ITV

Tag: HITS

  • NXT Digital to use Thomson Video Networks’ compression technology

    NXT Digital to use Thomson Video Networks’ compression technology

    MUMBAI: Hinduja Group’s headend in the sky (HITS) platform NXT Digital will use Thomson Video Networks’ compression technology.

     

    Thomson Video Networks has provided a wide range of equipment and solutions for the broadcast centre and master headend platform, including its Vibe SD and HD broadcast encoders and its multiplexing and network management system.

     

    “We designed our HITS system to deliver best-in-class picture quality with a robust architecture and the highest level of uptime. To make that design a reality, we needed a world-class digital delivery platform to reach the network operators across India from a centralised location, and Thomson met our requirements,” said Grant Investrade managing director Tony D’Silva.

     

    “NXT Digital is here to help the distribution community in analog markets make a smooth and timely transition to digital, and we are hopeful it will help write what could perhaps be the biggest chapter in the ‘Made in India’ story,” he added.  

     

    “Thomson Video Networks’ compression technology with advanced statmux features will give us pristine broadcast picture quality at lower bandwidth consumption. The solution is flexible and future-proof, and Thomson Video Networks has a strong local presence, which is an important requirement of the project,” said Castle Media executive director Vynsley Fernandes.

     

    NXT Digital is scheduled to roll out pan-India services in 2015, and tests of various components of the business are underway.

     

    “The Hinduja Group is one of the leading business houses in India and one with a global footprint. GIL’s selection of our compression chain will increase Thomson Video Networks’ market share in the satellite segment in India, push the company to among the top compression vendors in the region, and also boost overall market share substantially. This significant project will further strengthen our presence in Southeast Asia,” said Thomson Video Networks vice president, worldwide sales Eric Louvet.

  • Hinduja’s NXT Digital signs Hansen Technologies for billing solution

    Hinduja’s NXT Digital signs Hansen Technologies for billing solution

    MUMBAI: Hinduja Group’s new Headend in the Sky (HITS) platform NXT Digital will be using Hansen’s ICC billing solution.

     

    The Hinduja Group has signed a multi-year licence agreement for Hansen’s ICC Customer Care and Billing.

     

    “With a potential target market of more than 100 million subscribers, we needed the leverage of a globally recognised firm with the expertise to move us forward. The implementation of our HITS platform will allow local cable operators to provide high-quality digital TV services to customers within their specific regions,” said Grant Investrade managing director Tony D’silva.

     

    India is currently going through a government-mandated digitisation programme and it is expected that over 110 million TV homes will make the transition from analogue to digital over the next 17 months.

     

    Hansen ICC has the strength and flexibility to support HITS by giving control to the parent organisation while allowing the individual businesses to operate independently.

     

    “Businesses that run distributed models like HITS require the flexibility to balance the needs of the overall organisation with each of the independent operating units. The HITS business hierarchy requirements are highly complex; our Pay-TV solution enables NXT Digital to provide multi system operators (MSOs) and last mile owners (LMOs) a scalable solution from a single deployment,” added Hansen Technologies CEO Andrew Hansen. 

     

    The company was selected by GIL after a rigorous four-stage evaluation process conducted by Castle Media, which is also the technology programme manager for the HITS service, responsible for design to delivery of the $100 million project.

     

    “Hansen exhibited the functionality and features that are required for an extremely complex multi-tier operation. With its pedigree and experience in the global Pay-TV space, it is certainly the appropriate partner for such a high-value project,” said Castle Media executive director Vynsley Fernandes.

  • Despite roadblocks, India attains 48% digital pay-TV penetration in 8 years: MPA

    Despite roadblocks, India attains 48% digital pay-TV penetration in 8 years: MPA

    MUMBAI: Following a blitzkrieg of cable set-top box (STB) deployment, the digitisation process is taking a breather as operators shift focus from deployment to monetisation in order to ensure growth with profitability. 

     

    As per a recent Media Partners Asia (MPA) report, the pace of India’s pay-TV growth story may appear to be in trouble. However, the report also points out that the process of profitable digitisation typically takes 15-20 years. “In this context, for a market characterised by low average revenue per user (ARPUs), absence of tiering and fragmented last mile cable distribution, India has done well to attain 48 per cent digital pay-TV penetration in eight years,” the report highlights. 

