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  • Prasar Bharati responds to TRAI consultation paper; open to sharing DTT infrastructure

    Prasar Bharati responds to TRAI consultation paper; open to sharing DTT infrastructure

    NEW DELHI: Pubcaster Prasar Bharati has sent its viewpoints  to the Telecom Regulatory Authority of India (TRAI)’s consultation paper on the involvement of the private sector in digital terrestrial broadcasting (which has been its forte, so far).

    In its response, it has stated that, even as it supports the move, it feels that the potential of available distribution options need to be critically analysed to fulfill their requirements (for example coverage, capacity, reception mode, type of service etc).

    The public broadcaster has also said that the terrestrial broadcast platform will be relevant in the long term if its usage offers veritable benefits to the broadcasters, the audiences and the society as a whole. Even in countries where cable, satellite or broadband hold a significant market share, terrestrial broadcasting is usually regarded as an essential, flexible and reliable way of delivering broadcast content to a mass audience.

    In its response to 11 questions asked by TRAI in its Consultation Paper on ‘Issues related to Digital Terrestrial Broadcasting in India,’ the pubcaster says that the terrestrial platform must be digital to remain viable in the long term.

    Prasar Bharati CEO Jawhar Sircar had told indiantelevision.com in an interview earlier that it had cleared DTT for the private sector more than a year ago.

    Given the vast landscape of the country, Prasar Bharati says DTT is absolutely vital. It is thus crucial to ensure that, in the long term, the terrestrial distribution networks should be capable of delivering the current and future, advanced linear broadcast services, and fulfilling the  ever-increasing  requirements for quality and  choice  of services, including non-linear broadcast services.

    The benefits offered by DTT according to the pubcaster are:

    •         Near-universal coverage,

    •         Ability to provide for fixed, portable and mobile reception,
                Ability to efficiently provide regional and local content

    •         It is flexibility and content format agnostic. The newer formats of TV channels such as HD TV, 3D TV, UHD TV, data and radio services etc. can thus be delivered.

    •         Technical and cost efficiency,

    •         Efficient  use  of  spectrum  as  multiple  program channels  can  be transmitted using one TV spectrum channel of 8 MHz

    •         Network has ruggedness and not prone to catastrophic failure and sabotage from enemies

    •         Terrestrial broadcasting has strategic importance along the borders

    •         A potential for further development.

    Even with the presence of huge number of DTH and cableTV channels, a strong terrestrial platform is critical to healthy competition in the TV and radio market and to the realisation of a wide range of social and cultural benefits and most essentially an all-weather reliable platforms for the distribution of radio and TV signals, says the pubcaster.

    As indicated in the consultation paper, there are 247 million households in India as per the 2011 census, and a large number of these, particularly in rural and remote areas, depend completely on the FTA (free-to-air) terrestrial broadcasting TV services provided by the public broadcaster.

    Thus, in order to meet consumer expectations and ensure optimum utilization of resources, a digital terrestrial TV service having suitable bouquet of TV channels and nationwide coverage is very essential, says the pubcaster.

    It stresses that DTT is being provided in FTA mode in most of the countries. Its capability to provide local content will facilitate in providing social benefits of promoting local talent, local culture and music, generating employment, catering to local self-governance information needs, etc.

    This powerful combination would be difficult to replicate by any single alternative technology. DTT secures greater plurality in platform ownership, ensuring that no single platform owner is so powerful that it can exert undue influence on public opinion, and hence is the need for every country.

    DTT broadcasting has emerged as one of the popular digital television platforms in countries such as the UK, the US, Japan, Germany, France and Australia as it turns out to be one of the most economical broadcast transmission systems. In the DTT broadcasting process, everybody watches the same content at the same time, and it guarantees everybody the same high level of service, since they are all bathed in the same signal, and that too free to air, whereas, in OTT, the received signal quality depends upon number of viewers watching it, simultaneously.

    By the end of 2015, DTT constituted the second highest user base worldwide among the digital TV broadcast platforms next only to that of digital cable TV services.

    The pubcaster feels that, to optimise the time and resources, DTT can be started with two multiplexes at each location, and can be enhanced to three/four in due course of time, may be after analogue switchoff (ASO). Nation-wide coverage plan may further be implemented in time-bound phased manner as has been done in the case of implementation of DAS cable system.

    Infrastructure sharing will be essential for easy and cost-effective implementation of DTT service in India. Sharing would be essential so as to minimise the cost of implementation and faster roll-out. The experience sharing during implementation of FM expansion may be considered as an input for DTT roll-out.

    Deciding a national standard for DTT service is quintessential to have a volume of scale in terms of DTT ecosystem.  Doordarshan has already adopted DVB-T2 for itsDTT service, and it would be beneficial for the nation to adopt DVB-T2 as the national standard. Besides volume of scale, it may eliminate interoperability issues. Most of the countries are following a single national standard for DTT.

    The television viewer needs variety in programming content which may be possible when private channels are allowed on terrestrial platform. This is also required to make attractive and competitive bouquet.

    Prasar Bharati, however, says that it has to be ensured that the consumers are not impacted or charged heavily for private services. Issues regarding quality of service, grievance redressal etc. are also important.

    Doordarshan also needs to see that it continues to be the public service provider while providing wholesome content. The faster roll-out of DTT would require support from every stakeholder (government/private) for creating nation-wide network.

    Prasar Bharati already has huge infrastructure such as land, building, towers, trained manpower, networks, etc, for its terrestrial transmission. It has also initiated setting up of DTT transmitters. Doordarshan has already installed 23 DVB-T2 transmitters at 19 locations and services have been started at 16 locations. Also, it is in the process of expanding this to 63 locations.

    Doordarshan has gained enough experience and has good expertise in the field of DTT implementation including coverage and frequency planning, design of DTT network, procurement, execution, measurement and testing, field  surveys  etc.  It  is , therefore, a  better-placed  entity  for setting  up Integrated DTT Broadcasting network that includes private broadcasters as well.

    In this scenario, Prasar Bharati may also become a content aggregator for sharing transmitter capacity with private service-providers to give variety of content while the platform remains with it.

    This will ensure public service broadcasting can be strengthened in the country and reach of services from public broadcaster will enhance immensely; dissemination of social, educational programmes to masses; no new regulatory framework required for implementation of DTT; existing infrastructure will be optimally utilized; and introduction of a variety of services making DTT more competitive.

