Tag: GTPL HATHWAY

  • TDSAT dismisses Discovery claim against All Digital Networks

    TDSAT dismisses Discovery claim against All Digital Networks

    NEW DELHI: An application by Discovery Communication India, New Delhi for recovery of certain sums from the multi-system operator All Digital Network India Ltd, Karnataka has been dismissed by the Telecom Disputes Settlement and Appellate Tribunal.

    Chairperson Justice Aftab Alam and member B B Srivastava said that the evidence produced by the broadcaster in the form of e-mails from the MSO did not admit to any specific sums.

    The order therefore said that the application could not be accepted under order XII rule 6, and listed the main matter to come up on 17 August 2016.

    The broadcaster initially demanded a sum of Rs 67,01,292 which was later reduced to Rs.59,82,891 due as on 30 June 2015.

    The tribunal in its judgment of 2 June 2016 noted that “It needs here to be clarified that the slight reduction in the amount of claim appears to have been necessitated on account of some recent decisions of the tribunal in which it is held that no claim for recovery of dues may be entertained by the tribunal normally beyond the term of the Interconnect agreement in writing. However, in case the petitioner is able to establish by evidence that after the expiry of the earlier agreement, the parties were in negotiation in regard to the terms of the fresh agreement, the claim for recovery may be extended to a point three months beyond the expiry of the previous agreement.”

    Thee broadcaster has said the two parties had an Interconnect Agreement from 1 April 2014 to 31 March 2015.

    In one of the e-mails, All Digital has referred to a strategic tie-up with GTPL Hathway Pvt. Ltd. and the broadcaster was asked to make changes in the name of the MSO.

    From the first email about negotiations being on, the tribunal said, “it is impossible to infer that the respondent admitted its liability for payment of any specified amount to the petitioner much less the specific amount claimed by thepetitioner in its petition, later amended by the affidavit dated 2 February 2016.

    The tribunal said that the email dated 19 May 2015 had “indeed an admission of certain outstanding dues of the petitioner in respect of which it is stated that the payment would be made by GTPL Hathway Pvt. Ltd. It is, however, evident that the admission is not to the effect that the respondent owes to the petitioner the specified amount as claimed by the petitioner and on the basis of that e-mail, it would not be possible to make any decree as claimed by the petitioner.”

  • TDSAT questions Dhru Lucky about relationship with GTPL Hathway, restrained  from transfering any property

    TDSAT questions Dhru Lucky about relationship with GTPL Hathway, restrained from transfering any property

    NEW DELHI: Dhru Lucky Enterprise Pvt Ltd (Dhru) was today asked by the Telecom Disputes Settlement and Appellate Tribunal to file an affidavit clarifying that it will not transfer its movable or immovable properties to anyone while its case against Star India is pending. Chairman Aftab Alam and member B B Srivastava asked Dhru representative Sureshbhai Jagubhai Patel to file the affidavit by this evening clarifying the relationship between Dhru and GTPL Hathway. This was a precondition to dispense with his personal appearance.

    After he filed the affidavit as directed by today evening, the tribunal listed the matter to come up on 4 May and exempted him from personal appearance.  Star India was represented by Counsel Arjun Natarajan and Dhru by counsel Upender Thakur.

    Dhru had filed a petition in October 2014 against Star India seeking renewal of lapsed agreements. Subsequently, the tribunal stayed disconnection notices issued to Dhru  by its orders of 12 November and 18 November that year. Dhru thereafter received signals within the areas mentioned in the lapsed agreements.

    However, Star India alleged that Dhru had been resorting to rampant piracy. In an order of 16 April 2015, Dhru gave an undertaking that it would confine its operation within the areas mentioned in the lapsed agreements.

    Subsequently, Star filed a contempt application against Dhru, on the ground that, in breach of the undertaking contained in order dated 16 April 2015 and it went beyond the areas mentioned in the lapsed agreements.

    Dhru was directed on 19 May last year to clearly explain on affidavit the circumstances under which it was operating in Vapi, which is beyond the areas mentioned in th lapsed agreements.