     

    As the industry consolidates and regroups, the current phase of India’s pay-TV industry offers significant opportunities for value creation across various business segments. The key opportunities and levers, according to MPA are as follows:

     

    Cable

     

    Initial STB seeding by cable operators has improved subscriber declarations. Accordingly, with the transition from analog to digital, net ARPUs to multi system operators (MSOs) have grown 10x, to Rs 100 per subscriber per month. However, the current balance sheet position of most MSOs does not justify market expansion. MSOs are therefore compelled to drive operational efficiencies through prepaid services and packages. This helps improve yields from existing digital subscribers. Operators successful in executing such moves will attract refinancing (of existing debt) to expand their consumer offerings with bundled broadband and HD services. Over time, MSOs will also gain more operational control of their networks through majority ownership of joint ventures, and eventually acquire primary points at affordable prices.

     

    At each stage of cable’s evolution, the operating margin for MSOs will grow multifold. The business will remain capital-intensive but as operators grow to become full-service providers, they hold the potential to generate significant returns on capital employed (RoCE). Cable assets should not just be evaluated on reach and the digital subs base but also on their ability to cross-sell high value services such as HD and broadband. Also important is their effective economic interest in the last mile business. As the approach for MSOs shifts from width to depth, structurally, cable platforms will remain concentrated in the top 50 cities. This could change dramatically, however, with the entry of deep-pocketed players such as Reliance Jio and the growth of Headend-in-the-Sky (HITS) platforms, which seek to digitise rural markets.

     

    Several international and long-term financial strategics have also been eyeing partnerships with India’s cable and broadband players. This would help expedite capital as well as technical, operational expertise.

     

    DTH

     

    Since its inception, the DTH sector has made cumulative investments of Rs 275 billion and has been primarily responsible for driving penetration of digital pay-TV. With a base of more than 41 million active subscribers, DTH is poised to benefit from greater economies of scale. In 2014, the DTH industry reported an average EBITDA of Rs 38 per sub per month, with margins at 16 per cent. Moreover, two of the leading operators, Dish TV and Airtel Digital, have already started generating positive free cash flow (FCF). 

     

    Over time, MPA expects the DTH industry at large to generate meaningful FCF through: 

     

    (1) EBITDA margin expansion, as operating leverage starts to play out with subscriber acquisitions in Phase III and Phase IV DAS markets; and 

     

    (2) The composition of incremental revenue becoming driven more by ARPU growth rather than subscriber volumes. Leading players will be able to self finance future growth as well as consolidate the market, creating significant value in the process.

     

    Broadcasting

     

    India’s $3.5 billion broadcast industry remains in a sweet spot. The dual revenue stream of advertising and subscription is expected to benefit from a resurgent economy as well as improved structural dynamics anchored to steady growth in the number of TV households (TVHH) and higher digital pay-TV penetration.

     

    At 60 per cent TVHH penetration, India continues to add seven million new TV homes each year. In other words, at an average family size of 4.5 members, TV is gaining more than 30 million potential viewers each year. Television will continue to offer the highest reach to advertisers, relative to other media. As a result, advertisements will remain the major revenue stream for broadcasters, while an increase in affiliate sales will help stabilise the business and drive profitability.

     

    As of end-2014, total affiliate sales for broadcasters reached $1.1 billion, according to MPA. Significantly, 80 per cent of affiliate revenues were derived from digital subscribers (cable DAS + DTH), while India’s digital pay-TV penetration stood at 48 per cent for the same period. Digitisation has therefore improved subscription yields for broadcasters.

     

    In 2014, an average broadcaster’s yield from digital subscribers stood at Rs 74 per sub per month, against Rs 18 per sub per month from analog. There is therefore upside on affiliate sales, as analog subscribers in Phases III and IV convert to digital.

