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Tag: CAF

  • Bengaluru MSOs to start gross billing, packaging from April

    Bengaluru MSOs to start gross billing, packaging from April

    MUMBAI: The multi-system operators (MSOs) in Bengaluru are determined to do all that is needed to be in the good books of the Telecom Regulatory Authority of India (TRAI). The latest is that 12 MSOs met today in Bengaluru to discuss the status of consumer application forms (CAFs), gross billing, local cable operators (LCO) agreements and packaging to ensure compliance with TRAI regulations on digitisation.

     

    “This was a coordination meeting where we discussed about gross billing and also packaging,” informs a highly placed MSO who was present at the meeting.

     

    The group of 12 MSO will soon come out with a joint advertisement that will be published in Bengaluru newspapers and will inform the consumers about gross billing and packaging.

     

    The same was done in Delhi when the MSO Alliance jointly came out with an advertisement in local newspapers on the issue of gross billing.

     

    “We are looking at forming a joint committee in order to ensure that the guidelines set by TRAI can be followed,” informs the source.

     

    The timeline to start gross billing was also discussed in the meeting. “Gross billing in Bengaluru will start not later than April 2014,” informs Hathway Cable & Datacom MD & CEO Jagdish Kumar Pillai. Another important issue raised was that of the LCO-MSO agreement. “There were discussions on the revenue share for LCOs, the package rates etc,” adds Pillai.

     

    A Bengaluru-based MSO on the condition of anonymity informs, “The MSOs discussed on getting into a truce so that none of the MSOs infringe on each other’s subscribers. No decision has been taken on this though. The MSOs have asked for a couple of days to come to a final decision.”

     

    Another point discussed was that each LCO has to pay Rs 90 per subscriber per month to the MSO for using its services. “Discussions on packaging took place, which should be in place by April,” adds the Bengaluru based MSO.

     

    Earlier this week, Hathway, which has around eight lakh subscribers in the city, had switched off set top boxes of close to two lakh subscribers as they had not filled CAFs. “We had switched off 2.5 lakh STBs. This was to ensure that we comply with the TRAI guidelines,” concludes Pillai. 

  • TRAI: Phase I and II CAF collection nearing completion

    TRAI: Phase I and II CAF collection nearing completion

    MUMBAI: When the entire process of digitisation started in the country, nobody would have thought it would be such a tough nut to crack and there would be a slippage of so many deadlines. Recently, the Telecom Regulatory Authority of India (TRAI) warned the multi-system operators (MSOs) and subscribers in the digital addressable system (DAS) Phase I and II towns that enough was enough and that they had better get going on finishing the task of submitting the Customer Application Forms (CAFs) with two deadlines – on 27 January for 23 cities and on 31 January for eight cities – once again proving elusive.

    The caning seems to have worked well as everything is getting back on track now. A TRAI official informs that the work in the Phase I and II of Digital Addressable System (DAS) is near completion. Cities with 27 January as the deadline – Rajkot, Surat, Vadodara, Faridabad, Mysore, Aurangabad, Nasik, Pimpri-Chinchwad, Pune, Sholapur, Amritsar, Ludhiana, Jaipur, Jodhpur, Agra, Allahabad, Ghaziabad, Kanpur, Lucknow, Meerut, Varanasi, Chandigarh and Howrah – have almost been  100 per cent  penetrated with active set top boxes (STBs). Almost 85 per cent work has been done (as of 29 January) in areas with 31 January as the deadline that includes cities such as Patna, Ahmedabad, Ranchi, Bengaluru, Kalyan-Dombivali, Nagpur, Navi Mumbai and Thane.

    MSOs have been given two to three additional days post the deadline to submit their compliance reports to TRAI.

     

    “We are in touch with the MSOs on a daily basis and nearly 99.7 per cent has been completed as per the deadlines. If subscribers have failed to fill the forms, MSOs have cut off connections, saving TRAI’s time and also saving themselves from any action against them,” informs a TRAI official.

