where no broadcasting rights are required.

It has also asked the timeframe for reviewing whether a PS is trespassing into the domain of a regular TV broadcaster.

Eligibility criteria for PS

All categories of DPOs, apart from MSOs, are required to be registered under the Companies Act. To ensure uniformity in the legal status of all DPOS, TRAI suggests that a DPO offering a PS must register under the same. Therefore, the process of incorporation as a company has been simplified. Since the act allows even one person to register as a Company, small MSOs that are registered with the MIB can now register under the Companies Act.

TRAI has asked whether it is mandatory for all DPOs to be registered as companies to be allowed to operate PS or to suggest an alternative.

FDI limit for PS

Currently news channels are allowed only 26 per cent FDI and a recommendation to increase it to 49 per cent is pending with the government. On the other hand, MSOs can have FDI up to 74 per cent. The regulator states that exclusion of ‘news and current affairs’ category of programmes from a PS channel would address this unevenness. It asks views on the same.

Other issues

As per the downlinking guidelines, an applicant company needs to have a minimum net worth of Rs 5 crore to downlink of its first TV channel and Rs 2.5 crore for any additional channel. It asks if there is a need for a minimum net-worth requirement for offering PS channels. Additionally, it also seeks to know if such channels should be subject to similar security clearances as applicable to private satellite TV channels.

The TRAI also requests inputs on registration of PS channels with the MIB for which it would introduce a time bound centralised online registration system. Registration can be for 10 years with renewal for another 10 years. At the time of registration, the DPO should also declare the type of programmes it will transmit and any changes should be informed 30 days prior to a change.

Although TRAI feels market forces would compel the DPOs to restrict transmission of channels to a local geographical area, it still asks for stakeholders’ views on should there be any limit in terms of geographical area for PS channels. Also, if there should there be a limit on the number of PS channels which can be operated by a DPO.

Inputs on other obligations/restrictions that need to be imposed on DPOs for offering a PS such as non-sharing of a PS with another DPO and compliance with the programming and advertising code and TRAI’s regulations on quality of service and complaint redressal are also sought.

Certain DTH operators transmit radio channels while some radio stations provide it through the net as over the top services. It asks whether a DPO should be permitted to re-transmit already permitted and operational FM radio channels under a suitable arrangement with the FM operator and if there should be a limit on the number of such channels.

In order to monitor the kind of content that is being transmitted through the PS channels, DPOs may be mandated to keep a record of programmes for 90 days and produce it as and when required. The regulator asks for a monitoring mechanism.

Whether a PS should be penalised in a manner similar to TV broadcasters, is also asked. Lastly, it seeks a timeframe for the registration of existing PS channels once it is notified by the MIB.

Comments are required to be submitted by 14 July and counter comments by 21 July.

Click here to read the TRAI consultation paper on regulating local TV channels

June 23, 2014
TRAI issues consultation paper on tariff for commercial subscribers

MUMBAI: Three months ago, the Telecom Regulatory Authority of India (TRAI) revised the tariff rates for non-addressable cable TV areas which allowed a rise of 27.5 per cent in two stages. While this was for non-commercial subscribers, the regulator has now issued a consultation paper asking comments from stakeholders for the same with respect to the commercial subscribers.

The consultation paper states that the tariff for commercial subscribers has been an issue since 2005 when associations of hotels and restaurants challenged the various tariffs imposed by broadcasters in the Telecom Disputes Settlement Appellate Tribunal (TDSAT). Even though the TDSAT disposed off the petition stating that such organisations cannot be called consumers, it asked the Telecom Regulatory Authority of India (TRAI) to think about whether or not to impose a tariff regulation on them.

While the TRAI came up with two definitions for ‘ordinary cable subscriber’ and ‘commercial cable subscriber’, the appeal was challenged in the Supreme Court which then directed TRAI to frame separate tariff ceilings for non-commercial subscribers.

Even though the Regulator had come up with definitions and categories of such commercial subscribers, it was challenged by the Federation of Hotel and Restaurants Associations of India (FHRAI).