    Doordarshan has already got funds from government to pioneer DTT, and it is seeking additional funds from it to complete it.  Private broadcasters may be charged a suitable fee for using this infrastructure. This has already been implemented in the DD DTH service.

    For DTT expansion plan phase 1 and 2, one option could be that Prasar Bharati  (Doordarshan) gets government funds and charges a fee from private broadcasters as in the case of the pioneer plan; or Doordarshan (Government) and private broadcaster can share the capital expenditure in a suitable sharing model. Revenue may also be shared using the same model.

    Considering the present situation in India and to optimise  time and resources, DTT can be started with two multiplexes at 63 locations and can be enhanced to three/four in due course, may be after ASO.  A suggestive model for integrated DTT broadcasting network could be:

    i)      DTT may be implemented at 630 locations almost immediately where Doordarshan (Prasar Bharati) has already started implementation of DTT and infrastructure is almost ready. Private operators may be allowed to share this infrastructure by paying a suitable fee to Doordarshan as is being done in the case of DD DTH service. [This may be called DTT Pioneer Plan]

    ii)      Of the remaining 567 locations, wherever Doordarshan has sufficient requisite infrastructure, DVB-T2 multiplexes may be established and private  broadcasters can  share  those  exactly  in  the  same  way. [This may be called DTT Expansion Plan-Phase1]

    iii)     A new CTI (common transmission) infrastructure may be established at all other places where Doordarshan infrastructure is not available. These CTIs may be established by an experienced separate entity (e.g., BECIL). However, the ownership may be with Doordarshan (or a consortium). The process for this may be started in parallel to phase-1 but may have a different target date as establishment of new CTI will take more time. [This may be called DTT Expansion Plan-Phase2]

    It will be difficult to earmark exclusive spectrum for DTT as Doordarshan is already using the UHF band-IV for analog TV service. Besides, Doordarshan is also using band-IV for DTT and has planned utilization of band-IV and band-V frequencies for already approved DVB-T2 transmitters. It has also planned a DTT transmitter network at 630 locations with 2 MUXs, in Band-IV and Band-V.

    For the simulcast period, additional spectrum is required for the parallel transmission of TV services in analogue and digital mode. The required amount of spectrum will heavily depend on the introduction strategy adopted for DTT. ITU-R studies have concluded that 224 MHz spectrum would be required in UHF band for implementation of four to five DTT Multiplex at each location. Whereas, in India, practically only 176 MHz (470-646MHz) spectrum is available in UHF band. It would be appropriate that the entire broadcasting band 470-698 MHz may be made available.

    In a statement that may help the private sector, Prasar Bharati said that countries boosted switching to digital by giving subsidy on STBs; mandatory DTT tuner in all TV receivers after a certain date; awareness campaign regarding ASO; incentives to broadcasters in terms of spectrum charges for providing simulcast, and dialogue and incentives to manufacturer/importer of DTT receiving equipment.

    India would certainly need such concerted efforts to popularize digital reception and achieve ASO. With the concerted effort, India may think of a simulcast period of at least 6-12 months before switching off analogue transmitters. As the digitization is proposed to be implemented in a phased manner, ASO will also happen in a phased manner. However, the situation will have to be reviewed before actually switching off.

    The pubcaster has suggested that provision of DVB-T2 Tuner can be made mandatory on all TVs imported/manufactured in India after 1 April 2018. Similarly, embedding of DVB-T2/T2 Lite tuner in mobile phones should also be mandated on the same date.

    Also read: http://www.indiantelevision.com/television/tv-channels/terrestrial/prasar-bharati-ceo-prasar-bharati-not-opposed-to-private-players-entry-in-dtt-160620

     

  • Prasar Bharati responds to TRAI consultation paper; open to sharing DTT infrastructure

    Prasar Bharati responds to TRAI consultation paper; open to sharing DTT infrastructure

    NEW DELHI: Pubcaster Prasar Bharati has sent its viewpoints  to the Telecom Regulatory Authority of India (TRAI)’s consultation paper on the involvement of the private sector in digital terrestrial broadcasting (which has been its forte, so far).

    In its response, it has stated that, even as it supports the move, it feels that the potential of available distribution options need to be critically analysed to fulfill their requirements (for example coverage, capacity, reception mode, type of service etc).

    The public broadcaster has also said that the terrestrial broadcast platform will be relevant in the long term if its usage offers veritable benefits to the broadcasters, the audiences and the society as a whole. Even in countries where cable, satellite or broadband hold a significant market share, terrestrial broadcasting is usually regarded as an essential, flexible and reliable way of delivering broadcast content to a mass audience.

    In its response to 11 questions asked by TRAI in its Consultation Paper on ‘Issues related to Digital Terrestrial Broadcasting in India,’ the pubcaster says that the terrestrial platform must be digital to remain viable in the long term.

    Prasar Bharati CEO Jawhar Sircar had told indiantelevision.com in an interview earlier that it had cleared DTT for the private sector more than a year ago.

    Given the vast landscape of the country, Prasar Bharati says DTT is absolutely vital. It is thus crucial to ensure that, in the long term, the terrestrial distribution networks should be capable of delivering the current and future, advanced linear broadcast services, and fulfilling the  ever-increasing  requirements for quality and  choice  of services, including non-linear broadcast services.

    The benefits offered by DTT according to the pubcaster are:

    •         Near-universal coverage,

    •         Ability to provide for fixed, portable and mobile reception,
                Ability to efficiently provide regional and local content

    •         It is flexibility and content format agnostic. The newer formats of TV channels such as HD TV, 3D TV, UHD TV, data and radio services etc. can thus be delivered.

    •         Technical and cost efficiency,

    •         Efficient  use  of  spectrum  as  multiple  program channels  can  be transmitted using one TV spectrum channel of 8 MHz

    •         Network has ruggedness and not prone to catastrophic failure and sabotage from enemies

    •         Terrestrial broadcasting has strategic importance along the borders

    •         A potential for further development.

    Even with the presence of huge number of DTH and cableTV channels, a strong terrestrial platform is critical to healthy competition in the TV and radio market and to the realisation of a wide range of social and cultural benefits and most essentially an all-weather reliable platforms for the distribution of radio and TV signals, says the pubcaster.

