ITV

Tag: DTH

  • Kolkata’s cable TV customers feel CAF heat as blackouts spread

    Kolkata’s cable TV customers feel CAF heat as blackouts spread

    KOLKATA: Kolkata is seeing some frenetic activity on the cable TV front. The city’s multisystem operators (MSO) have started switching off signals in several pockets in Kolkata where cable operators have failed to comply with the Telecom Regulatory Authority of India (TRAI) norms and not provided them with the KYC or CAF forms of their subscribers. But MSOs have also been prompt in bringing the disconnected customers back online once the CAFs are submitted and fed into their systems.

    Apparently, the consensus amongst the cable TV fratenity is that cable TV subscribers are understanding the gravity of the situation with their cable TV connections being cut. And they have been a hurry to submit their CAFs now. “About 30,000 boxes had been deactivated and then reactivated after we received filled out forms from them,” said Manthan director Sudeep Ghosh.

     “We are in touch with the MSOs and we have been told that nearly two lakh set top boxes have been deactivated across the city and about 1.3 lakh boxes have been downgraded to DD channels only,” says a TRAI official.”And this is working as all the MSOs are saying that they are being flooded with CAFs as compared to earlier when there was lethargy.”

    The phase-wise deactivation of set top boxes had proved to be effective in sending out the intended message to consumers, he said.

    Consumers are confused and are complaining that there had been no intimation to them about the forms.

    A DTH service provider said that its call centres are receiving extra call loads with cable TV subscribers enquiring about the options available to them. “Our callers have expressed that it is better to settle with the seamless connection instead of haggling with the cable operator, who is ill-informed and not up to date with what is expected to be done,” says the DTH executive.

    We will have to simply keep our eyes glued to see if those callers will migrate to DTH. Going by past track records in other cities in phase I and phase II, it probably does not seem likely. Though many have expressed that a paradigm shift is needed.

  • Zeel launches Anmol; to be available on TV, mobile and WAP

    Zeel launches Anmol; to be available on TV, mobile and WAP

     NEW DELHI: Zee network has launched Zee Anmol, a free-to-air channel, taking the number of Zee channels to 34. The new entrant will be available on both mobile phones and on WAP zeeanmol.tv from 1 September.

    Denying the charges of it being a channel of repeats on lines of Star Utsav, ZEEL chief creative and content officer Bharat Kumar Ranga in a press meet here said that not only will the channel reach those areas which were hitherto covered only by DD and DTH DD Direct Plus, but also be re-packaged to suit the audiences in smaller towns and semi-urban and rural areas.

    He said a series may even be cut from the original number of episodes to lesser episodes if research showed people did not want it to be too long.

    He said that this marked the first phase of the channel, which may have new programming in the second phase expected sometime next year.

    Ranga told indiantelevision.com later that Zee was presently spending around fifty per cent of its normal marketing budget for other channels for this particular channel. Asked to be more specific, he said around 15 per cent of the revenue from Zee Anmol will go into its marketing. But he admitted that this was going to be tough going since the aim was to reach unreached areas and even those where there was no television. He said he was prepared to advertise the channel on all platforms, including Doordarshan if the pubcaster accepted this.

    Four persons who have excelled in different programmes on Zee TV – Kratika Sengar who played Jhansi ki Rani, Sayantani Ghosh who was Naagin, Binny Sharma who won hearts in Dance India Dance, and Jasraj Joshi who won the SA RE GA MA PA 2012 were present at the press meet.

    ZEEL marketing head Akash Chawla said the new channel was more of a video brand than a television brand, and the expectation was to reach places where cable and satellite TV had just begun to make inroads, or where broadband was available. He said the mobile penetration had reached 100 million and was bound to catch on, particularly if the programmes are re-purposed.

    Asked if the ad cap could affect the channel since it was not based on subscriptions, Ranga said even advertisers had products they wanted to reach out to small consumers.

    Ranga said Zee Anmol was the only channel to have up to 39 hours repackaged programming for a week.

    Head content Ajay Bhalwanker said that the research had taken many months because the network wanted to know exactly what the people in small towns wanted. Ranga added that the channel had been astonished to discover that people were aware of serials and names of characters even in places with limited TV viewing.

    In the initial phase, the channel will have series like Maayka, Pavitra Rishta, Dance India Dance, India’s Best Dramebaaz, Chhoti Bahu, Saat Phere, Naagin, Kasamh Se, Sindoor, Jhansi ki Rani, and Shabaash India among others.

    Interestingly the press meet was attended by mediapersons from smaller cities like Ahmedabad and Jaipur who had been brought here to see a preview.

