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Tag: Girish Srivastava

  • Smuggled STBs & Indian DTH may be used, IBF advises Nepal to defer Clean Feed

    MUMBAI: Nepal had recently issued a clean feed policy. However, owing to unviable business proposition, it is felt that distribution channels may face discontinuation leading to rampant piracy all over Nepal. It was highlighted that in-cable operators may resort to using Indian DTH connections to re-distribute the signals. Viewers too may start buying Set-Top Boxes (STBs) and Viewing Cards of Indian DTH operators without knowing that the same may have been smuggled into Nepal. IBF has appealed that “the Government of Nepal ought to defer implementation of a “Clean Feed” policy until implementation of digitization so as to evaluate best ways to take advantage of the same as is being done by other countries.

    In the recent past, Government of Nepal issued clean feed policy pursuant to which downlinking licenses of foreign broadcasters is sought to be permitted only if foreign channels being distributed in Nepal do not contain any advertisements (“Clean Feed Policy”). The Clean Feed Policy is sought to be implemented by Government of Nepal from 16 July, 2017.

    To apprise the Government of Nepal on the possible fallouts of the proposed policy and its likely impact on the economic development of Nepal – particularly from the point of view of loss in revenue and employment in the Country, Indian Broadcasting Foundation (IBF) has had a series of discussions with Nepal Government officials. During the discussions, broadcast fraternity of India conveyed the technical and economic unviability of the proposed Clean Feed Policy in Nepal. Broadcasters also conveyed that consumers and various distribution platforms in Nepal would be adversely effected in case the proposed policy is implemented on the designated date.

    (a) It was highlighted to the Government of Nepal that any such policy ought to be framed only after holding transparent and holistic consultations involving all stakeholders in an environment where digitalization of distribution networks in Nepal has been completed and issues relating to implementation of anti-piracy laws have been put in place, as is not the case presently.

    (b) Launch of clean feed would inter-alia entail separate playout, uplink and downlink costs. Nepal being an emerging market with very low ‘Average Revenue Per User’ (“ARPU”), such exorbitant costs to create clean feeds are not justifiable from a business viability point of view.

    (c) Due to unviable business proposition, it is felt that distribution channels may face discontinuation leading into rampant piracy all over Nepal. It was highlighted that in cable operators may resort to using Indian DTH connections to re-distribute the signals. Further, in such a situation, viewers too may start buying Set-Top Boxes (STBs) and Viewing Cards of Indian DTH operators without knowing that the same may have been smuggled into Nepal.

    (d) The demand for ‘clean feed’ is at variance with and may be counter-productive to Government of Nepal’s laudable initiative for implementation of digitalization of distribution networks. This is so because digitization is a cost intensive exercise and any discontinuation of channels on account of implementation of Clean Feed Policy ought to have an adverse impact on revenues of cable operators (thereby affecting their ability to invest monies for digitization). It was submitted that such impact can have a cascading effect on survival of distribution platforms thereby, as a chain reaction affecting employment locally and also distribution / reach of local Nepalese channels.

    (e) Government of Nepal should first allow implementation of digitization before proceeding to evaluate need for introduction of a Clean Feed Policy. It was highlighted that digitization with addressability is a potent tool to keep in check on unaccounted cash transactions, which may not only cause losses to distribution platforms and broadcasters but, also to the Government exchequer in the form of lost taxes.

    (f) Proper and effective implementation of digitization will give an insight to broadcasters on type of content being consumed, and as a consequence, they will be able to evaluate consumer choice better. From Government’s point of view, digitization will also afford a line of sight on content being distributed in Nepal, revenues being generated by distribution platforms and consequential license fees / taxes that they are paying. Such license fees / taxes can be utilized by the Government inter-alia towards cross-subsidizing expenses of Nepalese broadcasters or other initiatives.

    Girish Srivastava, Secretary General of IBF, appealed that “the Government of Nepal ought to defer implementation of a “Clean Feed” policy until implementation of digitization so as to evaluate best ways to take advantage of the same as is being done by other countries. Meanwhile, with the renewal of channel licenses due on 15 July 2017 – we would request the Ministry of Information and Communication (MOIC) to allow existing/new channels to be distributed without the Clean feed condition – with the understanding that the license shall not be withdrawn for at least till the next term is due”. Adding further to his request, Srivastava stated that “entire Indian broadcasting fraternity attaches a great degree of significance to the existing deep cultural, linguistic, social, economic ties between the two nations and its commitment to further the same in times to come”.

