Tag: HITS

SC directs ETV and MAA TV to provide signals to JAINHITS

MUMBAI: The Supreme Court of India has refused the request of ETV and MAA TV to give stay on the order of the Telecom Disputes Settlement & Appellate Tribunal’s (TDSAT) dated 14 March 2014 which had directed the two channels to provide signals to the Headend In The Sky (HITS) operator JAINHITS.

Moreover, the Apex court has directed ETV and MAA TV, in the interim, to provide signals within two-days on pan-India basis to the HITS player.

“Noida Software Technology Park Limited (NSTPL) has been trying to get signals for JAINHITS from various broadcasters for the past two years, but have been denied the same on various grounds. It was only in October last year that broadcasters started providing signals, after orders were passed by the Tribunal. However ETV and MAA TV still were reluctant to provide signals thus necessitating NSTPL to approach TDSAT,” informed NSTPL counsel Vivek Chib.

According to the Tribunal’s 14 March 2014 order that comprised TDSAT chairperson Justice Aftab Alam and Kuldip Singh, ETV and MAA TV could not refuse to grant signals to JAINHITS on the grounds that certain defaulter local cable operators (LCOs) or multi system operators (MSOs) may approach NSTPL for signals.

The Tribunal held that the respondents i.e. ETV and MAA TV had not furnished the name of a single MSO or LCO that might have been held to be its defaulter by a court or competent authority and to whom the petitioner might supply the signals. Undeniably, the petitioner itself was not in any default in payments to the respondent for the simple reason that they were not in any business relationship earlier. Thus looked at from any angle, the prohibition of the provision to regulation 3.2 of the Telecommunication (Broadcasting and Cable Services) Interconnection Regulations, 2004 was not applicable to this case.

Both ETV and MAA TV had preferred appeals challenging the Tribunal’s orders in the Supreme Court showing unwillingness to provide signals to NSTPL’s JAINHITS.

As a result of this interim order passed in favour of NSTPL, JAINHITS consumers would now be able to subscribe to ETV and MAA TV.

May 12, 2014
MCOF conclave stresses on importance of broadband for LMOs

MUMBAI: It has been touted as one of the leading get together of the last mile owners (LMOs) in Maharashtra. The Maharashtra Cable Operators Federation (MCOF) National Conclave on Broadband and Cable (NCBC) 2014 saw its president Arvind Prabhoo put his best foot forward in trying to get the LMOs to buy into his vision of a digitised cable TV India where they are also prospering. Apart from formally launching Synergy Cable Operators Private Limited (SCOPE), the first Cable Virtual Networks Operator (CVNO), Prabhoo and a handful of industry vets and consultants, stressed on the importance of broadband and how LMOs could increase their business five-fold, using this tool.

Prabhoo pointed out that number of active broadband subscribers in India is expected double in the next two to three years according to a Telecom Regulatory Authority of India report. In Mumbai alone, the figure is expected to go up from the current 1.2 million to 4.5 million in the next couple of years. “Broadband will grow, and we need to utilize this opportunity,” Prabhoo said.

Drawing comparisons with the US where 50 per cent of broadband services are provided by cable operators, he said, “We need to implement the same in India. As things stand, only a fraction of the broadband subscriber base is delivered by cable operators.”

Apart from the emphasis on broadband, day one of NCBC 2014 saw heated debate over the existing three models i.e. MSO:LMO, HITS and the newly-minted CVNO, which seeks to provide white label cable TV services to smaller operators in phase III and phase IV.

Presided over by indiantelevision.com founder, CEO and editor-in-chief Anil Wanvari, the session had all parties putting forth their points of view. The panel comprised Kulbhushan Puri of BR Cable Network, Atul Saraf of ABS Seven Star, Vynsley Fernandes of Castle Media, and Prabhoo.

