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Tag: DAS

  • DAS Phase III: MSO Alliance heading towards Caveat route in multiple states

    DAS Phase III: MSO Alliance heading towards Caveat route in multiple states

    MUMBAI: The Digital Addressable System (DAS) Phase III deadline came and went and what it’s left behind is chaos and carnage. The analogue signals, which went off for a day or two in some territories, are all back now. Last mile operators (LMOs) who faced the set-top-box shortage crisis have taken the judicial route to challenge the deadline given by the Ministry of Information and Broadcasting (MIB). In six states so far the High Court has permitted an extension where as in Assam’s Kamrup district, the District Magistrate after reviewing the petition allowed an extension.

     
     
    Now multi system operators (MSOs) are also exploring various legal routes and if sources are to be believed, then the MSO Alliance is moving the Uttaranchal and Jharkhand High Courts to file a Caveat. “We sense that the LMOs will go to the honorable court in the two states and hence before they reach out in order to aware the court about the scenario, we are filing a caveat,” a source close to the development tells Indiantelevision.com. 
     
    The DAS Phase III dilemma has also opened the piracy floodgates says a senior cable operator in Assam. “We have migrated from analogue to digital and therefore did not have the infrastructure to provide analogue signals, which we were ordered to be discontinued. But others continued with their analogue signals. ACC in Assam had the analogue signals running all throughout, which is piracy. Now the district magistrate has also ordered the extension in a particular territory, but the analogue signals are running all across Assam. Is it not piracy?” he questions. 
     
    The path ahead will be watched keenly as various stakeholders pull rabbits out of their hats in the coming days.
  • MIB burning midnight oil to find ways to counter battery of High Court orders staying DAS

    MIB burning midnight oil to find ways to counter battery of High Court orders staying DAS

    NEW DELHI: Considering the odds it is facing from various High Courts all over the country for extending the deadline for implementing Phase III of Digital Addressable System (DAS), the Ministry of Information and Broadcasting (MIB) has to find a way to get even justice for the ultimate stakeholder — the consumer.

     

    Perhaps because of that, the last few days have been very busy in the corridors of fifth and sixth floors of Shastri Bhavan in the capital, which houses the MIB, with officials holding several meetings to find a way to stop the snowballing of the orders that commenced from Hyderabad and found a boost in the arguments in the Bombay High Court based on the Kusum Ingots case of 2004, which encouraged multi system operators (MSOs) and local cable operators (LCOs) in other states.

     

    At present, the implementation remains stayed for varying periods in the states of Andhra Pradesh, Assam, Maharashtra, Orissa, Sikkim, and Telangana, apart from Tamil Nadu where prolonged legal cases have been pending since Phase I. A petition has already been filed in the Karnataka High Court and is listed for 8 January.

     

    Ministry sources confirmed to Indiantelevision.com that meetings had been held with legal experts and particularly with Government counsel.

     

    There was also general consensus on filing a petition by the Government in the Supreme Court, particularly as the apex court had on an earlier occasion relating to the Cable Television Networks (Regulation) Act 1995 and orders issued thereunder that High Courts have to be cautious when giving orders on matters relating to policy.  

     

    Government legal experts advised that an appeal could be filed against any of the High Court orders in the Supreme Court and the apex court could be asked to transfer all linked matters to Delhi to be heard together.

     

    However, it needs to be seen whether this will be in the form of a writ petition or an appeal against the various High Courts – a decision left to a battery of legal experts.

     

    MSOs said, however, that this would impose a lot of financial burden on them as they could ill-afford to hire counsel in the Supreme Court. 

     

    Even as the Ministry would obey the directives of the various High Courts, which had extended the DAS deadline by various periods ranging between eight to 12 weeks, it would prepare to oppose the decisions.

     

    A senior Ministry official said that even as the Ministry was waiting to see all the High Court orders, it was working on how plans to thwart the implementation of Phase III could be prevented – if necessary through legislative processes.

     

    The official also expressed the view that the cases would in fact benefit the direct to home (DTH) and Headend In The Sky (HITS) players and would affect the last mile operator (LMO).

     

    The sources said they had evidence to show seeding of set top boxes (STBs) to the extent of 76 per cent as revealed in the 13th Task Force meeting on 30 December. 

     

    Meanwhile, legal opinion is divided on whether the Kusum Ingots case, which was referred to in the Bombay High Court could be used by a High Court to direct a pan-India stay.

     

    The broadcasters and channel distributors are united on one view: the government should not give any extension on its own, as that would lead to a further delay in not just the Phase III and Phase IV (slated for December 2016) but also pockets of Phase I and Phase II, which have still not implemented digital addressable systems.

