Tag: DAS

  • 9 Indian companies to manufacture STBs; iCAS cost less than $0.5: Govt

    9 Indian companies to manufacture STBs; iCAS cost less than $0.5: Govt

    NEW DELHI: A total of nine private companies have been identified by India’s Department of Electronics and Information Technology (DeitY) for manufacturing indigenous set top boxes equipped with Indian Conditional Access System (iCAS).

    However, the government department could not give a time-frame as to when indigenously-manufactured STBs would be ready to address the growing demands for boxes as digital rollout inches towards the finishing line.

    Sources in DeitY said STBs with iCAS is a techno-commercial decision of the operators, but indicated it could coincide with the Phase IV deadline of Digital Addressable System in December this year.

    In the third and fourth phase of ongoing digitisation of TV services in India, industry experts estimate need for approximately 70-80 million boxes.

    DeitY, till recently part of the Communications Ministry but since then sliced away under the charge of minister Ravi Shankar Prasad, had been set up to promote e-Governance for empowering citizens, promoting inclusive and sustainable growth of the electronics, IT & ITeS industries, enhancing India’s role in Internet governance, promoting R&D and innovation and ensuring a secure cyber space.

    The companies identified so far for manufacturing iCAS STBs and with whom ByDesign India Pvt. Ltd. of Bangalore had signed Memorandums of Understanding included New Delhi-based Melbon-Millenium Technologies, Solid-KMTS Engineering Pvt. Ltd, MyBox Technologies Pvt. Ltd and C-Net Communications India Pvt. Ltd.

    The Bangalore-based companies include Smasher Communications Pvt. Ltd and Velankani Electronics Pvt. Ltd, while the others are Exza Info system from Pune, ABS Productions Pvt. Ltd. of Mumbai and Aurangabad-based Videocon.

    ByDesign India Pvt. Ltd. had been shortlisted after a tendering process for the development and implementation of iCAS in association with a government organisation, Centre for Development of Advanced Computing (C-DAC).

    The development stage of iCAS had been successfully completed as on November 14, 2015.

    As per the agreement with STB manufacturers, ByDesign will make available the developed iCAS to all domestic manufacturers or to the operators at not more than $ 0.5/license (including smart card, if required) for a period of three years.

    Government sources indicated more than 25,000 STBs with iCAS have already been deployed across the country between December 2015 and January 2016.

    DeitY has recently informed a parliamentary committee on information technology that during five months till March 2016, iCAS was presented in various national and regional level conferences/forums. The product received encouraging response both from cable and DTH operators.

    iCAS had been test deployed by 13 operators by March-end at Sandur, Challekere and Ranebennur in Karanataka; Chalisgaon and Wai in Maharashtra; Yeraguntala and Tadapatri in Andhra Pradesh; Madurai in Tamil Nadu; Durgapur in West Bengal; Hamirpur in Himachal Pradesh; Neemuch in Madhya Pradesh; Bikaner in Rajasthan

    and Haldwani in Uttarakhand.

    The Department said operators in these towns had confirmed successful deployment of iCAS.

    The installation of the system is in progress at seven more operator locations of Nevada in Bihar; Narayanpur and Leilunga in Chhattisgarh; Ganjam and Bhingarpur in Odisha; Pachora and Daund in Maharashtra.

  • 9 Indian companies to manufacture STBs; iCAS cost less than $0.5: Govt

    9 Indian companies to manufacture STBs; iCAS cost less than $0.5: Govt

    NEW DELHI: A total of nine private companies have been identified by India’s Department of Electronics and Information Technology (DeitY) for manufacturing indigenous set top boxes equipped with Indian Conditional Access System (iCAS).

    However, the government department could not give a time-frame as to when indigenously-manufactured STBs would be ready to address the growing demands for boxes as digital rollout inches towards the finishing line.

    Sources in DeitY said STBs with iCAS is a techno-commercial decision of the operators, but indicated it could coincide with the Phase IV deadline of Digital Addressable System in December this year.

    In the third and fourth phase of ongoing digitisation of TV services in India, industry experts estimate need for approximately 70-80 million boxes.

    DeitY, till recently part of the Communications Ministry but since then sliced away under the charge of minister Ravi Shankar Prasad, had been set up to promote e-Governance for empowering citizens, promoting inclusive and sustainable growth of the electronics, IT & ITeS industries, enhancing India’s role in Internet governance, promoting R&D and innovation and ensuring a secure cyber space.

    The companies identified so far for manufacturing iCAS STBs and with whom ByDesign India Pvt. Ltd. of Bangalore had signed Memorandums of Understanding included New Delhi-based Melbon-Millenium Technologies, Solid-KMTS Engineering Pvt. Ltd, MyBox Technologies Pvt. Ltd and C-Net Communications India Pvt. Ltd.

    The Bangalore-based companies include Smasher Communications Pvt. Ltd and Velankani Electronics Pvt. Ltd, while the others are Exza Info system from Pune, ABS Productions Pvt. Ltd. of Mumbai and Aurangabad-based Videocon.

    ByDesign India Pvt. Ltd. had been shortlisted after a tendering process for the development and implementation of iCAS in association with a government organisation, Centre for Development of Advanced Computing (C-DAC).

    The development stage of iCAS had been successfully completed as on November 14, 2015.

    As per the agreement with STB manufacturers, ByDesign will make available the developed iCAS to all domestic manufacturers or to the operators at not more than $ 0.5/license (including smart card, if required) for a period of three years.

    Government sources indicated more than 25,000 STBs with iCAS have already been deployed across the country between December 2015 and January 2016.

    DeitY has recently informed a parliamentary committee on information technology that during five months till March 2016, iCAS was presented in various national and regional level conferences/forums. The product received encouraging response both from cable and DTH operators.

    iCAS had been test deployed by 13 operators by March-end at Sandur, Challekere and Ranebennur in Karanataka; Chalisgaon and Wai in Maharashtra; Yeraguntala and Tadapatri in Andhra Pradesh; Madurai in Tamil Nadu; Durgapur in West Bengal; Hamirpur in Himachal Pradesh; Neemuch in Madhya Pradesh; Bikaner in Rajasthan

    and Haldwani in Uttarakhand.

