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  • Sidhu’s cable, DTH tax plan gets Punjab cabinet nod

    Sidhu’s cable, DTH tax plan gets Punjab cabinet nod

    MUMBAI: Entertainment lately seems to be affected the most with one tax after another — the GST and tax on watching television programmes. Now, in a ‘blow’ to local cable network companies, entertainment tax will be levied on DTH and cable connections in Punjab. DTH operators however will now have a level playing field with the cable networks. 

    State local bodies minister Navjot Singh Sidhu told the cabinet that the nominal tax would ensure accountability on the part of cable operators.

    After the introduction of GST from 1 July, 2017, the tax levied by the state government had been withdrawn. The state cabinet has however approved levying of the tax through panchayats and municipalities through an amendment proposed in the next session of the Vidhan Sabha where it has the two-thirds majority, PTI reported.

    No entertainment tax, however, has been proposed for cinemas, multiplexes and amusement parks.

    The urban and rural bodies will now be allowed to impose and collect a nominal tax of Rs 5 per DTH connection and Rs 2 per local cable connection per month with the enactment of ‘The Punjab Entertainments & Amusements Taxes (Levy & Collection by Local Bodies) Bill 2017.’

    With around 44 lakh cable connections and 16 lakh DTH in Punjab, the bodies are expected to collect Rs 450-470 million (approximately Rs 369 million and Rs 96 million, respectively).

    Sidhu had been alleging tax evasions by Fastway Network, a company linked to the previous dispensation. In August, the minister had urged the CM’s office to take a call on the recovery of allegedly evaded tax of Rs 200 billion from Fastway.

    Also Read:

    Probe Punjab ‘cable mafia,’ demands minister, Fastway refutes charges

    Punjab Govt falters in first leg of breaking cable monopoly

    Punjab govt. studying Arasu & other regulatory models on distribution 

  • Cable & b’band solutions co C & D Tech acquired by KPS Capital

    Cable & b’band solutions co C & D Tech acquired by KPS Capital

    MUMBAI: KPS Capital Partners has announced the acquisition of C & D Technologies, Inc. and its affiliates through a newly created subsidiary. The financial terms of the transaction were not disclosed. Paul, Weiss, Rifkind, Wharton and Garrison LLP acted as legal advisor to KPS and its affiliates.

    Blue Bell, Pennsylvania-based C & D manufactures, designs, supplies and services fully integrated standby power systems to regulate and control power flow and provide standby power. It is a leader in solutions and services for the utility, telecommunications, uninterruptible power supply, cable, broadband and renewable energy markets.

    C & D operates four manufacturing plants located in the United States, Mexico and China , with sales and distribution in Canada, Latin America, Europe, the Middle East and India. The Company has approximately 1,400 employees.

    KPS managing partner David Shapiro said: “We are proud to acquire C & D and look forward to working closely with CEO Armand Lauzon and the Company’s management team to aggressively develop the C & D platform both organically and through strategic acquisitions. Is a leading global provider of energy storage solutions and services, with a long history of innovation, quality and service to its customers. As a result of the acquisition of KPS, C & D is now well capitalized, with a solid and Access to strategic, operational and financial resources of KPS “.

    C & D CEO Armand Lauzon said: “We are very excited about this partnership with KPS for the next stage of growth and evolution of C & D. C & D strives to offer its customers quality, technology and services of unparalleled quality. Focus and commitment, as evidenced by its 26 years of successful investments in global manufacturing and industry businesses. KPS’s focus on manufacturing excellence and its commitment to investment in research and development, accompanied by significant capital resources, will accelerate the Numerous C & D growth initiatives.”

  • Punjab Govt falters in first leg of breaking cable monopoly

    MUMBAI: Even as the Punjab government recently vowed to break the cable monopoly, the Municipal Corporation Bathinda (MCB) has been unsuccessful in completing its door-to-door cable survey in the city. As per the orders of the Local Bodies Department, the MCB was scheduled to complete its survey by 31 July, and submit its report to the department.

    After receiving instructions from the local bodies minister Navjot Singh Sidhu to start a grassroots-level investigation against Fastway Cable, the MCB had sent officials of the rank of JE and SDO to conduct a door-to-door survey in the Bathinda, Tribune reported.