    However, Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo says that only 70 to 75 per cent work has been completed in the second deadline areas, while in Navi Mumbai hardly 30- 40 per cent work is done.

    A cable operator from Airoli says, “We had got CAF forms in the beginning till about June last year. After that it stopped coming to us.”

     

    But Siti Cable COO Anil Malhotra says that almost 90 per cent work has been completed and the subscribers who fail to fill the forms by tonight will have to face a TV blackout. “Scrolls have already been running to make them aware about it and thus we are sure that we will reach 100 per cent compliance soon,” he remarks.

     

    Hathway Cable and Datacom CEO Jagdish Kumar claims that in these areas Hathway has reached near about 100 per cent. “By 27 December, almost 90 per cent work was done, while the rest had to face a disconnection. Few customers came back to fill the forms and others switched to DTH,” he says. In the next eight cities, about 80 per cent of forms have been collected and fed into the system.

     

    Another leading MSO, Den Networks is also claiming to have achieved 100 per cent compliance for the two dates. Says Den Networks CEO S N Sharma, “In these cities we have complied fully and sent the report to TRAI. We have data of all subscribers and for those who haven’t sent them, their cable connections have been cut off.”

     

    A bright day for digitisation doesn’t look far if the above numbers are to be believed. While few exceptions are always there, most of the stakeholders are taking it seriously. And if the MSOs continue at the same pace and work towards achieving the goal diligently, by February, the work for phase III and IV will kick off.

  • Once we move to gross billing, revenue will increase three-fold: V D Wadhwa

    Once we move to gross billing, revenue will increase three-fold: V D Wadhwa

    These are changing times for the Indian cable TV industry, what with gross (consumer) billing starting in phase I cities and 27 January being the last date for submission of duly-filled Consumer Application Forms (CAF), following which, multi system operators (MSOs) will need to start major switch-off of signals.

     

    In all of this, Essel Group-owned SitiCable Network, earlier known as Wire and Wireless (India) Ltd, has proved to be a game changer of sorts. Under the leadership of chief executive officer V D Wadhwa, the company has been at the forefront of change; whether it is giving access to the Subscriber Management System (SMS) to local cable operators (LCOs), launching local cable TV channels or the latest plan to launch a service on iOS and Android for consumers to view TV content on their Apple devices and smart phones.

     

    An alumnus of Harvard Business School and a fellow member of the Institute of Company Secretaries of India, Wadhwa served as managing director and CEO for business operations in India and SAARC countries with the Timex Group before taking charge as the CEO of SitiCable Network in May 2013.

     

    An avid squash player who dabbles in adventure sports, travelling and driving, Wadhwa took some time out from his busy schedule to speak to Seema Singh of indiantelevision.com on gross billing, setting up of cooperatives and the road ahead for SitiCable.

     

    How has phase I and II of digitisation been for SitiCable? How much has been invested and what have been the returns?

     

    We have approximately 10 million subscribers in the analogue universe. Of these, we have seeded 3.6 million Set Top Boxes (STB) in phase I and II of digitisation. The total investment so far has been to the tune of more than Rs 500 crore.

     

    As far as the returns are concerned, the investment has been done with a payback period of four years. Expecting anything in the short term is not a realistic scenario. No one gets returns on investments immediately.

     

    How many set top boxes will be needed for completing phase III and IV? What is the proposed investment for these phases? How are you looking at generating investment in the company?

     

    Phases III and IV of digitisation has a total universe of about 90 million. Of these, we are targeting 6-7 million homes. At a gross level, we will require an investment of Rs 1200 crore. On a net basis, we are expecting an investment to the tune of Rs 600 crore.

     

    The funding of Phase III will be largely done through warrants’ funding of Rs 243 crore, which is likely to be invested by promoters before March 2014. Balance funding requirement will be met through internal accruals and raising of further equity, as may be required.