  • TRAI agrees to raise FDI limits as demanded by News Channels & FM Radio

    TRAI agrees to raise FDI limits as demanded by News Channels & FM Radio

    NEW DELHI: In the recommendation issued by the Telecom Regulatory Authority of India today, the foreign direct investment for FM Radio should be increased to 49 per cent, and for teleports, DTH, HITS, mobile and cable television networks to 100 per cent.

    In the recommendations issued just a day after it was asked by the government to speed-up its views, TRAI also conceded a long-standing demand of news and current affairs television channels by recommending that they should be permitted 49 per cent FDI.

    The TRAI recommendations in essence stuck to its earlier Consultation Paper on the subject issued on 30 July.

    The final recommendations have been issued after an open house and the responses of 24 stakeholders on the Consultation Paper.

    However, TRAI said that in the cases of both FM Radio and news channels where the existing limit is 26 per cent, the clearance would be through the Foreign Investments Promotion Board.

    In the case of teleports, DTH, HITS, mobile and cable television networks where the limit was 74 per cent, TRAI said that it can be raised to 100 per cent of which 49 per cent would be automatic and the rest would be through FIPB.

    No change had been recommended in the case of downlinking of TV Channels and uplinking of general entertainment (non-news) channels where the upper limit is 100 per cent through FIPB.

    The Authority recommended that with the enhancement of FDI limits in respective segments of broadcasting sector, the other security/terms in the foreign investment policy and other license/permission conditions in the respective segments of the broadcasting sector should continue to apply.

    TRAI said the government should ensure that the process of FIPB approval is streamlined and the requests for FDI are processed in a time bound manner.

    The Information and Broadcasting Ministry had on 11 December 2007 sought a comprehensive set of recommendations from the Authority on FDI in the different segments of the broadcasting sector. The Authority gave its recommendations on 26
    April 2008.

    In 2009, the Department of Industrial Policy and Promotion (DIPP) modified the methodology of assessment of foreign investment in Indian companies. In view of this, the MIB on 30 September 2009 once again made a reference to TRAI to revisit the recommendations on FDI in the broadcasting sector.

    The Authority gave its recommendations on 30 June 2010. Based on the views expressed by the government, these recommendations were partially revised on 3 June 2011. In line with the last recommendations of TRAI, the FDI limits and approval route for various segments of the broadcasting sector were revised by the government on 20 September 2012.

    MIB sent a reference to the Authority on 12 July 2013, indicating that the government is re-examining the current FDI policy with a view to easing FDI inflow and liberalising the limits/caps. In this context, MIB requested the Authority to examine the FDI limits of various segments in the broadcasting sector and to furnish its recommendations.

    In its recommendations, the Authority said it recognised the growing convergence between the broadcasting and telecom sectors and has been broadly guided by the principles of ensuring a level-playing field between competing technologies and maintaining consistency in policy across both sectors.

    TRAI says that in its reference, the Ministry had indicated it was re-examining the current FDI policy and liberalising the limits/caps with a view to easing FDI inflow. In this context MIB has requested the Authority to examine the FDI limits of various segments in the broadcasting sector and to furnish its recommendations.

    The government is contemplating enhancement in the FDI limit for telecom services to 100 per cent with FDI up to 49 per cent through the automatic route and FDI beyond 49 per cent through FIPB. Carrying the same logic forward, and keeping in mind the fact that the ongoing digitisation of the cable TV services in the country would give a big impetus to the convergence of the broadcasting and telecom infrastructures, the same limits and route ought to be made applicable to the carriage services in the broadcasting sector.

    For downlinking of TV channels, no distinction has been made between the two categories while prescribing the FDI limits. This is because the ingredients of content can only be controlled at the uplinking end. Hence, 100 per cent FDI is allowed in downlinking of channels in India. However, FIPB approval is required. Further, in case of channels uplinked from a foreign land, additional conditions have been mandated for permitting downlinking in the Policy Guidelines for downlinking of Television Channels dated 11 November 2005.

    While granting permissions for uplinking of channels from within the country as well as for downlinking of all channels uplinked from within the country or abroad, the I&B Ministry takes security clearance from the Home Ministry. Since content can be sensitive in nature, it is appropriate to have checks and balances at different stages viz. to screen for any potential hazard from a national perspective. In view of these considerations, the status quo ought to be maintained regarding the route for approval of any FDI.

    For uplinking of TV channels of the non-news and current affairs category, 100 per cent FDI is permitted through the FIPB route. The status quo may continue.