  • IBF demands ‘infrastructure status’ for broadcast and content distribution sector

    IBF demands ‘infrastructure status’ for broadcast and content distribution sector

    MUMBAI: Finance Minister Arun Jaitley invited various stakeholders for pre-Budget consultations in New Delhi last Saturday (26 November). Speaking to the media Indian Broadcasting Foundation (IBF) president Punit Goenka said: “I am happy to learn that IBF had good discussions with the finance minister and other key officials on some of the key issues related to Broadcasting Sector – both from policy and tax perspective. Grant of Infrastructure Status for broadcasting and content distribution sector was one of our key demands during the discussions. Once infrastructure status is granted, broadcasters and distribution platforms will be aided with better and affordable financing options in the very capital intensive growth phase to realise the mission of complete digitisation in the country”.

    During the pre-Budget discussions, IBF secretary general Girish Srivastava said that, “The broadcasting and content distribution infrastructure like telecom, is important infrastructure for the country. Besides delivering digital television signals, it can be effectively used to deliver broadband services and thereby effectively contributing to the e-Governance initiative of the Government. Once the addressability is introduced by way of digitalisation, broadcast services are likely to contribute substantial revenue in the form of GST and other taxes to the State exchequer because of the transparency associated with the digital content distribution services.”

    On the tax front, key concerns raised were related to extending the benefit of the carry forward of losses in case of amalgamation or merger for Broadcasting sector under section 72A as is being extended to Telecom, Software and ISP services, taxability in the hands of shareholders in case of amalgamation of a foreign company holding shares in Indian company into another foreign company, provision of lowering the outer limit in processing of returns, reduction in MAT rate, resolving the long standing issue of tax withholding on transponder hire charges treating them as Royalty because of retrospective amendment in Income Tax vis-à-vis DTAA which is causing a huge unnecessary annual burden of US$ 20 – $ 22 million on Broadcasting, DTH & HITS services etc.

    “Once our key demands raised on tax and regulatory front such as grant of infrastructure status, 72 A benefit, MAT rationalization, Transponder Royalty, TDS rationalization etc pertaining to both policy and procedural aspects are addressed by the Government, it would be a good example in the direction of ease of doing business in country” said ZEE Network president A Mohan.

    Mohan added further: “Television has become an integral part of everyone’s life and has attained a status akin to “essential services” as it is an important tool for dissemination of information and entertainment to masses. Accordingly Broadcasting and Distribution services should be subjected to a lower rate under GST regime as is applicable to essential services, to make them affordable to masses.”

    On the issue of taxability in the hands of shareholders in case of amalgamation of a foreign company holding shares in Indian company into another foreign company, Star India CFO Sanjay Jain mentioned that, “The Government should issue an amendment to the provisions to the Act to specify that similar exemption is available to shareholders as well on a high priority. The purpose of allowing merger of foreign companies would be defeated without extending similar exemption in the hands of shareholders of amalgamating company.”

  • IBF demands ‘infrastructure status’ for broadcast and content distribution sector

    IBF demands ‘infrastructure status’ for broadcast and content distribution sector

    MUMBAI: Finance Minister Arun Jaitley invited various stakeholders for pre-Budget consultations in New Delhi last Saturday (26 November). Speaking to the media Indian Broadcasting Foundation (IBF) president Punit Goenka said: “I am happy to learn that IBF had good discussions with the finance minister and other key officials on some of the key issues related to Broadcasting Sector – both from policy and tax perspective. Grant of Infrastructure Status for broadcasting and content distribution sector was one of our key demands during the discussions. Once infrastructure status is granted, broadcasters and distribution platforms will be aided with better and affordable financing options in the very capital intensive growth phase to realise the mission of complete digitisation in the country”.

