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Tag: Den Networks

  • DEN’s Manchanda: Consumers will drive phase III & IV digitisation

    DEN’s Manchanda: Consumers will drive phase III & IV digitisation

    MUMBAI: The government mandate to digitise roughly 130 million Indian cable TV homes has been progressing in stops and starts over the past year. But with phase I and phase II  almost complete and billing starting or expected to start soon, industry is now gearing up for the third and final fourth phases. And India’s cable cowboy and leading MSO Den Networks’ CMD Sameer Manchanda believes that the process is going to be smoother and easier in the smaller towns and hinterland India. 

     

    “It is the consumer who wants digitisation in phase III and phase IV,” said DEN Networks CMD Sameer Manchanda in an interview to CNBC TV 18 today. “Seeing the success of phase I and phase II, it’s the consumer in these smaller towns and rural India who are pushing for the digitisation.” 

     

    The ministry of information and broadcasting has declared 31 December 2014 as the sunset date for analogue cable TV. And along with that TRAI has been prodding and pushing the rickety cable TV architecture to upgrade quickly.

     

    Manchanda told the business channel that the government mandate combined with the consumer push, will result in digitisation being completed nationally in the next 15 months, giving leeway for a three month delay.

     

    “We are one of the largest players, with a fairly high share of cable TV homes,” said Manchanda during the course of the interview.

     

    90 million of the 130 million TV homes nationally are delivered TV services via cable, he pointed out adding that  “while 20 million homes have already been digitised in phase I and II, around 70-75 million are left to undergo the process in phase III and IV,” he added. 

     

    DEN Networks has seeded around 5 million set top boxes – a 25 per cent share of this 20 million digitised universe – and will need to digitise another eight million analogue homes in phase III and phase IV areas.  “Of course we will be expanding and have raised money for the same. So we will be doing much more in the remaining phases,” he said. 

     

    Though Manchanda acknowledged the competition is coming in from the direct-to-home (DTH) players, he still believes that consumers prefer cable TV over DTH in digitised environment. “In the 42 towns which have so far been digitised, we have seen that 70-72 per cent is cable while 28-30 per cent is DTH, if you leave Chennai out. We do understand there is competition.  But what we have seen in phase I and II – and I believe the same will play out  in phase III and IV –  is that  in a digital universe viewers  are preferring cable TV,” he revealed.

     

    Cable, according to Manchanda, in the last one year, has added roughly 85 -90 per cent of the homes that got digitised in the 42 towns.

     

    Addressing the question on the coming in of 4G in India, Manchanda said, “As far as 4G goes, I see cable TV and 4G complementing each other. Digitisation has provided us the bedrock for further change like elsewhere in the world and deliver internet and broadband. So far, India has witnessed speeds like 512 kbps, but here we are talking of speeds of 100 mbps and beyond. And we will be leapfrogging technology like offering ethernet on wire or cable and Docsis 3.0. .We will be launching broadband in March-April. I see a complete revolution coming in with broadband and cable TV companies offering triple play services.”

     

    With television here to stay and going to HD and 3D and video getting denser, Manchanda believes the need for fixed bandwidth from consumers at home will rise. “Indian cable TV companies are in an advantageous position as they are the only ones having a wire going into homes – apart from MTNL and BSNL. Hence they will be moving in the way cable companies in the US, Korea have,” Manchanda told the channel. 

     

    Citing Comcast, the largest media and cable company which also offers telecom services as an example, Manchanda said that India is going to be moving in the same direction in the next three to five years. “It would change the way education, video and everything else on the internet is done,” he said.

  • MSOs meet; decide to start gross billing in Mumbai soon

    MSOs meet; decide to start gross billing in Mumbai soon

    MUMBAI: The national multi-system operators (MSOs) don’t want any more delay in starting the gross billing in the phase I cities. While gross billing has already begun in Delhi and Kolkata, the MSOs who have been facing resistance from the last mile operators (LMOs) in Maharashtra, met today in Mumbai to decide on the means to implement billing in the city.

