Tag: ICE Summit

  • Convergence bill rakes up opposition from entertainment industry

    Convergence bill rakes up opposition from entertainment industry

    The entertainment industry has stressed the need for its involvement in the formulation of the Communications Commission of India (CCI), which is to be set up under the proposed Convergence Bill.

    Top guns of the Indian entertainment industry strongly opposed the Bill, at the Confederation of Indian Industry’s ICE Summit held in Kolkata recently. The bill, they said, will give the government sweeping powers to control the sector and shackle it.

    The Bill, which is the government’s response to the growing convergence of broadcasting, communications and information technology, proposes the establishment of the CCI, which will regulate both the carriage and content of the various forms of communication. The Bill gives unlimited powers and functions to the CCI, including management of the commercial uses of the frequency spectrum, licensing, tariff-setting, promotion of competition, protection of consumer interests, and formulation of programmes and advertising codes.

    It will make the CCI the super regulator in the context of convergence of telecommunications, broadcasting, data communication, multi-media and other related technologies and services. A Spectrum Management Committee, headed by a cabinet secretary, will be set up under the proposed bill, to look after the frequency spectrum, and to make available for the CCI as much spectrum as possible. The Bill also proposes the establishment of a Communications Appellate Tribunal, which will entertain appeals of CCI decisions.

    The bill will repeal five existing laws-The Indian Telegraph Act,1885, Cable TV Networks Act, 1995, Indian Wireless Telegraphy Act,1933, The Telegraph Wires (Unlawful Possession) Act, 1950 and the Telecom Regulatory Authority of India Act. Licenses will be provided to five categories: network infrastructure services, networking services, network application services, content application services, and value-added network application services.

    However, the CCI would not work in an autonomous manner, as the bill provides for immense control of the government, says UTV Net Solutions CEO Biren Ghose. “The definition of a public service broadcaster was not clear in the bill, besides everything would be in the hands of the government.” Another issue, which was raised at one of the ICE sessions was that the government would be the final authority in deciding the members of the CCI.

    Says Ghose: “Another drawback is that there is no level playing field with DD, which as the official public broadcaster is given monopoly of terrestrial broadcasts. For more than a decade, the television industry has been its own rational self regulator with nothing against it, so what is the need for a super regulator today? And why should the government be the authority to decide what the content will be? “

    Discussions at the summit also touched upon clause 29 of the proposed bill, which requires all agreements of broadcasters to be registered with the commission. “Agreements are confidential in nature, and no broadcaster would like to reveal the nature of the deal or revenue sharing arrangements reached with media partners, especially to a government organization. In revealing all this to a government body, one could as well publish everything in the papers, considering how accessible the Indian bureaucracy is,” says Ghose.

    Several participants at the summit lambasted the bill for favouring the government, which will have the right to intervene in the committee’s functioning and the power to exempt anyone from licensing. For the rest, a license would be needed for practically any service, Ghose points out.

    Among the industry’s objections is the Bill’s stipulation that the CCI follow all policies and other directives of the government, not allowing any real autonomy to the CCI. Speakers at the summit said that while there is total agreement that the government should have the full authority to determine spectrum management for defence and security, the rest of the spectrum should be allocated to the entertainment industry in a fair manner.

    Ghose says a single body, the CCI, should be able to handle everything on its own and that there is no need for separate bodies. The industry has asked for appointments to be made to the CCI from among an open pool of competent persons and not from a panel of government secretaries, to bring in a sense of professionalism and competitiveness in the industry. The jurisdictional aspects of the CCI and the adjudicating officer are also vaguely defined and need to be clarified, industry sources say.

    Says Ghose, “We are creating a Communication Convergence bill to change 200 years of legislation. Here is an opportunity for the government and the industry to reach a common proper framework; the industry’s voice needs to be heard.”

  • Apex entertainment body mooted at ICE summit in Kolkata

    Apex entertainment body mooted at ICE summit in Kolkata

    An effort is being made to set up a unified apex body for the Indian entertainment industry. The professional mooting the exercise: UTV Net Solutions CEO Biren Ghose.

    Ghose, who is the chairman of CII media and infotainment committee (Western Region) says a draft for this apex body formation is being prepared which will be put up before the CII board at a similar presentation session and the modalities for creating a working model will be established.

    The proposed organisation, along the lines of Nasscom, will seek to have representatives from all sectors of the industry, and will press for the formulation of a national entertainment strategy. The proposed apex body agenda would be to draw up a future course of action and enlighten policymakers regarding the changes required to remain competitive in the world market.

    Ghose made this proposal at the CII-backed ICE Summit in Kolkata (18-19 November 2001) during the session “New paradigms for the content and entertainment players.” His proposal got the backing of other panel members consisting of Saregama CEO Abhik Mitra, Zee CEO R. K. Singh and Sahara TV president Mahesh Prasad.

    Ghose says that the apex body will have a governing body comprising of industry members themselves and will not offer competition to any existing body. This organization will be an alliance between all organizations where everybody related to media will be partners. Production houses, animation units, broadcasters, advertisers, event management companies, music companies, irrespective of size or budgets will automatically become members. A draft action plan is likely to be approved by January 2002.

    Ghose additionally proposed a four-pronged core growth code. This includes changing social norms and mindsets, introducing policy changes, unifying the entertainment industry and conducting a national branding exercise for Indian entertainment globally.

    Elaborating on the growth codes, Ghose says the first code involves changing social norms and instituting a mindset change in Indians. Entertainment is not viewed as a national priority like other sectors, although it rakes in an estimated turnover of Rs 10 billion. The inner guilt feeling for entertainment needs to be removed from people’s minds, he said.

    The second code, Ghose says, is to redefine the Indian entertainment industry as a whole. “The idea is to migrate it from current practices and to make it an identifiable entity through a formal process,” he points out.

    The entertainment industry itself needs to market India as the destination for production companies. The government on its part should induce changes in its policies to present India properly and introduce the necessary regulatory sops, he says.

    The third growth code is governance and process. All resources within the industry should come together in a common pool and create one organization networking together for common causes. Membership should not be restricted based on investment, venture capital, or sales figures.

    The fourth code is to create a national branding exercise for India, which will position the country as a logical choice across the value chain. The industry should be seen to be speaking in one voice globally.

    Adherence to the growth codes will result in advantages and applications on varied fronts, says Ghose. One problem which could be curtailed is piracy. Entertainment companies are losing Rs 3 billion in revenue due to piracy on account of illegitimate CDs, DVDs, FTP downloads, video cassettes, cable TV etc.

    He points out that business growth for pirates is 45 per cent while the legitimate sector growth is at only 25 per cent.

    Another area which the apex body could play a role is in ensuring better financing options for the unorganised entertainment sector, Ghose points out. So far financial institutions such IDBI and banks have been chary of lending to entertainment companies as they operate mainly in the cash domain.

    His view is that by bringing in a rating agency, which will rate the risk behind each entertainment project, say a movie, institutions may be more conducive to extending funding. The apex body will play a role in backing and mooting such as risk rating agency.