    As indicated in the consultation paper, there are 247 million households in India as per the 2011 census, and a large number of these, particularly in rural and remote areas, depend completely on the FTA (free-to-air) terrestrial broadcasting TV services provided by the public broadcaster.

    Thus, in order to meet consumer expectations and ensure optimum utilization of resources, a digital terrestrial TV service having suitable bouquet of TV channels and nationwide coverage is very essential, says the pubcaster.

    It stresses that DTT is being provided in FTA mode in most of the countries. Its capability to provide local content will facilitate in providing social benefits of promoting local talent, local culture and music, generating employment, catering to local self-governance information needs, etc.

    This powerful combination would be difficult to replicate by any single alternative technology. DTT secures greater plurality in platform ownership, ensuring that no single platform owner is so powerful that it can exert undue influence on public opinion, and hence is the need for every country.

    DTT broadcasting has emerged as one of the popular digital television platforms in countries such as the UK, the US, Japan, Germany, France and Australia as it turns out to be one of the most economical broadcast transmission systems. In the DTT broadcasting process, everybody watches the same content at the same time, and it guarantees everybody the same high level of service, since they are all bathed in the same signal, and that too free to air, whereas, in OTT, the received signal quality depends upon number of viewers watching it, simultaneously.

    By the end of 2015, DTT constituted the second highest user base worldwide among the digital TV broadcast platforms next only to that of digital cable TV services.

    The pubcaster feels that, to optimise the time and resources, DTT can be started with two multiplexes at each location, and can be enhanced to three/four in due course of time, may be after analogue switchoff (ASO). Nation-wide coverage plan may further be implemented in time-bound phased manner as has been done in the case of implementation of DAS cable system.

    Infrastructure sharing will be essential for easy and cost-effective implementation of DTT service in India. Sharing would be essential so as to minimise the cost of implementation and faster roll-out. The experience sharing during implementation of FM expansion may be considered as an input for DTT roll-out.

    Deciding a national standard for DTT service is quintessential to have a volume of scale in terms of DTT ecosystem.  Doordarshan has already adopted DVB-T2 for itsDTT service, and it would be beneficial for the nation to adopt DVB-T2 as the national standard. Besides volume of scale, it may eliminate interoperability issues. Most of the countries are following a single national standard for DTT.

    The television viewer needs variety in programming content which may be possible when private channels are allowed on terrestrial platform. This is also required to make attractive and competitive bouquet.

    Prasar Bharati, however, says that it has to be ensured that the consumers are not impacted or charged heavily for private services. Issues regarding quality of service, grievance redressal etc. are also important.

    Doordarshan also needs to see that it continues to be the public service provider while providing wholesome content. The faster roll-out of DTT would require support from every stakeholder (government/private) for creating nation-wide network.

    Prasar Bharati already has huge infrastructure such as land, building, towers, trained manpower, networks, etc, for its terrestrial transmission. It has also initiated setting up of DTT transmitters. Doordarshan has already installed 23 DVB-T2 transmitters at 19 locations and services have been started at 16 locations. Also, it is in the process of expanding this to 63 locations.

    Doordarshan has gained enough experience and has good expertise in the field of DTT implementation including coverage and frequency planning, design of DTT network, procurement, execution, measurement and testing, field  surveys  etc.  It  is , therefore, a  better-placed  entity  for setting  up Integrated DTT Broadcasting network that includes private broadcasters as well.

    In this scenario, Prasar Bharati may also become a content aggregator for sharing transmitter capacity with private service-providers to give variety of content while the platform remains with it.

    This will ensure public service broadcasting can be strengthened in the country and reach of services from public broadcaster will enhance immensely; dissemination of social, educational programmes to masses; no new regulatory framework required for implementation of DTT; existing infrastructure will be optimally utilized; and introduction of a variety of services making DTT more competitive.

    Doordarshan has already got funds from government to pioneer DTT, and it is seeking additional funds from it to complete it.  Private broadcasters may be charged a suitable fee for using this infrastructure. This has already been implemented in the DD DTH service.

    For DTT expansion plan phase 1 and 2, one option could be that Prasar Bharati  (Doordarshan) gets government funds and charges a fee from private broadcasters as in the case of the pioneer plan; or Doordarshan (Government) and private broadcaster can share the capital expenditure in a suitable sharing model. Revenue may also be shared using the same model.

    Considering the present situation in India and to optimise  time and resources, DTT can be started with two multiplexes at 63 locations and can be enhanced to three/four in due course, may be after ASO.  A suggestive model for integrated DTT broadcasting network could be:

    i)      DTT may be implemented at 630 locations almost immediately where Doordarshan (Prasar Bharati) has already started implementation of DTT and infrastructure is almost ready. Private operators may be allowed to share this infrastructure by paying a suitable fee to Doordarshan as is being done in the case of DD DTH service. [This may be called DTT Pioneer Plan]

    ii)      Of the remaining 567 locations, wherever Doordarshan has sufficient requisite infrastructure, DVB-T2 multiplexes may be established and private  broadcasters can  share  those  exactly  in  the  same  way. [This may be called DTT Expansion Plan-Phase1]

    iii)     A new CTI (common transmission) infrastructure may be established at all other places where Doordarshan infrastructure is not available. These CTIs may be established by an experienced separate entity (e.g., BECIL). However, the ownership may be with Doordarshan (or a consortium). The process for this may be started in parallel to phase-1 but may have a different target date as establishment of new CTI will take more time. [This may be called DTT Expansion Plan-Phase2]

    It will be difficult to earmark exclusive spectrum for DTT as Doordarshan is already using the UHF band-IV for analog TV service. Besides, Doordarshan is also using band-IV for DTT and has planned utilization of band-IV and band-V frequencies for already approved DVB-T2 transmitters. It has also planned a DTT transmitter network at 630 locations with 2 MUXs, in Band-IV and Band-V.

    For the simulcast period, additional spectrum is required for the parallel transmission of TV services in analogue and digital mode. The required amount of spectrum will heavily depend on the introduction strategy adopted for DTT. ITU-R studies have concluded that 224 MHz spectrum would be required in UHF band for implementation of four to five DTT Multiplex at each location. Whereas, in India, practically only 176 MHz (470-646MHz) spectrum is available in UHF band. It would be appropriate that the entire broadcasting band 470-698 MHz may be made available.