    For uplinking of TV channels of news and current affairs category, the existing FDI limit is 26 per cent through the FIPB route. An increase in the FDI limit for news & current affairs channels will enable access to more resources for these channels at competitive rates. These resources can be applied for upgrading news gathering infrastructure and quality of presentation. It could also reduce the dependence of TV channels on advertisement revenue. Therefore, the FDI limit for news & current affairs channels in the uplinking guidelines may be increased from 26 per cent to 49 per cent through the FIPB route.

    There are existing provisions in the uplinking guidelines to safeguard management and editorial control in news creation. These include: i) requirement to employ resident Indians in key positions (CEO of the applicant company, 3/4th of the Directors on the Board of Directors, all key executives and editorial staff), ii) the largest Indian shareholder should hold at least 51 per cent of the total equity, iii) reporting requirements when any person who is not a resident Indian is employed/ engaged etc. If the FDI limit in uplinking of TV channels of the news and current affairs category is enhanced to 49 per cent, then as per provision at ii) above the remaining Indian shareholding (51 per cent) would have to be with a single Indian shareholder. The more general issue, on which stakeholders may wish to make suggestions, is whether or not any changes are at all required in these conditions. In fact, a better way to ensure that content deemed undesirable or subversive in nature is not broadcast through TV channels is by having proper content monitoring and regulation through a content code, instead of using FDI limits as the tool for this purpose.

    The government has announced the Phase III of expansion of FM radio. In this phase it is envisaged that 839 new private FM radio stations will come up, expanding the coverage of private FM radio stations from 87 cities to 313 cities. The auction of frequencies for FM radio is likely to be taken up by the government shortly. Easy availability of capital to operators through multiple sources at competitive rates would ensure better participation in the auction by the operators.

    The phase III policy also expands the sphere of activities that can be taken up by the FM radio operators. These include carriage of information pertaining to sporting events, live commentaries of sporting events of a local nature, traffic and weather, cultural events and festivals, examinations, results, admissions, career counselling and employment opportunities, public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts as provided by the local administration etc. For building up of infrastructure for such services, additional investments will be required. Keeping in view all these aspects, the FDI limits may be enhanced from 26 per cent to 49 per cent through FIPB route for the FM radio sector.

    In the past, FDI limits for FM radio have been fixed on the same lines as that for TV news channels, on the rationale that FM radio and news and current affairs channels are of a similar nature from the sensitivity point of view. Enhancing the limit to 49 per cent through the FIPB route will also ensure that the FDI policy for FM radio will remain aligned to the FDI policy for uplinking of the news and current affairs channels, which is also being considered for enhancement to 49 per cent through the FIPB route.

    The Phase III policy of the government for FM Radio also prescribes a similar condition for safeguard of managerial control of radio channels as in the guidelines for uplinking of news and current affairs channels. If the FDI limit for FM radio is enhanced to 49 per cent, then, as in the case of news and current affairs channels, the remaining Indian shareholding (51 per cent) has to be with a single Indian shareholder.

    Click here for TRAI-FDI-Recommendation

  • Manthan Broadband to invest big bucks to expand reach

    Manthan Broadband to invest big bucks to expand reach

    KOLKATA: The kingpin of the Multi System Operator (MSO) ecosystem in the East, Manthan Broadband Services has drawn an aggressive plan to secure its current position. Aware of the competitive market, this Kolkata-headquartered MSO plans to invest Rs 450 crore by 2014 end to upgrade its cable TV operations and also expand its reach in the eastern region.

    The cable operator which planned to install around 36 lakh Set Top Boxes (STBs) in the entire eastern region including Kolkata, rest of Bengal, Orissa, Jharkhand, Meghalaya and Assam by September 2014, has already installed around seven lakh STBs in Kolkata.

    While for the subscribers’ management system (SMS), Manthan is likely to sign a contract with an international brand soon. “We will soon be signing Rs 120 crore contract for the management work for 10 years. We will also invest to build best infrastructure which includes network, encryption, SMS and call centre,” informed Manthan Broadband Services director Sudip Ghosh.

    Created way back in 2002 through a merger of the operations of nine cable TV operators, Manthan has indeed come a long way.  The MSO caters to 30 lakh households, serving a greater part of Kolkata and West Bengal and other eastern regions with four digital headends and 40 analogue headends. It has more than 2,500 cable operator partners in the region.

    Manthan had earlier earmarked an investment of Rs 600 crore, out of which around Rs 150 core was spent in the markets of Kolkata and Jharkhand. “We will now spend Rs 450 crore in other states of the east. The promoters would invest a part of it and Manthan is looking at raising debt from banks,” added Ghosh.