     

    Besides leading to greater addressability, digitisation has also improved channel distribution economics by lowering the cost of distribution and allowing multiple modes on content delivery (SD, HD SVoD, TVE etc). Although cable continues to account for more than 80 per cent of the carriage and placement (C&P) market in India, since the roll-out of DAS in 2012, the cable net distribution income (or NDI, which is essentially subscription income minus C&P costs) for broadcasters has grown by 137 per cent, to $218 million. 

     

    Going forward, the growth of the broadcasting industry will be driven by:

     

    (1) Expansion in advertising through sub-segmentation and identifying new genres

     

    (2) An increase in the addressable subscriber base with more digital homes

     

    (3) Growth in subscription yields: MPA projects total pay-TV channel revenues for broadcasters to grow from $3.5 billion in 2014 to $6.1 billion by 2019, and to $7.9 billion by 2023.

     

    Based on the relative growth for other markets in Asia- Pacific (ex-China), India is expected to contribute more than one-third of the total channel revenue business in the region by 2023. India’s strategic importance in the region cannot be ignored. For major international networks,

    India already contributes a significant part of their overall APAC business.

     

    Broadband to sow seeds for new digital assets

     

    Significant investments are also being made in India’s fixed and wireless broadband infrastructure. This will help boost internet penetration and improve average broadband download speeds. To address the challenge of last mile connectivity, the Department of Telecom (DoT) is considering joining forces with cable MSOs and local cable operators to help boost broadband penetration in smaller cities and towns. The above proposal, if implemented, can open new avenues for cable broadband.

     

    MSOs have already increased their investments in broadband. As of end-2014, cable broadband subscribers stood at one million, or only 0.3 per cent penetration of total households in the country. However, the entry of new players such as Reliance Jio could dramatically change the fixed broadband landscape. Having recently secured a pan-India MSO license, the company claims to have built the capacity to serve 20 million fiber-to-the-home (FTTH) customers.

     

    Traditional broadcasters are looking to capitalise on the emerging digital opportunity by investing to create long-term assets. For instance, incumbent broadcasters Zee, Star and Sony have started to aggressively invest in delivering branded OTT services. The belief is that online video consumption will complement the existing linear pay-TV business. Eventually, subscription OTT services will take off as bandwidth costs become more affordable and compelling exclusive content is made available for online audiences. Nonetheless, revenue monetisation will require more scalability, as online video revenues are projected to account for not more than 10 per cent of total video industry revenues over the next decade.

  • TDSAT directs NSTPL to restore signals of cable network on receipt of payments

    TDSAT directs NSTPL to restore signals of cable network on receipt of payments

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) has asked Headend in the Sky (HITS) operator Noida Software Technology Park Ltd (NSTPL) to not disconnect signals to Guru Kripa Cable Network subject to the petitioner making certain payments.

     

    Member Kuldip Singh sitting in the vacation bench admitted the petition by the Cable Network.

     

    The Tribunal has directed payment of Rs 60,000 within three weeks from today and another payment of Rs 55,000 within three weeks thereafter.

     

    While the cable network admits dues of Rs 1,13,956, its counsel told the Tribunal that the amount needs to be reconciled since it had made some excess payment earlier.

     

    The Tribunal directed that NSTPL will file its reply within four weeks and rejoinder if any will be filed within two weeks of receipt of the reply.

     

    The matter will now go before the Registrar on 12 August for getting the pleadings completed, framing of issues and if the parties concur, taking evidences etc.

     

    Apart from the payment of the dues, Guru Kripa Cable Network will continue to make payment of the monthly subscription fees on the basis of invoices raised by the NSTPL.

     

     The payments will be without prejudice to the rights and contentions of the parties.

     

    The cable network told the Tribunal that some of their Set Top Boxes have been deactivated by NSTPL and they are not receiving all the channels on the other activated STBs. However, NSTPL counsel Joby Varghese made a categorical statement that all the channels are being given for the activated STBs. However, some STBs for which CAFs have not been submitted by the cable network have been disconnected.   

     

    Varghese stated that these STBs will be activated immediately but the petitioner must supply CAFs for the same, as required by the regulation.

     

    Cable network counsel Mayank Kshirasagar stated that the CAFs will be supplied within two weeks from today.

     

    The Tribunal said its order should not come in the way of the parties meeting to reconcile their accounts. The balance dues, found if any, shall be cleared by the network.

