Category: TRAI

  • Broadcasters to file cases individually against Trai order on channel pricing

    Broadcasters to file cases individually against Trai order on channel pricing

    NEW DELHI: A general consensus has emerged in the broadcasting industry that individual pay TV players would legally challenge the sector regulator’s directive on fixing pay channel prices at Rs 5 in CAS notified areas.

    A pay broadcaster today admitted that at a meeting held today under the aegis of Indian Broadcasting Foundation (IBF) there was “unanimity” that the Telecom Regulatory Authority of India (Trai)-mandated prices should be challenged.

    Says Star Group India CEO Peter Mukerjea, “Taking legal recourse is certainly an active option as fixing of prices of non-essential services (like cable TV) is tantamount to encroaching on our fundamental right of doing business.”

    “Since no industry body can move a court or a disputes tribunal challenging the pricing, it has been decided that individual companies will legally challenge Trai’s order,” a member of the IBF today said after the meeting.

    However, it has also been clarified that the onus of challenging the Trai tariff order will lie on individual broadcasters and “every pay broadcaster” need not necessarily legally dispute it.
    “A broadcasting company will have to take its own call on the matter,” another broadcaster-member of the IBF added after today’s meeting, which also discussed draft points on a proposed broadcast legislation being contemplated by the government.

    Broadcasters are also seeking legal opinion on how to approach the whole issue of pricing and whether it would make more sense to approach disputes tribunal TDSAT or high courts in various parts of the country.

    However, with the TDSAT presently being headless and not taking up industry issues, the tribunal might not be top priority for the broadcasters.

    Over the next 15 days, expect a spate of cases in various courts challenging the Trai tariff order on cable TV pricing in CAS areas. Unless, of course, the regulator and the government step in to mitigate another legal imbroglio that threatens to engulf rollout of CAS from 1 January 2007.

  • Trai proposes tariff rate on STBs

    Trai proposes tariff rate on STBs

    MUMBAI: The Telecom Regulatory Authority of India (Trai) has proposed that cable TV service providers in conditional access system (CAS) areas to offer digital set-top boxes (STBs) on a monthly rental scheme of Rs 30 and a refundable security deposit of Rs 999.

    Subscribers will also have the other option to take the permanent rental scheme with no security deposit. But the monthly rent in this case would be higher. They also have the choice of subscribing to analogue boxes.

    Under the first scheme, the regulator has said that subscribers would own the box after five years and no monthly rentals would have to be paid after that.

    In case of a period before five years, the multi system operator (MSO) or cable operator shall be entitled to make deductions from the refundable security deposit at the rate of Rs 12.50 for every month or part of the month for which the subscriber has used a STB taken on rent or lease. The deductions will be made upon the submission of the STB in working condition.

    Under the standard tariff package (STP), subscribers will have the second option of not paying any security deposit but the monthly rental will be higher at Rs 45 per STB. For analogue boxes, the rent will be Rs 23 per month per STB.

    “In both options, there will be no payment for installation, activation charges, smart card/viewing card, repair and maintenance cost. Stakeholders are also free to suggest any other option as a STP,” Trai said today in a release.

    “Since the Indian standards do permit analogue STBs, an option for these boxes has also been provided under the second category,” the regulator added.

    Trai’s draft of the tariff proposals for STBs has invited comments of the stakeholders. Stakeholders may comment on these alternatives as well as suggest any other options for Trai to consider.

    “It has been proposed that each service provider should at least offer one STP in addition to any other alternate tariff package. The rationale behind this proposal is that every consumer should have the choice of choosing from amongst various alternatives of which at least one should be a package that is approved by Trai,” today’s release said.

    Trai’s proposed draft tariff order for STB schemes in CAS areas follows the government’s notification on 31 July that CAS would be implemented in Delhi, Mumbai and Kolkata. Earlier, the division bench of the Delhi High Court had passed an order directing implementation of CAS with effect from 31 December in these three metros.