During the discussion, Wanvari expressed the view that the full rewards of digitisation have yet to trickle down to the broadcaster, MSO or LMO – as they viewed each other with suspicion, though things have improved in recent times. “There is a need for greater communication and understanding among the stakeholders,” said Wanvari. “The LMOs and MSOs need to understand that broadcasters are investing in content and they need to recoup that investment. Broadcasters need to understand MSOs are investing in setting up infrastructure and that LMOs want a sustainable future. The cable ecosystem also needs to understand that broadband can be extremely rewarding as compared to simple video signals where subscribers tend to be wary of price increases.”

To this, Prabhoo invited all stakeholders to come together to discuss issues and take the industry forward while benefitting everyone. “Proper constructive pricing model can be worked out if broadcasters, MSOs and LMOs discuss issues on the same platform,” he said.

Fernandes, who is involved in the upcoming HITS project of the Hinduja Group, said, “Packaging of content should be in the hands of the LMOs. Additionally, the LMOs need to invest in set top boxes which they will deliver to their subscribers so that ownership stays with them. And this is what the HITS project is set to do.”

Prabhoo said that while there will be areas covered by the CVNO in phase III and IV of DAS called Headend on the Ground (HOGS), there would be some covered by HITS (Headend In The Sky). “There could also be areas where HITS and HOGS can work together to take digitisation forward,” proposed Prabhoo.

Saraf said the future of DAS phase III and IV lay in MPEG4 and not MPEG2 STBs that were currently being seeded by operators. On the issue of low ARPUs in phase I and II, he said, “ARPUs can go up only by introducing value added services like Video on Demand (VOD), Movie on Demand and YouTube. We need hybrid STBs, which can provide both cable and internet services.”

May 2, 2014
Digitisation at one-third of the investments by MSOs, claims JAINHITS

NEW DELHI: A campaign “Cable ka Shahenshah, DTH ka Baap” has been launched by JAINHITS, India’s only HITS based Direct to Network (DTN) service, relating to quality of services and its ability to deliver digitised content across terrains, anywhere in India.

JAINHITS technology in partnership with Motorola (now ARRIS) and IntelSat offers a unique proposition to the LCOs (local cable operators) of an overnight plug and play digitisation solution that comes for an investment as low as Rs 4.99 lakh only. This makes them fulfill Telecom Regulatory Authority of India’s (TRAI) guideline requirements of All India digitisation by 31 December 2014.

The HITS platform claims that if the 6,000 odd MSOs were to digitise their networks, they would require an investment of up to Rs 3 crores per MSO, thereby costing approximately Rs 18,000 crores as mere investments. JAINHITS on the other hand can provide direct services to over 60,000 LCOs spread across India with average investment of only Rs. 10 lakh per operator, thereby digitising the country for just Rs 6,000 crore, which is one-third of the investment required by MSOs. Thus, the massive saving of Rs. 12,000 crore is being passed on to the customers by providing cheaper services with enhanced quality viewing.

Moreover, JAINHITS “Go Digital” entry scheme strategy will help LCOs to increase their subscriber base manifold in a short span of time. Not only this, through this partnership model LCO will witness significant increase in their customers ARPUs which are likely to double in 2014-15 with broadband and other VAS product/service roll outs. All this put together will help JAINHITS LCO partners enhance their business and earnings.

With a mere investment of Rs 4.99 Lakh, an LCO will get all the necessary help in terms of technology, content and Set Top Boxes that will enable them to operate independently. JAINHITS offers LCO’s new product/ service roadmaps to address the ever- evolving market and customer needs along with the full technology solution roadmap for cable TV network upgradation. In addition, LCO’s also receive all necessary training on technical, legal, product, consumer satisfaction, compliance aspects etc. which facilitates them to offer standardised services.

JAINHITS is the only platform in the country, offering complete empowerment and ownership to even the smallest LCO by making him a Leader and Cable Owner and an ISO (Independent Service Operator).

JAINHITS national sales head Jeet Narayan Singh said, “In our endeavor to enable 60,000 small and medium operators to become MSOs and go digital independently, we are offering end to end single window solutions. JAINHITS offerings are fully DAS compliant with wider choice of channels that are cost effective and fastest way to offer Digital Cable services in any part of India. Our Broadband offering gives additional edge to ISOs and helps them to increase their revenues.”