     

    It is also learnt that both broadcasters on the one hand and the channel distributors and major MSOs on the other, are pressing the government to move the apex court to get a single ruling instead of different High Court orders.

     

    However, it was admitted by the stakeholders that there was very little progress as far as indigenous STBs are concerned with just one or two players making local boxes despite the ‘Make in India’ campaign, and the government had to be proactive in this regard.

     

    The attempt would be to prevent the High Courts from staying implementation of Phase III under which analogue signals were to be switched off after midnight on 31 December, 2015.

     

    One representative of a broadcaster said switching back to analogue on getting a High Court stay did not cause any technical difficulty, but it raised problems relating to accounts and agreements already agreed upon.

     

    Be that as it may, the consumer who has already spent money on acquiring STBs hopes his efforts will not go waste in haste.

  • MIB grants 30 provisional MSO licences on 1 January to push DAS Phase III

    MIB grants 30 provisional MSO licences on 1 January to push DAS Phase III

    NEW DELHI: Even as almost six states now have received two months’ extension from their respective High Courts to implement Phase III of Digital Addressable System (DAS), the Ministry of Information and Broadcasting granted provisional licences to as many as 30 multi-system operators (MSOs) on New Year’s Day (1 January) in a bid to push cable TV digitisation.

     

    With the new licenses granted, the total number MSOs holding provisional licenses has jumped from 382 to 412 in a single day.

     

    An earlier list had put the figure at 382 provisional licensees on 31 December, the day the analogue signals were to be switched off in Phase III that covers all urban areas in the country, showing 45 new MSOs had been added in the last fortnight of 2015.

     

    Adding to the 230, who have 10-year permanent licences, the total number of registered MSOs now goes up to 642.

     

    The Information and Broadcasting Ministry website did not display the number of permanent licensees, indicating that the number remains at 230 as it has remained since 20 November.

     

    But this slow pace is in direct contradiction to the fact that the Ministry of Home Affairs (MHA) had nearly seven months earlier announced that it was aiming to do away with security clearances for MSOs.

     

    The new licensees covering 11 states include two MSOs namely Hashmee Cable Network and Vaadi Television, who have got provisional licences in Jammu and Kashmir.

     

    The other MSOs are from states like Andhra Pradesh, Telangana, Maharashtra, and Tamil Nadu where the implementation of DAS Phase III has been extended by varying periods. These are: Yuvaraj Cable and Anantha City Digital Comm. Network from AP; Hi – Tech Communication Network from Telangana; Rainbow Digitech, Sangli Media Communication, World Vision Cable Network, Chikhali Cable Network, Shah Cable Network, Shree Balaji Cable Network, TK Cable Network, Alone Cable Network, Amarnath Cable Network and Creative Cable Network from Maharashtra; and Tiruvannamalai Cable Network and Amoga Digital Netcom from Tamil Nadu.

     

    MSOs who have received licenses from the state of Uttar Pradesh are: Netvision Elegant Networks, V.B Distribution Cable Network, Welcome Cable Network and Jagjeet Cable TV Network; from Rajasthan are: Shekhawati Cable Networks, Om Cable Network, Kankroli Digital Network and Jaisal Cable Vision; and from Chhattisgarh are: CCN Digital Network and Vande Mahamaya Cable Network.

     

    Additionally, one MSO each from MP, Haryana and Karnataka namely Yash Cable Network, ABC News Palwal and RST Digital Media Services respectively received the provisional licenses.

     

    The number of MSOs was 612 on 31 December, 567 in mid-December, 553 by 24 November and 470 earlier in November, but this increase was merely in those who have provisional licences.

     

    Sources said many MSOs holding provisional licences had not completed certain formalities relating to shareholders and so on.

  • Sikkim joins three others states excluded from DAS Phase III

    Sikkim joins three others states excluded from DAS Phase III

    NEW DELHI: The extension of Digital Addressable System (DAS) by three different High Courts affecting four states does not augur well for the Information and Broadcasting Ministry, which may see a catapulting of such cases as reports pour of just over 50 per cent of seeding of set top boxes (STBs).
     
    After the extension of deadline in both Telengana and Andhra Pradesh, the Sikkim High Court has ordered a stay on analogue cable television signals switch-off until 28 March. A stay had been ordered after the first phase by the Madras High Court for Tamil Nadu, which also remains in force, though the Madhya Pradesh High Court has rejected a petition by Om Systems of Indore challenging Section 4A of Cable Television Networks Regulation Act 1995.
     
    Phase III stipulated for analogue signals to be switched off in all urban areas of the country by 31 December, 2015.
     