     

    By when do you think you will be able to reap the benefits of digitisation? By what percentage do you see the revenue going up?

     

    The benefits of digitisation have already started trickling in and the full benefits will be visible from FY16.

     

    Once we move to gross billing, the revenue will increase over threefold of what it is currently. Right now, whatever revenue is booked in the books of accounts is on net and not gross basis. Last year for the year ended March 2013, our top line was Rs 483 crore. In the last two quarters, we have achieved revenue of over Rs 300 crore and this growth trend in the current quarter continues. Once gross billing starts, the revenue will increase to over three-fold. 

     

    Have you come to any consensus on revenue share and billing with Last Mile Owners (LMOs) in Maharashtra? Are you going to allow LMOs to bill in Mumbai? By when do you see billing starting in Mumbai?

     

    We have a 33 per cent revenue share with all our local cable operators (LCOs) and we do share 25 per cent of the carriage revenue with them, which is not the case with other Multi System Operators (MSOs). So, we are not facing any problem anywhere in the country. We have also given access to the Subscriber Management System to LCOs. Our approach is to consider the LCO as an integral part of the business and both the MSO and LCO have to co-exist. We, therefore, believe in empowering the LCOs by training them and providing them the backend support to enable them provide better customer services. This is the biggest advantage for SitiCable and this is helping us to significantly improve our subscription revenues as compared to other MSOs.

     

    Now that billing has started in Phase I cities, how has the response been? Do you think billing has succeeded in bringing in greater transparency? How is it helping the MSOs?

     

    It is too early to comment. The LCOs are not habituated to the system of gross billing. According to me, it will take at least two to three months for billing and collection to stabilise as per package. But there is gradual acceptance among the LCOs for the gross billing regime. .

     

    Also, I would like to add that in Delhi, between Hathway Cable & Datacom, DEN Networks and SitiCable, we have engaged Mckinsey to help us stabilise the gross billing and gross collection. They will ensure that all MSOs follow the common policy of billing, collection and dunning. Since gross billing started in December, it is expected to stabilise in the current quarter.

     

    The Telecom Regulatory Authority of India (TRAI) had given 27 January as the deadline to MSOs for collection of all Consumer Application Forms (CAFs) and feeding of details in the SMS for phase II cities. Are you switching off signals or is the process complete?

     

    We received 94-95 per cent CAFs in phase I cities and for the remaining, the signals have been switched off. So in that way, we have completed 100 per cent CAF in phase I and submitted the compliance report to the TRAI. For phase II, 91 per cent of CAF has been completed. The regulator for all these months has been patient in giving us extensions. And, I personally believe if the deadline goes on getting postponed, the work will never be completed. The ultimate solution for these problems is to switch off signals for those who have not filled the forms and that is what we are doing, which is in complete compliance with TRAI’s order. In fact, in the last one week, we have switched off 50,000 subscribers nationally. This is to ensure that compliance as per TRAI regulation is achieved.

     

    Where do you see entertainment tax headed? What led to taking the matter to court? Do you think the ruling will be passed in your favour? Do you believe that entertainment tax should be reduced?

     

    As per the law, the MSO is responsible for entertainment tax. We approached the Delhi High Court, since we have always been collecting and depositing entertainment tax, and we did not want to face any coercive action being taken by the tax authorities. As per our information and inputs received from the market, other MSOs are also collecting tax from LCOs regularly. While the H’ble high court has asked SitiCable to keep submitting the entertainment tax, the high court has given the stay against any coercive action being taken by the Tax Department against other MSOs since they have taken the plea that they are not invoicing and collecting tax so far. No decision has been taken on who will be responsible for collecting and paying the entertainment tax as yet.

     

    In SitiCable, we firmly believe that the payment of entertainment tax should be with the MSOs. Since the invoice is being raised by the MSO and the LCO is collecting the subscriber fee, I feel the power of collecting and depositing entertainment tax should be with the MSOs.

