ITV

Tag: analogue

  • Direct cable TV and online billing, India style

    MUMBAI: In a day and age when just about everything is available ‘online’, can cable television be far behind? Starting March next year, digital cable consumers in the country will be able to make payments or recharge their pre-paid subscription package online.

     

    Multi system operators (MSOs), particularly those who’ve just about got started on the road to retail consumer billing in Mumbai and Delhi, plan to make online payment options available to consumers by the next financial year.

    DEN is hopeful its online payment system will be active by next quarter or end of financial year

    In the case of MSOs like DEN Networks, the first cycle of billing for the Delhi circle will be generated this month. “This is just the first step to inform consumers of the changed ecosystem in a digitised environment. But as we move along, we plan to give consumers as many touch points for submission of the billing amount,” informs an official from DEN on condition of anonymity.

     

    DEN is hopeful its online payment system will be active by next quarter or end of the financial year but plans to go about it in a phased manner so as to not confuse consumers, the official points out.

     

    So what’s in it for DEN consumers? They will be able to make direct payments to the MSO through payment gateways such as credit cards, cash cards, net banking, scratch cards through IVRs and pre-paid cards, among others. “It’s too immature to comment on payment modes yet but it would be like any other model of client transaction available for telecom and DTH subscribers,” the official informs.

     

    InCable managing director Ravi Mansukhani, which has started direct billing in Delhi and Mumbai explains that retail (direct) consumer billing is the first step toward creating a transparent system. “Every MSO has to get into direct billing. In Delhi, our first bill cycle has been generated and handed over to the LCO (local cable operator) whereas the Mumbai bill cycle will be generated next month.”

     

    According to Mansukhani, not all MSOs will start the online system together, and it will depend on how and when they want to activate it. However, he thinks most MSOs will concentrate on getting retail billing in place in Kolkata next. “Considering not all CAFs have been filled in Kolkata, we can hope that in October, the September bill will be generated,” he says.

     

    DEN too plans to have a billing system in place for Kolkata. “We are also available in 24 of the 38 cities that have been digitised. So the billing system will also be in place for these 24 cities by the end of the calendar year,” the DEN official informs.

     

    Mumbai-based MSO ABS 7 Star too is looking at debuting online payment and recharge options by the next financial year though it hasn’t started retail consumer billing till date.

     

    “As per the High Court ruling, till the LCOs are paying entertainment tax, MSOs are not forced to do the billing for consumers. So we haven’t started direct billing as yet,” explains ABS 7 Star CMD Atul Saraf, quickly adding, “Still, effective next financial year, we will have both direct and online billing for consumers.”  

     

    Unlike other MSOs however, Orissa-based Ortel Communications has been owning its last mile for several years now and has resorted to direct billing right from then. “We are a last mile operator and thus, don the international model, where we are directly in touch with our consumers,” informs Ortel Communications CEO BP Rath.

     

    Ortel’s five lakh customers pay Rs 250 plus five per cent entertainment tax and 12.5 per cent service tax. “This is the amount that even others have to pay, who have subscribed to other MSOs. Now, whether customers agree to pay more or reduce the number of channels they subscribe to will have to be seen,” he adds.

     

    Speaking about whether the online model will somewhat change the existing dynamics where the LCO continues to be an interface between the MSO and the consumer, the DEN official says: “We will give subscribers options for recharge of vouchers, cash cards and online payment. But there is a road map behind this and we have started with LCOs as the collection channel for the time being.”

     

    While the transition to online is seen as a positive step, glitches like payment of entertainment tax have to be smoothened out.  “Currently, the LCO pays entertainment tax, which in Mumbai is Rs 45 and in Delhi is Rs 15,” says Mansukhani, adding, “There will be some amount of trouble and it will take at least two to three months for things to stabilise. However, by the second or third cycle, people will get used to the new system.”

     

    But after all this, will consumers stand to benefit from the online model?