  • Trai seeks opinion for fixing basic tier cable TV rates under CAS

    Trai seeks opinion for fixing basic tier cable TV rates under CAS

    MUMBAI: The Telecom Regulatory Authority of India (Trai) is seeking industry opinion on whether Rs 77 (excluding tax) should be the maximum cable operators can charge monthly from their subscribers for the basic tier services in areas where conditional access (CAS) is introduced.

    The draft tariff amendment order notification, which was released on Thursday, is part of Trai’s initiation to come out with appropriate regulations for interconnection, quality of service, terms of rental for set-top boxes as well as tariffs. The broadcast and cable regulator will have to fix the basic service tier rates for CAS.

    “The maximum amount which a cable operator may demand from a subscriber for receiving the programmes transmitted in the ‘basic service tier’ provided by such cable operator shall not exceed Rs 77 per month exclusive of taxes, for a minimum of thirty free-to-air channels. Free-to-air channels, over and above the basic service tier, would also be made available to the subscribers within the maximum amount mentioned above,” Trai said in a statement.

    In 2003, the government had fixed a ceiling rate of Rs 72 a month per subscriber for the basic service tier under the Cable Television Networks (Regulation) Act, 1995. The regulator had, in its tariff order dated 01.10.2004, fixed a general ceiling across the value chain, both in respect of free-to-air and pay channels, at the levels prevalent as on 26 December 2003.

    Subsequently, on 1 December 2004, Trai allowed an increase of seven per cent in order to make adjustments for inflation, with effect from 1st January, 2005. Another four per cent increase on account of inflation was allowed by Trai with effect from 1 January 2006, but this increase has been stayed by the Tdsat (Telecom Disputes Settlement And Appellate Tribunal).

    The Delhi High Court recently directed the implementation of CAS in the notified areas of the three metros of Mumbai, Kolkata and Delhi before 31 December 2006.

  • Trai to revisit consultation paper on IPTV

    Trai to revisit consultation paper on IPTV

    MUMBAI: The Telecom Regulatory Authority of India (Trai) will ‘revisit’ the consultation paper on IPTV (Internet Protocol Television) to examine the legal changes which might be required, Trai chairman Nripendra Misra said today.

    Speaking to reporters on the sidelines of the Asia Pacific Telecommunications (APT) and ICT Development Forum (ADF) in New Delhi, Misra told wire agency Press Trust of India (PTI) that Trai has sought the opinion of stakeholders on the legal changes which might be required, either in the Indian Telegraph Act or the Cable TV Act with respect to IPTV. This would in no way affect the scheduled rollout of IPTV, he said.

    “Possibly the paper needs to be revisited regarding both access and content. We will be seeking the comments of cable associations, broadcasters, telecom service providers, ISP’s apart from NGO’s who are interested,” Misra said.

    Earlier, addressing the Forum, Misra dubbed the Indian telecom sector as the “Poster Child” of development in India.

    Misra’s comments on IPTV are significant in the light of the fact that in the absence of consensus from broadcasting and telecom industry, Trai was set to withdraw a consultation paper on IPTV it had issued some time back.

    Prior to this, Trai had proposed making changes to the Cable Television Networks (Regulation) Act, 1995, plus the existing telecom licenses, so as to facilitate growth of IPTV services in the country.

  • Trai withdraws paper on IPTV

    Trai withdraws paper on IPTV

    NEW DELHI: In view of divergent and contradictory view from broadcasting and telecom industry, Telecom Regulatory Authority of India (Trai) is set to withdraw a consultation paper on IPTV that it had issued some time back.

    Though this can be viewed as a small victory for the broadcasting and cable community, which was resisting pressure from telecom companies to take IPTV out of the ambit of Cable TV Networks (Regulation) Act.

    The decision of Trai, which was seeking opinion of the industry on IPTV at an open house today in Delhi, also means that it would not be submitting any recommendations to the government on this particular consultation paper.