     

    I have a very different view on entertainment tax. I do not understand why a consumer needs to pay both service tax and entertainment tax. When we provide them with cable TV, what is it? Is it a service or entertainment? Even for movies, consumers pay only entertainment tax, then why is it that the consumer has to pay entertainment tax and service tax for cable TV. We have raised this issue on several occasions to both the Information and Broadcasting Ministry and the TRAI, but without any heed.

     

    The tax rate has to rationalise across the country. In UP, the monthly entertainment tax is 25 per cent of the subscription fee, while in Maharashtra, it is Rs 45; Delhi – Rs 20; Bengaluru – 6 per cent of the total subscription fee; and Kolkata, it is Rs 10. This differential tax structure will not allow the industry and gross billing to stabilise in these respective states.

     

    I am hopeful that the tax will come down once the process of digitisation is complete. Currently, the tax department is unable to gain significantly due to digitisation. With complete digitisation, there will be transparency and hence, more tax collection. Then there will be rationalisation of tax.

     

    By when do you think the process of digitisation will be complete?

     

    There is no reason why digitisation will get delayed. The I&B Ministry is dedicated and so is the TRAI. Even the MSOs are gearing up for funding, getting STBs and seeding them. So I don’t see any delay in completion of digitisation.

     

    Is the cable TV industry prepared to offer consumer service as available internationally?

     

    I think there is a long way to go for that. We are taking one thing at a time. Currently, the Indian consumer is not even habituated to gross billing and taxation. The Indian cable TV market has not matured enough to be able to offer services like those internationally. Once gross billing is stabilised and every one becomes habituated with the system, only then we can move forward.

     

    However, from the Value Added Services (VAS) point of view, we have started broadband service in the east and soon, we will be starting in the north. Also, we will be providing content on multiple screens to our subscribers.

     

    Is broadband a key play in your revenues going forward? How will it be delivered?

     

    Of course, broadband will play a key role. We will also soon introduce Docsis 3.0, which is the future. Besides broadband, by the end of this quarter, the content available on TV will also be available on iOS and Android platforms. The technical team is working on it and if there are no glitches, we will be launching the service on both the platforms together. We are the first cable TV operator to have thought of this service.

     

    Do you believe building local cable TV channels is the way forward? How much will you invest in this? And what is the monetisation opportunity?

     

    Local cable TV channels help in connecting with the consumers. We plan to launch four to five channels in each geography. While we have seven channels in central India, seven in Jaipur and four in Delhi, we plan to continue with this in other parts as well.

     

    Launching local cable TV channels does not cost much since we already have a studio facility in areas where we have a presence. Such endeavours give a competitive edge over the Direct-to-home operator, since they cannot operate a local channel with local content and the MSO, as they do not have the facility for launching a local channel or have a rather small presence.

     

    A local channel helps in giving out local news in local languages and most people prefer this. Then, advertisements help in generating revenue. So commercially launching such channels makes sense for the MSO.

     

    How do we see the national landscape panning out: will there be a few key national MSOs? Who will these be?

     

    Like in phase I and II of digitisation, the market will be dominated by four national MSOs: Hathway, DEN, SitiCable and InCable. It is only after complete digitisation that the country can expect foreign players to enter the market. These foreign players will bring better technology, transparency and competition. This will prove beneficial for the national players as well.

     

    How do you see the MSOs coping with phase III and phase IV? Will DTH benefit? Or will we see new local players emerging?

     

    While in phase III, the existing MSOs will play a major role and benefit, phase IV will witness DTH playing a major role. In phase IV, with towns having 5,000-10,000 households, it will not be commercially viable for cable TV operators unlike DTH players.