    During the pre-Budget discussions, IBF secretary general Girish Srivastava said that, “The broadcasting and content distribution infrastructure like telecom, is important infrastructure for the country. Besides delivering digital television signals, it can be effectively used to deliver broadband services and thereby effectively contributing to the e-Governance initiative of the Government. Once the addressability is introduced by way of digitalisation, broadcast services are likely to contribute substantial revenue in the form of GST and other taxes to the State exchequer because of the transparency associated with the digital content distribution services.”

    On the tax front, key concerns raised were related to extending the benefit of the carry forward of losses in case of amalgamation or merger for Broadcasting sector under section 72A as is being extended to Telecom, Software and ISP services, taxability in the hands of shareholders in case of amalgamation of a foreign company holding shares in Indian company into another foreign company, provision of lowering the outer limit in processing of returns, reduction in MAT rate, resolving the long standing issue of tax withholding on transponder hire charges treating them as Royalty because of retrospective amendment in Income Tax vis-à-vis DTAA which is causing a huge unnecessary annual burden of US$ 20 – $ 22 million on Broadcasting, DTH & HITS services etc.

    “Once our key demands raised on tax and regulatory front such as grant of infrastructure status, 72 A benefit, MAT rationalization, Transponder Royalty, TDS rationalization etc pertaining to both policy and procedural aspects are addressed by the Government, it would be a good example in the direction of ease of doing business in country” said ZEE Network president A Mohan.

    Mohan added further: “Television has become an integral part of everyone’s life and has attained a status akin to “essential services” as it is an important tool for dissemination of information and entertainment to masses. Accordingly Broadcasting and Distribution services should be subjected to a lower rate under GST regime as is applicable to essential services, to make them affordable to masses.”

    On the issue of taxability in the hands of shareholders in case of amalgamation of a foreign company holding shares in Indian company into another foreign company, Star India CFO Sanjay Jain mentioned that, “The Government should issue an amendment to the provisions to the Act to specify that similar exemption is available to shareholders as well on a high priority. The purpose of allowing merger of foreign companies would be defeated without extending similar exemption in the hands of shareholders of amalgamating company.”

  • Key issues relating to broadcasting sector ignored in budget, says IBF

    Key issues relating to broadcasting sector ignored in budget, says IBF

    NEW DELHI: The Indian Broadcasting Foundation today expressed regret that the Union Budget 2016-17 had failed to look into key issues such as ‘carry forward of losses, in case of amalgamation or merger for service industry under the industrial undertaking under Section 72 A of the Income Tax Act 1961.’

    Foundation Secretary General Girish Srivastava said in a statement that it was also ‘unfortunate that c industry, which has been playing a critical role in the digital initiative of the government, is being denied this benefit whereas other service sectors like Software, Telecom etc are availing these benefits.’

    However, he thanked the Minister Arun Jaitley for addressing some of the concerns of the industry.

    Describing it as an “inclusive and well-rounded budget which will not only help the Indian economy at large but also provide an opportunity to all in becoming part of the overall growth process”, Srivastava said, “Another point that broadcasters had raised in their pre-budget memorandum was on the tax withholding of transponder hire charges in which the sector had appealed for the alignment of the definition of royalty in DTAAs in line with the amended Finance Act 2012.

    In the current Economic Survey, having acknowledged the significance of the ongoing digitization efforts and in turn Media and Entertainment Industry generating large scale revenue and employment, it seems that the budget inadvertently omitted the long- term pending demand of grant of infrastructure status to the sector, he said.

    During the budget speech, Jaitley had stated that most of the recommendations made by Justice Easwar Committee on simplification of procedures and related issues shall be accepted in due course. “IBF will take up the issues as above with the Finance Ministry in its post budget consultations,” Srivastava added in parting.

  • Key issues relating to broadcasting sector ignored in budget, says IBF

    Key issues relating to broadcasting sector ignored in budget, says IBF

    NEW DELHI: The Indian Broadcasting Foundation today expressed regret that the Union Budget 2016-17 had failed to look into key issues such as ‘carry forward of losses, in case of amalgamation or merger for service industry under the industrial undertaking under Section 72 A of the Income Tax Act 1961.’

    Foundation Secretary General Girish Srivastava said in a statement that it was also ‘unfortunate that c industry, which has been playing a critical role in the digital initiative of the government, is being denied this benefit whereas other service sectors like Software, Telecom etc are availing these benefits.’