    The tribunal on 28 May last was told by Dhru that it has assigned its network at Vapi and Daman to some other entity, and that, it no longer wishes to carry on with its MSO business.

    Following that order, it was directed to file an affidavit as to its assignment to some other entity. On 17 July, it filed another affidavit where Dhru mentioned that TDSAT had been apprised on 28 May about GTPL Hathway taking over Dhru’s cable business in its entirety. Star India in response pleaded that Dhru was indulging in piracy even on 23 July. Subsequently, GTPL-Hathway was impleaded in the petition as it appeared that Dhru had assigned its business to the distributor.

    TDSAT had on 1 March this year directed the Dhru’s MD Sureshbhai Jagubhai Patel to be present in person. He was also directed to produce the instrument under which Dhru was said to have transferred its LCO business to GTPL-Hathway. However, Patel did not turn up on the next date as it was submitted on behalf of Dhru that Patel was now president of District Panchayat, Daman, and had no control over the activities of Dhru.

    However, the Tribunal directed on 28 March that Patel should be present in person along-with documents on 18 April. Patel was present yesterday and today and the matter was heard on both days.
     

     

  • TDSAT questions Dhru Lucky about relationship with GTPL Hathway, restrained  from transfering any property

    TDSAT questions Dhru Lucky about relationship with GTPL Hathway, restrained from transfering any property

    NEW DELHI: Dhru Lucky Enterprise Pvt Ltd (Dhru) was today asked by the Telecom Disputes Settlement and Appellate Tribunal to file an affidavit clarifying that it will not transfer its movable or immovable properties to anyone while its case against Star India is pending. Chairman Aftab Alam and member B B Srivastava asked Dhru representative Sureshbhai Jagubhai Patel to file the affidavit by this evening clarifying the relationship between Dhru and GTPL Hathway. This was a precondition to dispense with his personal appearance.

    After he filed the affidavit as directed by today evening, the tribunal listed the matter to come up on 4 May and exempted him from personal appearance.  Star India was represented by Counsel Arjun Natarajan and Dhru by counsel Upender Thakur.

    Dhru had filed a petition in October 2014 against Star India seeking renewal of lapsed agreements. Subsequently, the tribunal stayed disconnection notices issued to Dhru  by its orders of 12 November and 18 November that year. Dhru thereafter received signals within the areas mentioned in the lapsed agreements.

    However, Star India alleged that Dhru had been resorting to rampant piracy. In an order of 16 April 2015, Dhru gave an undertaking that it would confine its operation within the areas mentioned in the lapsed agreements.

    Subsequently, Star filed a contempt application against Dhru, on the ground that, in breach of the undertaking contained in order dated 16 April 2015 and it went beyond the areas mentioned in the lapsed agreements.

    Dhru was directed on 19 May last year to clearly explain on affidavit the circumstances under which it was operating in Vapi, which is beyond the areas mentioned in th lapsed agreements.

    The tribunal on 28 May last was told by Dhru that it has assigned its network at Vapi and Daman to some other entity, and that, it no longer wishes to carry on with its MSO business.

    Following that order, it was directed to file an affidavit as to its assignment to some other entity. On 17 July, it filed another affidavit where Dhru mentioned that TDSAT had been apprised on 28 May about GTPL Hathway taking over Dhru’s cable business in its entirety. Star India in response pleaded that Dhru was indulging in piracy even on 23 July. Subsequently, GTPL-Hathway was impleaded in the petition as it appeared that Dhru had assigned its business to the distributor.

    TDSAT had on 1 March this year directed the Dhru’s MD Sureshbhai Jagubhai Patel to be present in person. He was also directed to produce the instrument under which Dhru was said to have transferred its LCO business to GTPL-Hathway. However, Patel did not turn up on the next date as it was submitted on behalf of Dhru that Patel was now president of District Panchayat, Daman, and had no control over the activities of Dhru.

    However, the Tribunal directed on 28 March that Patel should be present in person along-with documents on 18 April. Patel was present yesterday and today and the matter was heard on both days.
     