    “Well, consumer perspective will not change much. The only difference is that if payments are not made for a given period, their STBs (set top boxes) will be switched off. Also, subscribers will have to pay tax directly on bills generated once we start billing them directly,” says the DEN official.

     

    Mansukhani echoes similar sentiments: “Currently, consumers are paying the same as in the analog regime. If there are any extra charges, they are being absorbed by the MSO.”

     

    Saraf however begs to differ. “Billing and digitisation will lead to an increase in ARPUs (average revenue per user) that haven’t gone up in the past 20 years. Consumers will have to pay 40 to 50 per cent more than what they are paying now. The scenario will be such that the cable operator will charge what the DTH (direct to home) operator is charging currently and the rates for DTH will go up further.”

     

    For consumers, the writing is clear on the wall: it‘s time you started planning for what you really want to watch; otherwise get ready to be hit with a fat-fat bill. Capiche!

  • DEN Networks appoints Yugal Kishore Sharma as president, Broadband

    MUMBAI: Broadband and value added services are expected to be manna for india‘s rapidly digitising cable TV sector. And showing its intent to stash away some of the god sent food from heaven is Delhi-Headquartered MSO DEN Networks. It today announced the appointment of telecom vet Yugal Kishore Sharma as president, broadband to spearhead its foray into broadband internet services. Yugal will be reporting directly to DEN CEO S.N. Sharma.

    Yugal joins DEN from Tikona Digital Networks, a wireless broadband company with a 4G licence where he was the COO. Prior to Tikona, he has worked with Polycom Inc. as regional director – India and southeast Asia. He has previously been associated with leading Indian and global firms like TATA Telecom, SIEMENS India, LG Electronics and PARSEC Technologies.
     

    Yugal brings with him his vast experience in the field of Consumer Technology. He has handled product businesses like Mobile Phones, VoIP CPEs, Wi-Fi, DECT, Bluetooth, Video endpoints and enterprise solutions such as Unified Communications (UC), Video-Collaboration (VC) & Tele-Presence.

     

    Commenting on the appointment, DEN Networks chairman and MD Sameer Manchanda said, “We are delighted to welcome Yugal to the DEN team. Following the unprecedented success of digitisation with addressability, the focus for our industry now expands to providing true high speed broadband services and bundled double and triple play offerings to consumers. High bandwidth wired broadband is the next game changer for India and has the potential to revolutionise both media and communications industries in the country.”

     

    Yugal brings with him his vast experience in the field of Consumer Technology

    DEN Networks CEO S.N. Sharma said, “It is our pleasure to have a seasoned broadband professional like Yugal at the helm of the broadband vertical. DEN has been gearing up for its broadband foray over the last few months. We have already carried out proof of concept tests on DOCSIS 3.0 platforms and achieved speeds of 100 Mbps in controlled conditions which is far higher than what most broadband platforms are able to offer today. We now plan to take broadband across our digital subscriber base and offer consumers an unbeatable high speed data experience.”

     

    DEN’s expertise in cable television coupled with its strong nationwide presence in an estimated 13 million homes and with five million digital cable subscribers provides it a strong platform to rapidly grow its broadband services. With the vision of offering double and triple play services to its subscribers, DEN has been investing heavily over the last few years to build a large fibre optic backbone through a combination of owned and leased fibre. Moreover, the existing cable going into the consumer home for digital cable TV is versatile enough to also provide high speed broadband giving the Company massive operating leverage for quick of deployment of its internet service.

  • Manthan’s Rs 120 crore SMS deal with IBM

    KOLKATA: As part of its ambitious plan to install nearly 3,000,000 set top boxes in the eastern region by end-2014, Kolkata-headquartered cable TV multi-system operator (MSO) Manthan Broadband Services has inked a long-term contract with IBM India for the maintenance of its subscriber management system (SMS).

     

    Sources close to the deal peg its value at approximately Rs 120 crore where IBM has been developing the software for Manthan’s SMS for the past one and a half years.

