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Tag: internet

  • Facebook’s Mark Zuckerberg disappointed with TRAI’s decision favouring net neutrality

    Facebook’s Mark Zuckerberg disappointed with TRAI’s decision favouring net neutrality

    MUMBAI: Everyone in the world should have access to the Internet says Facebook founder Mark Zuckerberg.

    Voicing his disappointment over Indian regulator – the Telecom Regulatory Authority of India’s (TRAI) decision, which upheld net neutrality and ruled against differential pricing of data services, Zuckerberg took to his social networking website and said, “Today India’s telecom regulator decided to restrict programs that provide free access to data. This restricts one of Internet.org’s initiatives, Free Basics, as well as programs by other organizations that provide free access to data.”

    With an aim to provide basic internet services to all, Zuckerberg launched Internet.org with many different initiatives — including extending networks through solar-powered planes, satellites and lasers, providing free data access through Free Basics, reducing data use through apps, and empowering local entrepreneurs through Express Wi-Fi.

    “While we’re disappointed with today’s decision, I want to personally communicate that we are committed to keep working to break down barriers to connectivity in India and around the world. Internet.org has many initiatives, and we will keep working until everyone has access to the internet,” he added.

    He added that with Internet.org, more than 19 million people in 38 countries have been connected through its different programs.

    “Connecting India is an important goal we won’t give up on, because more than a billion people in India don’t have access to the internet. We know that connecting them can help lift people out of poverty, create millions of jobs and spread education opportunities. We care about these people, and that’s why we’re so committed to connecting them,” he voiced.

    Zuckerberg said that Facebook’s mission was to make the world more open and connected. “That mission continues, and so does our commitment to India,” he said.

    It may be recalled that Facebook faced a lot of flak recently when it asked its users to support Free Basics via a poll. Free Basics has been criticised over grounds that it curbed people’s freedom to access the internet of their choice.

  • Facebook’s Mark Zuckerberg disappointed with TRAI’s decision favouring net neutrality

    Facebook’s Mark Zuckerberg disappointed with TRAI’s decision favouring net neutrality

    MUMBAI: Everyone in the world should have access to the Internet says Facebook founder Mark Zuckerberg.

    Voicing his disappointment over Indian regulator – the Telecom Regulatory Authority of India’s (TRAI) decision, which upheld net neutrality and ruled against differential pricing of data services, Zuckerberg took to his social networking website and said, “Today India’s telecom regulator decided to restrict programs that provide free access to data. This restricts one of Internet.org’s initiatives, Free Basics, as well as programs by other organizations that provide free access to data.”

    With an aim to provide basic internet services to all, Zuckerberg launched Internet.org with many different initiatives — including extending networks through solar-powered planes, satellites and lasers, providing free data access through Free Basics, reducing data use through apps, and empowering local entrepreneurs through Express Wi-Fi.

    “While we’re disappointed with today’s decision, I want to personally communicate that we are committed to keep working to break down barriers to connectivity in India and around the world. Internet.org has many initiatives, and we will keep working until everyone has access to the internet,” he added.

    He added that with Internet.org, more than 19 million people in 38 countries have been connected through its different programs.

    “Connecting India is an important goal we won’t give up on, because more than a billion people in India don’t have access to the internet. We know that connecting them can help lift people out of poverty, create millions of jobs and spread education opportunities. We care about these people, and that’s why we’re so committed to connecting them,” he voiced.

    Zuckerberg said that Facebook’s mission was to make the world more open and connected. “That mission continues, and so does our commitment to India,” he said.

    It may be recalled that Facebook faced a lot of flak recently when it asked its users to support Free Basics via a poll. Free Basics has been criticised over grounds that it curbed people’s freedom to access the internet of their choice.

  • Decision on net neutrality case in US likely to affect Internet users globally

    Decision on net neutrality case in US likely to affect Internet users globally

    New Delhi Even as net neutrality became a major issue in India earlier this year when reports of Internet censorship began filtering in, a Federal Appeals court in Washington is to decide a major case in this regard early next month.

     

    The outcome of this case is expected to set a trend that may affect Internet all over the world.

     

    The issue being taken up is the United States net neutrality rules banning telecom and cable companies from unfairly discriminating against new or potential rivals.

     

    If the court gives a rule in their favour, Internet providers could begin favouring preferred websites and control what services consumers can access from their smartphones, tablets and PCs.

     

    Interestingly, one of three judges who will hear this matter on 4 December is of Indian origin, Judge Sri Srinivasan who was appointed in 2013.

     

    The other judges are Judge Stephen F. Williams and Judge David S. Tatel. Tatel along with two other judges held in 2014 that the Federal Communications Commission misused its powers to impose net neutrality on Internet providers which led to a lot of debate in the US. The case was a petition filed by Verizon against FCC. 

     

  • Q3-2015: Time Warner Cable – residential Internet data ascend, video slide; Business Services numbers up

    Q3-2015: Time Warner Cable – residential Internet data ascend, video slide; Business Services numbers up

    BENGALURU: The slide in retail or residential video numbers continues for the US television cable industry, if one were to go by the numbers reported by Comcast Cable Communications division and now by Time Warner Cable Inc., (TWC) for the quarter ended 30 September, 2015 (Q3-2015). Data, or more specifically high speed data continues its juggernaut, climbing YoY and QoQ.  The company’s Business Services segment reported increase in numbers across all parameters.

    TWC’s consolidated revenue in the current quarter increased 3.6 per cent (increased by $208 million) to $5922 million from $5714 million in Q3-2014, but declined marginally (declined by 0.1 per cent or $4 million) from $5926 million in the immediate trailing quarter.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    Subscription numbers have been mentioned in lakhs and revenue and other financial numbers in millions of US dollars.