Through this engagement, JAINHITS provides subscriber management system (SMS), which empowers LCOs to manage his own customer base and offer, customized packs to its subscribers. In addition to this, JAINHITS LCO will be able to manage billing and create his own subscriber records as required by regulators. The SMS also provides an inventory management system and MIS system which enables the LCO to operate his business, generate reports and manage taxation etc.

May 2, 2014
“Phase III and IV should be broken into three phases”: Ashok Mansukhani

Having served as Indian Revenue Service Officer in the income tax department for 22 years, Ashok Mansukhani’s last government posting was as Doordarshan deputy director general (1992-96), during which DD metamorphosed from being a single channel broadcaster to a multilingual and multichannel regional entity reaching over 100 million homes in the country.

Mansukhani’s association with the cable TV industry started in 1996 when he joined IndusInd Media and Communications Limited (IMCL), the media wing of Hinduja Ventures Limited (HVL), as director. Over the years, he became executive director and then president of Hinduja TMT before taking on the mantle of whole-time director of HVL.

In his present capacity, Mansukhani is preparing IMCL for a future that is essentially about pay-per-view, video-on-demand and triple-play services, even as his contemporaries grapple with the initial phase of digitization. With his vision and experience, Mansukhani has also been appointed president of the MSO Alliance.

In a t?te-?-t?te with indiantelevision.com’s Seema Singh, Mansukhani, who is just back from a week-long holiday, talks about the way the industry is moving in terms of digitisation, plans for IMCL, and the growing need for communication among its various stakeholders.

Excerpts:

IMCL underwent huge reshuffling a couple of months back. What was the reason behind it?

There is a new digital era that has come in and the board and promoters may have felt that it would be good to bring in fresh talent, to get professionalism in the analogue regime as we transit to the digital era. And what has really been done is that a new team has been brought in that not only understands media but will be able to carry the media assets of the Hinduja group in the next 10 years. So, it is from that point of view that changes may have been made.

The company recently got the licence for taking forward its Headend In The Sky (HITS) project. How far has the work progressed?

Every possible step will be taken to meet the December 2014 deadline. There are certain permissions which are statutory in nature and which need to be taken. There could be perhaps a three to four week lag factor because of elections. But post 15 May, the process will get fast forwarded and personally, I would like to see it operational before the end of the year.

Will HITS play a major role in phase III and IV markets? How will IMCL cope with these phases?

Yes it will, because it is meant to really take advantage of the fact that in phase III and IV, there are hardly any MSOs that operate. But there are 6,000 independent operators and 60,000 LCOs and a majority of them are in phase III and IV. Now they will find it tough to meet digital regulations, quality of service norms, subscriber management system, conditional access systems and sourcing of STBs.

It is a tough task for a small guy, but if he continues to be the proprietor of his network and is helped by a HITS platform to be able to supply high quality 300-500 channels in MPEG 4 capacity, then surely it will cause excitement. To add to it, it will be a prepaid model, having complete transparency.

Yes, HITS will play a major role, but that doesn’t mean that Indigital will be left behind. From the group’s perspective, both will be developed and both are being developed.

Incable exists in phase III, but not in phase IV. For phase III, there are already specific cities for which plans are being drawn up. Incable is also pioneering the concept of digital feeds, which is fibre optic based feeds. Because it may not make sense in a city like Udaipur to put up a digital headend of Rs 10 crore, but it may make sense to take a city like Bhopal and set up a headend and the rest of the state can well be served by fibre optic feed, because then the cost of transmission goes down.

Incable anyways has thousands of kilometres of installed fibre optics of its own, which many others do not have. So we have the capacity and we will now utilize that. Even in phase II, we have digital feeds running through fibre optics. There have been regulatory issues like broadcasters having a different view, but our say to broadcasters is that in digitisation when every box is accounted for and every customer is paid for, then surely the mode by which we transmit should not be the problem of the broadcaster, but should be left to the MSO to work out the best cost effective model.