    The four MSOs: Hathway Cable & Datacom, DEN Networks, IMCL and SitiCable have unanimously decided to authorise the LMOs to bill their consumers. “The LMO wants ownership of their consumers, and we have decided to give them that,” informs a MSO present during the meeting.

    The MSOs during the meeting decided that they will generate the bill and hand it over to the LMOs, who can further give it to the subscribers. “We will start the process in the next couple of days. Consumers will receive the bill for the month of December,” he adds.

    While the decision on who collects the entertainment tax is still pending with the Bombay High Court, the MSOs have decided to go ahead and complete the process of gross billing in Mumbai and submit the compliance report to the Telecom Regulatory Authority of India (TRAI), the deadline for which was 31 December. “We will submit the compliance report, once the billing process starts,” says the MSO.

    But what happens if the consumer pays the bill through a cheque? “Well! It is up to the subscriber, they can either sign the cheque in the name of the MSO or the LMO. But considering that the entertainment tax needs to be paid by the LMOs, it will be preferable that the subscriber signs it in the name of the LMO. The LMO will pay us the collection after deducting his revenue share,” he informs.

    The decision has been taking to brings everything on track. “The decision on entertainment tax will come sooner or later. But, that cannot deter us from getting the process rolling,” says the operator.

    At the meeting, the revenue share for the pay and free channels was also discussed. “These are commercial discussions. We have almost reached on an agreement for that as well. And our plan of revenue share is better than the one suggested by the TRAI,” says the MSO.

    But, are the LMOs completely convinced as well? “We will be meeting Hathway and IMCL on 4 January to discuss the fine points. Our concern is that the ownership of consumer should be with the LMOs. We will discuss with them the billing format and also get clarity on whose name the bill is being generated. The heading of the bill should have the name of the LMO and not the MSO. We will not allow that,” says Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

    However, the MSOs have suggested that the bills generated from the MSO will have the name of the LMO, while that generated from the LMO to the subscriber will have the name of the subscriber. “This is a welcome move. But, we still need to discuss the finer points tomorrow,” adds Prabhoo.

    In the meeting to be held between MCOF and the MSOs on Saturday, finer points like additional cost of bill printing, distribution and collection will also be discussed. “These are additional liabilities of DAS in the absence of the interconnect agreement and also unfair revenue share and hence need to be discussed,” concludes Prabhoo.

  • MSO Alliance launches ad campaign on monthly billing

    MSO Alliance launches ad campaign on monthly billing

    MUMBAI: Soon consumers will find bills coming to them for using cable TV service. And the message will be reaching them loud and clear through a print campaign that was launched today in the New Delhi edition of The Times of India and Navbharat Times. The print campaign which aims at educating consumers of monthly billing reads: “Attention Digital Cable TV subscribers- Now pay as per your selected channel pack. Get a cable TV bill from your MSO every month starting December 2013.”

    The campaign is an initiative of the multi-system operator (MSO) Alliance that comprises national players: DEN Networks, Hathway Cable & Datacom, Siti Digital Cable Television and InCableNet. The MSO Alliance also has announced that the subscribers who have got a set top box (STB), submitted the ‘Know-Your-Client’ details and channel package selection, will get a bill for their cable TV service every month. The first bill will be generated for the month of November. The new facility has been introduced in keeping with the Telecom Regulatory Authority of India’s (TRAI) regulation on starting gross billing from December.    

    “This move is important as it will ensure that there are no additional or random charges levied on the subscribers. Our viewers will thus pay only for what they watch and they must insist on a bill from their local cable operator or MSO at the time of monthly payment,” said MSO Alliance secretary and DEN Networks CEO S.N Sharma. 

    As per the TRAI regulations, subscribers will get 15 days from the date of the bill to make their payment. In case the subscriber fails to make the payment after the expiry of the due date of payment, the MSO or the affiliate LCO has the right to charge interest on the outstanding amount.

    The Union Government and the TRAI had rolled out a four-phased plan for digitisation of cable TV across India early last year. Phases I & II of this process covering Delhi, Mumbai, Kolkata and 38 other major cities have already been completed. According to the Ministry of Information and Broadcasting, over 26 million STBs were installed in these cities, over 70 per cent of which were by digital cable companies.