    Even though the Congress government in Punjab made it clear it would not tolerate monopoly in information and news distribution via cable TV, the state government clarified no particular MSO company or TV channel would be targeted and action would be taken if found guilty of tax law violations.

    Sidhu had alleged that Fastway had caused a loss of around Rs 6840 million to the state exchequer. The state government had ordered a tax evasion notice to be slapped on Fastway. Sidhu also demanded a separate investigation into the alleged under-reporting of TV connections and cable operators engaged by Fastway. Of over 8,000 cable operators in the state, 6,500 were working for Fastway, he alleged.

    MSO Fastway, which holds sway in Punjab resulting virtually in a monopoly, is allegedly owned and operated by close aides of former Punjab chief minister’s family — the Badals. The decade-old MSO company also has sizable presence in neighbouring states of Himachal Pradesh, Haryana and Union territory of Chandigarh. In an official statement, the present CM Captain Amarinder Singh made it clear that action would be taken against media companies if charges of tax violations are proved to be correct.

    Around 70 Bathinda officials were deputed for the survey. In the city, these officials were to collect information of cable network from around 70,000 households. After this survey, Sidhu planned to impose entertainment tax on cable network because, as per the Municipal Act, 1976, his department had the right to collect the tax. The Union Government had kept the cable business out of the GST. As per MCB record of the last 10 years, Fastway had not paid requisite charges for using poles. After the earlier record, many new connections and areas had increased manifold.

    MCB commissioner Sanyam Aggarwal admitted that he did not know how much survey work had been completed.

    ALSO READ :

    Probe Punjab ‘cable mafia,’ demands minister, Fastway refutes charges

    Hinduja’s NXT Digital enters Fastway-dominated Punjab

    Punjab govt. studying Arasu & other regulatory models on distribution

    Punjab govt. vows to break cable monopoly, rules out blocking MSO Fastway

     

  • Under GST, taxes on cable, DTH & entertainment services to come down

    NEW DELHI: Taxation on entertainment, cable and DTH services shall come down under the Goods and Services Tax regime as the entertainment tax levied by states has been subsumed in the GST, the Indian government said today.

    The Finance Ministry in a statement said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28 per cent GST with effect from July 1. Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls.

    The GST Council has finalized 18 per cent tax rate on cable TV and DTH services.
    Currently, these services attract an entertainment tax in states in the range of 10-30 per cent over and above the service tax levy of 15 per cent.

    Under the GST regime, hardware equipment for both radio and television transmission and reception is expected to rise.
    The rates on services by way of admission to entertainment events or cinematography films in cinema theatres is 28 per cent under the GST as compared to some states which have been charging as high as 100 per cent until now.

    Thus, taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under GST except to the extent of taxes on entertainments and amusements levied by a panchayat (village administration) or a municipality.

    The rate of GST approved by GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18 per cent ad valorem. Further, the GST Council has approved an exemption up to a consideration for admission of Rs 250 per person. These services currently attract entertainment tax levied by the States.

    Thus, entertainment services will be lower under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods & inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs. Thus, while GST is a value added tax, entertainment tax, presently levied by the States is like a turnover tax.

    Transmission and reception apparatus for both radio and television have been placed in the top category of 28 per cent of the four slabs of the GST. However, the rates may stabilize as taxes levied by states are subsumed in GST.

    Other items coming under the 28 per cent slab are: single loudspeakers, mounted in their enclosures, Audio-frequency electric amplifiers, Electric sound amplifier sets, Parts; Sound recording or reproducing apparatus; and Video recording or reproducing apparatus, whether or not incorporating a video tuner.

    Transmission equipment for radio or TV broadcasting reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders also come under this slab.

    Monitors and projectors, not incorporating television reception apparatus, reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus also fall in this category.

    Meanwhile, BMR Advisors have said that the information technology sector needs to brace for increase in rates of tax under GST. However, effective planning of credits including on transition stock may aid the sector in mitigating this impact.

    In information technology, both imported and domestically produced mobile phones come in the 12 per cent slab.

    Shrink wrapped software product (on media) will attract tax rate of 18 per cent, as will Laptops, desktops, peripherals, parts, etc. Monitors and projectors (capable of connecting to ADP) will attract a rate of 28 per cent, while the majority of networking products will attract 18 per cent.