    In a statement that may help the private sector, Prasar Bharati said that countries boosted switching to digital by giving subsidy on STBs; mandatory DTT tuner in all TV receivers after a certain date; awareness campaign regarding ASO; incentives to broadcasters in terms of spectrum charges for providing simulcast, and dialogue and incentives to manufacturer/importer of DTT receiving equipment.

    India would certainly need such concerted efforts to popularize digital reception and achieve ASO. With the concerted effort, India may think of a simulcast period of at least 6-12 months before switching off analogue transmitters. As the digitization is proposed to be implemented in a phased manner, ASO will also happen in a phased manner. However, the situation will have to be reviewed before actually switching off.

    The pubcaster has suggested that provision of DVB-T2 Tuner can be made mandatory on all TVs imported/manufactured in India after 1 April 2018. Similarly, embedding of DVB-T2/T2 Lite tuner in mobile phones should also be mandated on the same date.

    Also read: http://www.indiantelevision.com/television/tv-channels/terrestrial/prasar-bharati-ceo-prasar-bharati-not-opposed-to-private-players-entry-in-dtt-160620

     

  • Star opposes differential data pricing on websites;draws analogy with MSOs & channel placement

    Star opposes differential data pricing on websites;draws analogy with MSOs & channel placement

    NEW DELHI: Opposing differential pricing for data usage for accessing different websites, applications or platforms, Star India has said this violates the core principles of differential pricing, as well as alters and distorts the role of telecom service providers to acting as an interested party instead of just providing telecom services.

     

    Responding to the Telecom Regulatory Authority India’s (TRAI) Consultation Paper on Differential Pricing for Data Services, Star India said it will open the door to unholy alliances between TSPs and content providers to play the role of gatekeepers for both consumers as well as other content providers. 

     

    “If differential pricing is permitted, then all the principles of non-discrimination, transparency, affordable access, healthy competition and innovation are likely to be severely violated. In fact, it will represent a big reversal in achieving the vision of Digital India,” Star India said.
     

     

    However, the broadcaster said that it had a fundamental concern that has been at the heart of the creative industry in all ongoing discussions and deliberations on “Net Neutrality.” Star India said it must be noted that the owners of copyrightable works are granted the exclusive right to exploit or authorise the exploitation of their works in accordance with market practices. It must further be noted that even under the Act exclusive licensing arrangements are not treated as being presumptively anti-­competitive in nature. This would therefore mean that exclusive licensing would be subject to a case to case examination for an appreciable adverse effect on competition. Consequently, this would mean that instead of being subject to broad brush and overarching regulation or rules, which impose restrictions or are in conflict and in effect unwind or defeat the statutory rights granted to the owners of copyrighted works under copyright law, the legislature has determined that such  conduct would be subject to a case to  case examination. 

     

    “Clearly there is no justifiable and cogent reason to change this policy at this time. Whilst the principles of net neutrality are of utmost importance to ensure a transparent world wide web, it is pertinent that market forces should determine the relationship of TSPs, content providers and other parties active in the digital environment to foster innovation, creativity and the development of a hyper competitive yet nascent content industry. In a nascent industry still coming to grips with business models, pricing strategies, consumption patterns, it is imperative for the TRAI and the Department of Telecom to understand that the economics of industries dependent on Intellectual Property rights for value creation are very different from economics of TSPs/ ISPs and other distribution pipes and thus superimposing a Network centric regulatory construct on content creators would be akin to putting a square peg in a round hole. In effect the net neutrality principle has never been applicable to or determined how content is licensed but   rather to the behaviour of distribution pipes and network service providers. We will therefore urge both TRAI and DOT to shape and delineate the debate and discourse on Net Neutrality accordingly,” the broadcaster said.

           

    The arguments against differential pricing are clear and substantive, Star India said. Firstly, allowing differential pricing violates the core principles of tariffing: that they are non-discriminatory in nature and that they are not anti-competitive.

     

    Star India added that allowing the TSP to charge differently for different uses of data (or different “termination points” of data) “essentially creates a tariff regime where the TSP creates different classes of subscribers based on the kind of content they want to access.” In addition, by allowing the TSP to determine different prices for different websites, applications and platforms, the regime allows TSPs to fundamentally alter the nature of competition between these websites, applications and platforms in a manner not linked to the quality of the services they deliver to consumers, and the business models of their choosing.

     

    Secondly, giving TSPs the power to do differential pricing “fundamentally alters and distorts the role of TSPs from that of providing a telecom service (provision of data), for which it has been licensed and  for which it uses public resources like spectrum, to that acting as an interested   party intermediating between consumers and the websites, applications and  platforms that these consumers choose to use. Not only is this counter to the license under which TSPs provide services but it also introduces the damaging potential of TSPs being incentivised to extract unfair value from its presence as an intermediary with the power to dramatically change the nature of the relationship between users and service providers. Focus on playing this intermediary role is also likely to distract the TSP from its primary role of providing better and cheaper access to telecom services (including data) for a larger and larger number of users in India.

     

    Thirdly, differential pricing from TSPs will open the door to unholy alliances between TSPs and content providers to play the role of gatekeepers for both consumers as well as other content providers. Differential pricing will enable large incumbents to create a framework with TSPs that allow them, covertly or overtly, to create different versions of the Internet: an Internet that they package and control, available at a lower price and including only the content and service providers that have chosen to play by the rules established by the large incumbents, and a less privileged Internet: expensive, more difficult to discover, and occupied by the smaller players who do not have the financial ability and muscle to take on powerful incumbents. The most likely scenario is that bigger websites and app platforms will be able to strike deals with TSPs while the smaller players will be left in the cold. The premium that shall be paid by the larger players to the TSPs would provide the necessary incentives for TSPs to differentially price data whereby the bigger players will have better traction with users owing to the resultant subsidy that shall be factored in the data costs.