    However, he thanked the Minister Arun Jaitley for addressing some of the concerns of the industry.

    Describing it as an “inclusive and well-rounded budget which will not only help the Indian economy at large but also provide an opportunity to all in becoming part of the overall growth process”, Srivastava said, “Another point that broadcasters had raised in their pre-budget memorandum was on the tax withholding of transponder hire charges in which the sector had appealed for the alignment of the definition of royalty in DTAAs in line with the amended Finance Act 2012.

    In the current Economic Survey, having acknowledged the significance of the ongoing digitization efforts and in turn Media and Entertainment Industry generating large scale revenue and employment, it seems that the budget inadvertently omitted the long- term pending demand of grant of infrastructure status to the sector, he said.

    During the budget speech, Jaitley had stated that most of the recommendations made by Justice Easwar Committee on simplification of procedures and related issues shall be accepted in due course. “IBF will take up the issues as above with the Finance Ministry in its post budget consultations,” Srivastava added in parting.

  • Indian Broadcasting Foundation cheers TRAI’s decision on differential pricing

    Indian Broadcasting Foundation cheers TRAI’s decision on differential pricing

    MUMBAI: The Indian Broadcasting Foundation (IBF) has welcomed the Telecom Regulatory Authority of India’s (TRAI) decision to rule out differential pricing.

    “The broadcasting industry is appreciative of TRAI’s decision to rule out differential pricing. IBF has earlier opposed differential pricing terming it to be ‘non-competitive,” said IBF secretary general Girish Srivastava.

    In its response to the consultation paper, IBF had clearly stated that such discriminatory entry barriers would lead to “reduced scope of consumer choice, inducing artificial scarcity.”

    “In our opinion, TRAI’s regulation on prohibiting differential pricing constitutes a milestone as it was against the basic principle of Internet access as no private player should have the power and right to decide which information can be accessed and which is less easily available,” Srivastava added.

    As was reported earlier by Indiantelevision.com, major broadcasters like Star India, Sony Pictures Networks India and Zee Network submitted their comments to TRAI in favour of net neutrality citing the drawbacks of differential pricing for telecom services.

  • Indian Broadcasting Foundation cheers TRAI’s decision on differential pricing

    Indian Broadcasting Foundation cheers TRAI’s decision on differential pricing

    MUMBAI: The Indian Broadcasting Foundation (IBF) has welcomed the Telecom Regulatory Authority of India’s (TRAI) decision to rule out differential pricing.

    “The broadcasting industry is appreciative of TRAI’s decision to rule out differential pricing. IBF has earlier opposed differential pricing terming it to be ‘non-competitive,” said IBF secretary general Girish Srivastava.

    In its response to the consultation paper, IBF had clearly stated that such discriminatory entry barriers would lead to “reduced scope of consumer choice, inducing artificial scarcity.”

    “In our opinion, TRAI’s regulation on prohibiting differential pricing constitutes a milestone as it was against the basic principle of Internet access as no private player should have the power and right to decide which information can be accessed and which is less easily available,” Srivastava added.

    As was reported earlier by Indiantelevision.com, major broadcasters like Star India, Sony Pictures Networks India and Zee Network submitted their comments to TRAI in favour of net neutrality citing the drawbacks of differential pricing for telecom services.

  • TRAI open house: Broadcasters root for tariff distinction between subscribers

    TRAI open house: Broadcasters root for tariff distinction between subscribers

    MUMBAI: With an aim to get the broadcasters’ viewpoint on tariff issues related to commercial subscribers, the Telecom Regulatory Authority of India (TRAI) held an open house discussion in Delhi on 18 August.

     

    While welcoming the open house initiative held under TRAI chairman Ram Sewak Sharma, the Indian Broadcasting Foundation (IBF) member channels discussed issues including differentiation between domestic and commercial subscribers for provision of TV signals, the criteria for drawing distinction between ordinary subscribers and commercial subscribers, tariff framework both at wholesale and retail levels, transparency and accountability in value chain to effectively minimise disputes and conflicts among stakeholders and engagement of broadcasters in the determination of retail tariffs for commercial subscribers.

