ITV

Tag: DTH

  • Airtel DTH: Q4 2013 revenues & subs up, losses down

    Airtel DTH: Q4 2013 revenues & subs up, losses down

    MUMBAI: That the DTH market in India is doing well, is something that the Telecom Regulatory Authority of India (Trai) latest quarter report turned up. This is reflected in Bharti Airtel’s digital TV services financials for Q4 and financial year ended 31 March 2013 which were announced earlier this week.

    The division’s revenues are up even as average revenue per user (ARPU) has moved northwards (albeit marginally) and losses southwards. But the business is obviously burning cash – though lower than earlier – as competition is forcing DTH players to expand their reach nationally and offer newer services. All this – without being able to pass on costs to subscribers.

    Q4 2013 revenues are up 24 per cent to Rs 441.90 crore as against Rs 356.5 crore in the previous corresponding quarter of 2012. The company continues to be EBITDA positive with the number rising to Rs 29.6 crore (Rs 20.9 crore in Q4 2012). Its operating losses are down to Rs 178.4 crore (Rs 194.4 crore). It incurred a capex of Rs 132.6 crore (Rs 98 crore) during the quarter. Its cumulative investments in the DTH business up to end March 2013 stand at Rs 4036.6 crore (Rs 3298 crore).

    The good news is that ARPU is also up to Rs 184 in Q4 2013 (Rs 166 in Q4 2012). The company says this was “achieved through product innovations, pricing corrections and up-selling.” Its subscriber base grew 12 per cent from 7.2 million in Q4 2012 to 8.1 million (Q4 2013). The company attributes this increase to the digitisation drive across the four metro cities of the country and it expects this to accelerate further with phase II digitization.

    The DTH business’ revenues for the whole year rose 26 per cent to Rs 1629.4 crore (Rs 1296 crore up to March 2012). Its EBITDA numbers were down three per cent to Rs 45.2 crore (Rs 46.5 crore). Its operating loss rose from Rs 719.8 crore to Rs 815 crore. And its operating free cash flow requirement improved seven per cent from a negative Rs 763.4 crore to Rs 709.6 crore.
    The company says it is doing pretty well on its HD set top box rollout (HD), digital TV recorders with 3D capabilities, and in providing a superior customer experience. It currently offers 373 channels and services including 15 HD channels and six interactive services. It says it is the first Indian DTH player to “provide real-time integration of all the three screens viz. television, mobile and computer enabling our customers to record their favourite TV programs through mobile and web.”

  • DTH, internet register growth till end Dec ’12: Trai

    DTH, internet register growth till end Dec ’12: Trai

    MUMBAI: DTH TV in India is doing very well thank you. Bouoyed by the mandated digitisation of India’s cable TV sector and increased marketing activity by the six direct to home television service providers, the number of subscribers to DTH has climbed to 54.52 million subscribers. That’s the finding of The Telecom Regulatory Authority of India (Trai) in its latest quarterly report ending December 2012.

    These numbers were achieved half way through phase I digitisation.

    The report also says that the maximum TV channels being carried by any MSO nationally is 267, while traditional analogue cable TV operators were carrying 100 channels. It adds that India has close to 823 private satellite TV channels – in addition to the state owned broadcaster Doordarshan. 184 of these are pay TV channels. The data for the report was collated from 26 broadcast distributors.

    The report also says that Indians are taking to the internet more and more with the number of subscribers increasing to 25.33 million from 24.01 million in end September 2012 – registering a quarterly growth rate of 5.49 per cent. The Top 10 ISPs together hold 95.42 per cent of the total internet subscriber base. As far as broadband is concerned, the number of subscribers increased by 2.02 per cent to 14.98 million as against 14.68 million up to end September 2012. Almost 84.82 per cent of these subscribers are using DSL. However, the share of broadband subscription to total internet subscription decreased from 61.16 per cent (end September 2012) to 59.15 per cent (end December 2012).

  • TRAI gives more time to stakeholders to comment on its order relating to pricing of STBs

    TRAI gives more time to stakeholders to comment on its order relating to pricing of STBs

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has extended till 3 May, views of stakeholders on its draft tariff orders prescribing standard tariff package for set top boxes in digital addressable cable TV systems (DAS) and consumer premises equipments (CPE) for direct-to-home (DTH) services.

    The previous date was 26 April and the extension is on the request of the stakeholders.

    Under the order, the standard tariff packages for STB/CPE on rental basis are to be offered mandatorily by DTH and cable TV operators.