    However, the step is being seen a “positive one” that would facilitate inclusion of IPTV and even mobile TV in a Broadcast Bill that the government was proposing to bring in, Indusind Media and Communication Ltd executive director corporate services and MSO alliance president Ashok Mansukhani said.

    In its consultation paper, Trai had asked whether it’s feasible to take IPTV out of the purview of the Cable TV Act and have separate licensing norms for it for its growth.

    The basic intention behind the proposed amendments in the Cable Television (Regulation) Act, 1995 was to keep the IPTV service outside the definition of `cable services’.

    Today’s development notwithstanding, the regulator played down the issue. “The chairman has indicated that probably the consultation paper needs to be revised. We would take a final decision soon,” a Trai official told Indiantelevision.com in the evening.

    The consultation paper on IPTV had drawn varied comments from stakeholders with broadcasters and MSOs saying IPTV should not be separated from cable TV and laws regulating it.

    On the other hand, the likes of Internet Service Providers’ Association of India and telecom companies wanting a slice of IPTV had pitched for separating it from cable services.

  • CAS switchover modalities will hit broadcasters, MSOs hard; Trai to have final say

    CAS switchover modalities will hit broadcasters, MSOs hard; Trai to have final say

    MUMBAI: A day after the government issued a notification setting 31 December, 2006 as the deadline for the three metros of Delhi, Mumbai and Kolkata to be fully “CAS delivered”, it fired the real bombshell – the framework under which addressability would be introduced in the notified areas.

    The backdated (31 July) notification covers a whole range of conditions that impact all constituents of the cable service delivery chain – broadcasters, cable MSOs, last mile operators. It even delves into issues of advertising.

    Interestingly, embedded in the fine print of the notification is a clause that allows the government to extend the time frame for the CAS switchover if it believes that the arrangements made by MSOs are inadequate and therefore “likely to be against the interests of a substantial portion of the subscribers in any notified area.”

    Tasked with overseeing all this is the cable and broadcast regulator which has been given extraordinary powers in regards to the switchover to addressability in the areas that fall under the CAS notification – the Kolkata Metropolitan areas, the areas covered by the Municipal Council of Greater Mumbai and the National Capital Region of Delhi.

    The Telecom Regulatory Authority of India (Trai), will be the final word on not just pricing of pay channels, but also in the granting of permission to cable service providers to offer addressable services, among a host of other extremely restrictive conditionalities. Some of the key issues the notification covers are:

    Interconnect Agreements
    It is Trai that will determine the “standard interconnection agreement to be used for entering into commercial agreements for distribution in the notified areas, of pay or free-to-air channels among (i) broadcasters and multi-system operators; and (ii) MSOs and local cable operators.”

    (a) Trai will set the maximum limits of security deposit and monthly rental for supply, maintenance and servicing of set top boxes of prescribed specifications to the subscribers on rental basis by multi-system operators in the notified areas;

    (b) tariff for the basic service tier along with the minimum number of free-to-air channels to be provided by the multi-system operators or local cable operators to the subscribers in the notified areas;

    (c) regulations for quality of service to be provided by the multi- system operators or local cable operators to the subscribers in the notified areas.

    Channel Pricing
    (1) Every broadcaster will have to declare the nature of each of its channels as ‘pay’ or ‘free-to-air’ channel as well as the maximum retail price of each of its ‘pay’ channels to be charged by the multi-system operators or local cable operators from the subscribers in each of the notified areas.

    (2) Each broadcaster will have to file the declaration of the nature and prices of channels within 15 days of the date of notification by the government.

    (3) If Trai believes the price declared by the broadcaster for any of its pay channels is too high, it has the right to fix and declare the maximum retail price of such a pay channel or fix a general maximum retail price for all pay channels within which the broadcasters may declare their individual prices for each pay channel.

    Any order issued in this regard by the regulator will be binding on the broadcasters and the multi-system operators and local cable operators.

    (5) If a broadcaster fails to declare the price of any of its pay channels within the prescribed time limit, or fails to comply with the direction or refuses or fails to enter into an interconnect agreement with a MSO permitted by the government within the prescribed time limit, the authority can take interim measures to ensure supply of
    signals.