    The company has a market share of 34 -35 per cent in the installed STBs offering 350 channels in Kolkata Metropolitan Area (KMA). Manthan has penetration in areas like Kolkata, Howrah, Hooghly, Baraipur and Chandannagar among others.

    On the company’s plans to hit the capital market with its initial public offering (IPO) to fund its expansion plans in the next two to three years, Manthan Broadband Services director Gurmeet Singh said, “We have started the backend work. There are many regulatory issues which we have to look at.”

    Also on the back of Indian rupee depreciating against the US dollar and Manthan as a company is likely to import more than 30 lakh STBs in the next one year. Ghosh said the import of the boxes have become costlier now as compared to when the rupee to dollar rate was Rs 46 – Rs 47 a dollar.

    “Even if the import cost for us is Rs 2,000, we give a subsidy to consumers and sell at Rs 999,” he hinted, saying that apart from other cable operators, it has a tough war to fight with direct-to-home (DTH) players. “We feel a hit at the revenue but it does not strike the bottom line up since we are in other added services too,” he said.

    Singh said that the company imports STBs mainly from China and added that if any local manufacturer sets up an assembling unit upon getting benefits and incentives from the government, it would help the industry people immensely.

    Manthan currently employs more than 300 people. This number will go up by another 30 per cent by 2014 end. The MSO currently serves more than 25 lakh households in the states of eastern region. “Of this we have around 18 lakh analogue cable connections,” he informed.

    According to sources, by September 2014, the rest of Bengal will witness 50 lakh STB installations. Also Orissa will see seven lakh installations, Jharkhand eight lakh-10 lakh, Meghalaya and Assam will register five lakh STB installations each.

    Commenting on the reach of Manthan, Hathway Cable and Datacom MD and CEO Jagdish Kumar G Pillai said, “The fragmented cable TV is likely to see some consolidation and the same applies to eastern region too. Manthan’s investment plans in the eastern region shows its commitment.”

    While aother MSO on the condition of anonymity stated: “Manthan had been performing well in the past but with digitisation kicking in, it has lost its hold on the market and dropped in its position. In terms of box supply and system integration, the company could not stand at par with its competitors. In fact recently due to funding issues, it has become difficult for it to operate in locations like Mednipur, Kharagpur and Bankura among other locations.”

    Industry sources feel that the company in order to move ahead and achieve such ambitious plans will have to work jointly with other companies, going forward.

  • Despite lower revenues, Eros International delivers blockbuster results for Q1-2014

    Despite lower revenues, Eros International delivers blockbuster results for Q1-2014

    BENGALURU: Last year (FY-2013), the company entered the Rs 1000 crore club with revenue of Rs 1067.75 crore. In Q1-2014, three movies – Raanjhaana, Go Goa Gone (GGG) and Yeh Jawani Hai Diwani (YJHD) raked in the moolah at the box office for Eros International Media Limited (Eros).

     

    The company says that theatrical revenues during Q1-2014 have showcased the success of global releases of Raanjhaana, GGG and YJHD (Overseas). Raanjhaana achieved an impressive box office collection of Rs 100 crore worldwide; YJHD had an overseas collection of more than Rs 60 crore, while GGG had a worldwide collection of Rs 43 crore.

     

    Eros announced consolidated income for Q1-2014 at Rs 194.2 crore, 25.1 per cent lower than the Rs 259.3 crore during the corresponding period in 2013 (Q1-2013) and 9.2 per cent lower than the Rs 213.9 crore for Q4-2013 (q-o-q).

     

    During Q1-2014, Eros released 12 films – (seven Hindi and five Tamil and other regional languages), almost half of the 23 films – (five Hindi and 18 Tamil and other regional films) in Q1-2013 and almost a third less than the 17 films – (four Hindi and 13 Tamil and other regional films) in Q4-2013.

     

    Eros managing director Sunil Lulla said, “Eros has delivered an encouraging Q1-2014 result in context of the film mix that it released in the Q1-2013. Raanjhaana, YJHD and GGG all delivered at the box office and were subsequently monetised through other revenue streams as well. Relative to their budget, the mix of films performed extremely well and demonstrates our ability to scale and change our mix to take advantage of market trends.

     

    Let us look at some of Eros’ other figures for Q1-2014

     

    Expense for Q1-2014 at Rs 148.03 crore was 28.5 per cent lower than the Rs 207 crore for Q1-2013 and 14 per cent lower than the Rs 172.21 crore for Q4-2013.