Digitisation means that you can use a mix of both. Currently, fibre in India is to the colony gate and in the time to come, it will be to home and when that happens, there will be quadra-play. We will have cable telephony as well coming in, but these are far away, at least 3-4 years away.

Will we see investments in IMCL as well by the group?

IMCL is currently being funded by HVL through a preferential share capital based on its requirements for phase III and consolidation of phase II. IMCL will not suffer from shortage of money. That’s not the issue. The issue is that IMCL has to cope with change and with that change, whatever support is needed is available.

SitiCable has launched local cable TV channels. Is IMCL treading that path? If you have to launch a channel, what kind of content will you have?

We are the pioneers as far as local content is concerned. In Mumbai for example, we had In Mumbai channel which we started way back in 1995-96. It was operational for a couple of years and was very popular. It had a mix of news, local events, interviews and it was more of a city-specific channel. At one stage, almost every city that Incable was operating in had a local channel and even today there are local channels, but it has typically not been run by the company in the recent past, but has been run by people who had perhaps bought time on the channel or have agreed to share a part of their advertising revenue.

So basically, they source the content and not the company, since our focus had shifted more on distribution. But today, with a fat distribution pipe being created and video on demand on the way, with two-way to happen with broadband, localization of content, in my view, has a strong public demand.

It also helps in stickiness in terms of vast competition in MSOs and DTH. So at one stage, when In Mumbai was part of Incable, it was a reason that people stayed with us, because they wanted to watch it. Also we had In News which ran in five languages.

Localisation, not on the Siticable model, but perhaps reviving the In Mumbai model, may take place.

While news and sports are important, I feel localized content, like local events, regional events, festivals and community events, have been neglected. The vast progress that we have seen internationally is more of a mom and pop show in India.

This area can undergo an upgrade, both in terms of quality and quantity. It is an interesting area to look at. Animation is again an interesting area that can be tapped.

Content can be self generated, syndicated or can be brought in and then re-created. What we have seen recently is that there is enough competition in every sphere of television and yet there is scope. Therefore, our sister company in entertainment will look at it and take advantage. There are 30 million cable TV homes with boxes, another 100 million to follow. 2014 is an ambitious year. Even if we can achieve 50 per cent of this, there will be 80-90 million cable TV homes to tap. 24 hours of programming is needed. It is not easy to really supply that content, so perhaps it’s easier to create content or to source it and then re-purpose it for your own audience.

The Telecom Regulatory Authority of India (TRAI) recently came out with its regulation on tariff rise in non DAS areas. How does it impact the business of MSOs?

This simply means that the cost of television has gone up by 27 per cent. When the consultation had started, I had personally taken it up with TRAI and told them that the price shock, if it has to be given, must be in phases. It was expected and long due and in the long run, as long as packaging is sensibly done, a la carte channels are offered, it will benefit all the stakeholders.

In the beginning, customers will be hit by the price shock, but after that, they will adjust.

Time has come for MSOs to discipline themselves. The MSO today has to take a stand that it doesn’t make sense for a non-paying or a zero paying LCO to have the signal.

Every change is resisted initially, but once it happens, things fall into place. There is a need for more communication in the industry.

When do you see gross billing starting in Mumbai for phase I? By when will digitisation of 38 cities in phase II be completed?

There have been discussions and there are amendments in the entertainment tax acts, but the notification has not been issued as yet by the entertainment tax authorities. According to me, in whichever way gross billing has to happen, it will take a couple of weeks more.

The 38 cities that comprise phase II should be completed by 30 June.

When do we see packaging of channels taking place in phase I and II cities? Why is it taking so long? What kind of packages can one expect?

The initial task of installing 30 million STBs was tough. Today, attention has shifted to packaging which will also be a function of the prices at which packages can be obtained from the broadcaster. There is disaggregation that will happen soon, which will lead to re-pricing of packages, possibly from July 1.

Packaging has to be a joint exercise of broadcasters and MSOs. Currently, it is not. So that’s another aspect which needs to be kept in mind that at the end of the day, it is the product of the broadcaster and the distribution is ours.