    (6) If the broadcaster does not comply with the directives issued by Trai, the government may, if asked to do so by the regulator, suspend permission to broadcast the channel in the country.

    (7) Every declaration on pricing filed by the broadcaster will remain valid for one Year. If the broadcaster wants to revise the price of any channel or convert a pay channel to free-to-air or a free-to-air channel to a pay channel, it will have to give one month’s notice to the MSO and subscribers:

    MSOs, Cable Ops Will Need Government Permission To Operate
    (1) No multi-system operator can provide addressable cable services without permission from the government.

    (2) Every MSO has been given 30 days to apply to the I&B ministry for permission to operate, along with a processing fee of Rs 10,000.

    (3) After receiving the application, the I&B ministry has 30 days to either grant or refuse permission on the basis of information that will include existing operational area, actual number of subscribers and addresses of its local cable operators in each of the notified areas, commercial arrangements with the broadcasters and local cable operators, if any, financial strength, management capability, security clearance and preparedness to supply and maintain adequate number of set top boxes for its subscribers, installation of its subscriber management system and compliance with all other quality of service standards that may be specified by Trai.

    (4) In the event of an MSO failing or refusing to enter into interconnect agreements with a broadcaster of a pay channel or an adequate number of local cable operators in the notified areas or violates the terms and conditions laid down, Trai can take interim measures to ensure supply of signals. Though what these interim measures might involve is not spelt out, it would appear to indicate that the licence to operate would in that particular area would be given to some other MSO.

    (5) MSOs violating the terms and conditions laid down by Trai face revocation of their licence.

    Public Awareness Campaign About CAS
    (1) Every MSO will have to adequately publicise to its subscribers for a period of 30 days, either through advertisements in the print and electronic media or through other means (e.g. leaflets, printing on the reverse of the receipts, personal visits, group meetings with subscribers or consumer groups etc.) the salient features of the CAS scheme.

    These will include:-
    (a) A-la-carte subscription rates and the periodic intervals at which such subscriptions are payable for receiving the various pay channels;

    (b) The refundable security deposit and the daily or monthly rental payable for the set-top box and its detailed specifications such as make, model, technical specifications, user manuals and maintenance centres etc.;

    (c) The number and names of free-to-air channels that the multi-system operator will provide to the subscribers and specific placement of each channel in the prime or non-prime bands;

    (d) The prescribed monthly service charge to be paid by each subscriber for receiving the basic tier service and the number of additional free-to-air channels, if any, offered by the MSO.

    (e) The quality of service standards specified by Trai and the arrangements made by the MSO to comply with these standards;

    (f) The subscriber management system established by the MSO to demonstrate the functioning of the STBs and interact with the subscribers to explain the various financial, logistic and technical aspects of the system for its smooth implementation;

    (g) The arrangements for resolution of disputes between the MSO, LCOs, and subscribers in respect of the quality of service standards, payments and refunds etc.

    (2) The Authority may also arrange public awareness activities in the notified areas either directly or through authorized officers or consumer organizations etc..

    Supply And Installation of STBs
    (1) Every subscriber who wants to receive one or more pay channels shall, during the public awareness campaign or within 15 days after its expiry, apply to any one of the MSOs granted permission either directly or through any of his linked LCOs, to supply and install one or more set top boxes in his premises as per the scheme approved by Trai and deliver the requisite channels through the same:

    Provided that every subscriber shall be free to buy an STB of approved quality from the open market, if available and technically compatible with the MSO’s system. No MSO or cable operator can force any subscriber to buy or to take on rent the STB from him only.

    (2) Every subscriber who wants to receive one or more pay channels can either buy an technically compatible STB from the open market or apply to anyone of the MSOs either directly or through any of his linked LCOs, to supply and install one or more STBs in his.

    (3) Every MSO will have to set up and operationalise its subscriber management system within the determined time frame.