     

  • TDSAT asks GTPL Hathway to restore RCN Digital’s signals

    TDSAT asks GTPL Hathway to restore RCN Digital’s signals

    NEW DELHI: GTPL Hathway has been asked by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to restore the signals to RCN Digital. 
     
    In their order, vacation bench of members Kuldip Singh and B B Srivastava said GTPL Hathway and RCN Digital to maintain the status quo as on 26 December, 2015.
     
    With this order, the Tribunal listed the petition by RCN Digital for 6 January. 
     
    Counsel Saurabh Upadhayay, counsel for RCN told the Tribunal that payment of Rs 1.17 crore had been made towards activation charges of the set top boxes (STBs) provided to RCN.
     
    But he said the signals were disconnected without any notice on 27 December.
     
    Upadhayay said that an agreement duly signed was sent by RCN to Hathway but had not been returned after the signature of the latter.
  • TDSAT warns Digicable for pirating GTPL Hathway signals in Ahmedabad

    TDSAT warns Digicable for pirating GTPL Hathway signals in Ahmedabad

    NEW DELHI: Digicable Network (India) Ltd of Mumbai was today warned by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against piracy in Ahmedabad of the signals of GTPL Hathway Pvt Ltd of Gujarat.

     

    Disposing the petition with an order, TDSAT chairman Justice Aftab Alam and members Kuldip Singh and BB Srivastava also warned Digicable to be ready to face legal consequences if it persisted in such piracy.

     

    Digicable counsel Diggy Pathak sought to say that Digicable was attempting to expand in Ahmedabad and had carried the signals on a trial basis, something the Tribunal took strong exception to.

     

    GTPL counsel Jayant Mehta said that his client had informed all the concerned broadcasters and also referred to losses because of this piracy.

     

    The Tribunal also took note of submissions by Star India counsel Arjun Natarajan, counsel Kunal Tandon for both IndiaCast UTV Media Distribution and Multi Screen Media, Mumbai and Upender Thakur for Taj TV said they had begun internal inquiry after being informed of this piracy.

     

    At one stage during arguments, Justice Alam expressed annoyance about increasing piracy and wondered if the TDSAT should now set up an investigation wing as well.

  • Media fraternity welcomes GST; few pose doubts over implementation

    Media fraternity welcomes GST; few pose doubts over implementation

    MUMBAI: Amidst strong controversy, Arun Jaitley led finance ministry of India tabled the Goods and Service Tax (GST) in the parliament for further debate. GST is often termed as India’s most ambitious indirect tax reform plan by economists, which aims to stitch together a common market by dismantling fiscal barriers between states. It is a single national uniform tax levied across the country on all goods and services.

     

    The indirect tax system in India is currently mired in multi-layered taxes levied by the Central and State governments at different stages of the supply chain such as excise duty, central sales tax (CST), value added tax (VAT) and octroi tax, among others. In GST, all these will be subsumed under a single regime. 

     

    Even as the entire opposition party, led by Sonia Gandhi, posed a walk out from the Parliament in protest against the procedure and particulars of the amendment, Indiantelevision.com took the opportunity to seek reactions of the vanguards of the media, cable and Direct-to-Home (DTH) industries on GST. While industry stalwarts welcomed the thought behind GST unanimously, a few posed doubts over its successful implementation.

     

    Dish TV CEO RC Venkateish says, “It will be good for the DTH sector. At present we are victims of multiple taxation system where we pay various taxes in entertainment tax, service tax etc. With GST, it will all get rolled under one. If the GST is approved and rolled out, we will have a tax reduction of three to 3.5 per cent and hence it will be a good move for the sector.”

     

    Welcoming GST wholeheartedly, Videocon D2H CEO Anil Khera opines, “GST is a welcome move. It will help the DTH sector to prosper. DTH is the biggest victim of multiple taxation policy and GST will simplify that. The industry needs a uniform taxation system and the sooner it comes the better it is.”