     

    Local players may emerge in some markets, but as seen in phase I and II, the industry has been going through consolidation since digitisation requires huge Capex. The local players emerge since they can manage initial investments. But, they are not technology ready to serve consumers. Also, this is a highly regulated industry, which will be difficult for them to cope with. Considering they do not get placement fee from broadcasters, they can operate for a maximum of one to two years. 

     

    What challenges do you anticipate in Phase III and Phase IV?

     

    Content is the biggest challenge. Currently, the ARPUs for phase I and II cities is not more than Rs 150. If it remains the same for phase III and IV, it will be difficult for us to operate in these towns. Broadcasters need to have differential pricing for these markets.

  • MSOs ask LCOs to collect CAFs from remaining cable homes in Kolkata

    MSOs ask LCOs to collect CAFs from remaining cable homes in Kolkata

    KOLKATA: That the Telecom Regulatory Authority of India (TRAI) has asked MSOs in Kolkata to start gross (consumer) billing from 15 December, 2013, indiantelevision.com had already reported. Word just in is that MSOs in the Kolkata Municipal Area (KMA) have requested local cable operators (LCOs) to expedite the process of collecting Consumer Application Forms (CAF) and channel package details from the remaining five per cent of nearly 30 lakh cable TV homes in the city.

     

    “We are asking the LCOs to cooperate and collect the remaining five per cent CAF so that we can start generating accurate bills against their names,” said SitiCable Network director Suresh Sethia, adding that the region had already collected 95-97 per cent CAF. 

     

    Manthan Broadband Services director Sudip Ghosh informed that apart from taking details from consumers in the prescribed handwritten format, “MSOs have also created a system in their servers, where LCOs could send CAF details to further advance the process of DAS.”

     

    Meanwhile, an official from GTPL-KCBPL said the company had got CAF and SAF details of only over five lakh customers out of the seven lakh active set top boxes (STBs). “Unless we get the CAF and SAF details, we cannot generate bills in the names of the customers,” he remarked. “But we will try to complete the process for the remaining 2 lakh customers and give bills to them in the next one or two months,” he added after a pause.

     

    According to few industry sources, while players like SitiCable and Manthan have said they have achieved 100 per cent CAF rate, it is possible they haven’t accounted for situations where certain households have two set top boxes and the consumers haven’t gone through the CAF process or homes that have been closed after the residents left the city and so on. Still, other sources questioned how MSOs can start the billing process when they haven’t yet started the package.

  • TRAI gives final deadlines for filling subscriber details in DAS Phase II cities

    TRAI gives final deadlines for filling subscriber details in DAS Phase II cities

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) may have once again extended the rope for stakeholders of digitisation but with a warning that they would get no further extension. In a recently issued notice, fresh and “final” deadlines have been given out for entering the subscriber details in the subscriber management system (SMS) in DAS phase II cities.

     

    The regulator has already given two extensions of the deadlines earlier for collecting customer application forms (CAF) and entry of these details in the SMS. However, this comes as a warning from the regulator. It says that 23 cities (Rajkot, Surat, Vadodara, Faridabad, Mysore, Aurangabad, Nasik, Pimpri-Chinchwad, Pune, Sholapur, Amritsar, Ludhiana, Jaipur, Jodhpur, Agra, Allahabad, Ghaziabad, Kanpur, Lucknow, Meerut, Varanasi, Chandigarh and Howrah) have completed 90 per cent of the task and the MSOs in these cities have been ordered to cut off signals from 27 January to subscribers who haven’t given their CAFs.

     

    7 February is the last date for Bhopal, Indore and Jabalpur in Madhya Pradesh; while Vishakhapatnam and Srinagar have time till 28 February. However, state of Tamil Nadu and Hyderabad city have not been given any date due to litigation processes that are pending regarding DAS.

     

    Eight other cities (Patna, Ahmedabad, Ranchi, Bengaluru, Kalyan-Dombivali, Nagpur, Navi Mumbai and Thane) have been given 31 January as the last date. Subscribers have been requested to cooperate with the process and submit their CAFs, failing which MSOs will have to cut off signals to their TVs or will be in breach of law.

