ITV

Category: TRAI

  • Trai slashes Nimbus bouquet price by Rs 21.25

    Trai slashes Nimbus bouquet price by Rs 21.25

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) has directed Nimbus Sports Broadcast Pvt Ltd to reduce the price of its two channels by Rs 21.25 to Rs 37.25. Nimbus had priced the bouquet at Rs 58.50.

    The regulator has asked Nimbus to furnish a report of compliance within seven days from the date of receipt of this direction. The directive was issued yesterday.

    Reacting to the decision, Nimbus officials have told Indiantelevision.com that they would be filing a challenge to Trai’s directive before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

    Trai ordered this in relation to a complaint filed by Cable Operators’ Federation of India, after reviewing the prices charged by other broadcasters in the the same genre, that is, sport.

    In the Cas (Conditional access system) areas, Nimbus will have to stick to Trai’s tariff order where a la carte channels can be priced at a maximum of Rs 5.

    A clearly jubilant Cable Operators’ Federation of India president Roop Sharma told Indiantelevision.com that “this was a great decision as customers were being fleeced.”

    Trai has held that the decision was based on Clause 3 of its principal Tariff Order relating to charges, and said that Nimbus’ contentions were irrelevant especially because review of the prices charged by channels of the same genre showed that these are much less.

    Nimbus had argued that the prices for its two channels, Neo Sports and Neo Sports Plus, were higher than those of other sports channels because their content, composition and structure were different than such other rival sports channels.

    Trai in its decision observed that clause 3 of the principal Tariff Order specifies that the charges, excluding taxes, payable by (a) Cable subscribers to cable operator; (b) Cable Operators to multi system operators / broadcasters (including their authorised distribution agencies); and (c) Multi System operators to broadcasters(including their authorised distribution agencies) prevalent as on the 26th December 2003 shall be the ceiling with respect to both free-to-air and pay channels.

    Tra said that basically, channels of the same genre are required to charge the same price and this is a reasonable basic for fixing of prices.

    But the “thrust of the arguments of Nimbus does not bring out facts, which would justify a higher price being charged by them for its said sports channels as compared with other similar channels of the same genre”, Trai observed.

    The regulator compared the prices charged by Star Sports and ESPN and said that after due consideration, it has decided that Nimbus would have to slash the rate by Rs 21.25.

    Trai said that the argument that the prices charged were based on composition, content and structure of a sports channel did not hold ground.

    “Being business decisions, these may undergo a change in view of changing perception of the market and other perceptions, and such changes will not have a bearing on deciding the similarity of channels, as required under clause 3B, so long as the genre of the channel does not get altered on account of such changes,” Trai said.

    Trai observed that even in the case of Nimbus’ own two channels, Neo Sports and Neo Sports Plus, which were different in their respective compositions, contents and structures “both the said sports channels are having the same price”.

    “This shows that the broadcaster has not resorted to differential pricing even where composition, content and structure are different,” Trai observed.

    Commenting on the Trai directive WWIL senior executive vice president Arvind Mohanl said, “This is a seminal order and will go a long way to ease the burden on consumers.”

  • Trai orders access providers to comply with SMS short code guidelines

    MUMBAI: Sector regulator Trai has issued an order instructing all access providers to comply with the DOT’s guidelines issued recently for allocation of short codes by the access providers to the content providers including SMS based services.

    It is mentioned that the short codes are being used by service providers/ content providers for variety of applications including downloading ring-tones, contests, quiz, polls, information and enquiry service, entertainments, SMS Games, Astrology, Cricket updates etc.

    Access providers particularly mobile operators are allocating short codes to their content providers for various value added services including SMS based services within their network. Trai observed that some of these short codes were not in accordance with the National Numbering Plan-2003 and DOT’s earlier orders on this issue, asserts an official release.

    As per the license agreement access providers should adhere to the National Numbering Plan in this context Trai had asked access providers to stop use of these prohibited levels vide its direction dated 31 July 2006. Subsequently this issue was examined by DoT and necessary guidelines in this regard were issued.

    As per the guidelines issued by DoT five digit code starting with level five is to be used by access providers for allocation of short codes to their content providers including SMS based services within their network and accordingly all existing four digit short codes are to be prefixed by five to convert the same to five digit codes.