     

    Explaining why GST is good for the economy in the long run, Times Network CEO MK Anand says, “GST brings uniformity and transparency and therefore better administration. However, in the short term, there are expected to be issues. Broadcasting will move from CST, which we believe will be lower than GST as we expect and that is going to put pressure on our pricing. The broadcast ecosystem at the bottom end has elements like consultants or local operators, who may try to push for absorbing into prices. The other thing is the state wise registration and filing of GST as against the current centralised filing. This is also an additional activity that we will now have to account for and so it increases costs to some extent.”

     

    GTPL Hathway COO Shaji Mathews supports the concept behind GST but has doubt on its successful implementation. He explains, “Taxation has been the biggest issue when it comes to digitisation. With digitisation, often only three stakeholders are associated namely: multi system operators (MSO), broadcasters and local cable operators (LCO). However in actuality, there are two more parties involved – the government and consumers. Government has been the major gainer so far from digitisation and they have been trying to shift the tax burden on to the consumer. However the consumer is not ready to take it and hence operators have been bearing the brunt of it all. With GST, the concern is over entertainment tax, which varies from state to state. No clear information is provided whether entertainment tax will be included in GST and if yes, then at what slab. So overall, while the thought behind GST is good, there are a lot of question that are still unanswered. Moreover, since the government hasn’t made any efforts to rationalise taxation, the implementation is something that remains to be observed closely. The problem is with the mechanism that the government follows, where they don’t consider the tax payers’ point of view while implementing an amendment.”

     

    Another senior official from the cable fraternity asserts, “GST has the potential to emerge as a blessing in disguise. As we proceed with digitisation, uniformity in taxation is the least that we can expect. It has been very harsh on us, as we operate across different states and at times we end up paying tax for an already taxed item, which is not something that we should be facing. Overall, I welcome GST and see it as an encouraging move though only time will unfold the real story.”

     

    NDTV executive vice chairperson KVL Narayan Rao adds, “Frankly, GST deals more with Goods and Service providers and doesn’t impact us directly but I consider it as a beneficial move. For example, if I have to set up a new studio at a new location, GST will help me as I won’t pay multiple taxes and hence it affects the pricing.”

     

    Backing GST, entrepreneur Ronnie Screwvala opines, “A business friendly environment had to be developed in India and taxation is a key element to that. With the Goods and Service Tax, service tax will come down to 16 per cent, which solves many problems. Hence GST is a firm step forward towards developing a business friendly scenario in India and it will surely help the country to ensure economic growth.”

     

    As per information available, the government is expected to rollout GST by April 2016.With absolute majority in the Lok Sabha, it will not be a challenge for the government to pass it through in the lower house. However the bigger obstacle will come from the Rajya Sabha as Jaitley and company will have to penetrate through a larger opposition. The entire business fraternity will keenly observe the next few days of proceedings in both houses of the Parliament.

  • Majority of MSOs await security clearance held up by Home Ministry

    Majority of MSOs await security clearance held up by Home Ministry

    NEW DELHI: Nine of the 13 multi-system operators (MSOs) who attended the last two open house meetings for MSOs in the Information and Broadcasting Ministry were told that their cases are awaiting security clearance by Home Ministry, even as the Ministry has now decided to consider the cases afresh.

     

    Reliance Jio Media’s representative was informed that details of Reliance Jio CEO K. Jayaraman were being sent to the Home Ministry.

     

    Others in the queue for Home Ministry who turned up in the meetings on 30 March and 7 April are Seven Star, Infinite Television & Telecom, K Net, GTPL Hathway, Shirdi Sai Digital, Sahyog Telelink, Om Systems and Subhodhaya Communication.

     

    The cases of Subhodhaya Communication, Technobile System, Akshaya Diginet Cable, Technobile Systems and Bhaskar Cable Network have also been held up for other reasons including policy decisions.