  • Exset BV promotes PK Acharya; makes him the India director

    Exset BV promotes PK Acharya; makes him the India director

    MUMBAI: Exset India has got a new director. Exset BV, the Netherlands based broadcast solutions company, today announced that it has promoted its regional director- South Asia, PK Acharya to director Exset, India. Based in New Delhi, Acharya in his new role will be responsible for Exset’s business activities in India and will be reporting to Exset BV CEO in Netherlands.

    “The Indian market is very crucial for the Exset’s Global market share. Acharya with his vast experience in the Indian broadcasting market brings on board his understanding of India’s digital TV market. Along with his team he is expected to establish Exset’s business foot-print in India,” said Exset BV CEO Alex Borland.

    A graduate in Economics and MBA in marketing, Acharya has over 25 years’ experience in the communication and Cable TV industry. His network includes long standing personal and professional relationships with policy makers, all India distribution channel and the last mile owners in the Cable TV and internet data space.

    In the past, Acharya has been associated with companies like NG Technologies (NIG), Midas Communication Technologies, Sky Merchants, Hotwire, Genus Power Infrastructure, DEN Networks and Tripleplay Telecom. 

    “India holds great opportunity for me. Exset is a dynamically thinking company with unique solutions in Digital Monetisation System (DMS) very applicable to the Indian broadcast industry which will enable the operators to increase their ARPU. Exset has a great product in DMS and a great support team, which we will expand over the next few months. I look forward to contributing to the industry with whom I have worked over the past 25 years,” said Acharya.

  • Around 1.80 lakh defaulters in Kolkata face TV blackout as of 26 August

    KOLKATA: With the Telecom Regulatory Authority of India (TRAI) pressuring service providers in Kolkata to disconnect the television connections of customers for not submitting the subscriber application forms, multiple system operators, more than 1.80 lakh customers have experienced a black out till Monday evening.

     

    While talking about the snapping of the connection which started from Saturday morning, Den Networks, Hathway Cable and Datacom and Manthan Broadband Services snapped the maximum number of cable connections, out of 80,000 which were disconnected on August 24.

     

    Also, with just around 45 days remaining for the grand festival of Durga Puja, some cable operators are relaxed and have assured the customers that they can send the details after the festival is over, said a customer, using the service of one of the players, which has maximum penetration in KM area.

     

    Industry sources said: “The consumer application forms (CAF) of these MSOs were not ready as compared to other players like SitiCable. As a result, the three MSOs had to switch off the connection,” adding that the MSO will continue to switch-off few connections at a time in the coming days to guard against law-and-order problem.

     

    As per the TRAI mandate, the MSOs were supposed to switch-off the cable connections of those customers, who had not filled-up the CAFs in Kolkata post midnight of 23 August.

     

    Committee of the Association of Cable Operators, Cable Operators Digitalisation convener Swapan Chowdhury said the MSOs have been asked by the TRAI to provide details of TV connections running illegally in the KM area.

     

    Siticable that has disconnected more than 90,000 subscribers till Monday evening, has seen a good response from customers. “We are not switching off the connections of CAF non compliance customers at a go. We are doing it in small numbers – say 15,000,” expounded Siticable director (Kolkata) Suresh Sethia.

     

    Manthan Broadband Services which has installed 6.5 lakh to seven lakh set top boxes, had alone disconnected around 30,000 connections on Saturday, said Manthan Broadband Services director Sudip Ghosh.

     

    “Our purpose is not to switch-off the connection. But after snapping say four connections, more than 100 customers have approached from the vicinity,” he added.
    Seeing the fast response from the customers, it can be easily assumed that in the KM DAS area, CAFs rate is likely to be 70 per cent to 80 per cent in next six days – seven days, Ghosh predicted.

     

    Den Networks and Hathway Cable and Datacom could not be asked specifically about the connections snapped by them in KM area.

     

    Cable Shilpa Bachao Committee convener Mrinal Chatterjee said instead of disconnecting the TV sets, TRAI should penalise the MSOs and not the customers by asking MSOs to switch off the connection; as the CAFs were not given to the customers on time.