What if packaging teams were to be set up between MSO Alliance and IBF as an example? They could then get together and do a customer research and find out who wants to do what.

New models for packaging need to come in. Why should I pay ‘X’ amount for sports throughout the year, when during the year, there will be only three times that we watch Sports channels,. So can’t we have variable pricing, say during the world cup?

The second phase of digitisation will happen when the market will mature. And all this will happen in 2014-15 and 2016.

DTH today has a much better hold on packaging, than the MSOs. Regional packages need great attention and especially for national MSOs. The need of a customer in Bengaluru is different from that of a customer from Gujarat. Packaging requires research and customer connect. The customer is being currently taken for granted and they do not like it.

We still need to move to the CPS model and once that happens, the MSO can collect the money and pay the broadcaster. There are people who are still working with an analogue mindset in the digital era.

One way is to sell the channels on an a la carte, the other way is to shrink the package and the third is to say that I will give you growth, but cannot give the growth you demand which has no relation with the actual size of my network.

Why is there resistance from broadcasters, every time a new packaging model is suggested?

When status quo is disturbed, things change. Also when a particular channel is not available in a package offered to most, then the broadcaster may lose the advertisement support. But in time to come, we will move to a 50:50 regime, in subscription and advertisement.

What is the impact of the TRAI regulation on disaggregation on MSOs?

The regulation has given a great level playing field for independent MSOs like IMCL. So far, there has been clear favoritism towards MSOs who are owned by broadcasters and therefore, independent MSOs have had tough times or litigation times and that has taken away from further move to say digitisation. This is a welcome move and yet, sufficient safeguards have been given to the broadcasters. They have got 27 per cent tariff hike. The order should be accepted in the spirit. It is to increase digitisation and not to harm anyone.

Are you looking at enhancing broadband services, like Hathway Cable & Datacom did recently?

We have broadband services and that will be a key focus area in the years to come and what I personally look forward to is: pay per view, video on demand and triple play services. But these will take time. These services will be possible more in the prepaid era.

We always have been operating broadband as we have the ISP licence.

We don’t want to ape Hathway. They have their own focus point, we have ours. We want to develop digital best practices, keeping in mind what the customers want.

How would you look at phase III and IV markets? Will Incable compete with HITS in these areas?

It will be in phases. We will first concentrate on phase III, where we already have a reach, so we will see which cities to cover there. Then we have to decide which cities will be covered by the HITS platform. Which cities will have headend and which will have fibres. These are things that the IMCL management is working on.

No, the two will not compete with each other, as the markets will be different. There could be synergies in best practices but not in market.

Should phase III and phase IV of digitisation be taken at the same time? Do you think it can be completed within the deadline of December 2014?

My view is phase III and IV should be broken into three phases. If it took two phases to do 30 million homes, how can one expect 100 million homes to be done in two phases? The statistics don’t work and then currently, there is no movement in phase III.

While TRAI gave a start date for implementing digitisation, there is no need to give an end date. The regulator should incentivise those who digitise faster. Tax holiday or tax benefit or a better rate in terms of 42 per cent guideline of the Supreme Court, would work better than giving deadlines.

Phase III and IV is huge and untapped. The industry needs to be recognised as a small industry. Also there is a need for bank financing, formation of cable cooperatives and associate ventures. This is the reason that IMCL has pioneered joint ventures which exist is smaller towns and cities.

Dish TV launched its new Zing service in February; does it bother the MSOs in any way?

90 per cent of cable TV homes in phase I and II remained with MSOs. While the customers may have switched MSOs, they largely stayed with being a cable TV home. And this, when everyone thought that DTH players will have a smooth walk in these cities. DTH is an expensive proposition.

If DTH players think of launching something which is less expensive, it can lead to cannibalizing DTH itself and not necessarily an MSO. The MSO already has a sunken asset. We are just looking at stickiness of consumers and return on investment. Such moves will not affect MSOs.

Post elections, there can be a regulation on the cable TV monopoly. Do you think that will impact MSOs?