    The Tariff Order also assumes significance as it attempts for the first time to give inter-operability to consumers of DTH players. The authority is of the view that the interests of the consumers can be largely protected through the provision for commercial interoperability of STB. The commercial interoperability provides an exit option for a subscriber in case he/she wishes to change the operator for any reason.

    Accordingly, in the relevant Regulations/Tariff orders of TRAI, it has been mandated that the operators of Digital Addressable Cable TV Systems and DTH operators shall give an option to every subscriber to procure the STB either on outright purchase basis or hire purchase basis or rental basis, or in accordance with the scheme, if any, prescribed by the authority.

    While interoperability is available to customers of LCOs, TRAI observed that in case of DTH services, ‘the predominant DAS platforms at the moment, the schemes for CPEs offered to the subscribers by the DTH operators, have wide variations and at times are such that no viable exit option is available to the subscribers. Instead the consumer has to re-invest in new hardware in case of migration from a particular operator or platform. The same may also hold well in case of the upcoming Digital Addressable Cable TV Systems.‘

    Standard Tariff Package for STBs for DAS has been worked out. In addition to offering the STB as per the Standard Tariff Package prescribed by the Authority, the operators are free to offer their own schemes for supply of STB to its subscribers in accordance with the existing Regulations/Tariff Orders and the subscribers shall have option to choose from the Standard Tariff Package prescribed by the Authority and the alternative schemes offered by the operators.

    The Standard Tariff Package for Cable TV operators has been worked out on the basis of the following facts and figures as provided by the Industry stakeholders/ Associations:-

    a) The total cost of STB has been taken as Rs 1750.
    b) Life span of STB has been taken as five years.
    c) The residual value has been taken as nil.
    d) Rental per month is based on cost of STB on Equated Monthly Installment (EMI) Basis @15 per cent per annum (@1.25per cent per month) for a period of sixty months.

    The Standard Tariff Package for DTH operators has been worked out on the basis of the following facts and figures as provided by Industry stakeholders/ Associations;

    a) The total cost of CPE has been taken as Rs 2250.
    b) Life span of CPE has been taken as five years.
    c) The residual value has been taken as nil.
    d) Rental per month is based on cost of CPE on Equated Monthly Installment (EMI) Basis @15 per cent per annum (@1.25 per cent per month) for a period of sixty months.

    The authority has also noted that no monthly rentals will be payable after the period of five years and the Customer Premises Equipment (CPE) will become the property of the subscriber (except smart card/viewing card) after the expiry of five years. An amount equal to the sum of security deposit to be refunded per month and interest per month on balance security deposit has been adjusted in Rent per month per CPE. The Full amount of security deposit stands adjusted in a period of five years.

    Up to five years, on returning of the CPE, the Security Deposit shall be refunded, provided that the CPE is not tampered with.

    In case of un-installation/discontinuance of service before the last day of the month, balance security deposit shown as refundable at the end of that month will be refunded on return of CPE.

    No repair or maintenance charges would be levied by DTH operator on the subscriber, towards repair or maintenance of CPE up to the period of five years from activation of the same. The subscriber, however, shall be liable to pay repair and maintenance charges from sixth year onwards.

    No installation charges or re-installation charges (except in case of shifting of connection) or activation charges or smartcard/viewing card charges is to be levied by the DTH operator on the subscriber.

  • Govt revenues from DTH licensing fees zoom

    Govt revenues from DTH licensing fees zoom

    New Delhi: The six private direct-to-home operators paid Rs 3.078 billion as licence fee to the government for the year 2011-12, compared to Rs 1.778 billion in 2010-11 and Rs 1.262 billion in 2009-10.

    The revenue in 2008-09 was Rs 893 million from four operators, since both Airtel Digital TV (Bharti Telemedia Ltd.) as well as Videocon d2h (Bharat Business Channel Ltd.) had not commenced services.

    The other DTH players are Dish TV, Tata Sky, Sun Direct TV, and Reliance Big TV.

    Under DTH licensing norms, the platforms pay a non-refundable entry fee of Rs 100 million and an annual fee equivalent to 10 per cent of gross revenue every financial year. Thus, the platforms have paid Rs 600 million as one-time entry fee.

    Interestingly, Tata Sky paid a licence fee of Rs 793 million in 2011-12 as against Airtel Digital’s Rs 618.7 million and Dish TV’s Rs 300 million. Sun Direct paid Rs 360 million, Reliance Big TV paid Rs 95 million, and Videocon d2h paid Rs 50 million.