    Further the existing five and six digit short codes are to be migrated to five digit codes by replacing the first digit or first two digits respectively by five and so on.

    Trai has sought compliance of the DoT guidelines fro amll the access providers as and when the same is implemented but not later than 31 May 2007, adds the release.

  • ‘Trai has kept entry barrier low to make Cas acceptable’ : Nripendra Misra – Trai chairman

    ‘Trai has kept entry barrier low to make Cas acceptable’ : Nripendra Misra – Trai chairman

    The cable TV industry is on the cusp of change. The multi-system operators (MSOs) have chalked out plans to roll out digital cable, a transition that they believe will make their business models viable and add value to their networks.

     

    Perturbed by the cap on a la carte pricing of their channels at Rs 5, the broadcasters, on the other hand, have taken shelter in legal cases.

     

    Crucial to making Cas (conditional access system) a reality has been the role played by the Telecom Regulatory Authority of India (Trai). It has not only come out with a consumer-friendly tariff order but also made sure that progress is made by the MSOs on the implementation front.

     

    In this interview with Indiantelevision.com‘s Sibabrata Das, Trai chairman Nripendra Misra reiterates that digitalisation is the way forward. Cas will be implemented and even regulating direct-to-home (DTH) in areas of quality of service is on Trai‘s radar.

     

    Excerpts:

    How ready are the multi-system operators (MSOs) to implement Cas in the notified areas of Mumbai, Delhi and Kolkata?

    The progress is satisfactory and let there be no doubt in the minds of stakeholders that Cas is going to be implemented on the due date. There is no element of uncertainty. We already have reports of 10 MSOs (as of 16 December) having conducted the trial runs for testing out their digital systems under Cas. We want to be sure that there are no glitches in implementation of Cas and that the transition is smooth.

    In Delhi, Spectranet, Satellite Channels, Sanjay Cable Network and Star Broadband Services have been issued letters by the information and broadcasting ministry that they are not in a position to switchover to addressable system by 31 December as they are not ready with the digital systems including headend, Cas and set-top boxes (STBs). What is the action Trai has taken?

    There are four networks who we found are not in a position to roll out their service. We have asked the other MSOs (Hathway Cable & Datacom, Incablenet, Wire & Wireless India Ltd. and Home Cable Network) to step in so that consumers falling under the Cas belt of Delhi do not suffer blackout of their cable TV service. We are constantly monitoring the progress made by the MSOs.

    How many MSOs have applied for licence and got approval to operate in the Cas areas?

    There were 21 MSOs and five more applied later. Our focus is on 21. Out of this, as I told earlier, 10 (as of 16 December) have started trials.

    Estimates are that there are around 1.2 million cable & satellite homes in the Cas areas. Have the MSOs brought in adequate number of STBs?

    There are already a total of over 300000 boxes available with the MSOs. It is tough to estimate the exact number of C&S households in the Cas region. The whole cable TV industry is marked by high levels of under-reporting of subscribers. But supply shouldn‘t be a problem as the MSOs say that they can quickly import the STBs in case of demand. Their argument is that they shouldn‘t be stuck up with investments if Cas, for any reason, doesn‘t pick up. We expect 40 per cent of analogue subscribers converting into digital. That apparently is in line with the global trend. Digitisation is a way forward and consumers falling under the Cas notified areas should start ordering for STBs from now so that there is no crowding towards the end.

    What gives you the confidence that Cas will take off this time?

    Unlike in 2003, we now have a broadcast and cable regulator in Trai. We have kept the entry barrier as low as possible so that Cas can get accepted by everybody. Consumers also can select individual channels and we have fixed a price cap on a la carte channels at Rs 5. The tariff order also means that STBs are available on rental schemes with a fixed deposit amount (Rs 30 per month on a deposit of Rs 999 and Rs 45 for a deposit of Rs 250). Besides, this time there is competition from direct-to-home (DTH) with DD Direct, Dish TV and Tata Sky already offering their services. In fact, we have found medium-sized MSOs in some non Cas areas investing around Rs 15 million on diogital headends so that they can compete against DTH.