    Justice Meenakshi Madan Rai of the Sikkim High Court said in her order on a petition by All Sikkim Cable Operators Association that subscribers will be affected for no fault of theirs. The petition was filed through Association president Roshan Rai.
    In the arguments, it was contended that multi-system and local cable operators had to bear a high cost of migrating to a digital addressable service (DAS) and there were no investors; the difficult terrain of the state was not conducive to laying of optical fibre Cables (OFC) required for Digital networks; Set-Top-Boxes were not easily available in the country; and time limits for migration to digital regime are almost impractical.
    The court also noted that the Association had written to Information and Broadcasting Ministry Secretary Sunil Arora on 26 November, 2015 apprising him of the constraints faced by the MSOs and LCOs and requesting for an extension of the deadline but the Ministry did not care to reply.
    The Court turned down a plea by Telecom Regulatory Authority of India (TRAI) to be impleaded. 
    The directive by the Hyderabad High Court was notable in that Justice Vilas V Afzalpurkar went against an order given by a division bench of which he was a member in the same court relating to Phase III on 20 August, 2013.
  • DAS Phase III: Govt. insists 76% STB seeding; stakeholders claim huge shortage

    DAS Phase III: Govt. insists 76% STB seeding; stakeholders claim huge shortage

     
     NEW DELHI: The Government has claimed that the percentage achievement of coverage of Digital Addressable System (DAS) Phase III so far is 76 per cent, even as reports from multisystem and local cable operators in various states alleged there was huge shortage of set top boxes.
     
    In fact, the 13th Task Force meeting – the last to be held before the deadline of 31 December – was told that the percentage achievement was 86.25 if Tamil Nadu that has some legal and other issues is excluded. The meeting was told there were only 405 zero seeding areas till the last report.
     
    But reports from MSOs and LCOs to Indiantelevision.com from various parts of the country including Maharashtra, Madhya Pradesh and West Bengal said there is acute shortage of set top boxes (STBs) and indicated under 50 per cent seeding.
     
    In the 13th Task Force meeting presided over Special Secretary J S Mathur, Joint Secretary (Broadcasting) R Jaya said the number of urban areas to be digitised in Phase lll after updation of 27 States/UTs is 6016. While changes had been made in some urban states on the basis of reports from some state governments and union territories, comments were still awaited from the States/UTs of Maharashtra, Karnataka, Bihar, Tamil Nadu, Lakshdweep and Dadra Nagar Haveli. 
     
    Out of the 685 areas including West Bengal (where 280 areas were removed soon after the Task Force meeting), 450 areas had less than 1000 TV households and 226 from 1000 to 5000 TV households.
     
    Jaya said out of 510 MSOs registered for Phase lll areas as on the date of the meeting, only 190 MSOs are entering seeding data in the Management Information System (MIS). A total of 135 MSOs have still not logged into MIS and 185 MSOs have logged but have not reported any seeding. She said the Ministry had granted 567 registrations so far. Ninety applications are under process and 35 applications are pending clarifications. Affidavits are awaited from 170 applicants. About 100 applications were received in November and December. 
     
    She said the Home Ministry in July 2015 decided that no security clearance was deemed for issue of registration to MSOs. Since this would involve amendment in the rules, till that time, provisional registrations are being issued by the Ministry. The Joint Secretary further mentioned that the applications are still being received and in some cases the registrations are pending for want of documents. She also mentioned that as informed in the PowerPoint presentation made at the meeting, the MSO dark areas were minimal. 
     
    A Toll free facility has been operational for the last two months and an average of about 500 calls are being received every day over the last 10 days. 
     
    About 400 officers from AIR and Doordarshan have been nominated to inspect the headends of MSOs and in this regard inspection reports have already been received from 50 officers. 
     
    Shortage of STBs and their delivery and pending interconnect agreements with broadcasters as reported by some MSOs, were also mentioned. It was informed that requests had been received from Uttarakhand, Andhra Pradesh and Maharashtra and some MSOs for extension in cut-off date for Phase lll of digitisation. 
     
    It was also pointed out that seeding data received from direct to home (DTH) operators was based on PIN codes of places. DTH operators were requested to confirm their data as per the urban areas notified by the Ministry to confirm correct seeding status in Phase lll areas. 
     
    The representative of DTH mentioned that they have at present 16 million active set top boxes and another two million STBs, which shall be activated soon after the 31 December timeline in Phase lll areas. He added that apart from this, four million STBs are catered to by DD Freedish and another eight million by digital cable. He said the the seeding data for each notified phase lll urban area would be sent very shortly. He stated that the data for seeding of 16 million STBs may be taken. 
     
    It was decided that the seeding data may be accepted. Jaya said the data for two million STBs to be activated after the cut-off date shall however be included only after report of their activation is finally received. 
     