Now, TRAI has once again come up with a fresh definition for a ‘commercial subscriber’ and has asked stakeholders if they agree to it or if they have alternative suggestions. It says that a commercial subscriber means “any person, other than a multi system operator or a cable operator, who receives broadcasting service at a place indicated by him to a broadcaster or a cable operator or direct to home operator or multi system operator or head end in the sky operator or a service provider offering Internet Protocol television service , as the case may be, and uses such signals for the benefit of his clients, customers, members or any other class or group of persons having access to its commercial establishment.”

“Commercial establishment” means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, educational, healthcare or other institutions run for private gain, theatres, cinemas, restaurants, eating houses, pubs, bars, residential hotels, malls, airport lounges, clubs or other places of public amusements or entertainment but does not include a shop or a factory registered under the Factories Act, 1948 (43 of 1948).”

“Shop” means any premises where goods are sold, either by retail or wholesale or where services are rendered to customers, and includes an office, a store room, godown, warehouse or work place, whether in the same premises or otherwise, mainly used in connection with such trade or business but does not include a factory, a commercial establishment, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment.”

TRAI says that with these definitions it is shifting its focus from how the commercial establishments use the cable connection to defining it as one who avails the service from a broadcaster or a distribution platform operator (DPO).

In the earlier definition, the regulator had also divided commercial consumers into various sub-divisions of similarly placed entities depending on their size of business, paying capacity to clients etc. These were challenged several times in the past. Therefore, it has now asked stakeholders that if such a sub-division was not the right way to proceed, what would be an alternative way of dividing them into similarly placed groups.

Furthermore, three models of dealings between the commercial user and DPO has been given by TRAI and stakeholders are expected to select any one or give their own alternative model.

The first model is that the broadcaster publishes the rates for commercial tariff as a Reference Interconnect agreement (RIO) and then commercial subscriber negotiates. The second model is that the DPO publishes the rate and negotiations shall be done on the same. In the third model, both the aforesaid models shall be available to commercial customers wherein there shall be a competition among DPOs and between DPOs and broadcaster.

Furthermore, four options as regard to what shall be the tariff price have also been given:

First, the tariff for commercial subscribers is same as that for ordinary subscribers. Second, the tariff for commercial subscribers has a linkage with tariff for ordinary subscribers. Third, the tariff for commercial subscribers has no linkage with the tariff for ordinary subscribers but there are some protective measures prescribed to protect all the stakeholders. Fourth, the tariff for commercial subscribers is kept under total forbearance.

In the case of the third option several provisions have been suggested such as – broadcasters be mandated to offer all their channels on a-la-carte and specify rates. In case a broadcaster directly makes the signal available to the subscriber then the sum of a-la-carte rates of the channels shall not exceed one and a half times the rate of the bouquet of which they are a part and the a-la-carte rate of each channel should not exceed thrice the average rate of a channel of that bouquet. In case of a DPO, apart from the earlier two provisions, a-la-carte rates for all FTA channels should be uniform. The regulator also suggested that it should receive the RIO by either the broadcaster or the DPO and that a provider shall not deny channel signals unless subject to technical feasibility.

If a stakeholder chooses the second option he/she has been asked to justify what the ceilings should be for each category of commercial subscribers.

Stakeholders have been asked to give their views by 27 June at the latest.

Click here to read full consultation paper

June 11, 2014
TRAI warns MSOs and LMOs to speed up billing in DAS areas

MUMBAI: Even after several deadlines being issued in January regarding implementation of billing in DAS areas, the Telecom Regulatory Authority of India (TRAI) has not seen much progress on this front. And to now address the issue, the Regulator had called for a meeting of the multi system operators (MSOs) and last mile owners (LMOs) in Mumbai on 3 June.

Taking note of all the issues being faced by both the parties, TRAI has asked both the MSOs and LMOs to resolve their issues and start the billing process as soon as possible. The Regulator has also taken inputs from them and will conduct an internal meeting soon.

TRAI has directed the two parties to sign proper inter connect agreements with each other to ensure that money collected from subscriber goes through the right channel. “Because of their revenue sharing problem, the consumer is affected. If the two parties haven’t signed any agreement, how can they collect money from the consumer?” asks a TRAI official who was present in the meeting.