    DTH services are governed by the DTH Guidelines and terms and conditions issued by the Information and Broadcasting Ministry on 15 March 2001 and amended from time to time.

    The seven DTH players in the country including Doordarshan’s free-to-air DD Direct Plus cover around 35 million TV homes.

  • I&B minister Manish Tewari’s update on Phase II digitisation data

    I&B minister Manish Tewari’s update on Phase II digitisation data

    New Delhi: The level of cable television digitisation in 38 cities in 14 states and one union territory of Phase II has touched 89.8 per cent, including 28.33 per cent DTH homes as on 21 April, three weeks after analogue switch-off.

    Thus, a total of 14,379,454 digital set top boxes have been seeded out of a total demand of 16,013,059 total TV households. The houses where STBs have been installed include 4,536,676 DTH subscribers.

    According to a report presented to parliament by information & broadcasting minister Manish Tewari yesterday, the total number of TV households has been computed by making provision of twenty per cent for multiple TVs in offices/shops or homes.

    Pointing out that a toll free number receives complaints from subscribers and others, Tewari said these are normally forwarded to the multi-system operators in the area concerned.

    14 cities have already crossed the 100 per cent with Hyderabad at the top with 191.07 per cent followed by Ludhiana (175.91 per cent), Allahabad (160.46 per cent), Faridabad (142.69 per cent), Chandigarh (119.23 per cent), Meerut (112.24 per cent), Jaipur (111.84 per cent), Varanasi (111.78 per cent), Amritsar (111.03 per cent), Thane (109.33 per cent), Jodhpur (107.94 per cent), Aurangabad (103.37 per cent), Indore (102.29 per cent), and Nasik (101.75 per cent).

    By the government’s own claim, Ghaziabad, Pune and Kanpur have crossed the 90 per cent mark.

    Srinagar stands at the bottom with 22.28 per cent seeding of STBs, with Visakhapatnam at 29.61 per cent, Coimbatore at 29.74 per cent, and Jabalpur with a DAS reach of only 45.32 per cent. All the other 17 cities have crossed the 57 per cent mark.

    The ministry had announced earlier this month that analogue signals has been completely switched-off in the five states of Maharashtra, Punjab, Rajasthan, West Bengal, Haryana, and the Union Territory of Chandigarh.

    DAS continues to be stayed in the cities of Bhopal, Indore, Jabalpur, Hyderabad, and Visakhapatnam. The Karnataka and Gujarat High Courts had learlier this month quashed petitions seeking extension of DAS thereby paving way for the analogue signals to be switched-off. In addition, stay continues in Chennai which was part of Phase I because of court case.

    The Supreme Court is expected to hear tomorrow a special leave petition by the Indian Broadcasting Foundation seeking to quash all pending cases in various high courts and also ensure there is no postponement of the date of digitisation.

  • CASBAA & IBF request FM Chidambaram to roll back tax hike on tech services

    CASBAA & IBF request FM Chidambaram to roll back tax hike on tech services

    MUMBAI: The Cable & Satellite Broadcasting Association of Asia (CASBAA) and The Indian Broadcasting Foundation (IBF) have requested the Indian government to roll back the increase in taxation on royalty and fees for technical services in the hands of a non-resident as proposed in The Financial Bill 2013.

    In a letter addressed to finance minister P. Chidambaram, the two associations have stated that Section 115A of The Income Tax Act, 1961, levies gross taxes of 10 per cent on royalty and technical services. The latest proposal by the finance ministry proposes to take this up to 25 per cent. Along with surcharge and an education cess, the effective rate comes to 27.037 per cent. When grossed up with other related levies, it will actually amount to 33 per cent, they say.

    Their letter to the finance minister points out that the proposed increased levy will have an impact on the Indian and international satellite and broadcasting sectors as the services they provide come under “royalty and fees for technical services.”

    India has constrained satellite capacity and it is highly dependent on foreign satellites. A recent study has shown that international satellites are providing roughly 60 per cent of the broadcasting capacity for India’s satellite DTH broadcasters.

    The associations have reiterated in the letter that international satellite operators will per force have to pass on the increased operational cost to their Indian broadcasting and other clients, as their margins are not fat enough to absorb the impact of higher taxation. DTH operators, broadcasters who deliver channels to India’s 90 million cable TV homes and cable TV operators will also in turn, then pass on the increased costs on to their subscribers. The cascading effect could be substantial, the two associations warn.