  • Broadcasters to hike rates in both DAS and analogue areas

    Broadcasters to hike rates in both DAS and analogue areas

    MUMBAI: Things will be different the next time multi-system operators (MSOs) and direct-to-home (DTH) players sit across the table with broadcasters for renewal of channel contracts. Thanks to the price defreeze proposed by the Telecom Regulatory Authority of India (TRAI) after nearly seven years. The regulator on Monday released a notification, offering a 27.5 per cent inflation-linked hike to stakeholders in the tariff ceiling. The hike can be implemented in two phases: 15 per cent from April and the remaining 12.5 per cent from January 2015.

     

    Broadcasters in particular have welcomed the move. With the 15 per cent hike April onward applicable to the analogue business, broadcasters are happy that they can at least increase their ARPUs.

     

    “CPS deals in DAS areas will not be impacted with this tariff ceiling hike. But if the MSO or DTH player has a RIO deal, be it in the DAS or non-DAS region, the rates will go up,” informs Media Pro COO Gurjeev Singh Kapoor.

     

    For those wondering how rates can head north in DAS areas when the tariff ceiling notification is for non-addressable areas, here’s the logic. With RIO rates on digital platforms being 42 per cent of those on analogue platforms, a 15 per cent increase in analogue rates is bound to raise RIO rates for digital. Hence, while the hike in tariff ceiling is for non-DAS areas, the same is applicable to DAS areas as well. “This is the best thing that has happened to the industry, as we now have a platform to increase the ARPU and ask for more from consumers,” says Kapoor.

     

    While an aggregator, on condition of anonymity, puts it as: “DAS rates are related to non-DAS rates. The hike of 15 per cent is on the RIO rate. So even though many feel that the fixed deals will not get affected, they will. Because the matrix for negotiation will change now and this is not only for analogue areas, but also for DAS areas. The negotiation for fixed deals is done on the RIO rate, and if that goes up, of course, the fixed deal will also rise.”

     

    Most of the contracts are up for renewal in April; for TheOneAlliance, 60 per cent of the contracts will be renewed now whereas for Media Pro, close to 90 per cent of the contracts with both DTH operators and MSOs are up for renewal.

     

    “We have a very good scope and so, have decided to increase the rates for every MSO and DTH player in both DAS and non-DAS areas.  After a long time, broadcasters have got a hike in tariff ceiling and so, we would take the opportunity to hike the rates,” says TheOneAlliance EVP sales and strategy Makarand Palekar. “We will sit with the concerned MSOs and DTH players and try and incorporate this even in existing channel deals. And I am sure that DTH operators and MSOs will be happy with this as they can collect the same from the ground now.”

     

    Will consumers see a hike in bills this month onward? “We will move things gradually. We will sit for negotiations now,” informs Palekar.

     

    Are broadcasters happy with the percentage of hike? Palekar feels it could have been better. “But with digitisation, MSOs are currently in investment mode. So, in the current scenario, this could have been the best,” he says.

     

    Kapoor agrees with Palekar saying, “Yes, it is not enough. The increase should come in every year, but then it is a welcome move. They have finally woken up from their slumber.”

     

    According to the aggregator, “This figure of 15 per cent has been derived by the authority using past metrics and calibrations. While the hike is under the inflation rate, this is the best TRAI could have come up with.”

     

    Apart from broadcasters, are MSOs happy with the move? “MSOs will get bothered with this hike. We may end up paying for this from our own pocket if we cannot collect it from the ground,” rues ABS 7 Star CMD Atul Saraf.

     

    According to him, MSOs don’t put pressure on LCOs by hiking rates in the analogue regime. “There are chances that the local cable operator can go to the other MSO, if the other player doesn’t hike the price. So either both the MSOs operating in a particular area increase the price, or else, there will be competition,” he adds.

     

    About hiking prices in DAS areas, Saraf says, “Broadcasters have already hiked the price in DAS areas. Also, the deals are on per box basis and there is 100 per cent declaration. So why would they want to increase the price in the DAS regime? So in the DAS regime, if broadcasters plan to hike prices, a few of us may go to the court.”