    The average monthly bill for digital cable TV subscribers will not see a sigificant drop as they will be loaded with an entertainment tax of Rs 45 (other areas different), Rs 45 as rent on the STB (if they pay a deposit of Rs 250) and a service tax. Add to this a payout of Rs 77 on free-to-air (FTA) channels and there is a slim chance of lowering down the bills. Would you agree?

    We shouldn‘t be talking of a system where we do not pay taxes. The taxes are applicable even under the current system. That is no way to calculate the cable TV subscription rates. Consumers can now pay as little as Rs 5 for the channel they want to see and limit their bills.
    ‘Regulating DTH in the quality of service area is certainly on our radar‘

    Will the rental schemes attract value added tax (VAT)?

    Yes. In any case, taxation is not a subject which falls within the purview of Trai.

    Consumers complain that costs will go up as they have to pay for the second TV set as well?

    We have decided not to regulate on the concessional rates for the second or more TV sets. Market forces should take care of that – as has been happening now. In any case, a large percentage are single TV households. We shouldn‘t regulate wherever we can, but only in areas where there is need.

    How long will this price of Rs 5 and a minimum subscription commitment of four months for any channel last?

    We are open to taking a relook at this. As we determined on a price as low as Rs 5, we also decided to balance it by asking consumers to subscribe a channel for at least a period of four months. After six months, we intend to first assess whether a review on the pricing and other related issues is necessary at all or not.

    Are you looking at coming out with some kind of regulations for non Cas territories?

    We are considering if we should step in and regulate the non cas areas so far as quality of service is concerned.

    Will Trai try to encourage various modes of digitalisation?

    We have a forward-looking approach. We generally feel digitisation is the road ahead. Besides mandated Cas, we are looking at voluntary spread of digitisation across all technologies. We will be having a serious of discussions from January-June. The first round table kicks off on 27 January. There are various alternatives – DTH, Cas, IPTV. We will be having a series of regional meetings where we want to discuss and review all these things. Then we will send our recommendations to the government.

    Is Trai going to regulate DTH as well?

    Perhaps, we need to look at regulating DTH in the quality of service area. It is certainly on our radar. As the DTH base grows, subscribers need to be protected. But DTH is at an infant stage and it may be too early to regulate it like cable. Let us not forget that cable TV has grown in India so far as an unorganised industry.

    As the DTH base grows, subscribers need to be protected. But DTH is at an infant stage and it may be too early to regulate it like cable. Let us not forget that cable TV has grown in India so far as an unorganised industry.
  • MSOs have to now start trial runs on STBs: Trai

    MSOs have to now start trial runs on STBs: Trai

    MUMBAI: The Telecom Regulatory Authority of India (Trai) has directed multi-system operators (MSOs) to start trial runs on homes where they have seeded the digital set-top boxes (STBs) for conditional access system (Cas).

    “We have reports of 10 MSOs having conducted the trials for testing out their digital systems under Cas. The deadline starts from today. We want to be sure that there are no glitches in implementation of CAS and the transition is smooth,” said Trai chairman Nripendra Misra while addressing a consumer forum meet today in Mumbai.

    The progress is satisfactory and let there be no doubt in the minds of stakeholders that CAS is going to be implemented on the due date, he added. “Digitisation is a way forward and consumers falling under the Cas notified areas should start ordering for STBs from now so that there is no crowding towards the end.”

    With effect from 1 January, pay channels in the notified areas of South Mumbai, Delhi and Kolkata can be viewed only through the STBs.

    The cable and broadcast regulator will encourage various modes of digitalisation, Misra said. “We want to discuss on the road ahead for digitalisation. Besides mandated CAS, we are looking at voluntary spread of digitalisation across all technologies. We will be having a serious of discussions from 27 January-June.”

    Clarifying on the issue of taxes, Misra said it did not fall under the purview of Trai. “VAT will be on the deposits and rental schemes of the STBs,” he added.

  • Deposit and rental schemes on STBs to attract VAT

    Deposit and rental schemes on STBs to attract VAT

    NEW DELHI: The controversy over Cas (conditional access system) does not seem to end. If the broadcasters have taken shelter in the various legal courts, consumers expressed heat over the issue of taxes at a forum meeting today with the Telecom Regulatory Authority of India (Trai).