    Temporary transfer or permitting the use or enjoyment of any Intellectual Property will attract a GST of 12 per cent.
    In services, software services, that is development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software will attract 198 PER cent GST while Electronic supply of software will attract a tax of 12 per cent.

  • Arnab’s Republic ready for news battle

    MUMBAI: It seems to be one of those rare media projects that is launching with a battery of advertisers and sponsors. Also, it is an exceptional new television channel that had little or no difficulty in reaching out to the right audience through myriad platforms — linear TV, through cable and MSOs, and OTT.

    Arnab Goswami’s Republic TV, which is being launched at 10am on 6 May as www.indiantelevision.com reported weeks ago, will have a strong digital presence through Reliance Jio‘s over-the-top (OTT) platform Jio TV and Star India’s video-on-demand (VoD) platform Hotstar.

    Star and Jio happen to be among the eight original sponsors of Republic TV. Others advertisers include Renault, Vivo, Hike Messenger, Ola, Yes Bank, Microsoft and Future Group. Vivo is also the presenting sponsor of the 9-pm show, while Microsoft is the technology partner. 

    It appears as if it is having a near-perfect launch. With a high decibel marketing campaign – online, outdoors, on ground – which has made almost everyone in the major metros sit up and take note.

    Republic TV will be available  on cable TV, direct-to-home (DTH) and OTT platforms, its digital avataar being republicworld.com. Amongst the DTH platforms which have given it carriage, according to reports,  include: Videocon2h, Tata Sky and some say even Airtel has hopped on board. The MSOs which have reportedly signed on the dotted line include: DEN, Hathway, Manthan, and Ortel. However, some cable and DTH operators may not offer the channel for free or it would be made a part of a bouquet.

    Goswami’s ‘pro-military and nationalistic’ and may be pro-establishment, will have the biggest OTT advantage with Hotstar 135 million downloads. The free-to-air (FTA) channel will bridge the Indian national news vacuum in Hotstar’s portfolio. Hotstar, which offers premium, free and original content across genres, live-streams Sky News and Fox News owned by 21st Century Fox, its parent company. Star earlier exited from the news business as regulation does not allow foreign holding of 51% in television news franchises.

    Goswami believes (being on Hotstar) was the first step as news produced in India goes digital, and then global, since the non-FTA paid VoD platform would take news to  90 million-plus viewers every month. 

    The former Times Now editor had teamed up with Kerala NDA vice-chairman and Rajya Sabha MP Rajeev Chandrasekhar in launching Republic TV. Other investors in ARG Outlier include DEN Networks promoter Sameer Manchanda, senior investment banker Hemendra Kothari, Aarin Capital’s Ranjan Ramdas Pai, Asian Heart Institute’s Ramakanta Panda and TVS Tyres’ R Naresh etc.

    Headed by an idealistic journalist and master-presenter, a near-perfect launch of a nationalistic channel in  times of nationalist dispensation notwithstanding, it remains to be seen how it performs in the jungle of warring news channels. As a senior executive  of a long standing English news broadcaster says: “Republic TV has made the right kind of noises at launch phase. Its key challenge will be sustainibility and that too over the long run. Rivals have deeper pockets and clout; they have not really reacted aggressively against it. When they do, it will have to put up its best, and that will determine its road ahead.”

    Also Read:

    Of Arnab’s Republic, nationalism, need for opinionated media & ‘outdated’ BBC

    Republic TV buzzing with pre-launch teasers featuring ‘soft’ targets, issues

  • TRAI notifies tariff order implementation from 2 May, RIO in 60 days

    NEW DELHI: In keeping with the letter submitted to the Madras High Court earlier this week, the Telecom Regulatory Authority of India today issued an amendment to its tariff order extending the date for bringing it into force to 2 May 2017.

    Following the extension letter, both Star India and Vijay TV had not pressed their plea for extension.

    The Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order 2017 had been issued on 3 March 2017 to provide the tariff framework applicable to broadcasting services relating to television provided to subscribers, through addressable systems, throughout the territory of India.

    Clause 3 of the principal Tariff Order was required to be implemented after thirty days from the date of its publication in the Official Gazette.

    TRAI also said that with the notification today, the Regulation 7(1) of the Telecommunication (Broadcasting and Cable) Services (Addressable Systems) Interconnection Regulations, 2017 relating to publishing RIO within 60 days from the date of publication of regulations comes into effect foday.