    Earnings before interest and tax (EBIT) for Q1-2014 at Rs 46.1 crore was 11.9 per cent lower than the Rs 52.3 crore for Q1-2013 and 10.4 per cent more than the Rs 41.75 crore for Q4-2013.

     

    PAT (after minority) for Q4-2014 at Rs 29.3 crore was 6.7 per cent lower than the Rs 31.4 crore in Q1-2013 and 7.9 per cent lower than the Rs 31.8 crore for Q4-2013.

     

    Lulla said, “We are really excited about our collaboration with HBO and believe that the two premium channels will gain momentum with subscribers as we launch on further DTH and digital cable platform. The industry trends are testimony that premium content will be an important factor to drive demand and we are proud to be forerunners in that space.”

     

    “We continue to expand our film content through our diversified approach of acquiring a healthy mix of movies. Our current future slate remains well-funded and we have several high profile movies lined up like Kochadiyan, Ram Leela, Rambo Rajkumar, Happy Ending and a number of high concept movies that are slated to be released in FY-2014. Our business has a natural Q3 skew due to film releases around the festival season and this year is no different and we remain positive on the outlook for FY-2014,” added Lulla.

     

    Click here for EROS – Financial Report

     

    Click here for EROS – EROS – Earnings Release

  • MEASAT elevates Vishal Mathur to senior sales director

    MEASAT elevates Vishal Mathur to senior sales director

    MUMBAI: MEASAT Satellite Systems Sdn. Bhd. (MEASAT) has elevated Vishal Mathur from director (south Asia) to senior director, sales and marketing.

    In his new role, Vishal will be responsible to build the MEASAT’s customer base with a focus in the broadcasting and DTH customer segments.

    Vishal will be responsible to build the MEASAT’s customer base with a focus in the broadcasting and DTH customer segments

    Vishal joined MEASAT in 2006. During his seven years with MEASAT, he has been instrumental in expanding the company’s position across south Asia.

    Prior to joining MEASAT, Vishal has also served as assistant VP at Zee Telefilms – international division, ESPN Star Sports and Ten Sports channels handling the affiliate sales business in India.

    Vishal holds a Bachelor of Commerce and a post graduate diploma in Business Management from the University of Rajasthan, Jaipur

    MEASAT is a premium supplier of satellite communication services to leading international broadcasters, DTH platforms and telecom operators. With capacity across five satellites, the company provides satellite services to over 150 countries representing 80 per cent of the world’s population across Asia , Middle East, Africa, Europe and Australia.

  • Over 29,500 DTH sets provided free by the government in 16 states

    Over 29,500 DTH sets provided free by the government in 16 states

    NEW DELHI: A total of 29,782 direct-to-home boxes are set to receive Doordarshan’s free-to-air DD Direct Plus, including 20,397 in hilly areas of Himachal Pradesh, which have been provided by the government to 16 states where terrestrial signals are not easily available.

    These include 2,277 in Rajasthan and 1,942 in Madhya Pradesh, according to the Information and Broadcasting Ministry.

    Doordarshan provides free-to-air with a bouquet of 59 TV channels (19 Doordarshan channels and 40 other TV channels). DTH signals can be received by using a set top box and small sized dish receiver units.

    As these signals can be received anywhere in the country except Andaman and Nicobar Islands, DTH service in C-band with bouquet of 10 channels is in operation in the Islands.

    The DTH sets have been provided in various states for uncovered areas as part of DTH Scheme and Special NE package (Phase-I).

    Prasar Bharati has informed that 21 channels of All India Radio are available through the platform throughout the country.

    S.No.
    Name of the State
    No. of DTH sets provided
    1.
    Arunachal Pradesh
    108
    2
    Assam
    332
    3
    Chhattisgarh
    528
    4
    Gujarat
    1253
    5
    Himachal Pradesh
    20397
    6
    Jammu & Kashmir
    500
    7
    Karnataka
    1500
    8
    Madhya Pradesh
    1942
    9
    Manipur
    108
    10
    Meghalaya
    107
    11
    Mizoram
    106
    12
    Nagaland
    108
    13
    Rajasthan
    2277
    14
    Sikkim
    108
    15
    Tripura
    108
    16
    Uttarakhand
    300

  • TRAI attempts to rein in TV channel aggregators in new consultation paper

    TRAI attempts to rein in TV channel aggregators in new consultation paper

    NEW DELHI: It has been saying it will bring some order to the TV channel aggregation and distribution business. And the Telecom Regulatory Authority of India (TRAI) is now showing that it means what it has been saying.

    It today issued a consultation paper attempting to regulate the distribution of television channels from broadcaster to platform operators and discipline the distributors (aggregators). The paper involves amendments to the Tariff and Interconnection orders, and Register of Interconnect Regulations, and so TRAI has given stakeholders time till 27 August to send in their comments.