     

    Star India said, “We have already seen the harmful effects of such arrangements between carriage and content playing out in the cable and satellite space. MSOs instead of consumers have been prioritising the content to be carried in their cable platforms. The basis of such prioritisation on the part of the MSOs is the Carriage and Placement fees being paid by content owners. This anti-competitive behavior by MSOs have led to small content providers being hit the most as carriage and placement fees act as entry barriers for new content providers. Given that the MSOs own the last mile, they are in a position to abuse their dominance by squeezing as much carriage and placement fees possible from content providers. Instead of consumer choice shaping retail packaging by MSOs, it is carriage and placement fees that prompt MSOs to deliberately prioritise, package and push unwanted channels to the detriment of the consumer. The consumer ends up paying for content that he has no desire to subscribe for, in the first place.”

     

    In addition, it is almost guaranteed that TSPs will differentially price data to promote their own in-house applications, websites and platforms to the detriment of better, cheaper applications, websites and platforms from competing providers.

     

    “Nothing will stifle innovation more decisively than enabling such a scenario to emerge,” Star said.

     

    As the consultation paper suggests, just like in the early days of the voice regime, the same principles should apply to “on-net” as well. Given the data usage and ecosystem is still very early, it is imperative that the non-discrimination applies equally to on-net and off-net.

     

    Star India added, “It also violates the basic tenet of Internet access: that the flow of information is free (subject to the laws of the country) and no private player can determine what information can be accessed and what is less easily available. In fact, it is pretty obvious, as is evident in the mass disinformation campaign around the idea of a “free Internet” in the last few weeks, that such a framework is but a naked offer to large, for-profit, self-interested incumbents to present themselves as arbitrators of what  is “essential” and “basic.” We have seen the power of a single social media company to present an entirely new definition of the Internet with a level of marketing spend and lobbying that is unprecedented in the country. The effort seems to be to hoodwink the regulator into allowing a practice that is clearly discriminatory in nature. History teaches us that no government or regulator should ever allow the definition of public good to be set, managed and controlled by interested private parties.”

     

    “Fourthly, we already have a system in which net neutrality is under attack in many ways; where consumer choice is stifled and incumbents set the rules of the game. Therefore, allowing TSPs to do differential pricing will sound the death knell on the idea of a free and neutral Internet,” the broadcaster voiced. 

     

    The same exploitation of dominance extends to search as well. A dominant search provider is the gateway to the Internet in India with search neutrality not even up for discussion.

     

    Lastly, even with moderate expansion in access to data, India has seen an explosion in websites, applications and platforms that have had a dramatically positive impact on the country’s GDP growth and in generating employment. Creating a new regime that has the potential of introducing artificial distortions at a critical stage may have a devastating impact on the number and diversity of applications and services, and therefore on GDP growth and employment.

     

    Star India said its strong stand on net neutrality and differential pricing from TSPs is not meant to stifle companies from doing what is right for their consumers and what is right to grow their private enterprises. “We strongly believe that websites, applications, and platforms non-financial in nature, based on their own economic models and principles. But these transactions should be firmly between the consumer and the website/application/platform. Such incentives are a regular order of business in the offline world as well and limiting the ability to provide such incentives will have a devastating impact on innovation and the emergence of new business models. However, we do not see any role for a TSP in any such transaction,” Star India said.

     

    It added, “We are deeply supportive of the underlying objective evident in the consultation paper: expanding Internet access to the largest number of consumers in the country as possible in the shortest period of time.”
     

     

    Instead of using differential pricing to employ this goal (and it is quite clear that differential pricing will only lead to reduced access) with the attendant risks of market distortions, Star suggested that a more direct path be employed to achieve it. It said that many alternate routes are possible to expand free Internet access to consumers, including: free access for rural consumers, time based models that allow TSPs to provide free Internet access consumers at certain time periods when the network utilisation is low; introductory models allowing TSPs to provide free Internet access to new consumers (those who are new to the Internet or are using data on the TSP’s network for the first time); or public or community networks.

  • No plans to remove 12 mins ad cap for TV channels: TRAI sources

    No plans to remove 12 mins ad cap for TV channels: TRAI sources

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) is not considering any move to do away with the advertising cap of 12 minutes per hour for all television channels.

     

    A TRAI source told Indiantelevision.com that even otherwise, a notification issued by the Authority can only be amended through another notification after the issuance of a consultation paper and consultation with stakeholders.

     

    When his attention was drawn to the reported statement of a union minister to the effect that the ad cap served no purpose, the source said that TRAI had not received any instructions in this regard and would in any case take its own decision. He also drew attention to the fact that the matter was pending in court.

     

    Meanwhile, the National Cable & Telecommunication Association and the Malwa Cable Operator Sangh have urged the Authority not to consider a blanket rolling back of its own decision – Standards of Quality of Service (Duration of Advertisements in Television Channels) Regulations 2012 – of an ad cap of 12 minutes per hour for all TV channels.

     

    In separate but similar letters to TRAI chairman R S Sharma, the two bodies have said that it is imperative to appreciate the difference between those channels, which charge subscriptions and those that are free to air (FTA) before any decision is taken.

     

    In their letters, Vikki Choudhary and Rahul Rawat who head the two organisations respectively have said it is important to categorise TV channels into three groups – FTA channels, FTV (Free To View) channels and Pay TV channels.

     

    The FTA and the FTV channels do not charge any subscription while Pay TV Channels charge a monthly subscription fee from consumers, collected through the Distribution Platform Operators (DPOs).

     

    They have therefore said there should be no advertisement duration permitted on these Pay TV channels. The duo pointed out that this is also an international norm and a logical way of doing the TV channel broadcast business worldwide.

  • TRAI seeks views to regulate Over-The-Top services

    TRAI seeks views to regulate Over-The-Top services

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today asked stakeholders whether it was too early to establish a regulatory framework for over-the-top (OTT) services, since internet penetration is still evolving, and access speeds are generally low and there is limited coverage of high-speed broadband in the country.

     

    At the same time, TRAI sought opinion on whether a beginning should be made now with a regulatory framework that could be adapted to changes in the future in a Consultation Paper on ‘Regulatory Framework for OTT services.’ The regulator wants stakeholders to send in their comments by 25 April and counter-comments by 8 May.

     

    TRAI wants to know if OTT players offering communication services (voice, messaging and video call services) through applications (resident either in the country or outside) should be brought under the licensing regime.

     

    It has sought suggestions on whether the growth of OTT is impacting the traditional revenue stream of telecom service providers and is the increase in data revenues of the TSPs sufficient to compensate for this impact.