     

    MSOs will have to provide bills with exact breakup of charges and subscribers will have to insist for a bill and receipt or see blackout on their screens.

     

    Click here to read the full notice

  • National MSOs to meet in Mumbai on gross billing issue

    National MSOs to meet in Mumbai on gross billing issue

    MUMBAI: The national multi-system operators (MSOs) are meeting on 3 January in Mumbai to discuss the smooth rollout of gross billing in Maharashtra. While the deadline set by the Telecom Regulatory Authority of India (TRAI) to achieve 100 per cent customer application forms (CAFs) for phase II cities and submitting compliance report for gross billing for phase I cities came to an end on 31 December 2013, the MSOs have been unable to start gross billing in Maharashtra. The meeting has been called to discuss on the matter and come up with ways to ensure that gross billing begins in the state.

    “Since the issue of entertainment tax, which is supposed to be included in the bills generated to the consumer, is in the Bombay High Court, we cannot start gross billing in the state. We will be meeting on Friday to discuss issues at hand,” informs a MSO who will be attending the meeting.

     The MSOs are claiming to have achieved 90-95 per cent CAF and also submitted the compliance report for Delhi and Kolkata to TRAI. “But, the situation is a little different in Maharashtra,” admits the MSO.

    While no independent MSO will be a part of the meeting, the national players operating in Maharashtra: Hathway Cable & Datacom, DEN Networks, SitiCable and InCable will meet tomorrow.

    But, the last mile operators (LMOs) have decided to not allow gross billing in Maharashtra. “The case is anyways in the Bombay High Court and so the MSOs cannot start gross billing in the state. Though Hathway has verbally agreed to give partial access to its subscriber management system (SMS) to the LMOs and said that while it will bill the LMOs, the latter can bill the subscriber, thus being the owner of its subscriber, there has been no response from DEN and IMCL on the same,” informs Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

    “We will not allow gross billing to start in Maharashtra till all the issues are resolved,” adds Prabhoo.

  • Kolkata to miss the 31 Dec TRAI deadline for gross billing?

    Kolkata to miss the 31 Dec TRAI deadline for gross billing?

     

    KOLKATA: The Kolkata multi-system operators (MSOs) are likely to miss the 31 December deadline given by the Telecom Regulatory of India (TRAI) to start gross billing.

     

    The cable TV sources in Kolkata feel that the MSOs will not be able to meet the deadline. “They are likely to start the gross billing for the month of December from 7 January,” say the sources.

     

    It should be noted that the 31 December deadline was granted, as the MSOs missed the earlier 15 December deadline to start gross billing in phase I areas. Says Kolkata based cable TV analyst Mrinal Chatterjee, “Kolkata missed the deadline since neither the MSO nor the last mile owner (LMO) are prepared for the process.”

     

    Kolkata has around 30 lakh cable television homes. “The MSOs updated the minister on the total process of digitisation and billing.  As of now we have ad-hoc billing, but soon billing as per package will start. Though customers are happy, the operators do not want the billing to be in place,” opines Siticable Kolkata director Suresh Sethia.

     

    Siticable has around 10-11 lakh STBs in Kolkata DAS I area.

     

    Explaining the nitty-gritty’s of bill payment, a MSO says, “If a customer has chosen a package of Rs 180, he will have to pay Rs 180, plus Rs 10 (amusement tax) and12.36 per cent service tax.”

       
    A LMO affiliated to Hathway Cable & Datacom informs that the MSO has sent the bills to him in a compact disk (CD) and expects him to take a print out and give it to customers.

     

    The way things are progressing, it seems like another deadline is on its way to be missed.