    The Department said operators in these towns had confirmed successful deployment of iCAS.

    The installation of the system is in progress at seven more operator locations of Nevada in Bihar; Narayanpur and Leilunga in Chhattisgarh; Ganjam and Bhingarpur in Odisha; Pachora and Daund in Maharashtra.

  • TRAI allows more time for reactions on QoS methodology under DAS

    TRAI allows more time for reactions on QoS methodology under DAS

    NEW DELHI: With consumers still to get a full experience of digital addressable systems and the various rules relating to it, the Telecom Regulatory Authority of India has agreed to extend the last date for receipt on comments on its consultation paper on ‘Issues related to Quality of Services in Digital Addressable Systems and Consumer Protection’.

    Stakeolders can now send in their comments by 1 July and any counter-comments by 8 July 2016 to the paper issued on 18 May 2016. The earlier date was 17 June for receipt of comments and 1 July 2016 for counter comments.

    As the country moves towards the final phase of digital addressable systems, TRAI wants to know if there should be a uniform regulatory framework for quality of service and consumer protection across all digital addressable platforms.

    TRAI has also sought opinion of stakeholders on the standards and essential technical parameters for ensuring good quality of service for Digital Cable TV, Direct-to-home (DTH), head-end in the sky (HITS) and Internet Protocol Television (IPTV).

    In over fifty questions posed to stakeholders, it wants to know the broad contours for Quality of Service Regulatory Framework for digital addressable systems.

    The regulator has asked if timelines relating to various activities to get new connection should be left to the Distribution Platform Operators (DPOs) to be transparently declared to the subscribers. What should be the time limits for various activities including consumer application form and installation and activation of service for new connections, it wants to know.

    Referring to a query often asked by stakeholders, the regulator wants to know if the minimum essential information to be included in the CAF should be mandated through regulations to maintain basic uniformity. Should the use of e-CAF be facilitated, encouraged or mandated, it has asked.

    TRAI wants to know if an initial subscription period can be charged while providing a new connection to protect the interest of subscribers as well as DPOs, and the protections for subscribers and DPOs during initial subscription period.

  • TRAI allows more time for reactions on QoS methodology under DAS

    TRAI allows more time for reactions on QoS methodology under DAS

    NEW DELHI: With consumers still to get a full experience of digital addressable systems and the various rules relating to it, the Telecom Regulatory Authority of India has agreed to extend the last date for receipt on comments on its consultation paper on ‘Issues related to Quality of Services in Digital Addressable Systems and Consumer Protection’.

    Stakeolders can now send in their comments by 1 July and any counter-comments by 8 July 2016 to the paper issued on 18 May 2016. The earlier date was 17 June for receipt of comments and 1 July 2016 for counter comments.

    As the country moves towards the final phase of digital addressable systems, TRAI wants to know if there should be a uniform regulatory framework for quality of service and consumer protection across all digital addressable platforms.

    TRAI has also sought opinion of stakeholders on the standards and essential technical parameters for ensuring good quality of service for Digital Cable TV, Direct-to-home (DTH), head-end in the sky (HITS) and Internet Protocol Television (IPTV).

    In over fifty questions posed to stakeholders, it wants to know the broad contours for Quality of Service Regulatory Framework for digital addressable systems.

    The regulator has asked if timelines relating to various activities to get new connection should be left to the Distribution Platform Operators (DPOs) to be transparently declared to the subscribers. What should be the time limits for various activities including consumer application form and installation and activation of service for new connections, it wants to know.

    Referring to a query often asked by stakeholders, the regulator wants to know if the minimum essential information to be included in the CAF should be mandated through regulations to maintain basic uniformity. Should the use of e-CAF be facilitated, encouraged or mandated, it has asked.

    TRAI wants to know if an initial subscription period can be charged while providing a new connection to protect the interest of subscribers as well as DPOs, and the protections for subscribers and DPOs during initial subscription period.

  • Seven mfrs making set top boxes locally, MSOs adopt iCAS

    Seven mfrs making set top boxes locally, MSOs adopt iCAS

    NEW DELHI: Even as most high courts extended the deadline for phase III of digital addressable system citing shortage of set top boxes, a total of seven local manufacturers are now producing STB.

    This figure is almost double compared to the details given during the last meeting of the DAS Task Force on 16 February 2016.

    The 15th Task Force meeting on 30 May was informed that seeding of about 41 million (4.1 crore) STBs had been completed.

    However according to a representative of Consumer Electronics and Appliances Manufacturers Association (CEAMA), there was a lull in the market and no orders had been received in the recent past.

    The representative said seven indigenous STB manufacturers had taken Indian Conditional Access System (iCAS) licenses and five out of them are in the process of implementing iCAS in their STBs.

    He said 22 MSOs’ had placed orders for iCAS-based STBs. Twelve MSOs’ had deployed iCAS by 15 February, the 14th meeting had been told.

    Meanwhile, the Department of Electronics and Information Technology is planning a meeting with the operators and stakeholders on 24 June 2016.

    In the meeting on 16 February 2016 which was the first after the deadline for phase III covering all urban areas, it was claimed that the seeding of STBs by multi system operators increased from 6.91 million to 12.43 million between 31 December 2015 and 15 February 2016.

    The Indian Conditional Access System (iCAS) had been developed by DeITY and will be initially available to indigenous STB manufacturers for three years at a nominal fee of $ 0.5 per STB. .

  • Seven mfrs making set top boxes locally, MSOs adopt iCAS

    Seven mfrs making set top boxes locally, MSOs adopt iCAS

    NEW DELHI: Even as most high courts extended the deadline for phase III of digital addressable system citing shortage of set top boxes, a total of seven local manufacturers are now producing STB.

    This figure is almost double compared to the details given during the last meeting of the DAS Task Force on 16 February 2016.

