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Tag: cable operators

  • Cable TV lobby urges tax cut to 5 per cent as sector reels under strain

    Cable TV lobby urges tax cut to 5 per cent as sector reels under strain

    NEW DELHI:The All India Digital Cable Federation (AIDCF), the apex body of cable operators, has petitioned information and broadcasting minister Ashwini Vaishnaw and finance minister Ashwini Vaishnaw  to slash goods and services tax on cable television from 18 per cent to 5 per cent.

    The appeal rides on prime minister Narendra Modi’s push for “next-generation GST reforms” and a two-rate structure. The federation argues that cable remains the cheapest mass medium, reaching 64 million households and sustaining 10–12 lakh jobs, yet is under siege from rising costs and unregulated OTT rivals.

    Powered by 852 multi-system operators and 1.6 lakh local cable operators—mostly small entrepreneurs—the sector was even recognised as an “essential service” during the pandemic. But the economics are dire. Broadcaster fees have surged nearly 600 per cent, pushing up subscription costs by 35–40 per cent. With consumers balking at higher tariffs, margins are collapsing.

    “Market dynamics have become unfair for MSMEs in cable TV, as they are bound by tariff regulations while OTTs operate without comparable oversight,” AIDCF wrote.

    The lobby claims a GST cut would restore affordability for households, ease working capital pressures, enable fresh broadband investment under Digital India, and protect lakhs of jobs.

    AIDCF secretary general Manoj P Chhangani urged the government to table the matter at the next GST Council meet: “A reduction will safeguard the viability of MSOs and LCOs and preserve cable’s role in inclusive connectivity.”

    Industry watchers caution that while OTT is growing fast, cable still dominates in small towns and villages. A tax reprieve, they say, could decide whether it remains India’s broadcast backbone—or fades into obsolescence.

  • ARASU to pay deficit of Rs 138.7 cr to SPNI as per DAS audit : TDSAT order

    ARASU to pay deficit of Rs 138.7 cr to SPNI as per DAS audit : TDSAT order

    Mumbai: In a landmark ruling, the Telecom Disputes Settlement and Appellate Tribunal (TDSA) has directed Tamil Nadu Arasu Cable TV Corp (TACTV) to pay Rs 138.75 cr to Sony Pictures Networks India (SPNI) for underreporting the subscriber base as revealed in the DAS audit, leading to financial loss to the broadcaster.

    The amount needs to be paid within two months from the issued order (16 February), said the Tribunal, posting the matter for further proceedings on 9 March. As per the order, the amount is 50 per cent of the original claim amount of Rs 277.58 cr sought by the broadcaster in its petition before the Tribunal in May 2021.

    According to the guidelines of the Telecom Regulatory Authority of India (Trai) pertaining to the NTO regime 2019, all distribution platform operators (DPOs) are required to conduct a Digital Addressable Audit (DAS) audit of their head-ends mandatorily once in a calendar year. The DPOs can choose any of the empanelled auditors listed by Trai for the purpose. In case of any DPO not conducting such audits, the broadcaster can conduct the same via the empanelled auditors for the said calendar year.

    In its petition before the Tribunal, SPNI had stated that TACTV ARASU had been consistently postponing the DAS audit. Despite several reminders by the SPNI distribution team, the distributor kept postponing the audit till November 2020 citing the Covid situation. Finally, the audit was done by the Trai empanelled audit agency- BDO India LLP in December 2020. As per the audit procedures, all the data extraction was done by the ARASU representatives along with the CAS/ SMS vendors in front of the auditors.

    The Auditors submitted the findings and reports to both ARASU and SPNI on 19 January 2021, which on careful analysis revealed that seven ARASU packs that had SPNI channels were not disclosed in the monthly subscriber reports (MSR’s) submitted to SPNI. “This amounts to piracy and under declaration of sub-bases led to a revenue impact for SPNI,” the broadcaster argued.