    The broadcast and cable regulator clarified that value added tax (VAT) would have to be paid on the deposit and rental schemes for the set-top boxes (STBs) under Cas. Also, the entertainment tax would have to be paid per TV set.

    This caused a heated discussion at the Trai consumer meeting held today, according to sources. Trai officials also admitted that the issue had come up, adding that clarifications have been sought, without wanting to say anything further.

    In a CAS regime, multi-system operators (MSOs) will have to offer consumers digital STBs at a deposit of Rs 999 or Rs 250 on a monthly rental of either Rs 30 or Rs 45. VAT will have to be added to this.

    The entertainment tax would have to be paid per TV set and not per household, Trai also clarified.

    The meeting saw a lot of dust being kicked up by consumers and lasted for all of two-and-half hours, members who attended the meeting said.

    When asked of this, Trai Advisor (Broadcasting) Rakesh Kakkar told indiantelevision.com: “The issue had come up today.” He refused to comment further on the issue.

  • Upscale commercial establishments to pay market rates for pay channels: Trai

    Upscale commercial establishments to pay market rates for pay channels: Trai

    MUMBAI : In an order issued today, the sector regulator has decreed that pay broadcasters will now be able to charge “market rates” to more upscale hotels and big commercial establishments that access their channels.

    The Telecom Regulatory Authority of India (Trai) has stated that the tariffs of pay channels as well as set top box rentals will be left to mutual agreements and market forces in both CAS and non-CAS areas “subject to restrictions on maximum bouquet price in relation to sum of individual channel prices”.

    For the purpose of tariff regulation, Trai has identified two categories of commercial subscribers. One category consists of hotels with a grading of 3 star and above and heritage hotels. This category will also include any other hotels, motels, Inns and such other commercial establishments providing board and lodging and having 50 or more rooms. In the second category would fall all other commercial establishments.

    The regulator has grouped the rest of commercial establishments into the residual category and decreed that the same rules that govern ordinary cable subscribers will apply to them also, both in CAS and non-CAS areas.

    Taking note of a point made by pay broadcasters with respect to clubs, pubs and other such establishments, Trai’s tariff orders also provide that whenever “any commercial cable subscriber uses the programmes of a broadcaster for public viewing by 50 or more persons on the occasion of special events at a place registered under Entertainment Tax Act, then also the tariff will have to be mutually decided between the parties concerned.

    The pricing formula Trai has worked out is:

    I. The maximum retail price of any individual channel shall not exceed three times the average channel price of the bouquet of which it is a part.

    For example, if the maximum retail price of a five-channel bouquet is Rs 150 per (average channel price of Rs 30), the maximum price an individual channel can be priced at is Rs 90.

    II. The sum of the individual maximum retail prices of the channels shall not be more than 150 per cent of the maximum retail price of the bouquet. Therefore, the total a la carte pricing all these five channels together can charge would be a maximum of Rs 125 (Rs 150 + Rs 75).

    Trai issued the order after the Supreme Court agreed with its argument that in order to ensure an orderly growth of the telecom sector in the country, it was necessary to have differential tariffs for commercial and non-commercial subscribers of conditional access system (CAS).

    Trai’s submission was in response to a petition filed by the Association of Hotels and Restaurants, which challenged an order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that upheld the dual rates.

    Trai had placed the draft Tariff Orders, both for CAS notified areas and non-CAS areas, along with a letter to stakeholders inviting comments by 10 November.

    Broadcasters see Trai’s decision as a positive step towards generating subscription revenues. “Business will see at least a three-fold jump,” says Novex Communications head Ketan Kanakia.

  • Trai head office sealed in Delhi

    Trai head office sealed in Delhi

    NEW DELHI: In what could temporarily halt industry-related work, the offices of the broadcast regulator were sealed by the Delhi authorities under a drive against illegal construction in the Capital.

    According to a TV news channel, the Telecom Regulatory Authority of India’s (Trai) headquarters were sealed today for being in violation of building bylaws and having an office on Africa Avenue, which is predominantly a residential area. Under heavy police protection, the sealing team came to the Trai office and asked the employees to leave.

    The sealings against commercial establishments in residential areas of Delhi resumed this morning with officials of the Municipal Corporation of Delhi (MCD) descending upon an upmarket mall in South Delhi as part of a Supreme Court-mandated clean-up drive.