    Dispute Resolution Mechanism
    Every multi-system operator shall be obliged to maintain the quality of service as per the standards, including the arrangements for handling complaints and redressal of grievances of the subscribers, as may be determined by regulation or order by the Authority. The Authority may look into the efficacy of such arrangements and issue necessary directions to the concerned parties for compliance.

    Transition To Addressable Systems
    (1) Immediately on operationalisation of the SMS and the installation of STBs, every MSO will have to provide pay channels in encrypted as well as unencrypted form for a period of not less than 15 days to test out the quality of service, remove any technical or operational snags and enable the subscribers to become familiar with the operation of addressable systems at their end.

    (2) Before the start of the transition period Trai can call for progress or compliance reports from the service providers.

    (3) If Trai is of the opinion that the arrangements made by the MSOs are not adequate and the switchover to CAS is likely to be against the interests of a substantial portion of the subscribers in any notified area, it may recommend to the government an extension of the notified date by such period as in its opinion is the minimum required for the satisfactory completion of the necessary arrangements by the MSOs.

    Advertisements
    No programme shall carry advertisements exceeding 12 minutes per hour, which may include up to ten minutes per hour of commercial advertisements, and up to two minutes per hour of a channel’s self-promotional programmes.

  • UAE acquires rights to 225 digital channels

    UAE acquires rights to 225 digital channels

    MUMBAI: The Telecommunications Regulatory Authority (TRA) in the UAE, has acquired rights to 225 digital channels at the recently concluded ITU Regional Radio Communication Conference (RRC) held in Geneva from 15 May 15th – 16 June 2006.

    The month-long conference was aimed at facilitating the transition from analogue media broadcasting to digital. The conference organised channel allocation among participating countries, based on a newly formulated digital terrestrial TV broadcasting plan.

    TRA DG Mohamed Nasser Al Ghanim said, “The UAE team has acquired 225 digital terrestrial TV channels out of the 236 present in the UHF and VHF bands. The TRA has authority on these channels, and we will soon issue regulatory lists to start giving licenses for channels use.”

    “The UAE will undergo tremendous change and growth in the field of TV and radio transmission in the coming few years so that people can watch the terrestrial channels’ TV programmes either at home or through their PDAs . In order to accelerate and facilitate the change, TRA is putting in place regulations that are in line with international guidelines in the field”.

    At the conference, the UAE acquired several leading positions in the conference, and assumed responsibility for chairing one of the negotiating teams, vice-chairing the special team for a new regional treaty and also vice-chairing a special team dedicated to revising the previous agreement.

    Prior to the conference, the TRA had organised several local preparatory meetings to reschedule UAE’s digital broadcasting channels in the 174-230 MHZ and 470-862 MHZ frequency bands through advanced software programs used for regulating the broadcasting spectrum according to digital maps of the country. The TRA also organised regional congresses with neighboring countries (GCC, Islamic Republic of Iran, Iraq, and the Republic of Yemen) to ensure a united front on broadcasting.

    The UAE is expected to transit to digital terrestrial broadcasting system within two years as part of an overall strategy to enhance the telecommunications sector in the country, and the TRA will be in charge of ensuring a smooth and successful transition to the new broadcasting paradigm.

    A key issue at the conference was the protection of analogue terrestrial broadcasting from digital interference until the year 2015 to ease the transition between the technologies. All conference participants signed a new treaty outlining terrestrial TV channels provision.

  • Trai releases draft on quality of service norms for CAS Areas

    Trai releases draft on quality of service norms for CAS Areas

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) today released a draft regulation on quality of service for CAS areas.

    The draft regulation covers areas like fresh connection, transfer and shifting of cable television service, complaint handling and redressal, billing procedure and complaints, STB-related issues and complaints, change in position of channels and taking channels off the air and technical standards.