    Further, a close analysis of the CAS data recovered from 19 February till November 2020 revealed that two packs out of undisclosed seven packs carrying SPNI channels were available to the entire universe of 2.8 million subscribers of ARASU and again, none of these numbers was disclosed to SPNI in the Monthly MSR’s. According to the broadcaster, this has resulted in a huge financial accumulated outstanding impact month on month amounting to a value of Rs. 277.52 Crores, unpaid by ARASU.

    After receiving no response from ARASU despite several reminders, SPNI approached TDAST in May 2021 and submitted the entire case and a prayer for a hearing and resolution on this matter. After prolonged arguments and counter-arguments by the SPNI counsel represented by senior advocate Gopal Jain and Kunal Tandon, the Tribunal was convinced that ARASU has been underreporting the subscriber base due to which SPNI’s legitimate rightful monthly fee accrual was way below the actual rightful amount.

    “If 50 per cent of the amount indicated above is paid within two months, the petitioner (SPNI) shall not issue disconnection notice without seeking leave of the Tribunal,” the order stated.

  • Trai defers NTO 2.0 implementation to 1 June

    Trai defers NTO 2.0 implementation to 1 June

    Mumbai: The Telecom Regulatory Authority of India (Trai) on Thursday extended the deadline for implementation of new tariff order (NTO) 2.0 to 1 June. The previous deadline was 1 April.

    As per the plan, Trai has allowed broadcasters to revise their reference interconnect offers (RIO) by 28 February and publish the same on their websites. It has also asked distributed platform operators (DPOs) to report the distributor retail price and composition of the bouquet of pay channels by 31 March in compliance with the new regulatory framework. Those who have already submitted can revise their RIOs by 31 March.

    “Keeping in view the current pandemic situation across the country and requests received from stakeholders for extension of time for implementation of new regulatory framework 2020, it has been decided to extend the time limit for implementation of new regulatory framework 2020,” said Trai in the statement.  

    Several stakeholders have informed Trai that due to the present Covid situation most of their staff who were affected were unable to attend office due to guidelines by state governments. Cable operators’ staff were finding it difficult to reach Covid affected subscribers/areas for collection of choices.

    Further, Trai has asked all distributors of TV channels to ensure that with effect from 1 June services to the subscribers are provided as per the bouquets or channels opted by the subscribers.

  • MCOF demands TRAI resolve pending grievances by 2 October

    MCOF demands TRAI resolve pending grievances by 2 October

    Mumbai: The Maharashtra Cable Operators’ Foundation (MCOF) has written to the chairman of the Telecom Regulatory Authority of India (TRAI) and minister of information and broadcasting (I&B) Anurag Thakur to resolve pending grievances of local cable operators (LCOs) before 2 October.

    According to the association, the inaction of TRAI has resulted in a loss of Rs 600 crore per year for LCOs. “The LCO fraternity will take steps to protect itself no matter the consequences on the rest of the value chain,” the letter reads.

    The LCOs had sought TRAI intervention in the matter of unilateral imposition of inter-connect agreement by multi-system operators. It alleged that MSOs leveraged their portals to impose prepaid terms on LCOs while offering post-paid services to subscribers, and called for redefining the shareable revenues between broadcasters and cable operators, and asked TRAI to clear ambiguity in set-top-box ownership.

    “Our subscribers and we are wondering as to why TRAI has not taken any step to implement the NTO 2.0 after the SC verdict refusing interim relief to broadcasters’ pleadings,” said MCOF. “The broadcasters and MSOs continue to milk the disempowered customers through packaging tricks and also deny a level playing field for standalone broadcasters. On a conservative basis, the forced excess payment towards content that subscribers do not want is Rs 50 per month.”

    Model interconnection agreement (MIA) and standard interconnection agreement (SIA) are signed between MSOs and LCOs for the retransmission of TV signals. MIA ensures that there is a mutual agreement in the terms set between LCOs and MSOs in line with the regulatory framework, to avoid disputes and ensure a level playing field. SIA provides for standard terms and conditions prescribed by regulation that may be adopted by MSOs and LCOs if they fail to mutually agree on an MIA.