  • IBF, NBA, MSO Alliance get more representation in DAS Task Force

    IBF, NBA, MSO Alliance get more representation in DAS Task Force

    NEW DELHI: New members have been taken on board of the Task Force for Digital Addressable System (DAS) Phases III and IV headed by the Additional Secretary in the Information and Broadcasting Ministry.

     

    These include one additional member each from Indian Broadcasting Foundation (IBF), and News Broadcasters Association (NBA).

     

    In addition, the new members include Noida Technology Software Park as members representing HITS operator; Ortel Communications; and a representative each from four national MSOs – Den, Siticable, Hathway and IMCL – who were also members of the MSO Alliance; and the All India Digital Cable Federation.

     

    The Government on 12 September last year had reconstituted the Task Force. This followed a revision of deadlines for the two final phases of DAS.

     

    The other members of the Task Force are Telecom Regulatory Authority of India (TRAI) principal advisor for broadcast and cable satellite, I&B Ministry joint secretary (Broadcasting), one other representative from the MSO Alliance, five independent MSOs one each from north, south, east, west and north east regions, five registered LCO associations one each from north, south, east, west and north east regions, representatives from the Indian Broadcasting Foundation, News Broadcasters Association, Association of Regional Television Broadcasters of India, DTH Association, FICCI, CII, ASSOCHAM, CEAMA, Department of Telecommunications, Department of Electronics and Information Technology, DG: Doordarshan, DG: All India Radio, BECIL, BIS, five prominent consumer organisations one each from north, south, east, west and north east regions and 33 state level nodal officers one each from the states/union territories governments.

     

    The task force is aimed to act as an interface between the government and the industry in matters related to implementation of DAS in the cable TV sector and monitor the implementation of DAS. It also will have to analyze the roadblocks that may come in the way of digitization and suggest measures. 

  • TRAI asks MSOs, b’casters to sign MoU on interconnect agreements in phase III

    TRAI asks MSOs, b’casters to sign MoU on interconnect agreements in phase III

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has given time till 30 April, 2015 to both broadcasters and multi system operators (MSOs) to enter into a memorandum of understanding (MoU) with regards to interconnect agreements in phase III of digital addressable system (DAS) areas.  

     

    During the seventh task force meeting for successful completion of phase III and IV of digitization, a representative from TRAI informed that in case the broadcasters and MSOs fail to reach any agreement, the Authority will intervene in the matter, as per regulations. “While broadcasters were asked to give report every fortnight, the same has not started coming,” said the TRAI representative.  

     

    The representative also mentioned that in the transition period both analogue as well as digital signals can be provided by the MSOs in phase III areas. “As per the regulations digital signal can be provided in areas undergoing transition without waiting for the cutoff date,” he added.

     

    The meeting was convened under the chairmanship of Information and Broadcasting Ministry additional secretary JS Mathur, who said, “While there has been some progress on the issue of interconnect agreements for phase III areas but there are still many areas which need to be addressed by broadcasters.”

     

    During the meeting, an IndusInd Media and Communication Limited (IMCL) representative said that while they had sent interconnect requests to all broadcasters, as per the TRAI directive, they had received response from only one broadcaster, while Siti Cable was still awaiting a response from all. A Siti Cable representative said, “Broadcasters are filing cases of piracy against MSOs if they start providing digital signal in the phase III areas.”

     

    MSOs pointed out that the situation is critical and TRAI must take immediate necessary action to resolve the issue. MSOs also want the entertainment tax, levied by State Governments, rationalised.

     

    Representatives of broadcasters said that they would approach TRAI for clarification on the interconnect agreements to be signed for the transition period. “No such issues of interconnect agreements were raised during phase I and phase II of digitisation and the set top boxes (STBs) were still seeded. Why are these issues being raised now?” questioned broadcasters.

     

    Broadcasters also raised concerns on the HITS (Headends In The Sky) platform of delivery with regard to addressability although it is mentioned that it is addressable from the day one. Broadcasters also opined that DAS regulations should apply from the date MSOs take digital signal.