    The industry can also send its feedback to the regualor on the draft regulation, which are aimed at streamlining norms for CAS and formualting a standardised agreements amongst industry stakeholders like broadcasters and MSOs and MSOs and cable operators.,

  • Trai drafts standardised interconnect regulations

    Trai drafts standardised interconnect regulations

    NEW DELHI: In a bid to streamline the cable industry, sector regulator today released the proposed standard forms of interconnect agreements for CAS areas between broadcasters and multi system operators and between MSOs and local cable operators (LCOs).

    The reason for this being suggestions from the industry stake holders to the government that a standard form of interconnect agreements be formulated.

    On 10 March, 2006 the Delhi High Court had directed the government implement CAS in Kolkata, Delhi and Mumbai within a month’s time.

    Subsequent to this order, a series of meetings were taken by the information and broadcasting ministry.

    Taking note of suggestions emanating from the meetings, the Telecom Regulatory Authority of India (Trai) has decided to finalise a standard format for interconnection agreements for CAS in consultation with the industry.

    Accordingly, a draft of the standard forms has been placed on the website of Trai today. The draft agreements contain a number of sections and provisions.

    One of them relate to revenue sharing. The actual revenue share percentages have been left blank in the draft and are proposed to be filled up after getting comments of the stakeholders.

    Trai has also asked for feedback on the following:

    •Should there be a uniform revenue share percentage between all broadcasters and MSOs and MSOs and LCOs. If yes, what should be the revenue share percentages? What is the methodology, data and principles on which these are based?

    •Should the revenue share percentages be different for different broadcasters? If so, should the rates for different broadcasters prevailing in Chennai be adopted in other CAS notified areas?

    •Is there any other alternative method of arriving at the revenue share?

    A draft regulation has also put on the website for comments containing the provisions for the standard agreements as well as a clause for prohibiting minimum subscriber guarantee. The deadline for sending comments is 27 June.

  • Trai proposes to amend Cable TV Act

    Trai proposes to amend Cable TV Act

    NEW DELHI: Broadcast and telecom regulator proposes to amend the Cable Television Networks (Regulation) Act, 1995 and the existing telecom licenses to facilitate growth of IPTV services in the country.

    The Telecom Regulatory Authority of India (Trai) today released the proposed amendments in the Cable Television Networks Act and other material for industry feedback.Giving the reasons for this proposed amendment, which will have to be okayed by the government, Trai said, “During consultation process on issues relating to convergence and competition in broadcasting and telecommunications, certain problems were pointed out, which are likely to arise if IPTV services are to be governed by the existing Cable Television 
    Networks (Regulation) Act, 1995.”

    It added, “The possible solution for resolving the regulatory problems is amending the existing telecom licenses and the Cable Television Networks (Regulation) Act, 1995.”

    After holding a series of meetings with various stakeholders on the issues involved, Trai has finalized a draft of the proposed amendments in relevant rules.It had been pointed out that the following problems are likely to arise if IPTV services are to be governed by the existing Cable Television Networks (Regulation) Act, 1995:

    i. Technological requirement of IPTV to deliver content through a set top box leads to non-compliance with the requirement of Section 4A of Cable Television Networks (Regulation) Act, 1995 about free to air channels not needing an addressable system.

    ii. Use of different protocols by different companies and lack of standardization for IPTV services violates the requirement of Section 9 of the Cable TV Act about use of equipment conforming to Bureau of Indian Standards.

    iii. Applicability of FDI norms, downlinking guidelines and programme codes on a unified licensee providing IPTV services with same content as cable TV needs clarification.

    Trai said that the problems have come up as the Cable Television Act was formulated when IPTV service was not even conceived.

    One of the amendments proposed by the regulator includes defining `cable service’ as means the transmission by cables of programmes including retransmission by cables of any broadcast television signals, but does not include video service offered under Unified Access Service Licence by the Unified Access Service Licence holders on their networks.

    This part is aimed at keeping IPTV services outside the definition of “cable services” so that such service would not get hit by Section 4A(6) of the Cable Television Act on basic tier programming not requiring a box.

    The details of the proposed amendments are available on the regulator’s website, www.trai.gov.in, for feedback from the industry.