    The 15th Task Force meeting on 30 May was informed that seeding of about 41 million (4.1 crore) STBs had been completed.

    However according to a representative of Consumer Electronics and Appliances Manufacturers Association (CEAMA), there was a lull in the market and no orders had been received in the recent past.

    The representative said seven indigenous STB manufacturers had taken Indian Conditional Access System (iCAS) licenses and five out of them are in the process of implementing iCAS in their STBs.

    He said 22 MSOs’ had placed orders for iCAS-based STBs. Twelve MSOs’ had deployed iCAS by 15 February, the 14th meeting had been told.

    Meanwhile, the Department of Electronics and Information Technology is planning a meeting with the operators and stakeholders on 24 June 2016.

    In the meeting on 16 February 2016 which was the first after the deadline for phase III covering all urban areas, it was claimed that the seeding of STBs by multi system operators increased from 6.91 million to 12.43 million between 31 December 2015 and 15 February 2016.

    The Indian Conditional Access System (iCAS) had been developed by DeITY and will be initially available to indigenous STB manufacturers for three years at a nominal fee of $ 0.5 per STB. .

  • FY-16: Videocon d2h adds 16.8 lakh subs, Op Profit up 32.5 percent

    FY-16: Videocon d2h adds 16.8 lakh subs, Op Profit up 32.5 percent

    BENGALURU: Videocon d2h Limited (Videocon d2h) led by executive chairman Saurabh Dhoot reported 16.8 lakh net subscriber additions during the year ended 31 March 2016 (FY-16, current year). The company reported a subscriber base of 118.6 lakh at the end of the current year as compared to 101.8 at the end of the previous fiscal (FY-15), hence a growth of 16.5 percent in FY-16 as compared to FY-15. Gross subscribers increased by 26.5 lakh in FY-16. Incremental subscriber churn in the current year reduced by 7 basis points to 0.73 percent as compared to 0.80 percent in FY-16.The company claims to have added the largest number of subscribers amongst its peers in India for the sixth year in a row in FY-16.

    Videocon d2h reported simple EBIDTA (Operating Profit, Earnings before Interest-Depreciation-Tax-Amortisation) of Rs 789.52 crore (EBIDTA margin of 27.6 percent) for FY-16 which was 32.5 percent more than the Rs 595.64 crore (25.5 percent EBIDTA margin) in FY-16.

    Revenue in the current year increased 22.2 percent to Rs 2,855.86 crore from Rs 2,337.71 crore in the previous year. Subscription and Activation revenue in FY-16 grew 26.4 percent to Rs 2,607 crore compared to Rs 2,063 crore in FY-15.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    Average Revenue per User (ARPU) in FY-16 increased by Rs 11 from Rs 196 in the previous year to Rs 207 in FY-16.

    The DTH major reported a lower loss in FY-16 at Rs 92.21 crore as compared to a loss of Rs 272.66 crore in FY-15.

    Total Expenditure (TE) in FY-16 increased 17.8 percent to Rs 2,675.19 crore (93.7 percent of revenue) from Rs 2,270.75 crore (97.1 percent of revenue) in FY-15.

    Videocon d2h reported higher content costs for FY-16, which increased to 37.8 percent of revenue as compare to 36.2 percent of revenue in the previous year.

    Fourth Quarter of 2016 numbers

    The fourth quarter – quarter ended 31 March 2016 (Q4-16, current quarter), has been a great quarter for the company in terms of financial and operational performance.

    For Q4-16 Videocon d2h added 5.9 lakh net subscribers. The company reported 5.2 percent quarter-over-quarter (q-o-q) growth in subscribers for Q4-16 at 118.6 lakh as compared to 112.7 lakh in the immediate trailing quarter Q3-16. Gross subscribers increased by 7.9 lakh in Q4-16. Incremental subscriber churn in Q4-16 increased 16 basis points to 0.58 percent year-over-year (y-o-y) from 0.42 percent but declined 15 basis points q-o-q from 0.73 percent.

    Simple EBIDTA in the current quarter increased 33.7 percent y-o-y to Rs 216.20 crore (28 percent EBIDTA margin) from Rs 161.71 crore (25.9 percent margin) and increased 9.4 percent q-o-q from Rs 197.71 crore.

    Subscription and activation revenue in the current quarter grew 20.9 percent y-o-y to Rs 706 crore and grew 6.2 percent q-o-q from Rs 665 crore. SAC in the form of hardware subsidies at Rs 1,776 per subscriber during Q4-16 was higher than the Rs 1,726 in the immediate trailing quarter. SAC in FY-15 averaged Rs 1,984

    ARPU in the current quarter increased by Rs 12 y-o-y from Rs 202 in the corresponding year ago quarter to Rs 214 in Q4-16. ARPU in Q4-16 increased q-o-q by Rs 3 from Rs 211 in Q3-16.

    Videocon d2h reported lower y-o-y and q-o-q loss in Q4-16. Loss in the current quarter declined to Rs 21.18 crore as compared to a loss of Rs 75.74 crore in the corresponding year ago quarter and a loss of Rs 22.05 crore in the immediate trailing quarter.

    TE in Q4-16 increased 19.4 percent y-o-y to Rs 721.77 crore (93.6 percent of revenue) from Rs 605.55 crore (96.7 percent of revenue) and increased 5.4 percent q-o-q from Rs 684.58 crore (93.6 percent of revenue)

    Content cost in Q4-16 was lower in terms of percentage of revenue at 37.5 percent as compared to 38.4 percent in Q4-15 and 38.5 in Q3-16.

    Company speak

    Videocon d2h executive chairman Dhoot said, “Fiscal 2016 has been a landmark year for Videocon d2h, as it was the first fiscal year after our NASDAQ listing, and it has been a great journey. I am delighted to share that our strong net subscriber additions, rising revenue realization and operating leverage benefit resulted in 31.5 percent Adjusted EBITDA growth for fiscal 2016, in spite of increases in service tax rates and the implementation of a new ‘clean India initiative’ tax during the year.”