    TRAI received representations from some stakeholders wherein it is mentioned that section (b) of sub-clause (3) of clause 1 of the principal Tariff Order stipulates that clause 3, which mandates that broadcasters have to declare the nature and MRP of pay channels will come into effect after 30 days from the date of publication of this Order in the Official Gazette.

    Stakeholders also mentioned that it is not clear where will broadcasters declare the nature and rates of channels as RIOs are required to be published within 60 days. They requested the Authority to remove the ambiguity with regards to schedule for declaration of nature and MRP of pay channels; and publishing of RIO.

    TRAI said in order to harmonize the provisions relating to implementation of the clause 3 of the principal Tariff Order and regulation 7(1) of the Telecommunication (Broadcasting and Cable) Services (Addressable Systems) Interconnection Regulations, 2017, the dates of the principal tariff order have been re-determined.

    In addition, Clause 10 has been amended as it mistakenly referred to the tariff order of 2010.

    The regulations issued on 3 March2017 are:

    The orders can be seen at:

    http://trai.gov.in/sites/default/files/Tariff_Order_English_3%20March_2017.pdf

    http://www.trai.gov.in/sites/default/files/QOS_Regulation_03_03_2017.pdf

    http://www.trai.gov.in/sites/default/files/Interconnection_Regulation_03_mar_2917.pdf

    Also Read: TRAI justifies tariff, QoS, interconnect orders, declines comment on jurisdiction

    TRAI extends tariff regulations execution date, Madras High court arguments to continue

  • iconectiv’s Sangeeta Roy named to WICT ’17 rising leaders program

    MUMBAI: iconectiv, an authoritative partner of the global communications industry connecting more than two billion people every day, has announced that Sangeeta Roy, head of technology operations, has been named to the 2017 Rising Leaders Program by the Women in Cable Telecommunications (WICT).

    WICT’s Rising Leaders Program is a competitive, application-based program that recognizes industry professionals at the manager and director level who have demonstrated leadership potential within their companies. Those selected participate in a weeklong immersion program, which prepares them to undertake increased leadership responsibilities when they return to the workplace. The program is comprised of leadership analysis, high-performing teams, cable business acumen and tactical personal leadership skill development. RLP participants will also create and manage their own personalized leadership development plans.

    “WICT’s Rising Leaders Program provides emerging industry leaders like Sangeeta with critical tools to enhance their skills and strengthen their companies,” said WICT’s Senior Vice President of Educational Programs Christina Vergara. “We believe she will benefit greatly from this invaluable program working with an exceptional group of other rising professionals.”

    “I wish to thank WICT for this honor and the opportunity and I believe such engagements are critical for developing the future leaders of the telecommunication industry,” Sangeeta said. “I know this program will benefit iconectiv’s mission in nurturing leaders to deliver high-quality services to the industry and at the same time help professionals like myself acquire the appropriate skills for becoming successful leaders in the industry.”

    Sangeeta joined iconectiv in 2014 and is currently responsible for heading the technology operations team at the company. Previously, she was responsible for the Business Intelligence Competitive Center initiative where she was focused on developing key partnership with major vendors in delivering predictive models for customer churn and satisfaction management, network traffic modeling and end-to-end correlation of user service experience with network level key performance indices. Previously, she gained valuable IT experience working in various industry domains, including telecom and mobile industry, media, publishing, financials, government, human resources and payroll. She holds a graduate degree in communication and information systems from Rutgers University and an undergraduate degree in computer science from the National Institute of Technology, India. She is also a certified PMP and ITILv3 professional and continues to engage in various MOOCs for continuing education and professional development.

    WICT Rising Leaders are chosen based on a selection process led by over 80 cable telecommunications professionals who are alumnae of the program. Sangeeta was awarded a full scholarship to attend this program.

  • Willow TV acquires exclusive US media rights for IPL ’17

    MUMBAI: Willow TV, the primary broadcaster for cricket in North America, has acquired the exclusive media rights in the United States for the VIVO IPL 2017 Twenty20 tournament.

    The IPL (Indian Premier League) is the world’s leading professional cricket tournament, with record-breaking fan attendance and multimedia consumption. Willow previously broadcast the IPL in 2014, at the time setting cricket viewership records in the United States.