It may affect the regional MSOs, but not the national ones. These are proposals, but what comes out in the fine print will finally determine our way to look at it. I expect lighter facilitative and not restrictive regulations and I think TRAI is moving towards that.

What are the biggest challenges for you today?

The ability to harness the latest technology with the fastest way in which you can bring in specialty content at the cheapest possible cost in such a way that every member of the value chain is made happy with the money he retains after all taxes are paid is the real business plan challenge that industry needs to work on and which we are also working on. Ultimately, we should be able to run a profitable business.

Do you see the ARPUs going up? If so, by how much, and when?

The ARPUS will go up by 20 per cent in the next 12 months.

April 21, 2014
JAINHITS attains BIS certification for its set top boxes

NEW DELHI: JAINHITS, India’s only HITS Platform based service in India, today announced that it has successfully attained the Bureau of Indian Standards (BIS) certification for its set top boxes. This certification is in line with the DeitY’s (Department of Electronics and Information Technology) recent mandate on compliance of all imported as well as locally manufactured products electronic goods across 15 categories to comply with BIS’ quality benchmarks.

The ruling has been brought into effect owing to the increasing demand for electronic goods in India and includes product ranges from set top box laptops to tablets, and TV sets to microwave ovens. With this outline, all such products will need to be BIS-compliant for sale, manufacture or importing in the country.

Adding to this, Devinder Singh, Head- Regulatory & Corporate Affairs, Noida Software Technology Park Ltd. said, “Any Certification by itself is a tedious and time taking process. Where the aspect of human safety is required it becomes all the more tedious. It not only involves monetary expenditure at various stages, but also requires time and extensive documentation, testing both in-house & various International Certification agencies like “CE”, “UL” etc. The equipments presently requiring BIS certification for import or manufacturing in India need to be tested by Govt. recognized laboratories for meeting all standards including safety and transmission. Besides BIS certified, our subscribers would get to choose from SD and HD quality, MPEG4 STBs.”

Motorola is the end to end technology partner providing end-to-end networks solution, including video core solutions, access network solutions and customer premises solutions (set-top-boxes).

March 5, 2014
TRAI issues supplementary consultation paper on DTH licensing

MUMBAI: The Telecom Regulatory Authority of India (TRAI) issued a supplementary consultation paper on issues related to new DTH licences late 14 November evening.

This follows up the consultation paper it had issued on 1 October on issue/extension of DTH licences at the behest of the Ministry of Information and Broadcasting (I&B).

The new consultation paper seeks to get the views of industry stakeholders on the comprehensive review of the provisions in the existing DTH guidelines it is seeking to undertake.

Among those are:

Cross-holdings and control between a DTH licencee, broadcasting entities and TV channel distribution entities.

It is seeking to modify clause 1.4 of the DTH guidelines from “The licencee shall not allow broadcasting companies and/or cable network companies to collectively hold 20 per cent of the total paid up equity in its company at any time during the licence period” to “the licencee shall not allow any entity controlling broadcasting and/or any TV channel distribution operator to control it…”

Clause 1.5 is proposed to be changed from “The licencee company not to hold or own more than 20 per cent equity share in a broadcasting and/or cable networking company” to “any entity controlling the licencee should not control any broadcasting and/or any TV channel distribution operator.”

The term TV channel distribution operator covers operators of cable TV, DTH, HITS, and IPTV.
The consultation paper has defined what “control” can mean:

*A company owns 20 per cent of another firm directly or indirectly though associate companies, subsidiaries and/or relatives

* De jure control through having not less than 50 per cent of voting rights in second company; appointing 50 per cent of the members of the board of directors; controlling the management of affairs through decision-making in strategic affairs of the second company and appointment of key personnel.

* Exercises de facto control by being a party to agreements, contracts or understandings…that enable it to control business decisions in the second company.

The TRAI has said that if one were to go with this definition of control, then amendments will have to be made to laws relating to cable TV operators, broadcasters, HITS operators and some DTH operators will have to be given time to comply with the new provisions.
Interoperability of DTH STBs

The TRAI has stated that Clause 7.1 of the guidelines is open to interpretation. It states: “The open architecture (non-proprietary) set top box which will ensure technical compatibility and effective interoperability amongst different DTH providers shall have such specifications as laid down by the government from time to time.”