     

    According to Mathur, consumers have the right to know what they have to pay for the digital signal and so, it is imperative that broadcasters and MSOs work out agreements between them without further loss of time. He added, “Channel package rates have to be in public domain. Broadcasters must now finalise all issues with MSOs so as to have a lead time of implementation.”

     

    While the universe for phase I and II was extremely limited, phase III has to cover all the urban areas of the country. This would thus require exhaustive planning along with suitable investments. “Both broadcasters and MSOs must now finalise their agreements and inform TRAI within the stipulated time period of 30 April,” said Mathur, while suggesting that TRAI should convene a meeting soon after the time period it has given for finalising the action plan for smooth and timely transition.

     

    Mathur also expressed dissatisfaction over the public awareness campaign for digitisation in phase III areas carried out by the stakeholders so far. He asked all stakeholders and particularly the broadcasters to start the publicity campaign forthwith.

     

    While the Ministry is still awaiting data on carriage fee and subscription revenue from both the Indian Broadcasting Foundation (IBF) and the News Broadcasters Association (NBA), an NBA representative assured that it will be sent before the next meeting.

     

    Mathur also enquired about the initiatives being taken by MSOs for using indigenously manufactured STBs. Responding to this, an MSO representatives said that the dialogue with indigenous STB manufacturers was on.

     

    Consumer Electronics and Appliances Manufacturers Association (CEAMA) representative informed that they had fruitful discussions with some MSOs in which they made some financing offers to MSOs for the supply of STBs.

     

    Representative of CEAMA further added that they were now facing a major competition from the suppliers of ASEAN countries since the government, as per the ASEAN agreement signed in 2009, has reduced the import duty on STBs imported from ASEAN countries to two per cent only against 10 per cent from other countries. He said, “MSOs may neglect local STB manufacturers and start importing from ASEAN countries, but this will be against ‘Make in India’ initiative of the Government.”

     

    Meanwhile a CEAMA representative requested the I&B Ministry to look into the issue, while informing that they were also in the process of writing to the Ministry of Commerce about this development. In order to know the use of indigenously manufactured STBs, Mathur directed that the information on utilisation of domestically manufactured STBs may also be sought from all MSOs along with the seeding plans.

  • Date extended for MSO registration for DAS phase III

    Date extended for MSO registration for DAS phase III

    NEW DELHI: Following an assurance in the last Task Force meeting, the Government has extended till 6 February the last date for multi-system operators for registration for Phase III of digital addressable systems (DAS) for cable television.
     
    The earlier date was 21 December.
     
    The Ministry noted that Cable TV digitisation in remaining urban areas not covered in phases I and II is slated for completion by 1 December 2O15.
     
    Cable TV Digitisation Security clearance from the Home Ministry – a prerequisite for permanent registration – takes about three to four months.
     
    The extension is being given as MSOs complained at the last meeting of the Task Force for phase III that they needed sufficient time to operationalise their digital set ups after the issue of the registration.

     

    Speaking at the task force meeting last week, several stakeholders also wanted online registration for MSOs wanting to enter their names for phase III.
    Information and Broadcasting Ministry Additional Secretary J S Mathur, who chaired the meeting, also said that meetings were being organised between manufacturers of indigenous set top boxes and the Ministry of Information and Technology.

     

    Mathur responding to queries from some MSO’s wanted them to prepare a list of areas in phase III which were currently not being reached by cable television. A member had pointed out that a Headend In The Sky (HITS) platform could be used in such areas.

     

  • MSO’s request govt to set up regional units to facilitate DAS registrations

    MSO’s request govt to set up regional units to facilitate DAS registrations

    NEW DELHI: Even as the government has agreed to consider extension of four to five weeks for registration of multi system operators (MSO), who want to opt for phase III of the Digital Addressable System (DAS), the government has been asked to consider setting up regional units to facilitate such registrations.

    Speaking at the task force meeting last week, several stakeholders also wanted online registration for MSO’s wanting to enter their names for phase III.

    Ministry additional secretary J S Mathur, who chaired the meeting, also said that meetings were being organised between manufacturers of indigenous set top boxes and the Ministry of Information and Technology.

