ITV

Tag: cable TV

  • TRAI orders MSOs and payTV b’casters to file interconnect agreements

    TRAI orders MSOs and payTV b’casters to file interconnect agreements

    NEW DELHI: There has been a hue and cry over the last month or so that broadcasters and MSOs have been extremely slothful in signing channel agreements with each other. The Telecom Regulatory Authority of India has taken note of this and asked all of them to furnish the names of the MSO or the service provider with whom the interconnection agreement has been entered into along with the service area covered and the validity period of the said agreement by the week beginning 13 May.

    The directives were sent individually to all pay broadcasters/ aggregators and MSOs on 6 May.

    TRAI has also directed the pay broadcasters/aggregators and MSOs to produce in writing the terms and conditions of their interconnection agreements with MSOs or other service providers wherever they are is providing cable television services through digital addressable systems (DAS).

    The direction has been sent under section 13, read with sub-clauses (ii), (iii), (iv) and (v) of clause (b) of sub-section (1) of section 11 of the Telecom Regulatory Authority of India Act 1997 for implementation of Digital Addressable Cable TV Systems.

    Regulation 5(3) of the regulations provides that every broadcaster has to, within a period of thirty days from the date of receipt of request from the multi system operator, enter into an interconnection agreement or modify the existing interconnect agreement in accordance with the terms and conditions of the Reference Interconnect Offer published under these regulations or as may be mutually agreed.

    Regulation 5(6) provides that it shall be mandatory for the broadcasters of pay channels to reduce the terms and conditions of the interconnection agreements into writing; and Regulation 5(7) provides that no broadcaster of pay channels shall make available signals of TV channels to any multi system operator without entering into a written interconnection agreement.

    Prior to this notice, TRAI had held meetings with broadcasters and MSOs on 22 March, 2 April, 12 April and 18 April on issues relating to implementation of the phase II of implementation of DAS systems wherein the broadcasters and MSOs were asked to expedite the signing of interconnection agreements and submission of the information of the same to the Authority.

  • Surrogate advertising notification awaits govt clarification

    Surrogate advertising notification awaits govt clarification

    NEW DELHI: A notification issued on 27 February 2009 on surrogate advertising has still not been operationalised as the government has failed to work out a mechanism for differentiating between surrogate ads and genuine brand extensions of tobacco and alcohol products, parliament was told earlier this week.

    The notification came following a long pending demand from broadcasters to allow bonafide advertisements of genuine brands using the brand name/logo which is associated with tobacco products or alcohol.

    A committee of secretaries from different ministries held a meeting on 22 January this year and resolved to work out a formula, but this has not happened. Prior to that, A note was circulated to the department of consumer affairs, department of industrial policy & promotion, department of legal affairs, department of health and family welfare and the department of revenue.

    The committee had decided that information & broadcasting and health and family welfare ministry officials would decide a note for operationalisation of the notification and inform the cabinet secretariat within a month. In case the two ministries do not agree, the matter would be referred again to the committee, it had been resolved.

    Meanwhile, information & broadcasting minister Manish Tewari told parliament that the committee had also decided that issues regarding advertisements on genuine brand extension for both tobacco and alcohol products will continue to be dealt with together.

    Telecast of advertisements on private satellite/cable TV channels is regulated under the Cable Television Networks (Regulation) Act, 1995 and Rules framed thereunder. Rule 7 (2)(viii)(A) of the Advertising Code provides that no advertisement shall be permitted which-promotes directly or indirectly production, sale or consumption of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants.

    A proviso says that a product that uses a brand name or logo, which is also used for cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants, may be advertised on cable service subject to the following conditions:-

    (i) the story board or visual of the advertisement must depict only the product being advertised and not the prohibited products in any form or manner;

    (ii) the advertisement must not make any direct or indirect reference to the prohibited products;

    (iii) the advertisement must not contain any nuances or phrases promoting prohibited products;

    (iv) the advertisement must not use particular colours and layout or presentations associated with prohibited products;

    (v) the advertisement must not use situations typical for promotion of prohibited products when advertising the other products;

    Provided further that:-

    (i) the advertiser shall submit an application with a copy of the proposed advertisement along with a certificate by a registered chartered accountant that the product carrying the same name as cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants is distributed in reasonable quantity and is available in substantial number of outlets where other products of the same category are available and the proposed expenditure on such advertising thereon shall not be disproportionate to the actual sales turnover of the product.