     

    The regulator wants stakeholders to state whether the OTT players should pay for use of the TSPs network over and above data charges paid by consumers, the pricing options that can be adopted and could they include prices based on bandwidth consumption.

     

    Do stakeholders feel that imbalances exist in the regulatory environment in the operation of OTT players? What should the framework to address these issues be, and how can the prevailing laws and regulations be applied to OTT players (who operate in the virtual world)? are some of the questions to which, TRAI wants answers.

     

    At the outset, TRAI has noted that TSPs offering fixed and mobile telephony are currently being overwhelmed by online content, known as OTT applications and services. The term OTT refers to applications and services, which are accessible over the internet and ride on operators’ networks offering internet access services e.g. social networks, search engines, amateur video aggregation sites etc. The best known examples of OTT are Skype, Viber, WhatsApp, Chat On, Snapchat, Instagram, Kik, Google Talk, Hike, Line, WeChat, Tango, e-commerce sites (Amazon, Flipkart etc.), Ola, Facebook messenger, BlackBerry Messenger, iMessage, online video games and movies (Netflix, Pandora). Today, users can directly access these applications online from any place, at any time, using a variety of internet connected consumers. TSPs also means Network providers, Internet Service Providers, fixed and mobile, broadband providers, data service providers, wireless net providers and access providers.

     

    It said the public internet that started in the 1980s has grown in scope over the last three decades. In its current form, it has the added ability to carry the entire gamut of services that are required to be delivered to a consumer of telecom services. It allows a telecom subscriber to access almost all the services required for information, education and entertainment. It has enabled an individual’s commercial transactions including retail; in that respect, it has altogether redefined the conventional marketplace. Even personalized services, such as a taxi ride can be accessed on a person’s fingertips. This growth has also brought about a fundamental shift in other spheres including telecom and TV. Earlier, networks used to be built around specific applications, say voice, internet or Pay TV. Voice, message and video content have now been reduced to mere bytes.

     

    It is becoming increasingly difficult for consumers to know if there is an economic difference in connecting various networks via a land phone, cell phone, or a computer. In fact, young users find it difficult to distinguish among these three networks; from their perspective, all that matters is connectivity. They visualize these not as a layered and interconnected series of discreet networks, but as an organic whole.

     

    The regulator therefore wants to know how the security concerns should be addressed with regard to OTT players providing communication services and what security conditions such as maintaining data records, logs etc. need to be mandated for such OTT players. Furthermore, suggestions are sought on how the OTT players offering app services ensure security, safety and privacy of the consumer.

     

    What forms of discrimination or traffic management practices are reasonable and consistent with a pragmatic approach, the regulator wants to know, and whether the TSPs be mandated to publish various traffic management techniques used for different OTT applications.

     

  • TRAI seeks views on methodology for calculating reserve price of FM phase III

    TRAI seeks views on methodology for calculating reserve price of FM phase III

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has recommended that the reserve price for FM radio channels in phase III should be 0.8 times of the valuation of FM radio channels in that city.

     

    In a consultation paper on the subject of reserve price at the request of the Information and Broadcasting Ministry, TRAI suggests reserve price of Rs 5 lakh per city, for FM radio channels in 11 border cities in phase-III.

     

    The regulator has also asked if stakeholders agree with the proposed   approach/methodology for determination of the valuations of FM Radio channels in 253 new cities in phase-III.

     

    The Ministry sent a reference dated 16 December 2014 to the Authority seeking recommendations  of TRAI on reserve prices for 831 FM radio channels in 264 new  cities in the phase-III. With this, the private FM radio operations would be permissible in 350 cities.

     

    Comments/views of the stakeholders on the issues related to estimation of the reserve prices for auction of FM radio channels in new cities should be sent latest by 25 February.

     

    TRAI has said that for FM channels in 253 new cities, the Reserve Price can be fixed at 80 per cent of the derived valuations.

     

    For 11 new cities classified in the ‘Others’ category, no reference price is available from phase-II as no city was available in this category in that phase. These cities have population figures of less than one lakh and are located in the border areas of Jammu and Kashmir (J&K) and the North- Eastern (NE) States. The Cabinet approved the RP for each of these 11 cities as Rs 5 lakh.

     

    These cities are of strategic importance. The availability of FM radio broadcasting service in these far-flung areas can also be used for Emergency Warning Services (EWS) with the specific approval and guidance of the local district administration. When the reserve price of Rs 5 lakh per city set for these cities in phase-III, the policy is compared with the proposed RPs for ‘D’ category cities of NE and J&K, it appears to be reasonable to encourage the participation of a large number of prospective bidders. The inherent design of an ascending e-auction process would anyway ensure that the true market value of the FM radio channels in each city is discovered during the process of auction. So the RP for each of these 11 new cities may be Rs 5 lakh.

     

    The Consultation Paper noted that the non-refundable one time entry fee (NOTEF) for FM radio channels in all the cities coming up during phase III is to be discovered through an ascending e-auction. The phase-III policy guidelines provides the mechanism for migration of existing FM radio operators from phase-II to phase-III regime.

     

    According to the decision of the Empowered Group of Ministers (EGoM), the Ministry had in April 2013 sought recommendations of TRAI on the migration fee to be charged from existing phase II operators on their migration to the phase-III regime of FM radio. Broadcasting authority sent its recommendations on ‘Migration of FM Radio Broadcasters from phase-II to phase-III’ on 20 February 2014.

     

    The methodology for determination of the reserve prices for auction of FM Radio channels   was already finalised by the Government. In its recommendations of 20  February 2014, the Authority recommended that the methodology for determining the reserve prices for fresh (new) cities (where no private FM radio channels are operational) in phase-III should be reconsidered as the current methodology might jeopardize the auction.

     

    Thereafter, MIB decided to seek fresh recommendations of the Authority on reserve prices for new cities in phase-III and also make the 2011 census data applicable for identification and categorisation of the new cities. Based on the 2011 census data, MIB has identified 37 additional cities where 112 private FM radio channels are proposed to be put up for auction. This is in addition to the already identified 227 new cities earlier earmarked for FM radio expansion as per the 2001 census data. Further, based on the 2011 census data, MIB has also upgraded the category of 11 new cities that were already mentioned in the phase-III policy guidelines dated 25 July 2011. Thus, there are now, in 264 (227+37) new cities, a total of 831 FM radio channels that are to be put up for auction.