It has emphasised that this could be modified to put the onus on the Bureau of Indian Standards and the government shall ensure that “the BIS specifications are based on open architecture and should incorporate the latest technological developments with respect to interoperability of DTH STBs taking into account its practicality as well as international experience.”

Additionally, it states that “the BIS specifications should clearly specify the contours of interoperability between the STBs based on different technological standards.”

Finally, it has pointed out that the licence conditions should be amended to mandate compliance to BIS specifications for the STB to be offered to all new subscribers within a suitable period of say six months.”

Licence Fee:

It has recommended that the licence fee and the definition of adjusted gross revenues (AGR) for the DTH sector be aligned with that specified in the Unified Licence. And that the licence fee may be charged at eight per cent of AGR. The AGR could be calculated “by excluding service tax on provision of service tax and sales tax actually paid to the government if gross revenue had included components of sales tax and service tax.”

Under the current guidelines, DTH licencees have to pay an initial non-refundable entry fee of Rs 10 crore before the issue of the letter of intent by the licensor, and an annual fee of 10 per cent of its gross revenue in the particular financial year after the issue of the wireless operational licence by the WPC. The TRAI had in 2004 recommended that this be reduced by two per cent on AGR, and later to six per cent of gross revenues in 2008.

Migration Fee:

It has recommended an imposition of an entry fee on existing and new DTH operators moving to the unified licence regime. Existing operators should be given a rebate commensurate to the value of the licence for the remaining licence period, and that may be termed as the migration fee. The rebate could be calculated.

The TRAI has asked stakeholders to give their views on the recommendations issued today by 25 November. Stakeholders also have to give their recommendations on the consultation paper dated 1 October 2013.

November 14, 2013
TRAI agrees to raise FDI limits as demanded by News Channels & FM Radio

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Click here for TRAI-FDI-Recommendation

August 22, 2013
TRAI attempts to rein in TV channel aggregators in new consultation paper

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

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

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

The main points of the consultation paper are that:

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

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

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

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

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

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

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

These include:

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

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

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

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

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

Background to TRAI’s attempt to regulate Aggregators

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

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

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

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

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

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

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

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

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

August 6, 2013
TRAI releases FDI in media consultation paper; seeks industry feedback

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

July 30, 2013
How T-Series hit a Billion views on YouTube

It’s India’s No 1 music company. Now it has also got the nametag of becoming a YouTube billionaire. T-Series‘ Youtube channel crossed the billion views milestone in just a span of two years since it took the digital route. Some 2.3 million subscribers helped it get there.

So what is it with T-Series’ YouTube initiative that has struck a chord with the digital generation? Let’s take a look:

It’s content, content, content

For starters, its got the most massy content – music of the biggest films out there on its mainstream Bollywood Channel, Take a look at what visitors get to consume on the T-Series home page: the music, trailers of Aashiqui 2, Yeh Jawaani Hai Deewani, Fukrey, Lootera, Chennai Express, Policegiri and Once Upon a Time in Mumbaai Dobaara. Can you get more popular content than that?

India‘s music king Bhushan Kumar has a billion reasons to celebrate

T-Series has over the 30 years of its existence spent top-dollar to acquire the rights to the music of some of Bollywood’s biggest blockbusters. The music of this huge catalogue has also been ported on to its YouTube channels, making for a treasure trove for music lovers.

Then the T-Series Youtube presence is marked by many sub-channels like Apna Punjab for Punjabi Pop, Hamaar Bhojpuri for Bhojpuri content, Bhakti Sagar for spiritual music, Pop Chartbusters for Indipop videos, Shabad for Punjabi Devotional content, Bollywood Classics for 1980‘s and 1990‘s content, regional music channels and channels dedicated to full length Bollywood movies and Indian classical music.