  • TV’s leading ladies get into the CAF act

    TV’s leading ladies get into the CAF act

    MUMBAI: In an attempt to speed up the filling of consumer application forms (CAFs), the Indian Broadcasting Foundation (IBF), along with major broadcasters, has relaunched its on-air promo campaign urging cable TV subscribers to fill them at the earliest as mandated by Telecom Regulatory Authority of India (TRAI).

     

    The campaign features television’s leading ladies like Sakshi Tanwar, Toral Rasputra, Rubina Dilaik and Nia Sharma. It urges consumers to fill their details and hand over the CAFs to their cable TV operators, failing which they will have their cable TV connection snipped off.  The deadline for the submission for the forms was 15 December which again wasn’t met and extended to 31 December.

     

    Says an IBF official, “From the time the campaign was launched first, we have been playing it across channels. And for a few weeks that it was taken off the screens, a scroll/ticker ran, reminding subscribers about the imperative to fill up CAFs.  We have started airing it again so that concerned parties take a note of it and help us achieve the goal.”

     

    However, he isn’t optimistic about the procedure winding up by the end of the year as well. “And if MSOc and LCOs don’t do it, they will get in trouble, this time,” he says firmly.

     

    The channels have been told to show the campaign as many times as possible throughout the day.

     

    In the earlier phase of the campaign in 2012, actresses (Shweta Tiwari, Pooja Gaur, Ragini Khanna) educated and sensitised DAS subscribers about the issue. As per the Digital Addressable Cable TV Systems Regulations, 2012, the MSOs can transmit digital signals and activate the set top boxes only after receiving the CAF from the consumer with his/her preference. If there is no form, the MSOs were obliged under law not to transmit the signals and deactivate the cable connection. However, no such switch off took place in the first phase of digitisation. On the contrary, the deadlines of various phases have been extended time and again.

     

    So what is the reason for this delay? The official feels that the delay in the process is either from the consumers’ side or the local cable operators who have not taken the form collection seriously.  “We still can’t figure out what is the reason for this blockage?,” he says.

     

    The agenda is that by end-2014, India’s 100 million-odd cable TV homes will phase out the analog version, and switch on digital TV.

     

  • TRAI gives MSOs another CAF extension till December end

    TRAI gives MSOs another CAF extension till December end

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has again shown forbearance towards multi-system operators (MSOs). The regulator has given another extension to the MSOs and asked them to submit 100 per cent consumer application forms (CAFs) by December end along with the compliance report. The regulator met the five national MSOs and a few state players today in New Delhi to get an update on the situation of DAS phase I and II cities.

    “TRAI has given us the extension looking at our performance since the last meeting held on 29 November. While we had achieved only 45 per cent CAF in DAS phase II areas when we met last, this time the figure stands at 65-70 per cent,” says one of the MSO who attended the meeting.

     The MSOs are confident of achieving the figure by the month end. “If TRAI continues its pressure and resolves to take some action against those not complying, I am sure we can achieve 100 per cent figure,” he says.

    Acknowledging the issues in Hyderabad, TRAI has shown leniency towards the city. “The 100 per cent CAF doesn’t include Hyderabad,” says the MSO.

    Apart from representatives of the five national MSOs, the others that attended the meeting chaired by TRAI principal advisor N. Parameswaran included: Manthan from Kolkata and Ranchi, UCN from Nagpur and MSOs from Vishakapatnam and Gujarat among others.

    The TRAI also reviewed the gross billing status in the DAS phase I cities. The MSOs had to start billing from December. “The subscribers need to get the bills as per their package plan from December.  The regulator has said that either the local cable operators (LCOs) or MSOs can bill the subscribers and has asked us to send the compliance report by 31 December,” informs the MSO.
    That apart, the MSOs in Kolkata and Delhi have decided to join hands and educate the consumers on gross billing. “While seven players in Kolkata will publish ads in leading newspapers in Kolkata, approximately three MSOs in Delhi have decided to come together for the print campaign,” he adds.