Show cause notices have been sent to MSOs operating in Delhi and those in DAS phase II cities regarding billing process. “Channel aggregation is done by MSO and he also has the subscriber management system. So ideally he should be doing the work of billing,” says the official.

The tug of war between MSOs and LMOs over ownership of subscribers has not yet been resolved. However, the official says that a subscriber is no one’s property and is free.

The meeting comes a few days after TRAI issued a directive to MSOs to start billing in DAS phase I cities such that the bill reaches the consumer within 45 days by either hand, post or email along with an option to pay the money online.

TRAI will look at holding such meetings in other parts of the country as well.

June 5, 2014
TRAI asks MSOs and LMOs to mutually draft agreement to fast forward billing

MUMBAI: The Telecom Regulatory Authority of India (TRAI) will not see any further delay in implementation of billing. And it is with this aim that the regulator has decided to meet both the last mile owners (LMOs) and the multi system operators (MSOs) at regular intervals. The first of these meetings was held on 3 June in Mumbai, the focus of which remained billing, revenue share and instilling good practices.

TRAI met some 300 cable operators, comprising members of Maharashtra Cable Operators Federation (MCOF) and a few independent MSOs from Bengaluru, Hyderabad and Pune in the morning, while met the national MSOs including: Hathway Cable & Datacom, DEN Networks, Siticable, IMCL and MSOs from Nagpur, Pune among others in the afternoon.

The message from the TRAI officials that comprised GS Kesarwani and SK Singhal was clear. “TRAI has asked the MSOs and LMOs to mutually come up with an agreement clearly defining the revenue share model, billing details etc which then needs to be signed by both the parties. In case the MSOs and LMOs cannot come up with this agreement mutually, TRAI will then draft an agreement, which will have to be followed by all,” informs a MSO who attended the meeting.

No deadline has been set as yet for the two parties to draft the agreement. “TRAI officials also questioned MSOs on the reasons for not complying with the existing regulations,” adds the MSO.

On the other hand, LMOs in their meeting with TRAI brought out issues relating to a few MSOs who indulged in taking the networks forcibly from LMOs, revenue share and billing. “We had a fruitful meeting with TRAI officials and now will wait for what they come up with next,” says MCOF president Arvind Prabhoo.

He informs, “Well! We had reached some kind of agreement on the issue of billing with both Hathway and IMCL four months back, but nothing happened after that. We discussed those issues with TRAI officials as well.”

In the meeting with LMOs, TRAI also discussed issues pertaining to DAS phase III and IV. “We had points about revenue share as well. TRAI has taken notes of the same,” he concludes.

June 3, 2014
TRAI issues directions to MSOs to comply with rules relating to billing for each customer

NEW DELHI: Directions have been issued by the Telecom Regulatory Authority of India (TRAI) to multi-system operators (MSOs) covered under the first phase of digital addressable system (DAS) to ensure delivery of bill to each subscriber by hand or post or email, as may be opted by the subscriber and provide within 45 days, online payment option in its subscriber management system (SMS) for payment of bill by the subscriber.

In a direction issued under section 13, read with sub-clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the TRAI Act 1997 and regulation 24 of the Standards of Quality of Service (DAS Cable TV Systems) Regulations, 2012, the regulator has also said that the MSOs must ensure within 30 days that an electronic acknowledgement is sent to the subscriber, on his registered mobile number or the e-mail address, immediately on his making any payment to the service provider.

The action comes after a study by a joint team consisting of the representatives of the Authority and Broadcast Engineers Consultants, a public sector unit of the Information and Broadcasting Ministry, to inspect and audit the head- end and the subscriber management system of the MSO providing cable TV services in the National Capital Territory of Delhi.

The Authority also held meetings with the representatives of the local linked cable operators and the MSOs on 16 April and 17 April.

During the inspection, the Authority noted non-compliance of the provisions of the regulations by the service providers.

The direction said the representative of MSO or its linked LCO who collects the payment from the subscriber shall forward the details of the subscriber and the payment made in front of subscriber through his mobile phone to the subscriber management system. The SMS on receipt of this information, shall send an automatic acknowledgement of the payment received to the subscriber either on his registered mobile number or his email address.