     

    Indiantelevision.com has learnt that apart from IBM, firms like Magna Quest and Ericsson were also part of the race to win the coveted 10-year contract with Manthan.

     

    When contacted, Manthan director Sudip Ghosh confirmed the news and said: “The system will enable subscribers to exercise their choice of services and budget their bills accordingly. It will also help us manage their accounting and billing of services rendered more effectively in the long term.”

     

    The investment would ensure the best infrastructure including network, encryption, ERP, SMS and call centre, Ghosh said.

     

    An IBM official too concurred: “We are offering a lot of solutions to the company. Yes, we have signed the deal.”

     

    deally, the Digital Addressable Cable TV System (DAS) requires all MSOs to establish a SMS where details of subscribers, including their choice of services like channels and bouquets are maintained. In reality however, many MSOs were not implementing this feature effectively. Also, local cable operators (LCOs) were not providing completed subscriber application forms to their linked MSOs. Reason why the Telecom and Regulatory Authority of India (TRAI) directed all registered MSOs and their associated LCOs to ensure SMS was made fully operational. “This would bring in addressability and consequently, complete transparency in the whole system,” opined several cable and entertainment analysts.

     

    Manthan, created back in 2002 through a merger of the operations of nine cable TV operators, today caters to 30 lakh households in the east. The MSO has penetration in areas like Kolkata, Howrah, Hooghly, Baraipur and Chandannagar among others.

  • DEN lends its ears to LCOs’ apprehensions

     

    MUMBAI: As India‘s government-mandated cable TV digitisation rolls out, one person who has been feeling threatened is the local cable operator (LCO). To address this concern, DEN Networks, Star India and Dolby in collaboration hosted a road show ‘DAS: Daulat aur Shahrat’. The initiative was an effort to reaffirm the trust and also appreciate the LCOs for their efforts for successful implementation of phase II of digital addressable systems (DAS).

     

    The first set of the roadshows, attended by 50 LCOs, was conducted in Kanpur on 19 August and in Lucknow on 21 August. Hosted by Star India on behalf of DEN in association with Dolby, the road show educated the LCOs about the opportunities created by digitisation. “This was the first initiative where the broadcaster, MSO and LCO all came together to talk about the latest in digitisation,” says DEN Networks CEO S.N. Sharma.

     

    The road show was a step towards creating a platform for the various players in the ecosystem. “This was an effort to inform them that digitisation will help them increase proportionate revenue for their services,” he adds.

     

    The implementation of DAS across India is a massive undertaking which promises a complete transformation of the Indian media landscape. “This initiative was aimed at DEN’s LCOs, who are the face of the MSO for the subscriber and focused at informing and educating them about the tremendous opportunities that digital cable has to offer,” informs Sharma.

     

    The LCOs were also made aware of the potential revenue streams due to a wider and better service offering bought in by digitisation such as multiple TV connections, HD, value added services and broadband.

    Digitisation brings with it opportunities even for LCOs says S.N. Sharma

    The conference also elaborated on the challenges lying ahead. “Concerted and continuous efforts from stakeholders can make digitisation a grand success in the remaining territories.”

     

    To ensure that the transition is more seamless for the subscriber and the LCO, DEN also announced a plethora of schemes on educating the consumer regarding channel packages and filling of package authorisation forms (PAF) before the TRAI deadline of 20 September, 2013.

     

    Speaking on the concerns of the LCOs, Sharma says, “The LCO feels that his livelihood will be affected post implementation of digitisation and channel packaging. We through the road show have informed them of the benefits of digitisation and explained that life will be great post digitisation.”

     

    DEN last year conducted a training programme before implementing its digitisation rollout. “That was to make them aware and also address their concerns.”

     

    The current roadshow, which involved the broadcaster and also the technology partner Dolby, was well received. “It has given us the confidence to try and explore more such forums in other cities and states.”

     

    Though no specific timeline has yet been set, but the MSO is exploring many more such modes of getting the LCOs together and addressing their concerns. “We will spread out across all markets in tier II cities and also those in the phase III of digitisation,” he informs.