    “We believe that a good tax policy should aim at moderate rates, particularly in industries providing an engine for India’s growth. An increase to the levels proposed in the bill would be counter-productive; it would affect not only the operators providing satellite services, but a whole host of related sectors – including broadcasting, media, telecommunications and IT, which have been spearheading India’s growth story in recent years. Hence the increase should be rolled back,” the letter highlights.

    It concludes by saying that “any future increases that might be considered should be phased in, with a transition period of at least five years, to allow taxpayers time to plan ahead and to avoid any one-off uplift which could force the closure of some small operators.”

    Will the finance minister give a kind ear to Casbaa & IBF?

  • Supreme court gives entertainment tax relief to DTH operators

    Supreme court gives entertainment tax relief to DTH operators

    NEW DELHI: In a major relief to direct-to-home operators in the state, the Supreme Court last week held that the Madhya Pradesh government cannot demand entertainment tax on DTH services under the Madhya Pradesh Entertainment Duty and Advertisements Tax Act, 1936.

    Justice Aftab Alam and Justice R M Lodha said in a judgment that Act ‘cannot be extended to cover DTH operations.’

    Accepting appeals by Tata Sky against a judgment of the Madhya Pradesh High Court of August 2010, the apex court said: ‘Neither the provision of section 4(1) nor any of the modes provided under section 4(2) of the Act can be made applicable for collection of duty on DTH operations. Further, it is noted above that section 8 provides rule making powers. In exercise of the powers under that provision, the Madhya Pradesh Entertainment Duty and Advertisement Tax Rules 1942 were framed. A perusal of the Rules makes it absolutely clear that the collection mechanism under the 1936 Act is based on revenue stamps stuck to the tickets issued by the proprietor for entry to the specified place where entertainment is held.’

    The Court added: ‘Under section 3 read with section 2(d) and section 2(a), the charge or levy of tax is attracted only if an entertainment takes place in a specified place or locations and persons are admitted to the place on payment of a charge to the proprietor providing the entertainment. In the present case, as DTH operation is not a place-related entertainment, it is not covered by the charging section 3 read with section 2(a) and 2(b) of the 1936 Act. Consequently, the question of going to section 2(d)(iv) does not arise.’

    The revenue department had demanded 20 per cent entertainment duty on subscription payment from the DTH operator, which had commenced services in August 2006 all over the country including Madhya Pradesh.

    Tata Sky in their appeals had contended that DTH broadcast is a notified service under the Finance Act and it is chargeable to service tax. For the purpose of levy of service tax, “broadcasting” has been defined specifically under section 65(15) of the Finance Act. The broadcasting services were brought within the purview of the service tax under section 65(105)(zk) of the Finance Act 1994 as amended with effect from 16 July 2001. Later on, DTH service was brought within the purview of the service tax with effect from 16 June 2006.

    Tata Sky contended that it does not use any infrastructure from the State for its DTH broadcasts.

    On 5 May 2008, the State Government issued a gazette notification fixing 20 per cent entertainment duty in respect of every payment made for admission to an entertainment other than cinemas, videos cassette recorders and cable service.

    The State on 1 August 2009 passed the Madhya Pradesh Entertainment Duty and Advertisements Tax (Amendment) Act, 2009. By the Amendment Act, the failure to produce accounts and documents as required by the Excise Commissioner or any officer authorized by the State Government was made a penal offence.

    However, the apex court noted that this amendment ‘did not introduce any provision in the Parent Act with respect to levy of entertainment duty on DTH broadcasting.’

    Referring to the notification of 5 May 2008, the apex court said ‘it is elementary that a notification issued in exercise of powers under the Act cannot amend the Act. Moreover, the notification merely prescribes the rate of entertainment duty at 20 per cent in respect of every payment for admission to an entertainment other than cinema, video cassette recorder and cable service. The notification cannot enlarge either the charging section or amend the provision of collection under section 4 of the Act read with the 1942 Rules. It is therefore clear that the notification in no way improves the case of the State.’

    The Court also said that the controversy in all the three appeals relates to the demand and realization of entertainment tax under the 1936 Act, which means for the period between the commencement of operation by the appellant in the year 2006 and 31 March 2011, the day prior to the coming into force of the new Act, called the Madhya Pradesh Vilasita, Manoranjan, Amod Evam Vigyapan Kar Adiniyam 2011.

  • Tata Sky‘s record breaking TVC to go on-air this evening

    MUMBAI: It’s been a pioneer in the DTH broadcasting space. And now Tata Sky has gone in for another first which could well land it in the Limca Book of Records. The DTH operator has rolled out what is being pitched as the longest TV commercial in Indian advertising’s history. With a duration of 210 seconds, the TVC called Prison Break has been shot with the aesthetics of a Hollywood production.