    The essence of these is that it wants to clip the immense clout that the four main aggregators MediaPro Enterprises (distributes 75 channels), IndiaCast UTV Media Distribution (distributes 35 channels), Sun Distribution Services and MSM Discovery (distributeing 30 channels each) have on the TV ecosystem in India.

    The main points of the consultation paper are that:

    * Broadcasters and not the authorised distribution agency shall publish the reference interconnect offers (RIO) and enter into interconnection agreements with the distribution platform operators.

    * If a broadcaster appoints a person as its distribution agent, it shall ensure that –

    a) The authorised distribution agent does not change the composition of the bouquet formed by the broadcaster while providing it to the distributors of TV channels.

    b) The authorised distribution agent does not bundle bouquet or channels of the broadcasters with the bouquet or channels of other broadcasters. In other words, in case the authorised distribution agency represents more than one broadcaster, they shall not link offerings of broadcasters they represent.

    c) While acting as an authorised distribution agent, such person acts for, on behalf and in the name of the broadcaster.

    The regulator has also proposed that it will give broadcasters three months to rework the RIOs and to enter into fresh interconnect agreements and filing the same with it.

    Based on the above, it has issued several orders under which it has chosen to amend earlier orders issued by it.

    These include:

    * The Telecommunication (Broadcasting & Cable) Services (Fourth) (Addressable Systems) Tariff (Third Amendment) Order 2013 to amend The Telecommunication (Broadcasting & Cable) Services (Fourth) (Addressable Systems) Tariff Order 2010 (1 of 2010)

    * The Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Tenth Amendment) Order 2013 to amend The Telecommunication (Broadcasting & Cable) Services (Second) Tariff Order 2004 (6 of 2004)

    * The Telecommunication (Broadcasting & Cable Services) Interconnection (Seventh Amendment) Regulations 2013 to amend The Telecommunication (Broadcasting & Cable Services) Interconnection Regulation 2004 (13 of 2004).

    * The Telecommunication (Broadcasting & Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Second Amendment) Regulations 2013 to amend The Telecommunication (Broadcasting & Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations 2012 (9 of 2012).

    * The Register of Interconnect Agreements (Broadcasting & Cable Services) (Fifth Amendment) Regulations 2013 to amend The Register of Interconnect Agreements (Broadcasting & Cable Services) Regulation 2004 (15 of 2004)

    Background to TRAI’s attempt to regulate Aggregators

    In the paper, the TRAI says that broadcasters, MSOs, cable operators, DTH, HITS and IPTV operators are recognised as entities in the policy guidelines and regulatory framework of the Ministry and TRAI respectively. Aggregators have not been specifically defined anywhere; neither in the law or the statutory rules, nor in the regulatory framework for the broadcasting and cable TV services sector.

    As on date there are around 233 pay channels (including HD and advertisement-free channels) offered by 59 pay broadcasters. These channels are distributed by 30 broadcasters/aggregators/ agents of broadcasters.

    In the broadcasting and cable TV sector, TV channels are distributed by the broadcasters themselves or through their authorised distribution agencies to the distribution platforms viz cable TV, DTH, IPTV, HITS etc. Many such agencies operate as authorised agents (aggregators) for more than one broadcaster. After obtaining the distribution rights from one or more broadcasters, such distribution agencies form bouquets, many of which also consist of channels of one or more broadcasters. They publish Reference Interconnect Offers (RIOs), negotiate the rates for these bouquets/channels with operators of various distribution platforms and enter into interconnection agreement(s) with them.

    As on date, the distribution business of around 73 per cent of the total pay TV market, including high definition (HD) TV channels, is controlled by a few authorised distribution agencies. These channels include almost all the popular pay TV channels. These authorised distribution agencies wield substantial negotiating power which can be, and is, often misused leading to several market distortions.

    Explaining its move, TRAI said the business of distribution of TV channels from the broadcaster to the consumer has two levels:

    i) Bulk or wholesale level – wherein the distribution platform operator obtains the TV channels from the broadcasters, and ii) Retail level – where the distribution platform operator offers these channels to the consumers, either directly or through the last mile operator.

    Even as TRAI was in the process of reviewing the regulatory framework for broadcasters and their authorised agencies, the Information and Broadcasting Ministry said there have been several complaints from Multi system operators (MSOs) about the modus operandi of such entities, e.g. it has been highlighted that MSOs are forced to subscribe to certain packages. Concerns have been vehemently voiced by various MSOs and LCOs regarding the monopolistic practices of such major authorised distribution agencies of broadcasters, in view of their control over a large number of popular channels.