TRAI said regulation 24 of the Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations 2012 provides that the Authority may, by order or direction, from time to time, intervene, for the purpose of protecting the interest of the subscribers or monitoring or performance of Quality of service standards of the MSO or its linked local cable operator or for ensuring compliance of the provisions of these regulations and reads as under:-

TRAI had on 2 December 2013 directed the MSOs to offer cable TV services to its subscribers on both pre-paid and post-paid payment options and generate bills for subscriber; give to every subscriber the bill, on regular basis, for charges due and payable for each month or for any other agreed period and the bill for the period ending the 30 November 2013 latest by 15 December 2013, according to the billing cycle agreed between the parties.

The MSOs were also to give itemised bill to the subscriber clearly indicating the price of channels or bouquet of channels along with the name of channels in the bouquet, charges for basic tier and channels comprised therein, charges for set-top-box, charges for value added service, the details of taxes along with the rate of taxes and Service Tax registration number and Entertainment Tax registration number; ensure that a proper receipt is given to the subscriber by it or its linked local cable operator for every payment made by the subscriber; and provide to the pre-paid subscriber, at a reasonable cost, the information relating to the itemised usage charge showing actual usage of service. A compliance report had to be submitted by 31 December 2013 for the areas of the National Capital Territory of Delhi, Municipal Council of Greater Mumbai and Kolkata Metropolitan area.

May 28, 2014
Broadband growth rate just around 5 % between Feb-Mar this year

NEW DELHI: The total broadband (> 512 Kbps) subscription increased from 58 million at the end of February 2014 to 60.87 million at the end of March this year, showing a growth rate of just 4.95 per cent.

Of this, wired broadband subscription is 14.86 million and wireless broadband subscription is 46.01 million.

Segment wise broadband subscriber base are as below:

The top five wired broadband service providers are BSNL (10 million), Bharti (1.38 million), MTNL (1.13 million), YOU Broadband (0.38 million) and Beam Telecom (0.38 million).

The top five wireless broadband service providers are Bharti (10.98 million), Idea (7.23 million), Reliance (7.11 million), Vodafone (7.02 million) and BSNL (6.77 Million).

May 14, 2014
TRAI suggests licence at 8 per cent of AGR for satellite phone usage

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has recommended that the Bharat Sanchar Nigam Limited should be authorized by the Department of Telecom to establish gateway immediately under sui generis category for satellite telephony using INMARSAT.

In Its recommendations, TRAI has suggested licensing at eight per cent of the AGR for these services.

It has also said that the request of BSNL for waiver of entry fee, processing fee, and PBG should be considered by the DoT.

At present, satellite phone services for land mobile are used primarily by the defence and paramilitary forces. TRAI feels there is urgent need for a state-of-the-art gateway catered to the defence and security forces in view of the retirement of some of the services of INMARSAT.

The recommendations came in response to a letter in this regard from DoT in December last year.

TRAI says it kept in view the security of the country while consulting various stakeholders before issuing its recommendations.

May 13, 2014
TRAI extends date for views on consultation paper on Wireless Data Services

NEW DELHI: Stakeholders concerned with the quality of service for Wireless Data Services Regulations 2012 have been asked by the Telecom Regulatory Authority of India (TRAI) whether the service provider should be mandated to inform the minimum download speed to customers along with each tariff plan.

In its consultation paper on the subject, TRAI has said that stakeholders can send in their comments by 19 May and counter comments by 26 May with justification for their views.

TRAI had earlier invited stakeholders to give their views on certain amendments to the Regulations by 5 May but has now extended the date in view of the importance of the issue.

The Regulator has also sought views on prescribing benchmarks for minimum download speed.

In order to provide clarity to the consumers opting for data plans using a certain technology and based on the data on minimum download speed reported by the TSPs in the last three quarters, the Regulator wants to prescribe a minimum download speed for wireless data services on technology basis.

May 7, 2014
Uniform licence fee of 8% of Adjusted Gross Revenue to be applicable for all ISPs

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has said a uniform licence fee of 8 per cent of the Adjusted Gross Revenue will be applicable for holders of all Internet Service Provider (ISP) license.