  • Hathway-MCOF show way forward on digitisation

    Hathway-MCOF show way forward on digitisation

    MUMBAI: The government-mandated DAS has been in limbo for a few months now. Even as set top boxes have rolled out in phase I and phase II towns, the issue of Consumer Application Forms (CAFs), despite claims by all, has yet to be resolved completely with the collections of these falling short of the mark. Then multisystem operators (MSOs) and last mile operators (LMOs) have been having a faceoff with the latter claiming ownership of their subscribers, while the MSOs have been insisting that they are pouring in investments hence they have the right to the cable TV viewer.

    But now a ray of hope seems to be emerging from behind the dark clouds with at least a couple of MSO working on what could be a model which could provide a solution to the vexatious problem of who owns the cable TV consumer: the MSO or the LMO? And in the process it would most likely give a real impetus to the realisation of the financial benefits of digitisation, and encourage its acceptance and spread nationally.

    Indiantelevision.com gives you an exclusive peep at what is being planned by one of the MSOs – the Viren Raheja-led Hathway Cable & Datacom – with the Arivnd Prabhoo-led Maharashtra Cable Operators’ Federation (MCOF).

    The two met on 5 December and agreedin principle that the MSO will share its subscriber management system (SMS) with its last mile operators – albeit in a limited capacity. Hathway, through this initiative, has taken a step forward in allowing the LMOs to bill the end consumers.

    “It is a great and welcoming move by Hathway,” says MCOF president Arvind PrabhooThe meeting between the duo was a result of the letter sent by MCOF to all MSOs, as a move to ensure smooth rollout of digitisation. It should be noted that MCOF had written to all MSOs after the Telecom Regulatory Authority of India (TRAI) gave MSOs the final deadline for starting gross billing by 15 December and submitting CAFs by 31 December.

    Calls to Hathway officials did not get a response. But sources close to India’s most evolved cable TV MSO admitted to indiantelevision.com that “yes, we have given the LMOs the right to bill and become the owners of their consumers. They are our trade partners and we want their rights to be maintained. And yes we want them to conduct their business using our SMS.”

    Hathway, apparently, has suggested two options to take things forward.

    The first is for smaller LMOs who who have a few 100 subscribers. The MSO says it could handle the billing for them. The LMO will function as the collection agent, earning a commission in the process for the subscribers who are part of his network. Hathway will be responsible for taxes in this case – including entertainment tax and service tax, wherever applicable.

    The second option is for larger LMOs with subscribers running into thousands and tens of thousands. These LMOs will be permitted to log online into the Hathway SMS with a unique ID and password and manage their subscribers, and even generate bills for them. If they choose this option, then they will be responsible for all the taxes and paperwork.

    Says the source close to Hathway.: “This system not only maintains the rights of the LMO over their consumers, but also makes the operation simpler for us. If we have to bill, activate, deactivate or change plans for all subscribers, we will have to set up those many call centres and infrastructure. It is easier for the customer as well, since for them the LMO is the touch point.”

    Hathway has been holding road shows all over Maharashtra to educate LMOs about its process and explaining to them that each of them can activate or deactivate boxes assigned only to them. Sessions have been held in Mumbai, Pune, Pimpri, Aurangabad, among other cities.

    However, there are still a couple of issues which have to be clarified and agreed upon between MCOF and Hathway. The first is in the area of revenue shares between the MSO and the LMOs. While Hathway has proposed a graded 60:40 to 57:43 split between MSO and LMOs, the latter would like it to be higher – say in the region of 45 per cent- in favour of the cable operators.

    The second issue that needs finalisation is: in whose name should the bill be raised – the LMO or Hathway?

    MCOF and Hathway are expected to meet this week to resolve these and any other issues that could crop up as well.

    “Hathway is the only MSO that has taken a step forward and has shown interest in resolving issues. Other MSOs have yet not approached us for any meeting,” says Prabhoo.
    Prabhoo need not worry. The floodgates may open sooner than he expects.