    A representative of Ortel Communications mentioned that due to component shortage with STB manufacturers, the delivery of STBs ordered by them is affected despite advance payment made by them. He added that they have seeded 30 per cent of STBs so far and have a stock of about 20 per cent. 
     
    Mathur said the notification for the cut-off date for Phase lll had been issued on 11 September, 2014, which was more than a year ago. Further, several awareness campaigns, Task Force and MSO sub-group meetings and orientation workshops for the State and district Nodal officers have been held during this period. In addition concerned officials of the State Governments including the Chief Secretaries have been sensitised from time to time on the importance of the initiative. Hence there was no case whatsoever to consider any extension in the cut-off date. 
     
    On a query by the Indian Broadcasting Foundation (IBF) representative about 700 MSOs have single headend for both final phases, Jaya said an advisory was issued to all registered MSOs informing them that in case they have a single control room for Phase lll and Phase lV areas, they must take separate lRDs from broadcasters for taking digital signals in Phase lll areas and analogue signal in Phase lV areas. 
     
    A representative of the Telecom Regulatory Authority of India (TRAI) said it was made clear in all meetings that analogue signals can not be transmitted in Phase lll areas after 31 December, 2015. MSOs and broadcasters were required to make arrangements in advance for feeding Phase lll and Phase lV areas. He added that as per the interconnect regulations analogue transmission is permitted in Phase lV areas and MSOs and broadcasters should find a technological solution to the problem of segregating the feeds from the same control room. 
     
    When the IBF representative apprehended piracy problems in Phase lll areas, he was told the broadcasters must take action as per the law against those indulging in piracy. He was told that it is their responsibility to ensure that analogue signals are not transmitted in Phase lll areas without affecting transmission of analogue signals in Phase lV areas. 
     
    He was also told that the Ministry will write to all State/UT Governments to take action against those violating the law. Jaya remarked that broadcasters have to cancel the agreements entered by them for analogue signals in Phase lll areas.
     
    The Maharashtra government representative said difficulties have been reported from the field in implementing digitisation in the state within the timelines. 
     
    The Maharashtra Cable Operators Federation representative said about 60 per cent areas in Maharashtra are not served by the national MSOs. He said about one million STBs are to be seeded, which is not possible. He added that 40 registrations are pending to be issued by Ministry. 
     
     
    A representative of consumer organisation Savera said consumers were facing difficulties in redressal of their complaints from the MSOs/LCOs, and suggested the Consumer Affairs Ministry be added for redressal of the complaints. He also suggested that the Ministry may hold workshops on cable TV digitisation in all districts for awareness of the consumers. He was told that 11 workshops were held by Ministry for implementation of Phase lll and similar workshops have been planned to be held in Phase lV also. Besides, five advertisements on separate dates were issued in newspapers pan-India and both News and general entertainment channels (GECs) have been carrying ads and scrolls accordingly for information of all.
  • DAS Phase III: Govt claims 75% STB seeding; MSOs claim 50% across India

    DAS Phase III: Govt claims 75% STB seeding; MSOs claim 50% across India

    NEW DELHI: Even as the Government claimed total success in the switchover to Phase III of Cable TV Digitisation from today (1 January, 2016), there were reports from various multi system operators (MSOs) in different parts of the country who complained of shortage of set top boxes (STBs).
     
    An MSO in a city that came under Phase II in Madhya Pradesh told Indiantelevision.com that he had received frantic calls from some MSOs wanting STBs.
     
    Similarly, an LCO in Mumbai said that he had received similar calls from other parts of Maharashtra. He claimed that there was just around 50 per cent seeding across the country.
     
    The Hyderabad High Court has already extended the Digital Addressable System (DAS) deadline for two months in Andhra Pradesh and Telengana.
     
    Meanwhile, the 13th meeting of the Task Force was told on 30 December that more than 75 per cent seeding of STBs had been acomplished.
     
    Describing the progress as “very positive,” an official release today noted that seeding has taken place in most of the notified urban areas with STBs, while the seeding-dark area were only around 400 out of more than 6000 urban areas, many of which had population below 1000 while the rest were in areas having population of less than 5000. 
     
    The seeding figures as shared in the meeting indicated a high level of seeding in the country, to the extent of more than 75 per cent, excluding Tamil Nadu where certain legal matters have restricted the process of digitisation. This figure was expected to be higher when all the registered MSOs provide their final figures. 

    Broadcasters were advised to ensure that no analogue signals are transmitted in Phase III areas after 31 December but without affecting analogue signals in Phase IV areas. 

    It was unanimously decided at the meeting presided over by Special Secretary J S Mathur that looking to the positive outcome of the Digitisation Phase III exercise and the fact that the notification for the cut-off date for phase III was issued more than a year ago, there was absolutely no requirement for extension of the cut-off date. 