    “During the year, we accomplished numerous technological advancements, such as the development of HD Smart Connect Set Top Box, our new connected set-top box which allows customers to view normal DTH services as well as internet and over-the-top content and applications. This development demonstrates our expertise and innovation in creation, delivery and execution of technologically advanced products,” revealed Dhoot.

    Speaking on the business outlook for the DTH sector, Videocon d2h CEO Anil Khera said “There have been a series of industry developments in fiscal 2016, which we believe will provide for growth opportunities in the DTH sector in India. The implementation of Phase III digitization of the Digital Addressable Cable TV System program of the government of India that began in January 2016 was an example of such a development. It led to a surge in new subscriber additions for various distribution platforms. While the momentum slowed down as many state high courts issued a temporary stay order against digitization, we are still seeing higher subscriber additions from Phase III markets as compared to previous years.”

    “In addition, the deadline for Phase IV digitization is December 31, 2016, which we believe covers approximately 80 million (8 crore) television homes,” added Khera.

  • FY-16: Videocon d2h adds 16.8 lakh subs, Op Profit up 32.5 percent

    FY-16: Videocon d2h adds 16.8 lakh subs, Op Profit up 32.5 percent

    BENGALURU: Videocon d2h Limited (Videocon d2h) led by executive chairman Saurabh Dhoot reported 16.8 lakh net subscriber additions during the year ended 31 March 2016 (FY-16, current year). The company reported a subscriber base of 118.6 lakh at the end of the current year as compared to 101.8 at the end of the previous fiscal (FY-15), hence a growth of 16.5 percent in FY-16 as compared to FY-15. Gross subscribers increased by 26.5 lakh in FY-16. Incremental subscriber churn in the current year reduced by 7 basis points to 0.73 percent as compared to 0.80 percent in FY-16.The company claims to have added the largest number of subscribers amongst its peers in India for the sixth year in a row in FY-16.

    Videocon d2h reported simple EBIDTA (Operating Profit, Earnings before Interest-Depreciation-Tax-Amortisation) of Rs 789.52 crore (EBIDTA margin of 27.6 percent) for FY-16 which was 32.5 percent more than the Rs 595.64 crore (25.5 percent EBIDTA margin) in FY-16.

    Revenue in the current year increased 22.2 percent to Rs 2,855.86 crore from Rs 2,337.71 crore in the previous year. Subscription and Activation revenue in FY-16 grew 26.4 percent to Rs 2,607 crore compared to Rs 2,063 crore in FY-15.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

    Average Revenue per User (ARPU) in FY-16 increased by Rs 11 from Rs 196 in the previous year to Rs 207 in FY-16.

    The DTH major reported a lower loss in FY-16 at Rs 92.21 crore as compared to a loss of Rs 272.66 crore in FY-15.

    Total Expenditure (TE) in FY-16 increased 17.8 percent to Rs 2,675.19 crore (93.7 percent of revenue) from Rs 2,270.75 crore (97.1 percent of revenue) in FY-15.

    Videocon d2h reported higher content costs for FY-16, which increased to 37.8 percent of revenue as compare to 36.2 percent of revenue in the previous year.

    Fourth Quarter of 2016 numbers

    The fourth quarter – quarter ended 31 March 2016 (Q4-16, current quarter), has been a great quarter for the company in terms of financial and operational performance.

    For Q4-16 Videocon d2h added 5.9 lakh net subscribers. The company reported 5.2 percent quarter-over-quarter (q-o-q) growth in subscribers for Q4-16 at 118.6 lakh as compared to 112.7 lakh in the immediate trailing quarter Q3-16. Gross subscribers increased by 7.9 lakh in Q4-16. Incremental subscriber churn in Q4-16 increased 16 basis points to 0.58 percent year-over-year (y-o-y) from 0.42 percent but declined 15 basis points q-o-q from 0.73 percent.

    Simple EBIDTA in the current quarter increased 33.7 percent y-o-y to Rs 216.20 crore (28 percent EBIDTA margin) from Rs 161.71 crore (25.9 percent margin) and increased 9.4 percent q-o-q from Rs 197.71 crore.

    Subscription and activation revenue in the current quarter grew 20.9 percent y-o-y to Rs 706 crore and grew 6.2 percent q-o-q from Rs 665 crore. SAC in the form of hardware subsidies at Rs 1,776 per subscriber during Q4-16 was higher than the Rs 1,726 in the immediate trailing quarter. SAC in FY-15 averaged Rs 1,984

    ARPU in the current quarter increased by Rs 12 y-o-y from Rs 202 in the corresponding year ago quarter to Rs 214 in Q4-16. ARPU in Q4-16 increased q-o-q by Rs 3 from Rs 211 in Q3-16.

    Videocon d2h reported lower y-o-y and q-o-q loss in Q4-16. Loss in the current quarter declined to Rs 21.18 crore as compared to a loss of Rs 75.74 crore in the corresponding year ago quarter and a loss of Rs 22.05 crore in the immediate trailing quarter.

    TE in Q4-16 increased 19.4 percent y-o-y to Rs 721.77 crore (93.6 percent of revenue) from Rs 605.55 crore (96.7 percent of revenue) and increased 5.4 percent q-o-q from Rs 684.58 crore (93.6 percent of revenue)

    Content cost in Q4-16 was lower in terms of percentage of revenue at 37.5 percent as compared to 38.4 percent in Q4-15 and 38.5 in Q3-16.

    Company speak

    Videocon d2h executive chairman Dhoot said, “Fiscal 2016 has been a landmark year for Videocon d2h, as it was the first fiscal year after our NASDAQ listing, and it has been a great journey. I am delighted to share that our strong net subscriber additions, rising revenue realization and operating leverage benefit resulted in 31.5 percent Adjusted EBITDA growth for fiscal 2016, in spite of increases in service tax rates and the implementation of a new ‘clean India initiative’ tax during the year.”