    The slick shots and camera movement, along with tantalizing music make it an intensely gripping commercial. Tata Sky’s advertising agency, Ogilvy & Mather worked with Vivek Kakkad, Director- Curious Films to shoot the commercial. The TVC was shot with an international cast and crew in an actual prison in Hungary.

    “Advertising is just not about selling stuff but it is also about telling story. The campaign idea was based on the insight that people these days do not find any time to watch television. Tata Sky+ HD, with its recording feature allows busy people to record their favorite programs and watch them at leisure. In other words, it’s ‘For those who don’t have time to watch TV’,” says Tata Sky CMO Vikram Mehra.

    In addition to TV channels, on which the TVC is breaking today, the commercial will also be screened in cinemas in a big fashion. Tata Sky officials were wary of revealing the media plan at the time of writing,excepting to say that it will be a “reach-frequency” campaign. It could run four to six weeks, and shorter versions ranging from 20 seconds to 30 seconds to 75 seconds have also been planned. To top this, the 360 degree campaign involves out-of-home activations and also product exhibition where people will get to see the features of the Tata Sky+HD and learn more about it.

    Mehra believes that it is the right time to launch such a campaign. “Digitisation is taking place in the 38 cities and people are looking at getting a set-top-box. Here we are telling them to buy Tata Sky+HD because that will also help them record your favorite programmes which they don’t get to watch because of their hectic schedule. Also, in April and May schools will be closing down and IPL is going on so especially in Mumbai and Delhi people will look at buying another TV set. Through this campaign we are also conveying to them that if they are thinking of buying any other STB or updating the current STB, why not Tata Sky+HD which is probably the best option for them?”

    The story revolves around a bunch of foreign convicts imprisoned in an Indian jail. These convicts conspire to escape when they realise that a cricket match is being played between India and Pakistan, assuming that the match would keep the Indian guards and the jailer occupied. But when the jailer and his men intercept their escape, the convicts are fumbled by what kind of Indian doesn’t watch such an epic match. That’s when the clincher kicks in – ‘a hard working Indian’, who with Tata Sky+ HD, can record it and watch it at his own time.

    The Tata Sky team has taken a big punt on the TV commercial. Production costs according to industry sources are supposed to be amongst the highest put behind a TVC in recent times. Additionally, the air time cost is likely to set back Tata Sky by many a dollar.But it could well end up to be worthwhile for the DTH operator if the subscribers sign up in the metros.

  • 88 per cent digitisation achieved in Phase II, says Varma

    88 per cent digitisation achieved in Phase II, says Varma

    NEW DELHI: The level of digitisation has reached around 88 per cent in the 38 cities covered in fourteen states and one union territory for Phase II of Digital Addressable System (DAS), a top Information & Broadcasting ministry official tells Indiantelevision.com.

    This includes seeding of set top boxes (STBs) done by direct-to-home (DTH) operators.

    I&B ministry secretary Uday Kumar Varma reveals that fifteen to sixteen cities have achieved total digitisation.

    However, he cautions that the government was still in the process of collating all the figures and would bring a detailed report after its review. The Secretary said he is personally in constant touch with the Nodal Officers and MSOs to ensure that the cities in remaining states also speed up the process of digitisation.

    He clarified that while announcing the switch-off of analogue on 31 March, the Government said it would watch the situation for around two weeks and was now reviewing the reports coming being receiving on the achievement so far.

    The Ministry had announced last week that analogue signals had been completely switched-off in the five states of Maharashtra, Punjab, Rajasthan, West Bengal, Haryana, and the Union Territory of Chandigarh.

    Stay continues to be in force in the cities of Bhopal, Indore, Jabalpur, Hyderabad, and Visakhapatnam. The metropolis of Chennai which was part of Phase I also has a stay order in force.

    The Karnataka and Gujarat High Courts had yesterday quashed petitions seeking extension of DAS thereby paving way for the analogue signals to be switched-off.

  • Trai issues draft tariff package for STBs/CPEs for DTH and cable TV ops

    Trai issues draft tariff package for STBs/CPEs for DTH and cable TV ops

    NEW DELHI: In order to ensure a smooth migration of customers from one service provider to another without having to re-invest in a new STB, the Telecom Regulatory Authority of India (Trai) today issued draft tariff orders prescribing standard tariff package for set top boxes in digital addressable cable TV systems (DAS) and consumer premises equipments (CPE) for direct-to-home services.