     

    The increase in RIO by 15 per cent leaves a grey area for broadcasters to hike rates in both DAS and non-DAS areas, according to Saraf. “But there are hardly any RIO deals currently, as we prefer entering into a fixed deal, and especially in the non-DAS areas. But now it may be that MSOs may do a RIO deal, especially for sports channels,” he informs.

     

    GTPL Hathway COO Shaji Mathews too feels MSOs will not benefit from the tariff hike. “Given that DTH rates are also low today, this hike will lead to more competition between the MSO and DTH,” he says.

     

    Kapoor however begs to differ. “The ARPU for DAS phase III and IV is Rs 160 while for DTH, it is close to Rs 300. Even with the hike, the ARPU for cable will go up to Rs 190. There is a big gap between the two and I don’t see consumers moving from cable TV to DTH due to this hike,” he opines.

     

    Whether the MSOs and LCOs will benefit from the move or no, still needs to be seen. The question now is, whether the consumer will pay for the hiked price in the cable TV bills? “The problem is not with the consumers, they are ready to pay,” says Palekar.

     

    “We are showcasing around 400 channels, so the hike was much needed. It is also a good way to move people to digitisation,” concludes Kapoor.

  • Cricket Packs could become universal

    Cricket Packs could become universal

    MUMBAI: Digitisation is set to change the way television channels are packaged. In addition to the subscriber getting the option to pick and choose channels, multi-system operators too are finding newer opportunities.

     

    MSOs have found a good business prospect in cricket, the most-watched sport in India.

     

    With digitisation of cable TV services in 42 major cities, MSOs are increasingly shifting to per subscriber deals with broadcasters instead of making bulk payments.

     

    Hathway Cable  & Datacom, like direct-to-home television service provider Dish TV, has carved out a Cricket Pack for its subscribers.

     

    In the case of Dish TV’s India cricket pack, the channel on which live telecast of a match involving Indian men’s cricket team is switched on.

     

    “Sports channels, by the nature of its programming are event driven. We have an Indian Cricket Pack, which is a cost per subscriber deal with broadcasters,” says Hathway Cable  CEO Jagdish Kumar.

     

    More MSOs are likely to follow suit and offer Cricket Packs to their customers.

     

    “Though right now we have entered into a per set top box deal with the sports channel broadcasters, we may also look at Indian Cricket Pack going forward,” informs SitiCable COO Anil Malhotra.

     

    There are three types of commercial arrangements entered between broadcasters and operators. These are: Fixed deal, in which the operator pays a lump sum amount to the broadcaster; Reference Interconnect Offer, in which operator takes channels based on the choice of the subscribers; and on a per set top box deal, in which the operator shares details of the number of STBs installed with the broadcaster and the number of the subscribers subscribing to a sports channel.

     

    DEN Networks is currently on a fixed deal with the sports broadcasters. “We are still asking for lump sum because of cash flow issues,” informs DEN Networks CEO SN Sharma.

     

    While till last year, broadcasters were entering into fixed deals with operators, “now everybody is moving towards cost per subscriber,” adds Sharma.

     

    When questioned if DEN would also offer Indian Cricket Pack, Sharma says, “Let’s see. Different experiments are happening. With time everything will evolve.”

     

    According to GTPL Hathway COO Shaji Mathews, broadcasters are entering into fixed deals or negotiate a per subscriber rate.

     

    “The per subscriber deal has clauses which say that the operator needs to show a minimum number of subscribers who subscribe to the channels,” he says.

     

    Currently, GTPL Hathway has a fixed fee deal with the sports broadcasters.

     

    “The moment we get into a la carte, the rates are really high and if we get into cost per subscriber, unless we guarantee a certain number of subscribers for the channel, the cost per subscriber is also high. So, in fact on fixed deal, we land up paying less because of the fee structuring,” he says.

     

    GTPL Hathway may also move to Indian Cricket Pack. “We are looking at that as well,” he says.

     

    It makes business sense for channel distributors to create cricket packs. But Increasing inclination towards cricket packs would mean predominantly cricket channels would gain at the cost of those with less or absolutely no cricket content.