    Mathur responding to queries from some MSO’s wanted them to prepare a list of areas in phase III which were currently not being reached by cable television. A member had pointed out that a Headend In The Sky (HITS) platform could be used in such areas.

    Some consumer organisations which are part of the task force, said they will need to organise workshops in different parts of the country to help people understand DAS.  

    The Confederation of Indian Industry (CII) representatives said that the association was planning such workshops in Kerala and Guwahati. Mathur asked CII to give him details of the workshops when they are scheduled.

    Mathur regretted that the number of stakeholders attending the meetings was very minimal and expressed hope that later meetings will be attended by larger number of members.

    In the last meeting it had been announced that the task force would meet every month to ensure deadlines are met and phase III of DAS comes into operation by December 2016.

     

  • Hinduja Venture’s HITS project to rollout by April 2015

    Hinduja Venture’s HITS project to rollout by April 2015

    MUMBAI: Hinduja Ventures’ Headend in the Sky (HITS) project will soon see the light of day. While the platform will start the field testing in January-February 2015, the actual rollout will take place between March-May 2015.

    “We are working as per the plan and are on schedule,” informs IMCL MD and group CEO Tony D’silva to indiantelevision.com.

    The platform is in talks with several independent MSOs and LMOs.  “By the time we launch, we will have close to 8-10 million consumers being serviced through our HITS platform,” he says.

    In order to gauge the interest level of the operators in the HITS project, Hinduja conducted a major research in nine states including four states from the south, Maharashtra, Rajasthan, Gujarat, West Bengal and others. “The study was done by an outside agency and involved close to 1000 operators,” informs D’silva who is elated with the results.

    According to D’silva, the research shows that the operators are happy with the cash and carry model being offered by Hinduja’s HITS model. This apart, the study revealed that the operators are also excited about the customised packaging and bundling at a charge which is 50 per cent lower than what they would pay for this kind of setup.

    While the study also shows that the operators are excited about the launch, D’silva says that he doesn’t want to launch it in a hurry. “We want to test our services and make sure that the set top boxes (STBs) are of top quality. There have been a lot of issues with the boxes all across the country and so we want to subject the STBs to all kinds of heat, cold, dust etc test,” he adds.  

    The operators are also happy to do a small Annual Maintenance Contract (AMC) for the boxes, probably at the cost of Rs 5 per subscriber per month, so that replacement of STBs becomes easier.

    As for the licence clearance from the Information and Broadcasting Ministry, D’silva says that the process is moving smoothly. “We will get the final licence in hand only after we are ready for the rollout and pay Rs 40 crore as bank guarantee. Licence will not be an issue any more,” he says.

    D’silva claims that the platform has got the best products and four vendors have been roped in to provide the STBs.  “While no indigenous STB manufacturers are currently onboard, we are still looking at them. We want MPEG4 boxes at the same commercial terms as others. But, we haven’t got any positive feedback from them as yet,” informs D’silva.  

    As for the name of the platform, D’silva says that the research for the name is on. “I think, while brand name is good for us to build but at this point, HITS as a concept is more understood by the LMOs and so we do not want to confuse them at this stage,” he adds.  

    No agreements will be signed between the MSO or LMO and HITS, but a MoU could be signed before the HITS project is launched. “We cannot sign an agreement before the launch, since we will get the licence only after the rollout, but we may enter into MoUs.”

    The marketing campaign about the new launch will commence from middle or end of January. “We are providing a very competitive service to fight any competition, with value added services etc. We are also providing HD STBs to operators at the cost of SD boxes. We are entering the market looking at the future and not today,” signs off D’silva.

     

  • “We are looking at funding options and are actively engaged with investors”: JK Jain

    “We are looking at funding options and are actively engaged with investors”: JK Jain

    Cable TV industry in the country has been the hub of the action for the past one year, especially with the government pushing through digitisation of cable TV homes. An important player in the industry is the headend in the sky (HITS) player JAINHITS, which did face some initial hiccups in being accepted by the broadcasters and local cable operators (LCOs), but has now finally made in-roads in several homes pan-India.

     

    And leading the HITS platform from the front is Dr. Jinendra Kumar Jain, who is not only a surgeon, a former member of parliament, but also the founder chairman of Jain TV Group.  