    The standard tariff packages for STB/CPE on rental basis are to be offered mandatorily by DTH and cable TV operators. The draft tariff orders have been put on the TRAI site to seek comments of stakeholders by 26 April.

    The Tariff Order also assumes significance as it attempts for the first time to give inter-operability to consumers of DTH players.

    The authority is of the view that the interests of the consumers can be largely protected through the provision for commercial interoperability of STB. The commercial interoperability provides an exit option for a subscriber in case the subscriber wishes to change the operator for any reason.

    Accordingly, in the relevant Regulations/ Tariff orders of Trai, it has been mandated that the operators of Digital Addressable Cable TV Systems and DTH operators shall give an option to every subscriber to procure the STB either on outright purchase basis or hire purchase basis or rental basis, or in accordance with the scheme, if any, prescribed by the Authority. The relevant provisions of various Trai Regulations/ Tariff Order in this regard are attached as Appendix-I.

    While interoperability is available to customers of LCOs, Trai observed that in case of DTH services, ‘the predominant DAS platforms at the moment, the schemes for CPEs offered to the subscribers by the DTH operators, have wide variations and at times are such that no viable exit option is available to the subscribers. Instead the consumer has to re-invest in new hardware in case of migration from a particular operator or platform. The same may also hold good in case of the upcoming Digital Addressable Cable TV Systems.‘

    The authority is of the view that in order to, provide an easy exit option to the subscribers, ensure availability of STBs at reasonable cost and terms and at the same time to protect the interest of the service providers a Standard Tariff Package, for STBs, as provided for in the existing Regulations/Tariff Orders be prescribed by the Authority.

    Accordingly Standard Tariff Package for STBs for DAS has been worked out. In addition to offering the STB as per the Standard Tariff Package prescribed by the Authority, the operators are free to offer their own schemes for supply of STB to its subscribers in accordance with the existing Regulations/ Tariff Orders and the subscribers shall have option to choose from the Standard Tariff Package prescribed by the Authority and the alternative schemes offered by the operators.

    Authority has observed that The operators are offering to its subscribers various types of STBs having different features/ capabilities such as “recording facility”, “Internet/broadband compatibility”, “High definition/ 3D reception capability” etc., in addition to the basic functionalities. Since for such STBs there would be wide variations in terms of features and cost and hence the Standard Tariff Package is provided only for the basic/ vanilla STBs meant for reception of Standard Definition TV signals (SDTV) conforming to the relevant Indian Standard set by the Bureau of Indian Standards.

    The Standard Tariff Package for Cable TV operators has been worked out on the basis of the following facts and figures as provided by the Industry stakeholders/ Associations:-

    a) The total cost of STB has been taken as Rs. 1750/-.
    b) Life span of STB has been taken as 5 years.
    c) The residual value has been taken as nil.
    d) Rental per month is based on cost of STB on Equated Monthly Installment (EMI) Basis @15% per annum (@1.25% per month) for a period of 60 months.

    The Standard Tariff Package for DTH operators has been worked out on the basis of the following facts and figures as provided by Industry stakeholders/ Associations;

    a) The total cost of CPE has been taken as Rs. 2250/-.
    b) Life span of CPE has been taken as 5 years.
    c) The residual value has been taken as nil.
    d) Rental per month is based on cost of CPE on Equated Monthly Installment (EMI) Basis @15% per annum (@1.25% per month) for a period of 60 months.

    The authority has also noted that no monthly rentals will be payable after the period of five years and the Customer Premises Equipment will become the property of the subscriber (except smart card/viewing card) after the expiry of five years. An amount equal to the sum of security deposit to be refunded per month and interest per month on balance security deposit has been adjusted in Rent per month per Customer Premises Equipment. The Full amount of security deposit stands adjusted in a period of five years.

    Up to five years, on returning of the Customer Premises Equipment, the Security Deposit shall be refunded as per attached table-B, provided that the Customer Premises Equipment is not tampered with.

    In case of un-installation/discontinuance of service before the last day of the month, balance security deposit shown as refundable at the end of that month will be refunded on return of Customer Premises Equipment.

    No repair or maintenance charges would be levied by DTH operator on the subscriber, towards repair or maintenance of Customer Premises Equipment up to the period of five years from activation of the Customer Premises Equipment. The subscriber, however, shall be liable to pay repair and maintenance charges from sixth year onwards.

    No installation charges or re-installation charges (except in case of shifting of connection) or activation charges or smartcard/ viewing card charges is to be levied by the DTH operator on the subscriber.