    “During the year, we accomplished numerous technological advancements, such as the development of HD Smart Connect Set Top Box, our new connected set-top box which allows customers to view normal DTH services as well as internet and over-the-top content and applications. This development demonstrates our expertise and innovation in creation, delivery and execution of technologically advanced products,” revealed Dhoot.

    Speaking on the business outlook for the DTH sector, Videocon d2h CEO Anil Khera said “There have been a series of industry developments in fiscal 2016, which we believe will provide for growth opportunities in the DTH sector in India. The implementation of Phase III digitization of the Digital Addressable Cable TV System program of the government of India that began in January 2016 was an example of such a development. It led to a surge in new subscriber additions for various distribution platforms. While the momentum slowed down as many state high courts issued a temporary stay order against digitization, we are still seeing higher subscriber additions from Phase III markets as compared to previous years.”

    “In addition, the deadline for Phase IV digitization is December 31, 2016, which we believe covers approximately 80 million (8 crore) television homes,” added Khera.

  • Political, bureaucratic wrangles likely road-blocks for the new I&B secretary

    Political, bureaucratic wrangles likely road-blocks for the new I&B secretary

    NEW DELHI: The biggest challenges for the bureaucrats in the country can be summed up in just a few words: being unprepared, and forced to make compromises.

    Thus, a person taking charge as the head of the bureaucracy in any ministry has to put aside his or her own personal views and get down to translating the decisions of the government and the minister/ministers into action, apart from the fact that he or she may be completely new to the field. And this task becomes even more onerous when there are deadlines to be met in short periods of time.

    Ajay Mittal is taking over the reins of the administrative machinery in the Information and Broadcasting ministry from Sunil Arora who had barely eight months to grapple with problems. Arora joined the Ministry on 31 August last year just as the ministry was making preparations for the Digital Addressable System Phase III and was in the midst of the Phase III auctions of FM radio.

    Mittal, is a senior Indian administrative service (IAS) officer of the 1982 batch from the Himachal Pradesh cadre. Born on 24 February 1958, Mittal is a law graduate and also has a Masters degree in rural development. His first posting was as principal secretary to the then chief minister of Himachal Pradesh and in the information and public relations wing in the state. Mittal was empanelled as secretary in December last year when he was additional chief secretary at Transport, Social Justice & Empowerment Department, Shimla.

    Now, Mittal has to deal with not only the onerous task of overseeing the implementation of the last phase in DAS which will cover all remaining urban and all rural areas of the country by December-end, but bringing the government out of the morass of legal cases which stayed the implementation of DAS Phase III in many states and have now been transferred to the Delhi high court.

    DAS Phase III

    Even though the deadlines for the last two phases of DAS were changed, the stakeholders were clearly unprepared as they all claimed shortage of compatible set top boxes – a claim which even the ministry could not deny. Expectedly, several high courts stayed implementation for varying periods  
    And although the ministry has succeeded in getting all the cases transferred to the Delhi high court, the fact remains that the ministry had itself admitted in a letter to its counsel in Chandigarh that it understood the stay to be pan-India, until the Supreme Court said nothing in the directive of the Bombay high court implied this.

    With the shortage of compatible set top boxes and little headway despite the incentives offered under the Make in India scheme, the ministry has to find ways to encourage indigenous production. Even at present, a large number of LCOs work with poor quality STBs made in China or other countries.

    Added to that is the fact that a large number of broadcasters, multi system operators, and local cable operators have still to work out their agreements – an issue further complicated by the directives of the Telecom Disputes Settlement and Arbitration Tribunal which wants the tariffs to looked at anew.
     
    In fact, many MSOs or LCOs have also not been able to get the Consumer Application Forms from their clients despite major publicity by the broadcasters.

    It is also a fact that analogue transmission continues in many parts of cities and towns that have gone digital and the government has failed to get the stay of DAS in Chennai vacated.

    The Home ministry had many months earlier made it clear that it was prepared to do away with security clearance for Indian-owned multi-system operators, the I and B Ministry has not yet got the go-ahead, with the result that MSOs are only getting provisional licences and the number of those with ten-year permanent licences remains at 231. The new secretary will have to push the Home ministry if he wants DAS to succeed.

    TRAI

    Although these are issues that the Telecom Regulatory Authority of India is dealing with, all decisions relating to the broadcasting sector can only be effective if there is proper coordination between the regulator and the ministry. This effectively means there has to be a quick response to any issues that either of the two raises to the other, if deadlines have to be met.

    Other issues pending before TRAI relating to broadcasting include the need to reconsider the foreign direct investment norms for media, shortage of spectrum, a growing demand by states seeking permissions to start their own television channels despite the TRAI having opined against it twice since 2008, and the imperative to work on the tariff issues for commercial and non-commercial set-ups following directives of the Telecom Disputes Settlement and Appellate Tribunal.

    Although broadcasting duties were handed over to TRAI just over a decade earlier, it is also clear that the ministry will have to consider whether there is need to form a broadcasting-specific body since TRAI is primarily a body set up for the telecom sector. If the Government decides to continue with TRAI handling both portfolios, the regulator will be under pressure from the I and B Ministry to strengthen its broadcasting team and also ensure greater coordination among officers in both broadcasting and telecom.    

    With convergence of technologies becoming a reality, and with issues of spectrum already bringing telecom and broadcasting together, the National Democratic Alliance Government has again begun to talk about convergence and this is bound to gather pace over the next two years.

    Spectrum

    The Defence Ministry has in principle agreed to hand over some spectrum and swap some other spectrum, and TRAI has also worked on the process of auctioning the available spectrum and given out reserve prices, the whole process is caught up in bureaucratic wrangles as it involves the Telecom ministry. If the I and B ministry wants to continue with its policy of ensuring there are no caps on the number of television, FM radio channels, or direct-to-home (DTH) Headed in the sky (HITS) platforms in the country, the issue of spectrum will need early solution.

    FM Radio Auctions

    When the last secretary Sunil Arora took over, the government was in the midst of the first stage of auctions of the FM Radio e-auction which only covered cities which already have FM but there were some vacancies. Learning from the experiences where there were no bids in 13 of the 69 cities, the government has now decided to revise the guidelines for the e-auction. The new secretary may have to find ways of either lowering the reserve price for those cities or finding other incentives before the next stage of e-auction.