  • TRAI extends date for comments on delinking of license for networks by way of VNO

    TRAI extends date for comments on delinking of license for networks by way of VNO

    MUMBAI: The   Telecom  Regulatory  Authority  of India  (TRAI) which had issued  a  consultation paper  on   ‘Delinking  of   the  license  for networks from delivery of service by  way  of virtual network operators (VNO)’ on 5 December 2014 inviting comments by 5 January 2015, has today given some relief to the stakeholders.

     

    The decision was taken after the stakeholders requested for extension of the date for sending their inputs/comments so as to give a comprehensive response to the paper.  The Authority has considered their request and has extended the last date for submission of written comments to 15 January 2015.  TRAI has also said that there will be no further extension of date for submission of comments.

     

    The Authority has asked all stakeholders to submit their inputs/comments on or before the revised date i.e. 15 January 2015 and counter comments, if any, by 22 January 2015.    

     

    TRAI had issued the consultation paper to know if there was any need to introduce more competition in service delivery by the way of introduction of VNO and whether this will pose any threat to Network Service Operators (NSO).

     

     In its consultation paper, the Authority had also asked how Mergers & Acquisitions should be dealt with in the VNO/NSO licensing model and should the recently announced M&A guidelines issued by the Government for existing players be extended to cover VNOs.

     

    Prior to the consultation paper, TRAI had released a pre-consultation paper on “Delinking of the license for  networks from delivery of  services by  way of  Virtual Network Operators” on 3 September 2014 highlighting some of the issues associated with the proposed licensing framework by the DoT and had solicited inputs and comments of the  stakeholders on these issues or any other issues involved in the proposed  framework.

  • TRAI to issue consultation paper on HD channel subscription charges?

    TRAI to issue consultation paper on HD channel subscription charges?

    MUMBAI: The year 2015 could not be as welcoming as the direct to home (DTH) platforms would be expecting it to be. As per PTI  reports, the Telecom Regulatory Authority of India (TRAI) is looking at reviewing the freedom it has given to the DTH operators in deciding subscription charges for high definition (HD) channels.

    While the first HD channel was launched in 2010 with Movies Now HD, general entertainment channels (GECs) like Star Plus and Zee TV too launched their HD channels in 2011. Today there are about 40 HD channels in the country and DTH operators charge a premium price for them compared to normal standard definition (SD) channels.

     “TRAI is mulling reviewing forbearance regime on HD channels. Consultation paper on the same will be floated next month,” reports PTI. The decision has been taken as the regulator does not find much difference between the SD and HD viewing experience.

     “There is also little difference in the number of advertisements between the two,” the report adds.

     

  • TRAI asks if LCOs, MSOs be permitted to share infrastructure with VNOs

    TRAI asks if LCOs, MSOs be permitted to share infrastructure with VNOs

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) wants to know if there is any need to introduce more competition in service delivery by the way of introduction of Virtual Network Operators (VNO) and whether this will pose any threat to Network Service Operators (NSO).
     
    In a Consultation Paper on “Delinking of  the license for networks from delivery  of services by way  of Virtual Network Operators,” TRAI has also asked how Mergers & Acquisitions should be dealt with in the VNO/NSO licensing model and should the recently announced M&A guidelines issued by the Government for existing players be extended to cover VNOs.

    It has asked the stakeholders to send in their responses by 5 January and counter-comments by 12 January. The Department of Telecommunications had on 7 July 2014 sought the  Authority’s recommendations for delinking of licensing of networks from delivery of services by way of virtual network operators etc. including associated  issues   such as Adjusted Gross Revenue, terms of sharing of passive and active infrastructure under unified licensing regime.
     
    TRAI had earlier released a pre-consultation paper on “Delinking of the license for  networks from delivery of  services by  way of  Virtual Network Operators” on 3 September 2014 highlighting some of the issues associated with the proposed licensing framework by the DoT and had solicited inputs and comments of the  stakeholders on these issues or any other issues involved in the proposed  framework.
     
    The paper issued today raises specific issues for consideration by stakeholders. A consultation paper on ‘Definition of revenue base (AGR) for the reckoning of license fee and spectrum usage charges’ has been already issued on 31 July 2014.

    Therefore, this consultation paper is   limited to the issues related to delinking of licenses for networks from the delivery of services by way of virtual network operators.
     
    TRAI also wonders if a business case exists for introduction of VNOs in all segments of Voice, Data and Videos and whether VNOs should be introduced in all or some of the services notified in the Unified licence.

    It also wants to know if there is sufficient infrastructure (active and passive including access spectrum) available with a TSP to meet its own requirements. If any TSP is able to share its infrastructure with VNOs, the regulator wants to know what the broad terms and conditions for sharing the infrastructure should be.

    Can VNOs be allowed to create their own infrastructure to reach out to niche markets, the Regulator asks, or can local Cable Operators (LCOs) or Multi System Operators (MSOs) with cable networks be permitted to share infrastructure with VNOs to provide last mile connectivity.

    The regulator wants to know if a VNO be issued a license at the National Level or for LSAs as in the case of UL or should it be based on the host NSO license areas and the duration of the licence.

    It also has questions about any cross-holding restriction between a NSO and VNOs and the financial obligations of VNOs in the form of a) Equity & Networth b)Entry Fee c)PBG and d)FBG etc.

     

  • TRAI clears platform services offered by local cable ops, subject to conditions and payments

    TRAI clears platform services offered by local cable ops, subject to conditions and payments

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has recommended the establishment of an online system by the Information and Broadcasting Ministry to register all the platform services being offered and the registration is on the basis of a simple set of information and at a nominal registration fee of Rs 1000 per channel.

     
    According to the recommendations on the ‘Regulatory Framework for Platform Services’ issued by it, TRAI said distribution platform operators (DPOs) desirous of providing platform services must be incorporated as a company under the Indian Companies Act 2013.

     
    TRAI had issued a consultation paper on ‘Regulatory framework for Platform Services’ on 23 June and the recommendations are based on the responses received from stakeholders. TRAI said there is an urgent need to ensure that these programming services are brought within the four corners of a robust and fair regulatory system that addresses all concerns adequately.