    During NTO 2.0 litigation, LCOs claimed that TRAI has incorrectly portrayed them as a conduit between MSOs and subscribers undermining the role they have played as last-mile owners bringing connectivity to lakhs of homes. LCOs fear that subscriber ownership may be transferred to the MSOs and will lead to broadcasters and MSOs benefitting disproportionately at the cost of LCOs.

    LCOs have adopted a prepaid billing model for cable TV subscriptions to bring transparency and plug leakage of revenues. However, LCOs claim that while MSOs impose prepaid terms on the LCOs, they continue to offer post-paid services to TV subscribers by leveraging their portals. This has impacted their revenue collection.

    “The payout of pay-TV channels to cable operators for retransmission of TV signals is much lower than the amount billed to the customer,” said MCOF. “This fact is visible at a glance at the P&L statement of MSOs who disclose Netted Content Costs,”, said the letter.

    LCOs have asked TRAI to clear ambiguity on set-top-box ownership resulting in unilateral pricing without invoicing or service level agreement (SLA) to the subscribers.

    The LCOs service 10 crore homes and employ five lakh semi-skilled personnel. The letter states that the sector is at a make-or-break point with thousands of crores invested in fibre infrastructure at risk of disuse and economical infotainment to 40 crore viewers. It said that LCOs’ long list of grievances has been brushed aside by TRAI without any justification.  

  • HC restrains unauthorised broadcast of Tokyo Olympics by cable operators

    HC restrains unauthorised broadcast of Tokyo Olympics by cable operators

    New Delhi: The Delhi high court has restrained the unauthorised broadcast of the upcoming Tokyo Olympics by several rogue websites, multi-system operators, and local cable operators. The much-awaited international sports extravaganza is set to begin on 23 July and conclude on 8 August.

    The court was hearing a plea filed by Sony Pictures Networks India, which is the official, exclusive broadcaster of the 2020 Tokyo Olympics in India.

    According to the SPN, over 40 websites and over 30 multi-system operators, and local cable operators illegally broadcasted pirated content in violation of the copyright act and argued that the new IT Rules of 2021 required an ISP to protect a party’s proprietary rights. In the plea, Sony Pictures has stated that these websites and cable TV operators were habitual defaulters as they have in the past infringed its exclusive rights for the broadcast of certain cricket matches.

    The court thus directed the internet service providers (ISPs) to block access to these websites illegally broadcasting the games on their platforms. The ex-parte interim order will remain in force till the next date of hearing on 29 September, it added.

    The court has asked the government to issue necessary directions/notifications calling upon various ISPs to block access to rogue websites. It has also issued summons in the plea and sought response from the defendants within four weeks.

    Sony Pictures owns and operates the Sony Ten Network of channels which includes Sony Ten 1, Sony Ten 1 HD, Sony Ten 2, Sony Ten 3, Sony Ten 2 HD, Sony Ten 3 HD, Sony ESPN, Sony ESPN HD, Sony Six, Sony Six HD.

    In its agreement with the International Olympics Association, SPN has the exclusive right to broadcast the games over any media platform. The network has also put together a series of ‘Hum Honge Kamyab’ films on-air and on their social media platforms led by eminent personalities sending their best wishes to the Indian contingent for the Olympic Games Tokyo 2020.

    The Olympic Games Tokyo 2020 will be telecast LIVE on SONY TEN 1, SONY TEN 2, SONY TEN 3, SONY TEN 4, and SONY SIX channels from 23 July to 8 August.

  • MSOs see recovery in subscription collection post lockdown

    MSOs see recovery in subscription collection post lockdown

    KOLKATA: At the beginning of the Covid2019 crisis, distribution platform operators (DPOs) witnessed a sharp drop in collections from subscribers. After months of lockdown and controlled movements, major multi-system operators (MSOs) are seeing stability in their collections from June end. 