    The fact that the cumulative winnings from the channels auctioned so far has exceeded the reserve price by more 100 per cent is undoubtedly a matter of great satisfaction, but some cities failing to attract bidders is an irritant.

    Ad Cap

    The Cable Television Networks (Regulation) Act 1995 was clear that the advertising cap should be twelve minutes an hour, but television channels went to court because many – particularly the news channels most of which are free to air – said they had no other source of income unlike the pay channels. But the ministry is already doing a rethink as admitted by the ministry as well as the News Broadcasters Association.

    This rethink is probably because the I and B minister had said early this last year that he was opposed to ad caps on the print or electronic media, and because the free-to-air channels (most of which are news channels) have already expressed their opposition to this. TRAI had failed to get permission to take action against television channels violating its diktat of a total of 12 minutes of commercial and promotional advertisements every hour, though all broadcasters were asked to keep records of this by the Delhi High Court.

    Spread of FM Radio vs DRM

    The Digital Radio Mondiale Consortium feels that All India Radio has done the most in terms of digitization of radio. AIR has in fact spent crores of rupees on the digitized Digital Radio Mondiale. But Prasar Bharati feels that Frequency Modulation which is an analogue technology should be promoted until the nation is ready for digital radio sets.

    The ministry can resolve this issue only if it can ensure adequate manufacture at affordable process of DRM sets under the Make in India programme. Until then, this continues to be a thorn in the already dicey relations between the public service broadcaster and the ministry. The fact remains that there are just one or two manufacturers of DRM sets and these have also been successfully demonstrated in moving cars, but they remain unaffordable.

    Community Radio

    More than a decade has elapsed since the introduction of community radio, but the number of operational stations is still very low. To boost this sector, the government introduced a new scheme last year for funding community radio and has also been giving away awards, but bureaucratic wrangles continue to hold up the smooth implementation of this scheme.

    Prasar Bharati and the Ministry

    On paper, the Prasar Bharati (Broadcasting Corporation of India) Act 1990 is clear that the pubcaster is autonomous. However, in reality this appears to the contrary.

    On the one hand, a group of ministers had decided as a measure to help the pubcaster that persons employed as on 5 October 2007 will get the salary and pension from government funds. For employees who joined after that date, Prasar Bharati was left to fend for itself.

    In any case, Prasar Bharati is listed as an autonomous company under the ministry.

    This means – and it appears so even from the manner in which questions relating to the pubcaster are answered in parliament – that there is dispute on what real autonomy is. Prasar Bharati CEO Jawhar Sircar – a former bureaucrat himself – feels the government does not give him full freedom and there is interference at every level and has said so either in speeches or in articles by him or others in the pubcaster.

    Journalists on the parliamentary beat are often flabbergasted by the fact that when it suits the government, a reply will say that the pubcaster is an autonomous body, and yet there has been the intervention of the government even in appointments in Prasar Bharati.

    While there is generally full autonomy as far as content goes, there are allegedly checks and balances placed by the government in administrative matters.

    In a new development that has in principle been accepted by the government, Prasar Bharati, which has been losing revenue and viewership, has decided to auction prime time slots – perhaps inspired by the success of the e-auctions of slots on the country’s only free-to-air direct-to-home platform DD Freedish, or the FM auctions.

    Freedish

    Even though the auctions have been extremely successful and the pubcaster not only got two or three times the reserve price per slot, but even managed to get at least two pay channels to come as FTA, it has still not been able to switch over from MPEG2 to MPEG4 to enable it to increase the number to 112 as promised over the last three to four years.

    Foreign Direct Investment

    The TRAI had given its recommendations for an increased FDI in many sectors of the media in a report in July 2013. Although there was some change by the government earlier this year, it has still not implemented the FDI report of TRAI in full.

    Security Clearance

    While the Home ministry has decided it is doing away with security clearance for MSOs, it has not taken a decision as far television channels are concerned. And while the issue relating to foreign ownership can be understood, the denial of security clearance to Sun TV and its affiliated MSOs continues to flummox everyone in the media. It is generally felt that an accused is not guilty till proved, but the Home ministry – and the I and B ministry – appear to have decided that the Maran brothers should be denied security clearance despite the fact that the cases against them have no relation to the security of the country, and are in fact an incursion n the freedom of the media. Even the Supreme Court while permitting Sun group companies to take part in the FM auction said so.

    Paid News

    It is now almost five years since the issue of paid news became the talk of the town. The Press Council of India set up a committee which even gave recommendations, and a Parliamentary Panel and the Election Commission also wanted some steps to be taken to stop this. But there has been no tangible action so far.

    Film Industry

    The film industry has been raising similar issues year after year. As far as taxation issues were concerned, it was hoped that the Goods and Services Tax when implemented will help. But the way the matter is stuck in parliament forces the industry to just wait and watch.

    Entertainment tax is another issue on which there has been no unanimity and states have different taxes. A proposal about a decade earlier for bringing cinema into the Concurrent List of the Constitution might have solved the problem, but most states opposed the idea. Perhaps the only positive move has been that service tax or cess on entertainment tax has been done away with.

    In a country producing around one thousand feature films every year apart from the large number of films from overseas, the country still suffers from an acute shortage of theatres, with the number less than 11,000. With the high rates of ticketing charged by the multiplexes, the average cinegoer is denied of the pleasure of seeing a film in a cinema hall.

    All attempts to curb video piracy appear to have failed because the film industry and the government have failed to work together to curb the menace, which means huge losses for the makers of bold films unless there are big stars to lure the audiences.

    The Film Museum has been in the planning and making for more than a decade, but it does not appear that the Museum planned for 2013 to coincide with a centenary of cinema will seek the light of day for at least a couple of more years.

    The Centre of Excellence in Animation and Visual Effects

    For almost ten years, minister after minister has promised to set up a Centre of Excellence in Animation and Visual Effects, and Hyderabad and Bangalore have even claimed that they have the right ambience for such a centre.