    (ii) All such advertisements found to be genuine brand extensions by the ministry of information & broadcasting shall be previewed and certified by the Central Board of Film Certification as suitable for unrestricted public exhibition and are in accordance with the provisions contained in sub-clause (i) to (v) of the first proviso, prior to their telecast or transmission or retransmission.

  • DTH, internet register growth till end Dec ’12: Trai

    DTH, internet register growth till end Dec ’12: Trai

    MUMBAI: DTH TV in India is doing very well thank you. Bouoyed by the mandated digitisation of India’s cable TV sector and increased marketing activity by the six direct to home television service providers, the number of subscribers to DTH has climbed to 54.52 million subscribers. That’s the finding of The Telecom Regulatory Authority of India (Trai) in its latest quarterly report ending December 2012.

    These numbers were achieved half way through phase I digitisation.

    The report also says that the maximum TV channels being carried by any MSO nationally is 267, while traditional analogue cable TV operators were carrying 100 channels. It adds that India has close to 823 private satellite TV channels – in addition to the state owned broadcaster Doordarshan. 184 of these are pay TV channels. The data for the report was collated from 26 broadcast distributors.

    The report also says that Indians are taking to the internet more and more with the number of subscribers increasing to 25.33 million from 24.01 million in end September 2012 – registering a quarterly growth rate of 5.49 per cent. The Top 10 ISPs together hold 95.42 per cent of the total internet subscriber base. As far as broadband is concerned, the number of subscribers increased by 2.02 per cent to 14.98 million as against 14.68 million up to end September 2012. Almost 84.82 per cent of these subscribers are using DSL. However, the share of broadband subscription to total internet subscription decreased from 61.16 per cent (end September 2012) to 59.15 per cent (end December 2012).

  • JainHITS signs Ingram Micro as logistics partner

    JainHITS signs Ingram Micro as logistics partner

    BENGALURU: Headend in the sky (HITS) service provider JainHITS has got another aspect of its business piece in place. It has forged a strategic alliance with marketing and logistics company Ingram Micro which has come on board as its logistics partner.

    “Our goal is to reach and partner 60,000 cable operators and help them not only survive but also maintain their entrepreneurial business and grow further. In the first year, JainHITS will do transactions across India with 2000 local cable operators. JainHITS believes that 20 per cent of this would turn to be the market for broadband and 10 per cent for Cloud Broadband, Gaming etc,” says JainHITS managing director Ankur Jain. “Ingram Micro is one of the leaders in providing Logistics Solutions on pan India basis. Through this partnership, Ingram Micro will provide an effective and efficient solution to JainHITS to reach a large number of cable operators across India.”

    “We are proud to be chosen by JainHITS as logistics partner. The partnership will enable JainHITS to leverage our pan India network” says Ingram Micro senior director – mobility business Atul Gaur.” We provide a very strong value bridge between customers and vendors, bringing the latest products and services to market in least possible time. For JainHITS, we will ensure quick delivery of products to the customers.”

    JainHITS has promised to offer broadband, connected homes, multi-screen, and other value added services along with some innovative consumer products such as cloud broadband, hybrid broadband TV (HBB TV) etc, besides offering digital Cable TV which can carry up to 1000 TV channels.

  • Den Networks offloads 24 per cent equity; raises $160 million

    Den Networks offloads 24 per cent equity; raises $160 million

    MUMBAI: India‘s John Malone is on a roll. Earlier this week, the Sameer Manchanda headed cable TV MSO Den Networks announced that it was going for a preferential allotment to Goldman Sachs affiliates ($110 million) and a qualified institutional placement (QIP of $50 million) which would allow it to raise a total $160 million (Rs 865 odd crore). This is the largest transaction in the Indian cable TV sector.

    It informed the BSE today that the deals had gone through – the preferential allotment went through the day before and the QIP yesterday – and that the divestment amounts to 24 per cent of Den Network‘s equity. Goldman Sachs had J. Sagar Associates as an advisor while the Hong Kong office of Herbert Smith Freehills acted as the international legal counsel. Den Networks had Amarchand Mangaldas as its advisor.

    Indiantelevision.com caught up with a very cheerful and confident Den Networks COO M.G. Azhar late this evening. This is what he had to say: “We are delighted to have Goldman Sachs as our partner. It has a long history of constructively driving consolidation, digitisation in various markets across the world. Their association will help us in transitioning through various cycles as business transforms.”