    According to a survey done by business intelligence enterprise Intin titled ‘Cable TV Fitness Check’ published in late May, the collection dropped for 84 per cent of cable operators, which was attributed to the unwillingness for digital payment and the lack of infrastructure, coupled with the social distancing norms.

    GTPL Hathway CATV business head and chief strategy officer Piyush Pankaj says that they have recovered the collections once the opening up started. Moreover, many new consumers have opted for digital payment. Hence, the payment collection issue has stabilised. Pankaj also added while 10-15 per cent of total collection dipped at the beginning of the pandemic, the scene has changed June onwards leading to 100 per cent recovery in the collection.

    Siti Networks Ltd CEO Anil Malhotra also echoes the same tone. According to him, the collection dropped by 20-25 per cent in March-April. While it recovered, there is still five to six per cent lag. However, he mentions that it is still facing an issue on the side of placement and marketing. 

    While UCN Cable Network director Jagdish Paliya states that two to three per cent recovery is still left, the collection is not difficult at this moment. There was 15 per cent drop in collection till May as the stringent lockdown made it difficult for last mile operators to reach the consumers.

    IndusInd Media & Communications Ltd (IMCL) CEO Vynsley Fernandes also reflects the positive sentiment of his peers in the industry. As everyone is adjusting to the new normal, some amount of stability has come, especially in terms of collection. He highlights another important trend that more consumers are paying digitally through payment gateways like Google Pay, PayTM, etc.

    Malhotra also agrees to the surge in digital payment from consumers but he notes that it is still not substantial despite a noticeable improvement. On the other hand, Pankaj says there has been an overwhelming surge in digital payment from the consumers’ side in the last four months. While it was 30-35 per cent pre-Covid2019 time, it has now reached 80-85 per cent. Metrocast Network Services promoter Nagesh Chhabria also says that it has converted more consumers into digital payment mode.

    With recovery, MSOs are likely to benefit from the growth in digital payments that they have witnessed during the pandemic.

  • TRAI launches channel selector app

    TRAI launches channel selector app

    MUMBAI: In a move to facilitate consumers to view their TV subscription and choose the channels of their interest while removing the unwanted ones, the Telecom Regulatory Authority of India launched a channel selector app. 

    TRAI said that after issuing the new tariff order for broadcasting services it was noticed that consumers were facing difficulty to opt for TV channels or bouquets of their choice on the web portal or applications of their respective distributed platform operators (DPO).

    TRAI has developed this app in order to provide reliable, robust and transparent systems to television subscribers. The app will fetch data of subscribers from respective DPOs platform through APIs. 

    The regulatory body said that the app shall allow the customers to view all available channels and bouquets and pick individual ones. TRAI has claimed that the algorithm based app ensures that there is no duplication of channels and provides “optimised” channel subscriptions, to ensure cost savings. The app can also be used to modify and manage the existing subscription of the customer.

    Most of the major DTH and cable operators are onboard the app, the regulator said. Efforts are underway to include other players to make them useful for all customers.

    Channel Selector App is available on both Google Play Store and Apple Store.

  • Cable subscription collection sees 80% drop due to COVID-19

    Cable subscription collection sees 80% drop due to COVID-19

    MUMBAI: Cable operators have been facing problems in the collection of subscription fees since the third week of March as restrictions on social distancing started. Moreover, the countrywide lockdown has caused them more distress. Subscription collection of the operators from customers has fallen down, as Maharashtra Cable Operators’ Foundation (MCOF) stated. 

    “After the ministry of information and broadcasting permitted cable TV as an essential service, cable operators have been able to get their limited staff to attend to network-related issues. With no public transport, workers staying at faraway locations have not been able to attend,” it stated.

    “Subscription collection from customers has come down drastically as many societies and colonies have imposed restrictions on any entry into their complexes,” it added.

    MCOF mentioned that cable operators have to make payments to their respective MSOs upfront if they wish to activate any channel/package. But all MSOs get almost 30 to 60 days’ credit before they make any payment to the broadcasters. This is mainly due to the fact that MSOs have to generate monthly usage reports for the month, based on which the broadcasters will raise their invoices. These broadcaster invoices will then be processed by respective MSO accounts teams and payments made. 