     

    IBF president and Star India CEO Uday Shankar said, “It is inconceivable that any sector regulator would actually equate five star hotels and commercial establishments with domestic consumers as far as tariffs are concerned. But that’s exactly what TRAI has done with rates for pay TV channels. I am not sure what exactly the regulator is trying to achieve with the present dispensation, i.e. five star hotels availing TV content at subsidised rates especially when they charge a leg and arm for a room, a meal or even a bottle of water? It appears to be a case of misguided regulatory zeal. I hope better sense prevails and the regulator does what is in the interest of its primary stakeholders, i.e. broadcasters and distribution platforms and not five star and four star hotels.”

     

    IBF secretary general Girish Srivastava added, “In keeping with the priorities of the current government of improving ease of doing business in India, such fixation is not warranted and forbearance should be the way forward. We believe that the regulator will factor that putting a ceiling on tariff will not help in promoting and protecting the interests of the ordinary consumers but will serve as an aberration to the growth story of the sector. Broadcasters have been unvarying and undeviating on this front and the regulator will hopefully keep this in mind before deciding on a regulation.”

     

    According to Multiscreen Media Limited general counsel Ashok Nambissan, commercial and residential subscribers are two completely different categories. “The residential subscriber consumes television content for his or her own use whereas the commercial subscriber provides television content for his customers to propagate the business of his establishment. Tariff regulation in today’s age is an anomaly: in any event it should not exist for commercial subscribers as a category whether at the wholesale or retail level and should be left to the market,” he said.

     

    Zee Entertainment president – legal & regulatory A. Mohan opined, “All along it has been TRAI’s consistent stand that there is a distinction between ordinary and commercial subscribers and the same has been recognised by various judicial forums such as the Hon’ble TDSAT and the Hon’ble Supreme Court of India.  This stand of TRAI is also reflected in various tariff orders of TRAI, except the last one, that the tariff applicable to commercial subscribers is under forbearance. Since the commercial establishments will use the television services for commercial exploitation, whether directly or indirectly, the tariff applicable for ordinary subscriber, which is frozen since the year 2004 (which is a subsidised tariff) cannot be applied to commercial subscribers.”

     

    Star India president – legal & regulatory Deepak Jacob said, “The Supreme Court has time and again in sectors such as oil and gas and power, clearly upheld the principles of differential tariffs for commercial and domestic subscribers. The rationale of differentiation is based on an understanding of motive and purpose i.e. commercial establishments have a clear profit motive and that the end usage is for a valuable benefit that accrues to and is built in to the charges paid by the consumer. It is also important that the regulator respects the mandate of Parliament and acts in accordance with laws laid down by the legislature by ensuring that the TRAI regulations/tariff orders are not in derogation of or repugnant to the provisions of Copyright Act, which is the principle legislation that governs content owners including broadcasters. The Copyright Act unequivocally provides for a separate dispensation in so far as commercial establishments are concerned and hence we hope that the regulator keeps the same in mind while formulating the new tariff regime.”

     

    BBC India COO Naveen Jhunjhunwala added, “We strongly advocate a distinction between ordinary and commercial subscribers as far as tariff is concerned since the place of viewing the TV signal and type of usage of TV signals is inherently different in both these categories. Having a global presence, we have seen that the regulators have left determination of tariffs to forbearance thereby ensuring dynamic competition.  With Government focus on making India an easier place to do business, leaving things to market forces will ensure growth and be in line with international scenario.” 

  • IBF appoints Girish Srivastava as secretary general

    IBF appoints Girish Srivastava as secretary general

    MUMBAI: The Indian Broadcasting Foundation (IBF) has appointed Girish Srivastava as secretary general.

     

    He has worked in the area of policy, regulations, promotion of cross-border trade in services, research, strategic expansion of existing businesses and development of new markets.

     

    In a career spanning over 24 years, Srivastava has worked with NASSCOM (National Association of Software and Service Companies), Bechtel Corporation, Bechtel Management Consulting, Reliance Industries, Toyo Engineering India as well as on projects mainly funded by international donor agencies.

     

    “I, along with rest of the IBF members welcome Girish and wish him success for his new assignment,” said IBF president and Star India CEO Uday Shankar.