     

    The Ministry in a letter to TRAI on 17 January 2013 sought recommendations of TRAI under section 11 (1) (a) (ii), (iii) and (iv) of TRAI Act, 1997 on the issues related to local ground-based channels of cable TV operators. In addition, through an earlier letter of 2 February 2009, the Ministry had also sought TRAI’s recommendations about such kind of programming services being offered by DTH service providers to their subscribers as well as on the issue of carriage of FM radio channels on the DTH platform.

     
    The Regulator also issued a letter in this connection to the secretary in the Ministry, Bimal Julka.

     
    TRAI has also said a time of 12 months should be given to the DPOs to comply with the guidelines to be issued by the Ministry in this regard.

     
    Prior clearance is required from the district authorities of any local information and local affairs bulletins that may be transmitted.

     
    Platform Services (PS) are programming services/ channels that are owned by the DPO; available only to the subscribers of the DPO’s network; advertisements, if any, on these channels is inserted by the DPO and ad-revenues, therefore, accrue to it. Regular TV channels, howsoever transmitted, and Doordarshan channels which appear on the TV networks, cannot be included in PS. Further, foreign TV channels not registered in India cannot be included in PS.

     
    A maximum number of five PS channels may be offered by the cable operators in non-DAS areas. In DAS areas and for all other platforms, a maximum of 15 PS channels may be offered by the DPOs. These numbers are the number of PS channels to be made available at the subscribers’ end.

     
    In addition to the recommendations on Platform services, the Authority has suo motu made recommendations for a regulatory framework for ground based broadcasters as well. This has been done to ensure that any TV channel that is distributed on any TV network in India is covered by a regulatory framework, whether it is obtained from a satellite-based broadcaster; produced by the network operator or sourced from a terrestrial broadcaster.

     
    The recommendations for the ground-based broadcasters are largely the same as that for the satellite broadcasters, barring the requirements of seeking spectrum and approvals in that regard from Department of Telecom and the Department of Space.

     
    Retransmission of FM radio channels on TV channel distribution networks has been recommended provided that all the legal rights to do so are obtained. However, the Authority has said that this matter will be revisited at a later point in time, once the FM radio industry fully develops in India.

     
    These recommendations have been issued in view of ground based channels being operated at the level of cable TV operators and regarding the kind of programming services being offered by the DTH service providers to their subscribers.

     
    The Authority recommends that no change in the existing FDI limits and Net-worth requirements be made for DPOs offering PS.

     
    In so far as carrying local news and current affairs bulletins on PS is concerned, the following categories will be treated as non-news and current affairs broadcast and will, therefore, be permissible:

     
    (i) Information about local events and other local affairs, sourced locally and not obtained from news agencies or from broadcast news channels/ sources;

    (ii) Information pertaining to sporting events, excluding live coverage. However live commentaries of sporting events of local nature may be permissible, if broadcasting rights for the same are not held by anyone else;

    (iii) Information pertaining to Traffic and Weather;

    (iv) Information pertaining to and coverage of cultural events, festivals;

    (v) Coverage of topics pertaining to examinations, results, admissions, career counseling;

    (vi) Availability of employment opportunities; and

    (vii) Public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts etc. as provided by the local administration.

     
    There are four distinct kinds of channels, though variously described, and with a variety of content, that are being carried on DPO networks. For analytical ease and simplicity these are classified in terms of the source of the channel:  

     
    (a) Private Satellite Channels: These are the traditional satellite broadcast channels, governed by the Uplinking/ Downlinking Guidelines of the Ministry. They carry all genres of programme content.

    (b) Doordarshan Channels: These are the Public Broadcaster’s channels, some of which the TV networks are mandated to carry under the Cable Television Networks (Regulation) Act 1995.

    (c) Platform Services (PS) Channels: These are channels owned and operated by the DPOs and distributed to their own subscribers. They are of several kinds and, depending on the design of the network, may or may not be interactive. They offer a fairly wide variety of content to their subscribers. Content generally offered includes local affairs information/news; movies; general entertainment; music; education and religion. The DTH networks offer on-demand services for which the subscriber has to pay extra. These channels include movies/ video on demand, educational channels, interactive channels, etc. While such on-demand channels are at present distributed only by the DTH operators, in the DAS environment MSOs too can provide them.

     
    (d) Ground-based Channels: These channels are akin to the traditional broadcast channels, but with a strong local focus. In the comments received they have generally been referred to as ‘local-channels’ and the producers of such channels have been described as ‘local-channel operators’. In reality they are ground-based broadcasters. These channels offer a variety of content such as local news and information; regional movies and music; religious content, etc. The ground-based broadcaster channels are an integral part of most cable TV networks. Like traditional TV channels, these channels may also be carried on more than one DPO network simultaneously. The owners of these channels transmit the content terrestrially to the headend of the cable TV network, i.e., there is no uplinking or downlinking of the channel and the DPOs retransmit them on commercial terms to the subscribers. Like traditional TV channels, these local-channels also carry advertisements and the ad-revenue obtained usually accrues to the ground-based broadcaster. Consequently, they own the rights for the content carried and are responsible for the same. At present, such channels are not specifically covered under any regulatory framework and the ground-based broadcasters are not formally recognised as a ‘broadcaster’.

     
    The Authority recommended that any DPO offering PS retain, with itself, a recording of all PS channel programmes for a period of 90 days; a written log/register should also be maintained about such programme for a period of one year from the date of broadcast. The recording and the register can be examined by the Authorised Officer and the State/District Monitoring Committee appointed by the MIB as, when and if required. For PS distributed on a pan-India basis MIB should be the monitoring agency.

     
    The Authority recommends that the first violation of the PS Guidelines should lead to prohibition on transmission of the PS channel for a period of up to 30 days; for the second violation, the prohibition on transmission of the PS channel should be for a period of up to 90 days; for the third violation the registration of the PS should be revoked and the PS channel concerned should not be allowed to be transmitted. Consequently, the number of PS channels that the DPO can transmit thereafter will be appropriately reduced.

     
    Considering the smaller reach of some of the ground-based broadcasters, the Authority recommends that a State should be taken as a unit and a reach in 15 or more States should be taken as a pan-India presence. The States that are members of the North Eastern Council (NEC) could be considered to be equivalent to one State, for this purpose.