    The MSOs have complained that the aggregators have abused their market power by forcing them to accept all the channels of the aggregator, fixed fee deals, charging based on the entire subscriber base and not as per actual uptake of channels, insisting on minimum guarantee and other unreasonable terms and conditions.

    The TRAI further adds, in the consultation paper, that in the absence of any regulatory framework for the aggregators (including possible restrictions on the authorised agencies), they started to bundle channels of more than one broadcaster and form bouquets. These bouquets, having popular channels of a number of broadcasters, provided a better marketing proposition. These bouquets grew larger and larger with time, as the aggregator started to piggy back more and more channels, especially those having lesser standalone market values.

  • GSAT signs new capacity on SES satellites NSS-11 and SES-9

    GSAT signs new capacity on SES satellites NSS-11 and SES-9

    MUMBAI: SES has announced that the Philippine direct-to-home (DTH) satellite TV provider Global Satellite (GSAT) has contracted its fourth transponder on NSS-11, cementing SES’ orbital position of 108.2 degrees east as one of Asia’s leading video neighbourhoods.

    The multi-year deal will see the transfer of current capacity usage by GSAT from NSS-11 to SES-9, currently scheduled for launch in 2015. When launched, SES-9 will be the largest SES satellite dedicated to the Asia-Pacific region. The new spacecraft will be providing expansion capacity for DTH, enterprise, mobility and government services across the region.

    GSAT, the satellite division of First United Broadcasting Corp (FUBC), launched its DTH service in 2008 on the NSS-11 Ku-band satellite, providing subscribers with access to an improved mix of international programmes including English, Mandarin, Korean, Tagalog, Japanese and Spanish channels. With this additional capacity, GSAT will be offering 12 high definition (HD) channels and 47 standard definition (SD) channels to more than 200,000 subscribers across the Philippine archipelago.

    FUBC president and CEO Philip J. Chien said, “Our ability to offer highly reliable DTH satellite TV to our growing base of subscribers in the Philippines is largely due to the comprehensive footprints of NSS-11, and, from 2015, SES-9. We are confident that SES’ expertise will enable us to grow in our market and increase both the quality and quantity of channels in our pay-TV offerings.”

    SES Asia-Pacific and the Middle East sr. VP commercial Deepak Mathur said, “We are delighted to confirm that GSAT, our long-term customer on NSS-11, will become a key anchor customer on SES-9. At SES, we are investing in new satellites to make sure that our customers enjoy business continuity, as well as delivering vital capacity to support their growth in some of the most dynamic media markets in the world.”

  • TRAI releases FDI in media consultation paper; seeks industry feedback

    TRAI releases FDI in media consultation paper; seeks industry feedback

    NEW DELHI: Even while reiterating its earlier proposal for increasing foreign direct investment (FDI) in FM Radio to 49 per cent, the Telecom Regulatory Authority of India (TRAI) in its consultation paper today said that permissible FDI in teleports, DTH, HITS, mobile and cable television networks must be raised to 100 per cent.

     

    It took up the FDI issue in the paper following a reference by the Information and Broadcasting Ministry on 22 July. The TRAI has conceded a long-standing demand of news and current affairs television channels by recommending that they should be permitted 49 per cent FDI. Stakeholders have to respond to the paper by 12 August.

     

    However, TRAI has said that in the cases of both FM Radio and news channels where the existing limit is 26 per cent, the clearance would be through the Foreign Investments Promotion Board.

     

    In the case of teleports, DTH, HITS, mobile and cable television networks where the limit was 74 per cent, TRAI says that it can be raised to 100 per cent of which 49 per cent would be automatic and the rest would be through FIPB.

     

    No change has been recommended in the case of downlinking of TV channels and uplinking of general entertainment (non-news) channels where the upper limit is 100 per cent through FIPB.

     

    TRAI says that in its reference, the Ministry had indicated it was re-examining the current FDI policy and liberalising the limits/caps with a view to easing FDI inflow. In this context ministry has requested the Authority to examine the FDI limits of various segments in the broadcasting sector and to furnish its recommendations.

     

    TRAI had earlier given recommendations on the same subject in April 2008 and again on 30 June last year following Ministerial references, on the basis of which changes had been carried out. The last such change was on 20 September 2012.

     

    Currently, the FDI limit in carriage services is 74 per cent , of which 49 per cent is permissible through the automatic route. Any FDI beyond 49 per cent has to go through the FIPB route. The same FDI limits and approval route were prescribed for broadcast carriage services and telecom services on the ground that both are infrastructural services akin to each other and there is a growing convergence between the broadcasting and telecom infrastructures.