     

    With no official extension notice from the regulatory body, will Kolkata see deactivation of set-top boxes of more and more defaulters at this juncture? Watch this space for the latest updates.

  • Kolkata MSOs racing against time to meet DAS deadline

    Kolkata MSOs racing against time to meet DAS deadline

    KOLKATA: Multi System Operators (MSOs) and local cable operators (LCOs) in Kolkata are busy collecting the consumer application forms (CAF) and feeding in details for the complete implementation of the Digital Addressable System (DAS).

    “There’s a huge increase in workload, and everything has to be collected quicker and reported quicker,” says a Kolkata headquartered MSO. While a LOC says: “It’s very tiring to go home and get called back in again, and go home and get called back in again for clarifications and further clarifications.”

    With the Telecom Regulatory Authority of India (TRAI) confirming last week that it will strictly adhere to the 23 August deadline for implementation of subscriber management system (SMS) rollout in Kolkata, the MSOs and cable operators are collecting the know your client (KYC) form details and subscribers’ choice of channels swiftly and are racing against time to feed the data into their systems day and night.

    So far 30-35 per cent of the subscriber management system (SMS) data of cable consumers in Kolkata is completed as per the TRAI data.

    SitiCable which controls a substantial share of cable TV users in Kolkata said the call centers would update the details overnight. “We will work overnight and plan to achieve as much of the work before the deadline,” said SitiCable (Kolkata) director Suresh Sethia.

    SitiCable has set up around 11.5 lakh digital addressable systems (DAS) here.

    While for Manthan Broadband Services there are no holidays and Sundays. “We have 6.5 lakh to seven lakh subscribers. The CAF rate was around 25 per cent for us last week,” said Manthan Broadband Services director Sudip Ghosh.

    “The operators connected with Manthan are working 10 times faster than before,” added Ghosh.
    While Manthan Broadband Services director Gurmeet Singh, said: “With the regulation, we have to collect 100 per cent details. We have no other choice than asking the operators to work and achieve the target.”

    DEN Networks CEO SN Sharma said the CAF collection rate for it’s close to three lakh STBs in Kolkata is nearly 40 per cent-45 per cent.

    “Before the deadline, we aim to achieve 85 per cent -90 per cent work,” said Sharma with assurance.

    “The operators are so lethargic that the customers have not yet got the forms and we are getting calls from frantic TV viewers now,” said a MSO. “We have asked them to download the form from the website and fill it up, scan and mail it to us if possible so that their TV screens do not go blank,” he added.

    With just five days in hand to meet the switch-off date, other MSOs and LCOs said that they have deployed more personnel on shift and temporary basis.

    “Consumer Application Form (CAF) collection rate is expected to be around 70 per cent-75 per cent altogether in Kolkata by 23 August,” assumes Sethia.

    “Achieving 100 per cent target by 23 August is next to impossible. Kolkata will miss the deadline,” said Association of Cable Operators, Cable Operators Digitalisation Committee convener Swapan Chowdhury. “But the cable TV industry people are toiling hard now,” he expounded.

    On the other hand industry sources on the condition of anonymity said it is not possible to give authentic data in just five days. “Filling up more than 18 lakh CAFs is not a matter of joke. The LCO may tick mark the preference of the users themselves,” he said. “For not providing genuine information, the MSOs may face dreadful consequences,” he hinted.

    If around 5,000 local cable operators and 14 MSOs, which provide service in DAS areas do not abide by the deadline of submitting the CAFs, TRAI may file a case against any MSO, concluded a source.

    With the clock ticking and TRAI not willing to give any leeway, the MSOs and LCOs have their work cut out.

  • MSOs say that cable TV customer response positive for CAFs

    MSOs say that cable TV customer response positive for CAFs

    MUMBAI: Tomorrow is an important day for TRAI chief Rahul Khullar. Reason: the deadline for cable TV subscribers to send in their customer application forms (CFAs) ends then. And like in the past, it is quite likely that he will summon the heads of the major cable TV MSOs to his office and ask them for their latest update on the situation.