     
    The Task Force, where Joint Secretary (Broadcasting) R Jaya and Adviser Yogendra Pal were present, noted that various awareness campaigns, Task Force and MSO sub-group meetings and orientation workshops for the state and district Nodal officers have been held during this period. A multilingual toll free helpline (1800 180 4343) has also been made operational.
  • DAS Phase III fourth updated urban areas list shows changes in W. Bengal

    DAS Phase III fourth updated urban areas list shows changes in W. Bengal

    NEW DELHI: The Government, which had last month issued an update list of urban areas to be covered during Phase III of the Digital Addressable System (DAS), today issued a fourth list relating to West Bengal.
     
    The list issued on 3 November had related to the urban areas to be covered in seven states and one union territory.
     
    That was in addition to the 16 states for which upgradation had been announced on 16 October.
     
    Around 250 towns have been deleted from the West Bengal list while DAS has been shifted to around 10 other towns in 20 districts in West Bengal. This leaves a total of 1,055,469 TV households to be covered by midnight tonight.
     
    The third updated list had referred to changes in Andhra Pradesh, Chhattisgarh, Jammu & Kashmir, Kerala, Madhya Pradesh, Manipur and Telengana, and the Union Territory of Daman & Diu.
     
    Earlier in October, the states and UTs where changes were made are as follows: Arunachal Pradesh, Assam, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Mizoram, Nagaland, Odisha, Rajasthan, Punjab, Tripura, Uttarakahd, Uttar Pradesh, Andaman and Nicobar,and Puducherry.
     
    The updated list with regard to these states and UTs also indicates areas that have been deleted and those which have been added, apart from the number of television households to be covered in each case.
     
    The changes have been made on the basis of the list of Urban local Bodies in West Bengal received from the Joint Secretary, Municipal Affairs Department, West Bengal according to an e-mail of 18 December. 
     
    It has been clarified that the list does not contain areas covered in the first two phases.
     
    The list of areas to be covered in Phase III was issued on 30 April this year.
  • Final Task Force meet for DAS Phase III; Govt & TRAI deny any chaos

    Final Task Force meet for DAS Phase III; Govt & TRAI deny any chaos

    NEW DELHI / MUMBAI: The last sunset of 2015 on 31 December will not only end this calendar year but will also mark the sundown on the era of analog signals in Phase III areas of Digital Addressable System (DAS) in India.

     

    Millions of television households are set to be digitised taking the country one step closer to the ‘Digital India’ vision. The government is adamant that analogue signals will be cut off from 1 January, 2016 for areas covered under the DAS Phase III. In the light of the deadline being merely two days away now, a final Task Force meeting has been convened for tomorrow (30 December, 2015) to take stock of the situation.

     

    A senior executive in cable fraternity feels that the cut-off of signals can lead to a massive law and order situation on ground and the government should be held responsible for any mishap that takes place. He says, “It’s just a day left and still they don’t know what will happen after that. The analog signals will be cut off; it’s a fair call but what if consumers go and vandalise the cable operator? He will have to undergo serious financial damage. Moreover, that can even trigger a riot. We are dealing with vulnerable areas and the government needs to understand that.”

     

    Another senior level executive at a national multi system operator (MSO) opines, “Imagine a scenario when 5000 people are watching New Year special programming on various channels and in the midst of it, the signals are cut off! Does digitisation mean harassing the consumer? What have the authorities done to ensure a smooth transition? When a huge road is made, government gives exemption right. We pay toll and then later the amount is taken care of. Why could they not do something similar with cable if they really wanted the digitisation process to be smooth? I fail to understand why we had to do it in phases. We could have done it state-wise too. Overall, I think there is no option but to wait and watch.”

     

    A source from the Information and Broadcasting Ministry, who did not wish to be named told Indiantelevision.com that both the Telecom Regulatory Authority of India (TRAI) and some High Courts had already said that interconnect agreements (ICA) have to be in place.

     

    The source further added that enough time had been given to the stakeholders and TRAI had held several meetings with different segments of the stakeholders to iron out differences wherever they existed.

     

    Reacting to the judgement of the Bombay High Court that stop-gap agreements should be permitted till TRAI issues a format of the kind of ICAs that should be signed, sources said that both the Ministry and TRAI were already working on a formal format for the ICA. The Ministry source said that it would accept the directive of the Bombay High Court since it worked in favour of digitisation.

     

    Speaking to this website, a TRAI spokesperson said that the regulator had already floated a Consultation Paper for a model ICA for which the last date for comments is 31 December, 2015 and for counter-comments is 7 January, 2016. In view of the urgency, he expected TRAI to come out with its model ICA within a week of receiving all comments.