     

    Clearly, the idea is to have a more joyous ride together on the road to digitisation.

  • Time Warner Cable supplies customers with rabbit ears “TV antennas” during CBS Blackout

    MUMBAI: Time Warner Cable is trying out a traditional solution to its longstanding CBS blackout problem. The cable operator has started offering free television antennas to help its customers continue watching their favorite CBS shows via broadcast signals. The offer is particularly effective in major cities including Los Angeles, Dallas, and New York.

    The cable company notified its customers in affected areas about its latest offer that would serve as a temporary solution to the CBS blackout. It has posted the message on its Website and has sent communication through email. Time Warner Cable is giving away basic indoor antennas to its subscribers. The tool could be claimed at any Time Warner Cable store. It is also offering a $20 voucher to each customer who prefers to purchase TV antennas at any Best Buy location.
     

  • DTH wins over digital CAS – Starcom study

    Will I get fewer eyeballs for my advertising? Do I need to increase my budget to reach the same number of people through Television? Is my media plan going to become inefficient?These are just a few of the questions that a lot of Marketing Managers are asking their media agencies in the face of frequent announcements and subsequent postponements of the much awaited CAS rollout in Mumbai, Delhi and Kolkata.

    While there has been a lot of debate on how CAS will affect the Cable industry or the Advertiser, no one thought of talking to the consumer

    To understand the impact that CAS will have on the TV viewing habits of consumers, Starcom Worldwide commissioned a consumer research in these 3 metros, Chennai having already implemented CAS in 2003. This is the second wave of this research with the first one having been done in the 4 metros in 2003 when CAS was announced for the first time. This research was done among decision makers from SEC A,B & C households and has thrown up quite a few insights that can help marketers in understanding consumer perceptions and responses to CAS. Starcom also followed up with an analysis of ORG retail offtake data to understand what volumes of various categories are likely to get affected by CAS. We present here some of the key findings of the CAS research and a synopsis of the sales analysis.

    • A majority of the Consumers not willing to opt for CAS immediately
      In spite of the strength and popularity of Cable TV, only 30% consumers are willing to opt for CAS within 3 months of launch with Mumbai leading the pack at 53%.
      DTH more popular than CAS
      DTH awareness is 70% compared to only 51% for CAS
    • We attribute this to the advertising done by Dish TV over the last few months since launch and is likely to go up further with the entry of other players in this segment.
    • Most want to buy the Set Top Box outright rather than rent it
      Banks, who may have thought about financing Cable Operators for Set Top might have to shelve their plans since a vast majority (70%) of consumers prefer to buy the STB outright.
    • Compared to 2003 consumers willing to pay a higher amount for the STB
      Good news for cable operators is that the amount people are willing to spend for the STB is 30% higher than the amount they were willing to pay in 2003.
      Consumers willing to pay to watch channels of their choice and the perception is that Cable cost will come down post the implementation of CAS
    • 60% of consumers believe that they will be able to watch only channels of their choice and are willing to pay for those rather than being charged for 100 channels out of which they watch only 20. They also believe that CAS will actually bring down their monthly subscription from an average of Rs 202 to RS 162 with the drop being highest in Mumbai while Kolkata is not impacted at all.

    Most people want to take a wait and watch approach and they will wait till there is enough indication that CAS is here to stay and they see enough of their peers converting in the first few weeks. Once the initial seeding takes place CAS penetration might start growing exponentially.

    Finally what is the implication of the CAS rollout on sales. The following chart demonstrates the methodology followed to arrive at the percentage of sales that are likely to get impacted.

    The affected volumes likely to be: Soaps targeted at the lower SECs : 1.1%
    Metro focused Ketchup : 6% Private Insurance Companies : 10%

    While most FMCG marketers can breathe easy, the ones who sell premium products/brands and are dependant on South Mumbai, South Delhi and the Municipal areas of Kolkata should have contingency plans in place But even for most of such marketers, the impact will not be more than 10% to 15%.