    “Willow is delighted to bring exclusive live coverage of the VIVO IPL 2017 to our viewers across television and digital platforms,” said Willow CEO Vijay Srinivasan. “Viewer interest for cricket in the US stands at unparalleled levels, as over 1.4 million households watched the ICC World Twenty20 on Willow in 2016. We look to continue to set new all-time high ratings this year. The IPL is the crown jewel of professional Twenty20 tournaments, and cricket fans in the US are in for a treat when the tournament kicks off on 5 April.”

    The 10th season of the VIVO IPL 2017 starts on 5 April with the defending champions Sunrisers Hyderabad against last year’s runner up Royal Challengers Bangalore. The tournament features 60 matches, played over 47 days in multiple venues across India. Willow will provide live coverage of all 60 matches, culminating with the final on 21 May.

    Willow, which is part of Times Internet (India’s largest diversified digital group), is one of the fastest growing sports networks in the U.S, and the only channel that is dedicated solely to cricket. The channel, along with its “TV Everywhere” service, is distributed by the largest satellite, cable, IPTV and OTT platforms in a variety of subscription packages.

  • 5G TV may rival cable, satellite & IPTV: Report

    5G TV may rival cable, satellite & IPTV: Report

    MUMBAI: TV and video delivery is likely to become a core capability of next generation 5G wireless services, concludes a new report from Strategy Analytics. Recent demonstrations have suggested that 5G will support 1Gbps data throughput rates. Combining 5G with other networking enhancements and technologies would allow operators to support TV-equivalent services which could eat into the $500Bn global TV and video market currently served by cable, satellite, IPTV and terrestrial broadcast service providers.

    Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies.

    “Data rates get the headlines, but other network technologies will also make or break the business case for 5G TV services,” says Service Provider Analysis director Sue Rudd. “The efficiency of the end-to-end network will determine whether 5G TV is possible, but we have seen enough from early demonstrations by operators like Verizon, Deutsche Telekom, SK Telecom, AT&T and BT to suggest that it will arrive sooner or later in many parts of the world.”

    The report points out that the number of households and devices supported by a 5G TV service within any cell will make or break the 5G TV business case. The number of termination locations can be increased by a factor of three or more by deploying several network enhancements that deliver ‘trunking’ efficiency in the Radio Access Network (RAN). These include MIMO and beamforming for optimal spectrum use, virtualization of cell sites, dynamic throughput over backhaul networks and network slicing to guarantee data rates to the household.

    “Television is already being transformed by new digital services like Netflix and Amazon,” notes Michael Goodman, Director, TV and Media Strategies. “The arrival of 5G TV wireless services could herald another wave of TV disruption through the 2020s and beyond.”

    “The emergence of 5G TV would represent a further stage in the convergence of media and communications, and wireless and fixed services,” says David Mercer, VP and Principal Analyst. “It would also raise important questions relating to the roles of different ecosystem players and the future structure of the media value chain.”

    Also Read:

    Verizon completes purchase of XO Comm fiber business

    Regulations 2016: Of DeMon challenges, changing goalposts & rampant litigation

    Sports TV 2016: Digital explosion, player consolidation & confusion

    Tata Elxsi to showcase latest innovations & solutions in BroadcastAsia 2016

  • 16 local among 350 channels’ network launched in Jammu

    16 local among 350 channels’ network launched in Jammu

    MUMBAI: Another cable network Time-N-Tune (TNT) has been launched in the Jammu region in a move to connect the masses with the cable network system. The TNT management said it would endeavor to promote Jammu’s heritage and language.

    J&K minister Bali Bhagat formally launched the network at Talab Tillo in Jammu. Several personalities including Kashmir Times group editor-in-chief Prabodh Jamwal graced the occasion, Kashmir Times reported.

    In the initial phase, the network would offer a package of 350-plus channels, including 16 local channels comprising entertainment, news and regional languages such as Kashmiri and Dogri. The number of channels and services would gradually be be increased depending on the feedback.

    TNT proprietor Paras Magotra said that initially the reach would be within urban areas of Jammu, and would slowly extend to towns and rural areas. The primary focus would be on quality programmes as per the taste of the viewers.

    During the launch, Bhagat hailed Magotra for venturing into the field of knowledge and entertainment. He called upon the management to focus on quality programmes. Bhagat, appreciating the role of media, appreciated the fourth pillar of democracy for playing its role as per the people’s mandate.