    Against this backdrop, various cable associations have appealed to TRAI, MIB, and respective MSOs to either adopt post-paid services for April or to issue credit facilities to cable operators who are unable to collect.

    The AIDCF (All India Digital Cable Federation), the body of MSOs, has decided to keep only the mandatory channels of Doordarshan active for any STB which is not renewed in April. 

    It stated that cable operators are not financially strong to fund the MSOs and activate channels, especially when collections have dropped by 80 per cent or more. 

    Cable associations have advised cable operators the following: 

    ·   Cable operators should push customers to pay online using NEFT/UPI/wallets/credit or debit cards and activate services for those who have paid.

    ·    For those customers who do not pay online, cable operators can downgrade them to Free To Air Channel (FTA) Packs, since most viewing is happening on news channels (most of which are FTA channels) and DD providing re-runs of its popular serials at nil cost. Pay broadcasters have run out of fresh programming and all sporting activities having come to a halt, these can be activated for customers who make payments to cable operators. 

    ·   Cable operators are free to levy a convenience fee of up to Rs 30/- per month from a customer to renew the services without any upfront payment. Customers can opt for this by calling/messaging their respective cable networks and confirming their willingness to pay the same.

    “In over 25 to 30 years of this business, cable networks have gone through various natural calamities but we have always ensured that the subscribers get near-uninterrupted services. We request customers to stand by their respective cable operators as a mark of solidarity by using any online method of convenience to pay their cable operators or speak to their cable operator and exercise their best option,” the federation urged. 

  • MIB demands confirmation from MSOs regarding carriage of all DD channels

    MIB demands confirmation from MSOs regarding carriage of all DD channels

    MUMBAI: The Ministry of Information and Broadcasting (MIB) has sought affidavits from both existing MSOs as well as fresh applicants that they are carrying all 24 DD channels, besides Lok Sabha and Rajya Sabha TV channels, on their TV network.

    The ministry has mentioned in the notice that in view of the contribution of Doordarshan towards dissemination of accurate information about policies and programmes of government, acceleration of socio-economic change, promotion of national integration and stimulation of scientific temper, it is mandated that all cable TV networks should carry DD channels.

    The ministry has noticed that the mandate is not being followed by several cable operators in contravention of existing rules. The ministry has also asked to submit the affidavit within one month of the issue of notice.

    Section 8 of The Cable Television Networks (Regulation) Act, 1995 states that cable operators will have to compulsorily include Doordarshan channels notified by the central government in the Official Gazette. The MIB also listed DD Arunprabha as a mandatory DD channel recently.

  • Karnataka may face day-long cable TV blackout on 24 January

    Karnataka may face day-long cable TV blackout on 24 January

    MUMBAI: Karnataka cable TV users are likely to face a blackout of TV channels on 24 January if the Karnataka State Cable Television Operators Association goes ahead with its intention to protest against the Telecom Regulatory Authority of India’s (TRAI) new tariff order. The state has 60 to 70 lakh cable channel subscribers.

    The association has decided to black out cable channels across the state on January 24 from 6 am to 10 pm. According to a report in The Hindu, the channels will be switched off by the respective associations.

    As quoted in the report, VS Patrick Raju, president of the association said the TRAI decision is regressive. He also added it would go against the interests of both the channel subscribers and the operators.

    “TRAI has come out with the new regulations without taking operators into consideration. At present, the operators are giving 450 channels for Rs 300 and if the new rules come into place, the subscriber will end up paying Rs 1,500 for same number of channels as the channel rate ranges from Rs 1 to Rs 19. In addition, a provision has been made to charge 18 per cent. The TRAI regulation is a regressive act and new rules are introduced just to favour big corporate bodies,” he added.

    Cable operators across India are going against the new regime and this Karnataka incident is not any different. Many experts in the cable industry have spoken against the TRAI formula that dictates revenue sharing model.