     

    He pioneered the satellite TV era in India by launching the country’s first round-the-clock satellite television service in Indian languages. JAINHITS is his latest initiative to serve the national goal of digitisation. 

     

    The HITS platform proposes to distribute 200 to 500 digital channels via satellite to the existing ground networks of cable operators. It is designed to integrate broadcasting and broadband services and thus, help bridging the digital divide in one go all over the country.

     

    Jain’s leadership, innovative ideas in the ICT sector and entrepreneurial initiatives have led to establishment of several successful businesses, including: Video on Wheels (Vow), a countrywide network of mobile video and health service vans, Noida Software Technology Park Limited (NSTPL), India’s first private teleport that provides both fixed (FSS) as well as mobile (MSS) satellite services, Medical Communication Network (MCN) whose publications include the Indian edition of FIGO Journal, IJGO (International Journal of Gynecology and Obstetrics) and the Population Reports for John Hopkins University, National Broadcasting Academy (NBA), a graduate and post graduate educational programme providing degrees in Management and Communication fields.  

     

    While the eyes are fixed on the soon-to-be launched HITS platform from Hinduja, Indiantelevision.com’s Seema Singh spoke to Jain on the platform’s performance, the struggle in getting accepting, his future plans and much more….

     

    Excerpts…

     

    How did you think of launching a HITS platform in a market which was dominated by multi system operators (MSOs)? How long did it take from planning to finally launching the service?

     

    We were the very first company that explained the headend in the sky (HITS) strategy to deliver digital signals to the cable operators. It was somewhere in the year 2003 that the then Minister Sushma Swaraj declared the decision of digitisation. They had obviously not done any homework and officials in her Ministry were willing to learn the technological aspects of the task. I had an opportunity to explain Anil Baijal, the then additional secretary in the Ministry about HITS. He liked the idea and I agreed to submit a detailed project report with all the relevant information.  The Government issued us the permission letter to deliver HITS services from our Teleport which had already been set up. In the beginning, there was no market and therefore we did not show any hurry. In fact, Citi Networks also got the similar permission and even started HITS based services without waiting for finalisation of rules and regulations. They arrived in the market before time but we waited for the right time and that is how they closed their shop without waiting for the market conditions to ripe and our timely decision is now giving us full benefits. Today we are the market leader in this sector. 

     

    Was it a task to get the broadcasters onboard? How did they initially react to the HITS model?

     

    Yes it was quite a task to get the broadcasters onboard. This became possible only with the help of judicial intervention. The big monopoly houses of the Indian cable industry have been offering resistance at every step of our journey. Nobody doubts the fact that cable digitisation will be a game changer in India. The cable distribution market is flourishing and millions of people in India watch TV via cable. Digitisation is certainly good news for broadcasters and tax authorities because subscriber numbers will be reported accurately and transparently.  Even the subscriber shall benefit from itemised billing detail so that they will be charged only for the channels that they wish to subscribe.

     

    It is true that the vertical chain of the industry stands divided between big and small players.  But, the game is turning in favour of small cable operators and their victory would mean the success of HITS platform.

     

     

    While a lot of the issues have been resolved with the court ruling in your favour, how have you dealt with the issues the broadcasters were raising, that of piracy?

     

    We have deployed best technology solutions to prevent piracy related issues.  As a company we take ‘Piracy’ very seriously. We have our own anti-piracy teams who look into such piracy issues.

     

    We also work in tandem with our business partners- broadcasters, LCOs, and distributors and take inputs from them to fight back the malice of Piracy. At present, during the audits conducted by the broadcasters they have found our systems working efficiently and exceeding industry standards. 

     

    How big is the company today, in terms of number of offices, employees, ground stations, revenue?

     

    NSTPL is a Public Ltd. profit making company. The business of the company is divided across three verticals:

     

    NSTPL Infra

    NSTPL Broadband

    JAINHITS

     

    The company has presence across the country with its own offices as well as distribution partners spread across India. NSTPL that operates India’s only National Cable and Broadband Platform called JAINHITS, operates teleports in Greater Noida and Hyderabad, serving 70 broadcasters. The Teleport is duly authorised & licensed by various regulatory bodies such as Ministry of Information & Broadcasting and Ministry of Communications, Government of India.