Though some of these channels don’t get humungous views, they go to service the long tail of consumers and cumulatively add up to large numbers.

“These are targeted at niche audiences and we are really happy the way they have panned out. Hamaar Bhojpuri has seen really exciting numbers and has been getting views from as far as Argentina, Brazil, Germany and Middle East,” explains T Series president Neeraj Kalyan who looks after the label’s digital initiatives.

Ok, it’s not just the content, it’s what you do with it, that counts

“We experiment with our content and try to learn from our audiences which in turn help us improve ourselves,” explains Kalyan. “Nothing is fixed like a normal brand page of a mobile company or a cosmetic product, our product is music which is very personal and has the highest level of emotional connect with the consumers. Content programming on social media is as important as it is for television or radio.”

T-Series’ endeavor with YouTube has always been to improve consumer interaction and make it it more interesting and engaging. Hence, it has innovative concepts like Audio and Video Jukeboxes, Bollywood Twisters, Lyrical Videos, Song of the Day and Fan of the week, which lures consumers into coming back.

What else does it focus on? “Metadata building, tags, annotations, SEO are all standard procedures and needs constant focus to succeed in this space,” says Kalyan.

“These require tremendous perseverance and have to be build up step by step.”

Ok, you have played with the content. Now you have to promote it like hell using other social media where you have diehard fans.

T-Series has a strong presence on other social media outlets such as Facebook, Twitter and G+. Its official Facebook page has 608,436 likes and hundreds of thousands of visitors at any time talking about the channel and its music. On Twitter, T-Series has around 19,627 active followers. @TSeries is buzzing with tweets and re-tweets every couple of hours. The numerous fan-driven handles of its popular movies are busy re-tweeting and sharing every update, thus adding to the social buzz – and the traffic thereof. Then it has 1.5 million people in its G+ circles, a sizeable number no doubt.

“Social media is not like old school media, it’s a more personal medium which is primarily driven by peer activities, their likes and dislikes and if one has to enter their personal space one has to become their friends instead of a brand page. The prime focus of our strategy is to make friends instead of likes, subscriber or followers on our social media accounts.” Kalyan reveals.

Then the T-Series digital team changes its social messaging strategy as per its content offerings. And it uses the entire strength of its social media to promote each major piece of content. For example, for a Salman Khan film, the entire social plan revolves around Salman Khan. And the zillions of tweets, updates, pictures, videos all cumulatively work to create even more buzz adding to the views.

Work with Youtube, and get it to push your content

By virtue of its being one of the larger players on YouTube in India, T-Series content, from time to time gets the nudge from the latter’s content team led by Manan Singhi in India. What that means is that, when visitors log on to the YouTube home page they are given prompts to visit the T Series channel as it is listed as among the more viewed ones.

Build a digital team

Kalyan personally supervises T-Series’ dedicated in-house digital team – though small – of around eight to 10 people. The average age is about 25-26 years, while Neeraj is 44. Says he: “T-Series’ digital team has been the winning mantra for us and will always

The T-Series digital team is constantly on the go to keep visitors and viewers of its social media outlets engaged

remain at the core of this success. We have genre specific experts managing all our channels and are currently busy with audience building for the niche channels. Our team interacts with fans on an every day basis; gives regular response to their queries, accepts criticism. We reward fans and recognize them online, which adds to their pride and improves interaction and helps in building a strong brand – consumer relationship.”

The one billion views achievement has already got him praise from an effervescent T-Series chairman & managing director Bhushan Kumar.

T-Series‘ digital driver Neeraj Kalyan

“I would like to dedicate this success to all our fans all over the world that have helped us reach this milestone. I would like to congratulate my entire in-house digital team and the YouTube team for this tremendous feat. We look forward to achieving greater heights with our dedication and passion to offer quality content and experience to our discerning consumers worldwide,” says he.

Kalyan says the past two years of T-Series’ association with YouTube have been a great learning and he hopes to put those learnings to help T-Series leapfrog further. “We will get to our next billion in double quick time,” he says. “I am sure we will.”

With that kind of confidence, he well might.

July 5, 2013