     

    The Government is contemplating enhancement in the FDI limit for telecom services to 100 per cent with FDI up to 49 per cent through the automatic route and FDI beyond 49 per cent through FIPB. Carrying the same logic forward, and keeping in mind the fact that the ongoing digitisation of cable TV services in the country would give a big impetus to the convergence of broadcasting and telecom infrastructure, the same limits and route ought to be made applicable to carriage services in the broadcasting sector, it says.

     

    For downlinking of TV channels, no distinction has been made between the two categories while prescribing FDI limits. This is because the ingredients of content can only be controlled at the uplinking end. Hence, 100 per cent FDI is allowed in downlinking of channels in India. However, FIPB approval is required. Further, in case of channels uplinked from a foreign land, additional conditions have been mandated for permitting downlinking in the Policy Guidelines for downlinking of Television Channels dated 11 November 2005.

     

    While granting permissions for uplinking of channels from within the country as well as for downlinking of all channels uplinked from within the country or abroad, the MIB takes security clearance from the Home Ministry. Since content can be sensitive in nature, it is appropriate to have checks and balances at different stages namely to screen for any potential hazard from a national perspective. In view of these considerations, the status quo ought to be maintained regarding the route for approval of any FDI.

     

    For uplinking of TV channels of the non-news and current affairs category, 100 per cent FDI is permitted through the FIPB route. The status quo may continue, TRAI says..

     

    For uplinking of TV channels of news and current affairs category, the existing FDI limit is 26 per cent through the FIPB route. An increase in the FDI limit for news & current affairs channels will enable access to more resources for these channels at competitive rates. These resources can be applied for upgrading news gathering infrastructure and quality of presentation. It could also reduce the dependence of TV channels on advertisement revenue. Therefore, the FDI limit for news & current affairs channels in the uplinking guidelines may be increased from 26 per cent to 49 per cent through the FIPB route.

     

    There are existing provisions in the uplinking guidelines to safeguard management and editorial control in news creation. These include: i) requirement to employ resident Indians in key positions (CEO of the applicant company, three fourth of the Directors on the Board of Directors, all key executives and editorial staff), ii) the largest Indian shareholder should hold at least 51 per cent of the total equity, iii) reporting requirements when any person who is not a resident Indian is employed/ engaged etc.

     

    If the FDI limit in uplinking of TV channels of the news and current affairs category is enhanced to 49 per cent , then as per provision in ii) above the remaining Indian shareholding (51 per cent) would have to be with a single Indian shareholder. The more general issue, on which stakeholders may wish to make suggestions, is whether or not any changes are at all required in these conditions. In fact, a better way to ensure that content deemed undesirable or subversive in nature is not broadcast through TV channels is by having proper content monitoring and regulation through a content code, instead of using FDI limits as the tool for this purpose.

     

    The Government has announced the Phase III of expansion of FM radio. In this phase it is envisaged that 839 new private FM radio stations will come up, expanding the coverage of private FM radio stations from 87 cities to 313 cities. The auction of frequencies for FM radio is likely to be taken up by the Government shortly. Easy availability of capital to operators through multiple sources at competitive rates would ensure better participation in the auction by the operators.

     

    The phase III policy also expands the sphere of activities that can be taken up by the FM radio operators. These include carriage of information pertaining to sporting events, live commentaries of sporting events of a local nature, traffic and weather, cultural events and festivals, examinations, results, admissions, career counselling and employment opportunities, public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts as provided by the local administration etc. For building up of infrastructure for such services, additional investments will be required. Keeping in view all these aspects, the FDI limits may be enhanced from 26 per cent to 49 per cent through FIPB route for the FM radio sector.

     

    In the past, FDI limits for FM radio have been fixed on the same lines as that for TV news channels, on the rationale that FM radio and news and current affairs channels are of a similar nature from the sensitivity point of view. Enhancing the limit to 49 per cent through the FIPB route will also ensure that the FDI policy for FM radio will remain aligned to the FDI policy for uplinking of the news and current affairs channels, which is also being considered for enhancement to 49 per cent through the FIPB route.

     

    The Phase III policy of the Government for FM Radio also prescribes a similar condition for safeguard of managerial control of radio channels as in the guidelines for uplinking of news and current affairs channels. If the FDI limit for FM radio is enhanced to 49 per cent, then, as in the case of news and current affairs channels, the remaining Indian shareholding (51 per cent ) has to be with a single Indian shareholder.