    MCD officials, backed by a contingent of Delhi Police personnel, started the drive by sealing CTC Mall in Maharani Bagh near Ashram. They then sealed two other properties in nearby areas, a report by United News of India stated.
    There were no reports of any resistance from anywhere today, though traders have held the city to ransom through protests over the last fortnight.

    Yesterday, the Supreme Court-appointed monitoring committee had said sealing would start from Wednesday.

    Earlier, the apex court had directed the committee to restart sealing and prepare a schedule after consultation with the authorities after the Central government failed to come out with a clear-cut policy on commercial activities in residential areas.

  • Motorola, PCCW launch mobile TV technical trial in Hong Kong

    Motorola, PCCW launch mobile TV technical trial in Hong Kong

    MUMBAI: MKobvile communications service provider Motorola has announced an agreement with Hong Kong’s telecom service provider PCCW.

    The two parties will conduct a six-month technical trial using Motorola’s end-to-end mobile TV system in Hong Kong.

    The trial will run till March 2007 within Hong Kong’s Quarry Bay district and will include Motorola DVB-H enabled mobile devices, network solutions and interactive services platform. During the course of the trial, PCCW will evaluate the technical capabilities and the operational performance of DVB-H in Hong Kong.

    Motorola Asia Pacific president Simon Leung says, “Mobile TV is the next generation of mobile video entertainment experiences and this trial is an important step forward in bringing this experience to consumers.

    “We are pleased to work together with PCCW to support their efforts and hope to see these services based on our solutions to become commercially available for Hong Kong subscribers soon after the technical trial.”

    Motorola says that it is committed to delivering the ultimate mobile video entertainment experiences to consumers — and part of that vision is mobile TV. By leveraging its expertise across mobile and video, it is bringing new mobile TV enabled handsets and solutions to our partners and wireless operator customers around the globe.

    Motorola says that it is actively driving development efforts in global mobile broadcast standards such as DVB-H and WiMAX and working with members of the cellular and mobile broadcast value chain to bring next generation services to market even faster for consumers.

  • Trai launches ad campaign for CAS

    Trai launches ad campaign for CAS

    MUMBAI: The Telecom Regulatory Authority of India (Trai) has set the ball rolling for CAS (conditional access system).

    Not resting just on fixing the maximum rate of individual channels at Rs 5 per subscriber, the regulator has come out with an ad campaign to inform that pay broadcasters would have to provide their pricing within the ceiling by 12 October.

    “The reporting to Trai of prices of pay channels within the ceiling by broadcasters should be by 12 October,” the statement said.

    Trai has set a similar deadline for multi-system operators (MSOs) to inform the regulator about the tariff packages on their set-top boxes (STBs). The conclusion of commercial agreements by service providers should be reported to Trai by 15 Octoiber, the campaign said.

    The regulator has marked 31 December as the date for implementation of Cas.

  • Trai sets 15 October as date for CAS awareness drive to kick off

    Trai sets 15 October as date for CAS awareness drive to kick off

    MUMBAI: The government’s CAS rollout plan is steadily unfolding. Further to its earlier order specifying standards of quality of service to be observed by the MSOs / cable operators in CAS notified areas, the sector regulator has directed when the public awareness campaign will kick off.

    The Telecom Regulatory Authority of India (Trai) today issued a directive that the date for starting public awareness campaign by permitted MSOs in CAS notified areas will be not later than 15 October. The campaign will last for a period of 30 days. The general directive also provides for filing of a compliance report immediately after the start as well as the end of the campaign.

    The games are original concepts and are based on popular themes with titles such as Bollywood Squares, a hilarious take on Hollywood Squares, the American TV show. The other titles include Quick Et, a fast cricket game, Star Gaze, a Bollywood celebrity quiz game, Top the Class, a multi user game that can support over 500 users at any given point, adds the release.

    Trai had issued a regulation on 23 August specifying standards of quality of service to be observed by the MSOs/ Cable Operators in CAS notified areas of Chennai, Mumbai, Delhi and Kolkata. This regulation had stated that multi system operators permitted to provide cable services in CAS notified areas would be required to conduct a public awareness campaign from a date to be specified by Trai.

    The full text of the general directive is available on Trai’s website www.trai.gov.in