     

    When asked about the shortage of set top boxes (STBs) in many areas, the Ministry source said that the actual position would become clear after the Task Force meeting.

     

    However, reports so far indicate that there was no shortage of STBs though there had been some areas, which could not receive them in time.

     

    The TRAI official added that MSOs had assured the regulator that there was no shortage of STBs. While there were reports stating that some local cable operators had not received STBs, the spokesperson said that STBs were now available in the open market and any viewer could obtain these readily.

     

    Denying reports of any chaos in the event of the switch-off of the analogue signals, the Ministry source said that viewers all over the country had been made aware of the deadline through intensive ad campaigns run on television and social media and therefore problems would be minimal with regard to the deadline.

     

    The TRAI source added that with other options like HITS and DTH including Freedish available, the regulator did not foresee any chaos. In fact, several mobile apps were already offering TV channels live.

     

    The source conceded that many viewers had taken the open route of subscribing to a private dish operator but said this was obvious in any competitive economy.

  • Manufacturing slows in Q3-2016 despite Digital India & Make in India campaigns

    Manufacturing slows in Q3-2016 despite Digital India & Make in India campaigns

    NEW DELHI: Despite the emphasis on Digital India and Make In India campaigns and perhaps largely due to expectations of the Goods and Service Tax (GST) that never came through, manufacturing of electrical and electronic goods failed to pick up much during 2015.

    What’s more, the outlook the third quarter of 2015-16 predicts a slowdown due to various factors, according to the quarterly Manufacturing Survey conducted by FICCI.

    Considering that the Digital Addressable System (DAS) Phase III becomes a reality from New Year’s Day and the countdown begins for the final phase, and with auction for FM Radio Phase III having commenced, the slowdown in manufacture of electronic goods is not good news for the electronic media industry, which depends largely on set top boxes (STBs) and other electronic equipment.

    The FICCI survey says the outlook for Indian manufacturing sector in Q3 of 2015-16 looks to be weakening, as lesser percentage of respondents expect high growth to continue in Q-3 (October-December 2015-16). The percentage of respondents expecting higher growth in Q3 has gone down to 55 per cent as compared to 63 per cent for Q2 (July-September 2015-16), according to the survey.

    The survey had earlier indicated revival in the manufacturing activity in Q2 of 2015-16, which seems to be slowing down a little bit in Q3 now. The outlook on the basis of FICCI Manufacturing Survey for Q2 of 2015-16 was more optimistic than in the current quarter. Exports are primarily responsible for this less optimistic outlook besides domestic factors like poor demand conditions, high interest cost etc.

    The quarterly survey gauges the expectations of manufacturers for Q3 2015-16 for 12 major sectors namely textiles, capital goods, metals, chemicals, cement and ceramics, electronics, auto, leather & footwear, machine tools, food, tyre, and textiles machinery. Responses have been drawn from 336 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 3.94 trillion.

    The survey had earlier indicated revival in the manufacturing activity in Q2 2015-16, which seems to be slowing down little bit in Q3 now. The percentage of respondents expecting higher growth in Q3 has gone down to 55 per cent as compared to 63 per cent for Q2 2015-16.

    Exports are primarily responsible for this less optimistic outlook besides domestic factors like poor demand conditions, high interest cost etc.

    In terms of investment, for Q3 2015-16, 68 per cent respondents as against 73-75 per cent respondents in earlier quarters reported that they don’t have any plans for capacity additions for the next six months implying slack in the private sector investments in manufacturing to continue, even though there is a fall in the percentage of respondents not looking at fresh investments. Poor demand conditions, high cost of borrowing, delayed clearances and cost escalation are some of the major constraints, which are affecting the expansion plans of the respondents.

    In Electronics and Electrical, the survey shows that average capacity utilisation in the second quarter was 65 per cent, which was only higher than one (textiles) of the 12 sectors surveyed. In fact, it had fallen by five per cent over the same period last fiscal.

    At a glance, the quarterly outlook for the sector shows moderate outlook for production, no capacity addition expected in the next six months, and a bleak outlook for both hiring and exports.

    Implementation of GST and keeping the sector at the lowest tax slab; imposing anti-dumping duty on imports of Dry Batteries; support of the tier 2 supplier by schemes (reward, recognition or subsidies), which can encourage them to improve their product quality; and reduction of interest rate are some of the suggestions from the respondents.

    The Electronics and Electrical sector for the October-December 2015 quarter witnessed 63 per cent respondents reporting higher levels of production on year-on-year basis though the level of growth itself may not be high.

    On the other hand, only 30 per cent of the respondents reported a higher level of orders for the October-December quarter as compared to the previous quarter while 50 per cent reported no improvement in their order books.

