ITV

Tag: Hathway Cable and Datacom

  • DEN, Hathway and InCable get interim relief on ent tax

    DEN, Hathway and InCable get interim relief on ent tax

    MUMBAI: The big four  of Indian cable TV – DEN Networks, Hathway Cable and Datacom, InCable and Siti Cable – heaved a sigh of relief as 21 January ended. The reason: the Delhi High Court – which was hearing their appeal seeking to restrain the state government’s entertainment tax authorities from taking any coercive action against them for not paying entertainment tax – gave them relief, if at least for some time. The  HC passed an interim order, forbidding the tax folks  from taking any steps  against  three of the MSOs – Den, Hathway and InCable.

     

    The cases that were heard in one day saw the appeals of  DEN and Hathway being joined  together while InCable and Siti Cable presented its case separately.  With the order coming into effect, MSOs have been relieved of the duty of collecting entertainment tax from the LCOs and submitting it to the government till the judgment on the case is passed. The next hearing will be on 13 March.

     

    The respondent (the entertainment tax collection authorities) have been given four weeks to file its reply to the case. In the meanwhile, its hands are tied. However, what was not clear at the time of writing whether  the onus is back on the LCOs to pay the tax to the government.

     

    Although the MSOs are receiving the tax from LCOs, they claim they aren’t getting the full amount. Hence, the balance amount normally has to be coughed up by the MSO whether it is paid the same or not by the LCO. This is pretty unfair, they have stated.

     

    The  MSOs approached the Delhi HC as  the inexplicable  pressure was being thrust on them to cough up taxes.

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

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

  • Fix basic tier rate above Rs 100: Cable ops to Trai

    Fix basic tier rate above Rs 100: Cable ops to Trai

    MUMBAI: The basic tier monthly rate of Rs 77 (excluding taxes) in conditional access system (CAS) areas is unrealistic and should not be below Rs 100, cable TV operators told the Telecom Regulatory Authority of India (TRAI).

    Six stakeholders have posted their views to the broadcast and cable regulator. Trai had sought views from the industry on the draft tariff amendment order notification for fixing the basic tier rate.

    The common argument laid down by the cable operators was that the price for the 30 FTA channels did not take into account the distribution cost through franchisee operators.

    According to clause 3B in the Telecommunication (Broadcasting and Cable) Services (Second) Tariff Order, 2004 (6 of 2004), “The maximum amount, which a cable operator may demand from a subscriber for receiving the programmes transmitted in the ‘basic service tier’ provided by such cable operator shall not exceed Rs 77 per month exclusive of taxes, for a minimum of 30 FTA channels. Free-to-air channels, over and above the basic service tier, would also be made available to the subscribers within the maximum amount mentioned above.”

    The views posted by New Delhi-based Cable Operators Federation of India (COFI) said, “Only one multi-system operator (MSO) headend was considered and not the distribution cost through franchisee operators who maintain their own offices, technical maintenance staff, collection staff etc. Quality of service was not considered while calculating number of subscribers and the number of subscribers was based on extended network of the MSO prevailing at that time.”
    “The cost of FTA channels has to be reworked. Even as per our calculations submitted to the Ministry in 2003 the cost was Rs.180. One option is to use the benchmark of Rs 125, which was the charge for 15 to 20 channels in 1994 when there were no pay channels.”

    Pointing out the need for reworking the cost of FTA channels, the Federation said, “Even as per our calculations submitted to the Ministry in 2003 the cost was Rs.180. One option is to use the benchmark of Rs 125, which was the charge for 15 to 20 channels in 1994 when there were no pay channels.”

    A minimum of Rs 150 should be charged for the basic tier considering the fact that TRAI does not want last mile operators to pay for the FTA package to the MSOs. An amount of Rs 30 to Rs 50 is being paid at present to MSOs, the Federation added..

    Hathway Cable and Datacom has suggested a basic tier price of Rs 100 per month (excluding taxes). This will work out to not less than Rs 150 a month.

    “The cost of materials like cable, amplifier, and electronics have gone up significantly. And other components such as power and fuel in delivery of the services have also risen sharply in the last one to two years,” the MSO expressed to Trai.

    According to cable TV industry observer Col V.C Khare, “The rate was arrived at for a network spectrum 47-550 MHz transporting 62 channels, with a customer base of 32000 and a radius of operation of 7.5 kms on coaxial cable.”

    “Technically, head ends using 500 series trunk cable over 47-862 M Hz and transporting 90 channels cannot deliver signal quality per IS 13420 beyond 4.8 kms cable length, with a cascading limit of 16 amplifiers. The subscriber base of 32000 was high as independent head ends were having 18000 subscribers on an average. On the other hand, networks have consolidated with fiber, 120 digitally compressed signals, encryption and SMS hardware installed. If the upward and downward adjustment in cost for the above factors is taken into account the cost of Rs.72 as prorated would give at least a minimum cost of Rs.100 (exclusive of taxes),” he argued.

    National Cable & Telecommunications Association (NCTA) president Vikki Choudhry has suggested a monthly subscription rate of Rs 180. “A price below this level will result in deficiency in quality of service for the consumers, non-conformity with the provisions of CAS and Standards of BIS, no investment in network upgradation or maintenance, loss of employment, incentives most broadcasters to keep (or convert) their channels into pay, loss of revenue to the Indian Government and encourage under declaration by the cable service providers of FTA subscribers.”