    Azhar adds that the deal should encourage other private equity firms and investors to invest in Indian cable TV. “It needs lots of investment. Millions of homes have to be digitised over the next year or so. The investment in Den clearly reflects that the progress of digitisation has helped regain investors‘ confidence in cable TV,” he says. “Other Indian cable TV firms should also benefit.”

    Azhar points out that Den Networks will not be looking for any more funds as the current cash stash should meet its needs for at least two years. He says that the money will be used to “drive digitisation, further consolidation and expansion, broadband and also make investments in scaling up Den Networks to handle the changing business environment.”

    The company says it is going to start its broadband services in the not-too-distant future in one metro and one tier II city and take it up from there.

    He explains: “Digitisation has progressed well in phase I and phase II. Now we have to segment the market. Digitisation has freed us to offer PVR services, HD feeds, PPV, and other value added services. The average revenue per user undoubtedly will go up. There is a lot of potential; there is a lot of value that has to be unlocked.”

  • DEN Networks to raise $160 million through share sale

    DEN Networks to raise $160 million through share sale

    Mumbai: That India’s cable TV digitization drive in phases is going to soak up a lot of investment – running into a few billion dollars – is well known. Some of the MSOs have been working to stay ahead of their capital requirement curve. Take national MSO DEN Networks founded and led by former TV executive Sameer Manchanda.

    It has a presence in roughly 11 million households in over 150 cities across 13 key states in Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand. The MSO has been at the forefront of digitising cable TV nationally since mid-last year and with the next phase of digitization into smaller towns going on and expected to intensify in the next year, it desperately requires cash.

    And it is reaching out to foreign institutional investment to meet that need. It announced on 6 May that it had got board approval to sell equity to raise about $160 million. This was communicated to the stock exchanges on 6 May.

    Part of that will be raised through a preferential equity allotment to Goldman Sachs’ Singapore registered affiliates Broad Street Investments and MBD Bridge Street 2013 Investments for a total amount of $110 million at a issue price of 217.50 per share (face value: Rs 10).

    The allotment is of course subject to shareholder and other regulatory approvals.

    In addition to this, it got the board’s go-ahead for a qualified institutional placement plan to qualified institutional buyers for raising another $50 million at a price of Rs 217.23 per share.

    DEN had got board approval in end March to divest 26 per cent of its paid up share capital.

    An April end extra ordinary general meeting saw it getting shareholder approval for increasing its FII limit. Earlier this year, it had doubled its borrowing powers from Rs 1000 crore.

    The company’s share rose 2.14 per cent at its closing price of Rs 226.75 on the BSE on 6 May.

  • CASBAA & IBF request FM Chidambaram to roll back tax hike on tech services

    CASBAA & IBF request FM Chidambaram to roll back tax hike on tech services

    MUMBAI: The Cable & Satellite Broadcasting Association of Asia (CASBAA) and The Indian Broadcasting Foundation (IBF) have requested the Indian government to roll back the increase in taxation on royalty and fees for technical services in the hands of a non-resident as proposed in The Financial Bill 2013.

    In a letter addressed to finance minister P. Chidambaram, the two associations have stated that Section 115A of The Income Tax Act, 1961, levies gross taxes of 10 per cent on royalty and technical services. The latest proposal by the finance ministry proposes to take this up to 25 per cent. Along with surcharge and an education cess, the effective rate comes to 27.037 per cent. When grossed up with other related levies, it will actually amount to 33 per cent, they say.

    Their letter to the finance minister points out that the proposed increased levy will have an impact on the Indian and international satellite and broadcasting sectors as the services they provide come under “royalty and fees for technical services.”

    India has constrained satellite capacity and it is highly dependent on foreign satellites. A recent study has shown that international satellites are providing roughly 60 per cent of the broadcasting capacity for India’s satellite DTH broadcasters.

    The associations have reiterated in the letter that international satellite operators will per force have to pass on the increased operational cost to their Indian broadcasting and other clients, as their margins are not fat enough to absorb the impact of higher taxation. DTH operators, broadcasters who deliver channels to India’s 90 million cable TV homes and cable TV operators will also in turn, then pass on the increased costs on to their subscribers. The cascading effect could be substantial, the two associations warn.