    But before that many a cable TV subscriber who has been lax about submitting his CAF to the LCO or the MSO will find his or her analogue connection cut off. Because under cable TV DAS regulations that is the only way TV distribution will function in phase I metros (read Delhi and Mumbai), going forward.

    Delhi, especially has been a worry for those in the digitisation value chain as LCOs and customers there (less than 50 per cent had sent in their CAFs as recently as two weeks ago) were taking the requests for CAFs lightly.

    TRAI then cracked the whip on MSOs hoping to speed up customer response. Broadcasters – even GECs – were roped in to carry interesting promotional ads informing customers about the imperative for submitting CAFs. In fact, even as recently as four days ago, TRAI warned customers that there would be no change of date, so their CAFs would have to come in.

    Indiantelevision.com spoke to some MSO heads to get its own update on how things have been progressing on this front. And most said things were looking up.

    Says DEN Networks COO MG Azhar: “The process has been positive as we have already collected 75 per cent of applications.” Azhar supports the move by TRAI to disconnect customers. “At some point, pressure is good,” he points out. “We are positive that once we undertake all the activities including disconnection of non-complying customers, we will receive 100 per cent applications within a week.”

    Hathway Cable MD & CEO Jagdish Kumar G. PiIlai reveals that the company has received around 80-90 per cent CAFs for subscribers in Mumbai and Delhi. “Tomorrow we have a meeting with TRAI and let’s see how it goes. We are really happy that the response from both LCOs and consumers has been so positive. We hope that by 1 July. we can bring in retail billing.”

    Says InCablenet CEO Nagesh Chhabria: “The collections are still under process, we have managed to collect around 80 per cent in Mumbai and just about 65-70 per cent in Delhi.” Naresh did add that the connections of the non-complying customers will be cut from tomorrow. “The ads currently running across TV sets is spreading awareness about the CAFs and we are confident that the customers will soon comply with the submissions of the forms.”

  • MSOs to crack the whip on LCOs on customer forms issue

    MSOs to crack the whip on LCOs on customer forms issue

    MUMBAI: India‘s multisystem operators (MSOs) got a dressing down yesterday from TRAI boss Rahul Khullar about the lack of KYC or CRF forms giving details about their subscribers. Khullar ordered them to get their acts together, giving a deadline of 30 June 2013 for the forms to come in, failing which they would be prosecuted.

    With the proverbial Damoclean sword hanging over their heads, they have decided to fall in line.

    Says DEN Networks CEO S.N. Sharma: “We are all working together, to follow the directions given by TRAI. We are already in the process of collecting customer data and are positive that we will be able to meet the 30 June deadline.”

    According to sources, the four MSOs got together post the TRAI meeting and have agreed to act in coordination with each other. The idea is to switch off all the set top boxes for which the MSOs don‘t have the customer details. The switch-off will be done area wise and hopefully this will force local cable operators to share the forms with MSOs. The latter have also agreed to not allow cable TV operators to switch MSOs or play one MSO against the other.

    “Subscribers are bound to suffer during this exercise as they may have given the details to their operator but would have not been forwarded to the MSO. They should contact the MSOs directly to ensure that their details are registered or they can face a switch off,” emphasises InCablenet MD Ravi Mansukhani.

  • Indian pay TV operators making their mark globally: researcher SNL Kagan

    Indian pay TV operators making their mark globally: researcher SNL Kagan

    MUMBAI:India‘s pay TV operators are coming of age. And they are bursting on to the global pay TV scene, if one goes by data released by researcher SN L Kagan for 2012. Almost four of them feature in the top 10 list for Asia Pacific. Amongst these figure: Dish TV, DEN Networks, Siti Cable and Tata Sky.

    According to the SNL Kagan report, DishTV with 14.7 milllion subscribers is the largest pay TV operator (fourth placed in the Asia-Pac rankings), Den Networks wih 11.2 million subs, Siti Cable with 10.5 million subs and Tata Sky with 10.2 million subs are at the No 8, 9, and 10 positions. Chinese operator Jiangsu Broadcasting with 20.9 million subs leads the Asia Pac table, while China Telecom with 19.9 million subs is at No 2.