     

    When you started, what was the initial investment that was made into the company? Who were the partners? How have you grown the company over the years?

     

    NSTPL is a closely held Limited Company with fully paid up share capital of Rs 30 crore. 86.66 per cent of its shares are held by  Ankur Services Growth Fund, 13.33 per cent is held by Jain Studio and 0.002 per cent is held by individuals. We have invested approximately Rs 150 crore in JAINHITS since the concept initiation i.e. from April 2012.

     

    The response to JAINHITS has been extremely encouraging and thus, in a short span of one year we have signed up with over 300 cable operator partners across India.

     

    How many TV channels does the platform have currently? How many homes do you reach to and in which regions?

     

    We have around 254 channels today. Out of which 7 channels, namely, Disney, Cartoon Network, Pogo, Discovery, History, TV18, Animal Planet and Nickelodeon have dual audio feeds. Our services are available pan-India.

     

    How will digitisation benefit JAINHITS? What are the steps that are being taken to reap the maximum benefits of digitisation?

     

    Owing to pressure from DTH and on account of the digitisation law, all cable operators have to go digital. JAINHITS provides most cost-effective digitisation solution for such cable operators across India. Any cable operator across India can go completely digital and be fully DAS compliant with mere investment as low as Rs 5-10 lakh, while retaining full control of their business. They also have a chance to enhance their monthly Average Revenue Per User (ARPU) by offering additional value added services like Triple Play Services throughout India – Video, Data & Voice, Broadband Services.

     

    We keep announcing consumer friendly schemes so that our business partners i.e. the cable operator community have the best to offer to its customers. We conduct LCO meets in every state almost once a quarter. This is a platform where partner LCOs along with potential prospective cable operators come face to face and get their concerns addressed. We participate in industry events and expos to reach more and more cable operators.

     

    What are the services that the platform provides to its consumers?

     

    JAINHITS provides a platform of 254 SD channels at present. Very soon we will introduce HD platform and additional value added services like Triple Play Services– Video, Data & Voice, Broadband Services throughout India.

     

    How do you think HITS platform will play a major role in phase III and IV of digitisation? Will you be competing with DTH and MSOs? What’s the strategy?

     

    Phase III & IV of digitisation covers over 1350 Municipal Corporation and 597,464 Villages (as per Census 2011) spread in the far flung areas across India. These are the areas where the reach of cable TV is at its lowest level on account of non-availability of adequate infrastructure. For the land based networks and MSOs, this vast area in phase III & IV is the most difficult to reach.

     

    Only and most effective method of reaching this area is through HITS platform. JAINHITS allows all cable operators in these phase III & IV markets to go digital at a miniscule cost of Rs 5 lakh. The platform also provides these cable networks to offer broadband services to their consumers in these far flung areas. Above all, it is the only platform in the country, offering complete empowerment and ownership to even the smallest LCO by making him a leader & cable owner and an ISO (Independent Service Operator). It provides a simple “Plug & Play cost effective digitisation solution” to cable operators.

     

    Recently, MSOs have been facing issues with a few broadcasters like Star and Zee. Also with TDSAT ruling that Star channels will be available on RIO, does that impact JAINHITS in any way? What’s your take on the judgment?

     

    We have most of our content available on RIO basis and accordingly we offer our viewers a choice wherein they can opt for A-la-Carte choice of content to meet their individual needs.

     

    Per say this Judgment, really doesn’t affect our business models.

     

    While the cable TV industry in phase I and II are still struggling with packaging and billing, what’s the scenario with the HITS platform?

     

    HITS services were envisaged with an inbuilt SMS & CAS system. Accordingly, we at JAINHITS have also sensitized our partners- ‘the need’ of different types of packaging that may be required based on the area they will service. Accordingly, we have created different types of packs that serve the needs of large cross-section of people in India. Billing is automated and done through SMS platform.

     

    Are you looking for funding to go ahead with your plans? Any plans for IPO?

    We are indeed looking at funding options and are actively engaged with investors interested in the Indian cable & broadband market.