    But indications are coming that it will be established in the Film City in Goregaon in Mumbai, a decision that may not be digestible to studios of animation and VFX in cities like Hyderabad and Bangalore.

    Clearly, the new secretary has a difficult task ahead, moving on a road that is not without political or bureaucratic potholes that can hold up even his best intentions.

     

  • Political, bureaucratic wrangles likely road-blocks for the new I&B secretary

    Political, bureaucratic wrangles likely road-blocks for the new I&B secretary

    NEW DELHI: The biggest challenges for the bureaucrats in the country can be summed up in just a few words: being unprepared, and forced to make compromises.

    Thus, a person taking charge as the head of the bureaucracy in any ministry has to put aside his or her own personal views and get down to translating the decisions of the government and the minister/ministers into action, apart from the fact that he or she may be completely new to the field. And this task becomes even more onerous when there are deadlines to be met in short periods of time.

    Ajay Mittal is taking over the reins of the administrative machinery in the Information and Broadcasting ministry from Sunil Arora who had barely eight months to grapple with problems. Arora joined the Ministry on 31 August last year just as the ministry was making preparations for the Digital Addressable System Phase III and was in the midst of the Phase III auctions of FM radio.

    Mittal, is a senior Indian administrative service (IAS) officer of the 1982 batch from the Himachal Pradesh cadre. Born on 24 February 1958, Mittal is a law graduate and also has a Masters degree in rural development. His first posting was as principal secretary to the then chief minister of Himachal Pradesh and in the information and public relations wing in the state. Mittal was empanelled as secretary in December last year when he was additional chief secretary at Transport, Social Justice & Empowerment Department, Shimla.

    Now, Mittal has to deal with not only the onerous task of overseeing the implementation of the last phase in DAS which will cover all remaining urban and all rural areas of the country by December-end, but bringing the government out of the morass of legal cases which stayed the implementation of DAS Phase III in many states and have now been transferred to the Delhi high court.

    DAS Phase III

    Even though the deadlines for the last two phases of DAS were changed, the stakeholders were clearly unprepared as they all claimed shortage of compatible set top boxes – a claim which even the ministry could not deny. Expectedly, several high courts stayed implementation for varying periods  
    And although the ministry has succeeded in getting all the cases transferred to the Delhi high court, the fact remains that the ministry had itself admitted in a letter to its counsel in Chandigarh that it understood the stay to be pan-India, until the Supreme Court said nothing in the directive of the Bombay high court implied this.

    With the shortage of compatible set top boxes and little headway despite the incentives offered under the Make in India scheme, the ministry has to find ways to encourage indigenous production. Even at present, a large number of LCOs work with poor quality STBs made in China or other countries.

    Added to that is the fact that a large number of broadcasters, multi system operators, and local cable operators have still to work out their agreements – an issue further complicated by the directives of the Telecom Disputes Settlement and Arbitration Tribunal which wants the tariffs to looked at anew.
     
    In fact, many MSOs or LCOs have also not been able to get the Consumer Application Forms from their clients despite major publicity by the broadcasters.

    It is also a fact that analogue transmission continues in many parts of cities and towns that have gone digital and the government has failed to get the stay of DAS in Chennai vacated.

    The Home ministry had many months earlier made it clear that it was prepared to do away with security clearance for Indian-owned multi-system operators, the I and B Ministry has not yet got the go-ahead, with the result that MSOs are only getting provisional licences and the number of those with ten-year permanent licences remains at 231. The new secretary will have to push the Home ministry if he wants DAS to succeed.

    TRAI

    Although these are issues that the Telecom Regulatory Authority of India is dealing with, all decisions relating to the broadcasting sector can only be effective if there is proper coordination between the regulator and the ministry. This effectively means there has to be a quick response to any issues that either of the two raises to the other, if deadlines have to be met.

    Other issues pending before TRAI relating to broadcasting include the need to reconsider the foreign direct investment norms for media, shortage of spectrum, a growing demand by states seeking permissions to start their own television channels despite the TRAI having opined against it twice since 2008, and the imperative to work on the tariff issues for commercial and non-commercial set-ups following directives of the Telecom Disputes Settlement and Appellate Tribunal.

    Although broadcasting duties were handed over to TRAI just over a decade earlier, it is also clear that the ministry will have to consider whether there is need to form a broadcasting-specific body since TRAI is primarily a body set up for the telecom sector. If the Government decides to continue with TRAI handling both portfolios, the regulator will be under pressure from the I and B Ministry to strengthen its broadcasting team and also ensure greater coordination among officers in both broadcasting and telecom.    

    With convergence of technologies becoming a reality, and with issues of spectrum already bringing telecom and broadcasting together, the National Democratic Alliance Government has again begun to talk about convergence and this is bound to gather pace over the next two years.

    Spectrum

    The Defence Ministry has in principle agreed to hand over some spectrum and swap some other spectrum, and TRAI has also worked on the process of auctioning the available spectrum and given out reserve prices, the whole process is caught up in bureaucratic wrangles as it involves the Telecom ministry. If the I and B ministry wants to continue with its policy of ensuring there are no caps on the number of television, FM radio channels, or direct-to-home (DTH) Headed in the sky (HITS) platforms in the country, the issue of spectrum will need early solution.

    FM Radio Auctions

    When the last secretary Sunil Arora took over, the government was in the midst of the first stage of auctions of the FM Radio e-auction which only covered cities which already have FM but there were some vacancies. Learning from the experiences where there were no bids in 13 of the 69 cities, the government has now decided to revise the guidelines for the e-auction. The new secretary may have to find ways of either lowering the reserve price for those cities or finding other incentives before the next stage of e-auction.

    The fact that the cumulative winnings from the channels auctioned so far has exceeded the reserve price by more 100 per cent is undoubtedly a matter of great satisfaction, but some cities failing to attract bidders is an irritant.