    The numbers can only go up for Indian pay TV ops, says an industry observer, as the government mandated digitisation spreads further into smaller and smaller towns forcing consolidation on the industry. Some MSOs are likely to expand even as DTH will attempt to garner new subscribers.

    The researcher says that Videocon d2H leads the Indian pay TV operator pecking order if one looks at net subscriber additions with its number of 2.3 million. Dish TV is also doing well with 2.2 million net new subscriber adds. While Tata Sky follows with 1.98 million new additions.

    India‘s BSNL with 9.9 million broadband subsribers and Bharati Airtel with 1.38 million are the only Indian firms featuring in the broadband table.

    On the whole, SNL Kagan has crowned US cable TV service provider Comcast, as the world‘s largest pay-TV provider last year with nearly 22 million subscribers. However the next two are not far behind. China‘s Jiangsu Broadcasting has 20.9 million and DirecTV has 20.1 million.

    China Telecom was the top fixed broadband provider, reaching 90.1 million high-speed Internet customers. India, China and the US accounted for 50 or nearly half of the 106 top pay-TV operators, with 27 companies based in China and 12 in India. The US is third with 11 operators, followed by France, Germany, South Korea, Brazil and Mexico, each with five.
     
    In Asia, of the top 10 platforms by subscriber number, six were in China and the rest are in India led by Dish TV.

    Comcast is still the number one broadband provider in the US, with about 19.4 million subscribers ahead of AT&T with 16.4 million and Time Warner Cable with 11.4 million subscribers.

    For a list of the Global Top Multichannel Operators by Year-End 2012 Video Subscribers. Click Here

    For a list of the Global Top Multichannel Operators by Year-End 2012 Video Net Adds. Click Here

    For a list of the Global Top Broadband providers by Year-End 2012 Subscribers. Click Here

    For a list of the Global Top Broadband providers by Year-End 2012 Net Adds. Click Here

    Also Read:

    SNL Kagan‘s global media & entertainment heavyweights

    US multi-channel video subscriber universe sees small growth in 2012: SNL Kagan

  • Den Networks offloads 24 per cent equity; raises $160 million

    Den Networks offloads 24 per cent equity; raises $160 million

    MUMBAI: India‘s John Malone is on a roll. Earlier this week, the Sameer Manchanda headed cable TV MSO Den Networks announced that it was going for a preferential allotment to Goldman Sachs affiliates ($110 million) and a qualified institutional placement (QIP of $50 million) which would allow it to raise a total $160 million (Rs 865 odd crore). This is the largest transaction in the Indian cable TV sector.

    It informed the BSE today that the deals had gone through – the preferential allotment went through the day before and the QIP yesterday – and that the divestment amounts to 24 per cent of Den Network‘s equity. Goldman Sachs had J. Sagar Associates as an advisor while the Hong Kong office of Herbert Smith Freehills acted as the international legal counsel. Den Networks had Amarchand Mangaldas as its advisor.

    Indiantelevision.com caught up with a very cheerful and confident Den Networks COO M.G. Azhar late this evening. This is what he had to say: “We are delighted to have Goldman Sachs as our partner. It has a long history of constructively driving consolidation, digitisation in various markets across the world. Their association will help us in transitioning through various cycles as business transforms.”

    Azhar adds that the deal should encourage other private equity firms and investors to invest in Indian cable TV. “It needs lots of investment. Millions of homes have to be digitised over the next year or so. The investment in Den clearly reflects that the progress of digitisation has helped regain investors‘ confidence in cable TV,” he says. “Other Indian cable TV firms should also benefit.”

    Azhar points out that Den Networks will not be looking for any more funds as the current cash stash should meet its needs for at least two years. He says that the money will be used to “drive digitisation, further consolidation and expansion, broadband and also make investments in scaling up Den Networks to handle the changing business environment.”

    The company says it is going to start its broadband services in the not-too-distant future in one metro and one tier II city and take it up from there.

    He explains: “Digitisation has progressed well in phase I and phase II. Now we have to segment the market. Digitisation has freed us to offer PVR services, HD feeds, PPV, and other value added services. The average revenue per user undoubtedly will go up. There is a lot of potential; there is a lot of value that has to be unlocked.”