    Current capacity utilisation in the industry is around 65 per cent. Primarily owing to the lower current utilisation, 81 per cent respondents reportedly don’t have any plans to add any fresh capacity in next few months.

    A third of the respondents reported negative growth in exports in the October-December 2015 quarter as compared to the same quarter of last year. Also, 56 per cent reported no change in exports during the same period.

    Sixty per cent respondents maintained average inventory levels during October-December 2015 whereas only about a third maintained a higher inventory level. Almost all respondents were reluctant when asked about their plans of hiring additional work force in next three months.

    The Electronics industry respondents are availing credit at an average rate of 12 per cent. Around 40 per cent respondents in the sector expect the manufacturing sector to revive in the next six months while another 40 per cent expect no significant growth.

    About 30 per cent respondents reported that their production cost has increased than that of last year while costs remained same for 40 per cent respondents. Rising labour wages and rupee devaluation have been cited as the key reasons towards this end. Prices of raw materials, uncertainty of economic environment, lack of domestic and export demand, deficiency of power and competition faced from imports are significantly affecting the growth of this sector.

  • “Our strategy is clear, we are ready to associate with everybody but we won’t compromise with our transparency:” Tony D’Silva

    “Our strategy is clear, we are ready to associate with everybody but we won’t compromise with our transparency:” Tony D’Silva

    For Hinduja’s Headend In The Sky (HITS) platform – NXT Digital, which was launched earlier this year, the journey so far has been about tussling it out. From procuring the requisite license from the Ministry of Information & Broadcasting (MIB) to getting broadcasters on board, for NXT Digital, it was no mean feat. Focusing on phase III and IV areas of Digital Addressable System (DAS), the venture has made it very clear that they mean business and are here for the long haul.

    Led by Grant Investrade managing director Tony D’Silva, the venture is investing heavily in order to achieve the goals that have been set. With an aim to spread its network pan India, NXT Digital has deployed teams on ground to reach out to operators. Speaking to Indiantelevision.com’s Anirban Roy Choudhury, D’Silva speaks about the roadmap ahead for NXT Digital, the recent deal with Zee Entertainment Enterprises as well as India’s cable digitisation drive. D’silva makes no bones about the fact that the company is ready to associate with anybody but will not compromise with its transparency.

    Read on:

    How did the industry respond to the launch of NXT Digital?

    The launch of NXT Digital has been very well received by most markets across the country. Initially people were skeptical about what this system was all about. There was a lot of negative publicity in the market spread by people with various vested interests saying that we would face the same problems that Jain HITS faced. I think we have been able to overcome that gradually. And now we believe that we are a platform to stay. We have made substantial investment and have the financial support to invest more.

    What do you think has been the biggest achievement so far for NXT Digital?

    The most important achievement is the fact that we have successfully signed all the broadcasters. The deal with broadcasters is for both active and passive services (with exception of Zee), which is a greater achievement. Now I think we have started to move faster. Initially the progress was a little slow because there was a lot of confusion in the market as what will be the last date of DAS Phase III. However, now that there is clarity on the final date, the demand has seen a substantial growth in terms of COPE mini headend systems and set top boxes (STBs).

    When you speak about demand, is there any particular region where you are witnessing the demand or is it pan India?

    It is indeed pan India. In fact, we are observing a huge demand in phase I and II areas. But considering our decision to not disturb the existing ecosystem, we have decided to focus on phase III and IV markets only as of now. That said, we will review the model whenever needed.

    How robust is your infrastructure to meet the growing demand?

    We built our infrastructure for a particular demand but we have gone well beyond that demand and hence we have to now re-build our infrastructure. And that’s exactly what we will do to meet the demand.

    Infrastructure will certainly not be a problem as far as NXT Digital is concerned. We are evaluating various options when it comes to STBs. DAS Phase IV will have a different affording power as compared to phase III and keeping the diversity in mind, we plan to offer a variety of options when it comes to STBs. By next year we will add one or two more transponders too.

    How do you plan to ensure cordial reach out to the operators?

    We reach out to the operators through various print, digital mediums, live roadshows etc. Moreover we have an on-ground team, which interacts with the operators. I think the proof of the pudding is in the eating. Once cable operators as well as the market have seen our services, there will automatically be a level of satisfaction and confidence and then they will be our ambassadors.

    What’s your take on pricing when it comes to DAS Phase III and IV?

    The content pricing is a function of broadcasters. We follow a business model where we don’t make any money from content. We don’t want to make money from content. The lower the broadcaster gives us, the lower we offer to our operators. Broadcasters unfortunately don’t see a difference between Phase III and Phase IV even though we have been repeatedly appealing to them because there is a clear difference in Average Revenue Per User (ARPU) in the two regions. I think it’s the function of authority overseeing the digitisation process to ensure the fact that the price quoted is fair for the entire ecosystem.