    Ad Cap

    The Cable Television Networks (Regulation) Act 1995 was clear that the advertising cap should be twelve minutes an hour, but television channels went to court because many – particularly the news channels most of which are free to air – said they had no other source of income unlike the pay channels. But the ministry is already doing a rethink as admitted by the ministry as well as the News Broadcasters Association.

    This rethink is probably because the I and B minister had said early this last year that he was opposed to ad caps on the print or electronic media, and because the free-to-air channels (most of which are news channels) have already expressed their opposition to this. TRAI had failed to get permission to take action against television channels violating its diktat of a total of 12 minutes of commercial and promotional advertisements every hour, though all broadcasters were asked to keep records of this by the Delhi High Court.

    Spread of FM Radio vs DRM

    The Digital Radio Mondiale Consortium feels that All India Radio has done the most in terms of digitization of radio. AIR has in fact spent crores of rupees on the digitized Digital Radio Mondiale. But Prasar Bharati feels that Frequency Modulation which is an analogue technology should be promoted until the nation is ready for digital radio sets.

    The ministry can resolve this issue only if it can ensure adequate manufacture at affordable process of DRM sets under the Make in India programme. Until then, this continues to be a thorn in the already dicey relations between the public service broadcaster and the ministry. The fact remains that there are just one or two manufacturers of DRM sets and these have also been successfully demonstrated in moving cars, but they remain unaffordable.

    Community Radio

    More than a decade has elapsed since the introduction of community radio, but the number of operational stations is still very low. To boost this sector, the government introduced a new scheme last year for funding community radio and has also been giving away awards, but bureaucratic wrangles continue to hold up the smooth implementation of this scheme.

    Prasar Bharati and the Ministry

    On paper, the Prasar Bharati (Broadcasting Corporation of India) Act 1990 is clear that the pubcaster is autonomous. However, in reality this appears to the contrary.

    On the one hand, a group of ministers had decided as a measure to help the pubcaster that persons employed as on 5 October 2007 will get the salary and pension from government funds. For employees who joined after that date, Prasar Bharati was left to fend for itself.

    In any case, Prasar Bharati is listed as an autonomous company under the ministry.

    This means – and it appears so even from the manner in which questions relating to the pubcaster are answered in parliament – that there is dispute on what real autonomy is. Prasar Bharati CEO Jawhar Sircar – a former bureaucrat himself – feels the government does not give him full freedom and there is interference at every level and has said so either in speeches or in articles by him or others in the pubcaster.

    Journalists on the parliamentary beat are often flabbergasted by the fact that when it suits the government, a reply will say that the pubcaster is an autonomous body, and yet there has been the intervention of the government even in appointments in Prasar Bharati.

    While there is generally full autonomy as far as content goes, there are allegedly checks and balances placed by the government in administrative matters.

    In a new development that has in principle been accepted by the government, Prasar Bharati, which has been losing revenue and viewership, has decided to auction prime time slots – perhaps inspired by the success of the e-auctions of slots on the country’s only free-to-air direct-to-home platform DD Freedish, or the FM auctions.

    Freedish

    Even though the auctions have been extremely successful and the pubcaster not only got two or three times the reserve price per slot, but even managed to get at least two pay channels to come as FTA, it has still not been able to switch over from MPEG2 to MPEG4 to enable it to increase the number to 112 as promised over the last three to four years.

    Foreign Direct Investment

    The TRAI had given its recommendations for an increased FDI in many sectors of the media in a report in July 2013. Although there was some change by the government earlier this year, it has still not implemented the FDI report of TRAI in full.

    Security Clearance

    While the Home ministry has decided it is doing away with security clearance for MSOs, it has not taken a decision as far television channels are concerned. And while the issue relating to foreign ownership can be understood, the denial of security clearance to Sun TV and its affiliated MSOs continues to flummox everyone in the media. It is generally felt that an accused is not guilty till proved, but the Home ministry – and the I and B ministry – appear to have decided that the Maran brothers should be denied security clearance despite the fact that the cases against them have no relation to the security of the country, and are in fact an incursion n the freedom of the media. Even the Supreme Court while permitting Sun group companies to take part in the FM auction said so.

    Paid News

    It is now almost five years since the issue of paid news became the talk of the town. The Press Council of India set up a committee which even gave recommendations, and a Parliamentary Panel and the Election Commission also wanted some steps to be taken to stop this. But there has been no tangible action so far.

    Film Industry

    The film industry has been raising similar issues year after year. As far as taxation issues were concerned, it was hoped that the Goods and Services Tax when implemented will help. But the way the matter is stuck in parliament forces the industry to just wait and watch.

    Entertainment tax is another issue on which there has been no unanimity and states have different taxes. A proposal about a decade earlier for bringing cinema into the Concurrent List of the Constitution might have solved the problem, but most states opposed the idea. Perhaps the only positive move has been that service tax or cess on entertainment tax has been done away with.

    In a country producing around one thousand feature films every year apart from the large number of films from overseas, the country still suffers from an acute shortage of theatres, with the number less than 11,000. With the high rates of ticketing charged by the multiplexes, the average cinegoer is denied of the pleasure of seeing a film in a cinema hall.

    All attempts to curb video piracy appear to have failed because the film industry and the government have failed to work together to curb the menace, which means huge losses for the makers of bold films unless there are big stars to lure the audiences.

    The Film Museum has been in the planning and making for more than a decade, but it does not appear that the Museum planned for 2013 to coincide with a centenary of cinema will seek the light of day for at least a couple of more years.

    The Centre of Excellence in Animation and Visual Effects

    For almost ten years, minister after minister has promised to set up a Centre of Excellence in Animation and Visual Effects, and Hyderabad and Bangalore have even claimed that they have the right ambience for such a centre.

    But indications are coming that it will be established in the Film City in Goregaon in Mumbai, a decision that may not be digestible to studios of animation and VFX in cities like Hyderabad and Bangalore.

    Clearly, the new secretary has a difficult task ahead, moving on a road that is not without political or bureaucratic potholes that can hold up even his best intentions.