    “We believe that a good tax policy should aim at moderate rates, particularly in industries providing an engine for India’s growth. An increase to the levels proposed in the bill would be counter-productive; it would affect not only the operators providing satellite services, but a whole host of related sectors – including broadcasting, media, telecommunications and IT, which have been spearheading India’s growth story in recent years. Hence the increase should be rolled back,” the letter highlights.

    It concludes by saying that “any future increases that might be considered should be phased in, with a transition period of at least five years, to allow taxpayers time to plan ahead and to avoid any one-off uplift which could force the closure of some small operators.”

    Will the finance minister give a kind ear to Casbaa & IBF?

  • IBF moves Supreme Court over DAS Phase II hold-ups

    IBF moves Supreme Court over DAS Phase II hold-ups

    NEW DELHI: Concerned with the increase in the number of petitions that have been filed in the past two weeks leading to a stay on the spread of cable TV digitisation (Digital Addressable System – DAS) in several states, the Indian Broadcasting Foundation (IBF) has knocked on the doors of the country‘s apex court seeking a stay on the stay orders issued by different high courts in the country.

    The IBF petition seeks to ensure that digitisation is implemented as scheduled and without any hindrance. The supreme court has posted the matter for hearing on 23 April.

    The special leave petition filed by the IBF did come up before the SC, however the apex court refused to intervene after it was informed that the Karnataka high court judgment on the case was due.

    The bench comprising chief justice Altamas Kabir therefore felt that the court would wait for the Karnataka High Court judgment before taking up the matter.

    In the meanwhile, the Karnataka and Gujarat high courts have dismissed the petition petitions filed by Karnataka State Cable TV Operators Association (KSCOA) and Cable Operators Association of Gujarat (COAG) respectively paving the way for DAS Phase II to commence.

    However, petitions challenging digitisation are still pending in the Andhra Pradesh High Court and Madhya Pradesh High Court. These affect the cities of Hyderabad, Visakhapatnam, Bhopal. Indore, and Jabalpur.

    According to IBF president Man Jit Singh, the broadcasters association wants a full and final closure on this issue by the Supreme Court so that digitisation can progress smoothly across its various phases as has been drawn up by the government in conjunction with industry.

    Also read:

    DAS extension pleas quashed in Karnataka and Gujarat

    Gujarat HC dismisses petitions seeking DAS extension

    Karnataka HC dismisses KSCOA petition, paves way for analogue cable switch-off

  • Trai issues draft tariff package for STBs/CPEs for DTH and cable TV ops

    Trai issues draft tariff package for STBs/CPEs for DTH and cable TV ops

    NEW DELHI: In order to ensure a smooth migration of customers from one service provider to another without having to re-invest in a new STB, the Telecom Regulatory Authority of India (Trai) today issued draft tariff orders prescribing standard tariff package for set top boxes in digital addressable cable TV systems (DAS) and consumer premises equipments (CPE) for direct-to-home services.

    The standard tariff packages for STB/CPE on rental basis are to be offered mandatorily by DTH and cable TV operators. The draft tariff orders have been put on the TRAI site to seek comments of stakeholders by 26 April.

    The Tariff Order also assumes significance as it attempts for the first time to give inter-operability to consumers of DTH players.

    The authority is of the view that the interests of the consumers can be largely protected through the provision for commercial interoperability of STB. The commercial interoperability provides an exit option for a subscriber in case the subscriber wishes to change the operator for any reason.

    Accordingly, in the relevant Regulations/ Tariff orders of Trai, it has been mandated that the operators of Digital Addressable Cable TV Systems and DTH operators shall give an option to every subscriber to procure the STB either on outright purchase basis or hire purchase basis or rental basis, or in accordance with the scheme, if any, prescribed by the Authority. The relevant provisions of various Trai Regulations/ Tariff Order in this regard are attached as Appendix-I.

    While interoperability is available to customers of LCOs, Trai observed that in case of DTH services, ‘the predominant DAS platforms at the moment, the schemes for CPEs offered to the subscribers by the DTH operators, have wide variations and at times are such that no viable exit option is available to the subscribers. Instead the consumer has to re-invest in new hardware in case of migration from a particular operator or platform. The same may also hold good in case of the upcoming Digital Addressable Cable TV Systems.‘

    The authority is of the view that in order to, provide an easy exit option to the subscribers, ensure availability of STBs at reasonable cost and terms and at the same time to protect the interest of the service providers a Standard Tariff Package, for STBs, as provided for in the existing Regulations/Tariff Orders be prescribed by the Authority.