    Is there a clear enough revenue model?

    I think there should be a differentiation in the markets, or another way to look at it is to see what you can afford and pay for it. But I don’t know if the second one is a right option at this stage. And the reason I say at this stage is because the consumer is used to a kind of model and suddenly you cannot give him another rationale and logic. The transition needs to happen after following a logical approach and that is something that I firmly believe in. You cannot bring in a change by being harsh on the end consumers. 

    How many operators has NXT Digital signed with so far? Are you happy with the number?

    We are very close to touching the 500 mark and I am very happy with the number. The number will go up substantially as we come closer and closer to the D-Day. There are a huge number of people who are still trying to figure out the best way forward. The main reason why operators held back was because they were insecure about us not having all the content. After getting Zee on board that problem has been addressed and now we will certainly see the demand going up.

    The other problem that we faced in the initial stages was our broadcaster friends campaigning against us. They went on to many operators and mis-informed them saying NXT Digital will also be on the same track as Jain HITS as we will not provide them the content. I think we have proved that these were just rumours and hence they don’t count anymore.

    What’s your take on the entire digitisation process?

    Not all operators are equipped with higher education and hence they do not understand the actual meaning of digitisation. Digitisation does not mean putting a digital head-end and STBs but it is also about managing the backend, packaging and bundling. On the other hand, there are a lot of smart, intelligent Chinese vendors all around laying the trap and there are a good number of operators falling in that trap maybe because of the government pressure or lack of understanding.

    The other thing I have been telling the government is that when you look at regulation per se, the entire onus of implementing digitisation lies on the MSO. However, we are forgetting that a very important part of the process is the local cable operator (LCO), who is delivering the signal to the end consumer. Therefore billing, receipt collection, ensuring quality, consciousness and other on-ground responsibilities should remain with the LCO.

    The government needs to understand that unlike many other countries, India is not a homogenous market. On a single street you will find slums and multi-storeyed apartments, which are both are consuming content. The LCO cannot go with a fixed price because it will be more than some or less than some. Moreover, he will also have to pay service tax on it. The concept of billing needs to be realistic and practical. There are a lot of things that need to be addressed if we really want to digitise the country. 

    You are also providing local channel facility, which is something that lacks on DTH. Who takes the responsibility of the content put on those channels?

    We have a mechanism through which operators can have as many as eight – sixteen local channels. The benefit is that they are all encrypted and hence piracy is taken care of. We are clear with the operator that whatever content is put up, should follow the Cable Act. If the operator airs pirated content or breaches the law, the broadcasters can inform us and we will switch off signals. We have the power to switch off, which other MSOs don’t and that’s another advantage that we have. We have to understand one thing that the COPE belongs solely to the operator and therefore the liability of whatever is inserted through that COPE is on him. 

    Can DD Freedish capitalise on the on-ground chaos? If there is a blackout, people may just move to DD Freedish?

    DD Freedish is also like any other DTH platform. I don’t think it meets consumer requirements. The consumer knows what he wants to watch. Setting up a DD Freedish and buying an STB is similar investment. It’s just that there is no subscription fee attached to DD Freedish but it has its limitations when it comes to number of channels. And not only channels, the exposure that we offer is far beyond, be it international with global channels, local channels or value added services. So we are far ahead of a platform like DD Freedish and we are not bothered by it.

    You had all major broadcasters on board except Zee. How was your experience inking the deal with Zee?

    A deal that took four months to be signed cannot be called a smooth one. We went to the MIB, the Telecom Regulatory Authority of India (TRAI) and then eventually tussled it out at the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). For many years now we have been requesting TRAI to come up with a standard Interconnect Agreement (ICA). There are so many operators across the country who cannot even afford to go to the TDSAT. It’s not an easy process; he has to come to Delhi, hire a lawyer and it needs a lot of financial backup. The deal signing with Zee was a learning experience for me. It was a case of dealing with people who say something and do something totally different. It was a clear case of mis-interpretation of law.

    What is the way forward for NXT Digital?

    Value added services are important to ensure growth and now we are focusing aggressively on that front. I want to make one thing very clear, which is that the Hinduja Group will fight this till the very end. We are not going to be tempered over by anybody in this industry. If there is a genuine problem or concern, we are more than happy to sit and discuss. At the same time, no matter what, we will not be stepped on for nothing. I firmly believe that the whole is always bigger than the individual. If we have all the broadcasters with us and one against, there has to be some vested interest. Our strategy is clear, we are ready to associate with everybody for business or betterment of the industry but we won’t compromise with our transparency.