The revenue for the purpose of licence fee for ISP licences shall include all types of revenue from internet services, allowing only those deductions available for pass through charges and taxes/levies as in the case of access services, without any set-off for expenses. Revenues from internet services shall also be included in the definition of AGR.

The recommendations came by way of “Definition of Adjusted Gross Revenue (AGR) in Licence Agreements for provision of Internet Services and minimum presumptive AGR”.

The Regulator said minimum presumptive AGR for the purpose of licence fee shall be applicable on the existing ISPs holding the BWA spectrum as applicable to the licensees who obtained access spectrum through competitive bidding.

For the existing ISPs who are holding BWA spectrum from the 2010 auction, the value of presumptive AGR shall be equal to 5 per cent of sum of the total bid amount by the licensee for the respective service area, as applicable to the licensees who obtained spectrum in the auctions conducted in November 2012 and March 2013.

The Department of Telecommunication had in a letter on 22 October 2012 sought TRAI’s recommendations on (i) the definition of AGR in the ISP License Agreements for provision of Internet Services granted the 1998, 2002 and 2007 guidelines, (ii) the applicability of minimum presumptive AGR and value, if applicable, for BWA Spectrum holders under internet service and (iii) the amendment in the “Format of Statement of Revenue and Licence Fee” to be reported by various categories of Internet Service Licensees.

TRAI had thereafter issued a consultation paper on 28 December 2012 seeking the views of stakeholders on the above issues. The written comments received were placed on TRAI’s website www.trai.gov.in. An open house discussion was conducted by TRAI in New Delhi on 21 February 2013.

The recommendations have been issued after considering the comments received from the stakeholders and further analyzing the various related aspects. Full details are available on the TRAI website.

May 3, 2014
Only 56.8 % of registered subscribers on private DTH active by Dec 2013: TRAI

NEW DELHI: Only 35.81 million subscribers of the six private direct-to-home (DTH) service providers are active out of a total 62.97 million registered subscribers, working out to around 56.87 per cent. The private DTH players include: Tata Sky, Dish TV, Airtel Digital TV, Reliance Big TV, Sun Direct and Videocon d2h.

According to the Indian Telecom Services Performance Indicator Report of the Telecom Regulatory Authority of India (TRAI) for the quarter ending December 2013, a total of 782 private television channels and a total of 242 private FM radio channels were registered with the Information and Broadcasting Ministry (I&B).

This is apart from the FM radio and TV channels operated by Prasar Bharati. Doordarshan has 37 channels including DD Bharati and DD National besides four allied channels like Lok Sabha and Rajya Sabha TV, Prasar Bharati sources told indiantelevision.com.

AIR network has grown up to 299 stations and 461 transmitters (146 MW, 48 SW & 267 FM) which provide coverage to about 99.19 per cent of the country’s population spread over 91.87 per cent area of the country, these sources said.

There are a total of 187 pay channels, as reported by the broadcasters/ distributors for which the rates have been taken on records at the QE December 2013.

The report says the maximum number of TV channels (Pay, Free to Air and Local) being carried by any of the reported MSOs in digital form is 231, while that carried by any of the reported MSOs in the conventional analogue form is 100 channels.

The report showed that of the total 238.71 million internet subscribers, broadband subscribers totaled 55.2 million and narrow band subscribers totaled 183.51 million.

Of these, only 18.33 million were wired internet subscribers while 220.38 were wireless internet subscribers.

The study also shows that 92.13 per cent of the wireless internet subscribers were on mobile, while just 0.19 per cent were on fixed wireless mode. A total of 7.68 per cent of the internet subscribers were on wired mode.

Meanwhile, the number of news and non-news channels has almost become equal with the government recently revealing it has so far given permission to a total of 786 television channels in the country.

According to the statistics revealed by the I&B Ministry earlier this year, the number of news and current affairs channels is 389 while the number of non-news (general entertainment channels) is 397.

Of the total, 664 TV channels including 369 news channels have been given permission to uplink and downlink from within the country.

A total of 31 channels including 27 GECs are allowed to uplink from India but not downlink – thus they are aimed at other countries.

A total of 91 channels uplinked from overseas are allowed to downlink into the country. These include 75 GECs.

April 29, 2014