    Accordingly Standard Tariff Package for STBs for DAS has been worked out. In addition to offering the STB as per the Standard Tariff Package prescribed by the Authority, the operators are free to offer their own schemes for supply of STB to its subscribers in accordance with the existing Regulations/ Tariff Orders and the subscribers shall have option to choose from the Standard Tariff Package prescribed by the Authority and the alternative schemes offered by the operators.

    Authority has observed that The operators are offering to its subscribers various types of STBs having different features/ capabilities such as “recording facility”, “Internet/broadband compatibility”, “High definition/ 3D reception capability” etc., in addition to the basic functionalities. Since for such STBs there would be wide variations in terms of features and cost and hence the Standard Tariff Package is provided only for the basic/ vanilla STBs meant for reception of Standard Definition TV signals (SDTV) conforming to the relevant Indian Standard set by the Bureau of Indian Standards.

    The Standard Tariff Package for Cable TV operators has been worked out on the basis of the following facts and figures as provided by the Industry stakeholders/ Associations:-

    a) The total cost of STB has been taken as Rs. 1750/-.
    b) Life span of STB has been taken as 5 years.
    c) The residual value has been taken as nil.
    d) Rental per month is based on cost of STB on Equated Monthly Installment (EMI) Basis @15% per annum (@1.25% per month) for a period of 60 months.

    The Standard Tariff Package for DTH operators has been worked out on the basis of the following facts and figures as provided by Industry stakeholders/ Associations;

    a) The total cost of CPE has been taken as Rs. 2250/-.
    b) Life span of CPE has been taken as 5 years.
    c) The residual value has been taken as nil.
    d) Rental per month is based on cost of CPE on Equated Monthly Installment (EMI) Basis @15% per annum (@1.25% per month) for a period of 60 months.

    The authority has also noted that no monthly rentals will be payable after the period of five years and the Customer Premises Equipment will become the property of the subscriber (except smart card/viewing card) after the expiry of five years. An amount equal to the sum of security deposit to be refunded per month and interest per month on balance security deposit has been adjusted in Rent per month per Customer Premises Equipment. The Full amount of security deposit stands adjusted in a period of five years.

    Up to five years, on returning of the Customer Premises Equipment, the Security Deposit shall be refunded as per attached table-B, provided that the Customer Premises Equipment is not tampered with.

    In case of un-installation/discontinuance of service before the last day of the month, balance security deposit shown as refundable at the end of that month will be refunded on return of Customer Premises Equipment.

    No repair or maintenance charges would be levied by DTH operator on the subscriber, towards repair or maintenance of Customer Premises Equipment up to the period of five years from activation of the Customer Premises Equipment. The subscriber, however, shall be liable to pay repair and maintenance charges from sixth year onwards.

    No installation charges or re-installation charges (except in case of shifting of connection) or activation charges or smartcard/ viewing card charges is to be levied by the DTH operator on the subscriber.

  • IBF joins MSOs to oppose DAS extension in Bengaluru and Mysore

    IBF joins MSOs to oppose DAS extension in Bengaluru and Mysore

    NEW DELHI: The   Foundation (IBF) has got itself involved in the on-going legal battle between MSOs and LCOs over extension of digitisation deadline in Bengaluru and Mysore.

    The apex body of television broadcasters has impleaded itself in the case contending that there are no grounds for extending the government mandated cable TV digitisation in these two cities.

    IBF president Man Jit Singh confirmed that the IBF has impleaded itself in the case without getting into the specifics of the case.

    MSOs including Hathway Cable & Datacom, InCable, Den Networks, Siti Cable and Atria Convergence Technologies, who have been made party to the case, are opposed to extension of deadline in both the cities.

    The Karnataka High Court (HC) has posted the matter again for hearing on Tuesday which means that the interim order granted earlier restraining MSOs from disconnecting analog signals continues for another day in both the cities.

    The Karnataka Cable TV Operators Association (KCTVOA) and Mysore Cable TV Operators Association (MCTVOA) had filed separate petitions seeking extension of digitisation in Bengaluru and Mysore respectively due to unavailability of set-top boxes (STBs).

    However, the Karnataka HC is hearing both the petitions together.

    The sunset date for phase II of digitisation covering 38 cities including Bengaluru and Mysore was 31 March However the Information & Broadcasting ministry on 2 April allowed a 15 day grace period to the industry to allow smooth transition from analogue to digital cable.