    Time Warner Cable chairman and CEO Rob Marcus said, “I’m very excited about the operating momentum reflected in our third-quarter results. Subscriber growth was the strongest in years; revenue growth accelerated; and we continued to make significant investments in our network, equipment, products and customer service. Our ongoing transformation is a testament to the strength of our operating plan and the commitment of our entire team – all 55,000 employees – who work tirelessly every day to make Time Warner Cable an even better company.”

    Residential numbers

    Customer relationships

    For Q3-2015, TWC has reported amongst the best subscriber numbers over a long time, and this improvement is reflected by the low drop in video numbers of only 7000 that the company has reported. Residential High Speed Internet Data (Data) and Voice customers have both increased YoY and QoQ basis. Voice has shown the largest YoY and QoQ growth in terms of number of subscribers as well as in percentage terms.  

    Overall, TWC’s total customer relationships (including business services) increased 3.3 per cent (increased by 472,000) in Q3-2015 to 156.63 lakh from 151.31 lakh in Q3-2015 and by 1.1 per cent (increased by 163,000) from 155 lakh in the previous quarter. Please refer to Fig A below.

    Residential or retail customer relationships improved to an all-time high of 149.29 lakh in the current quarter as compared to the 144.57 lakh in Q3-2014 or the 147.82 lakh in the previous quarter.  

    Business Services saw increase across all three plays, both YoY and QoQ. Business Services customer relationships increased 8.9 per cent (increased by 60,000) YoY to 734,000 in Q3-2015 from 674,000 in Q3-2014 and increased by 2.2 per cent (increased by 16,000) from 718,000 in Q2-2015.

    Video Numbers

    Please refer to Fig B below.

    Video revenue declined 1.8 per cent (declined $44 million) YoY in Q3-2015 to $ 2453 million from $2497 million and declined 2.4 per cent from $2514 million in the immediate trailing quarter. Video customer relationships declined 0.6 YoY to 107.67 lakh from 108.27 lakh and declined QoQ from 107.74 lakh.

    Within TWC’s Video segment, six products or sub-segments contribute to revenue. The major segment is Programming tiers, which contributed $1566 million or about 64 per cent to Video revenue and more than 26 per cent to TWC’s consolidated revenue in the current quarter. The other sub-segments are Premium networks ($216 million, about nine per cent of video revenue in Q3-2015); Transactional Video-on-demand ($45 million, about two per cent of video revenue in Q3-2015); Video equipment rental and installation charges ($362 million, about 15 per cent of Video revenue in Q3-2015); Digital video recorder service ($150 million, about six per cent of Video revenue for Q3-2015) and Franchisee and other fees ($114 million, about five per cent of Video revenue for Q3-2015).

    Except for Premium tiers and Video equipment rental and installation charges, revenue from all the other sub-segments declined both YoY and QoQ. 

    High Speed Internet (Data) numbers

    Data revenue increased 9.4 per cent (increased $152 million) in the current quarter to $1772 million from $1620 million in Q3-2014 and increased 1.7 per cent (increased $30 million) from $1742 million in the immediate trailing quarter.

    TWC’s Data customer relationships in the current quarter increased 7.7 per cent YoY to 123.94 lakh from 119.90 lakh and 1.9 per cent QoQ from 121.62 lakh, while voice customers increased 22.1 per cent YoY to 60.93 lakh in the current quarter from 49.89 lakh in Q3-2014 and by four per cent from 58.56 lakh in the previous quarter. Please refer to C below.

    Voice Numbers

    TWC’s Voice revenue increased 1.5 per cent (increased $7 million) to $483 million in the current quarter from $476 million in Q3-2014 and increased one per cent (increased by $5 million) in the immediate trailing quarter.

    Voice subscribers increased 22.1 per cent (increased by 1,104,000) to 60.93 lakh in Q3-2015 from 49.89 lakh in Q3-2014 and increased four per cent (increased 237,000) from 58.56 lakh in Q2-2015.

    Single Play, double play and triple play

    The company’s residential single play customer relationships have been slowly increasing over time. Single play relationships in the current quarter increased by 0.6 per cent (35,000) to 57.09 lakh YoY from 56.74 lakh and by 0.9 per cent (50,000) from 56.59 lakh. Please refer to Fig D below.

    Double play customers have been declining over time, with the decline steepening even further since Q3-2014. In the current quarter, double play customer declined YoY by double digits – 12.4 per cent (declined 585,000) to 41.14 lakh from 47 lakh and declined 2.9 per cent (declined 121,000) QoQ from 42.36 lakh.

    Triple play customers have been increasing, the increase becoming more rapid since Q3-2014, indicating to an extent that double play customers were adding one more play, rather than the company losing double play customers, besides adding more new customers for residential triple play. Triple play customers in Q3-2015 increased 25 per cent (increased 1,022,000) to 51.05 lakh from 40.83 lakh in the corresponding year ago quarter and increased 4.5 per cent (increased 218,000) from 48.87 lakh in Q2-2015.

    Business Services

    While TWC’s Business services segment had only 4.7 per cent of TWC’s overall customer relationships, it contributed 14.1 per cent to TWC’s consolidated revenue. As a matter of fact, its contribution to TWC’s revenue has been increasing much faster than the increase in its customer relationship share in the overall pie. BS revenue in the current quarter increased 15.5 per cent (increased by $112 million) in Q3-2015 to $836 million (14.1 per cent of consolidated revenue from 4.7 per cent of overall customer relationships) from $724 million (12.7 per cent of consolidated revenue from 4.5 per cent of overall customer relationships) in the corresponding year ago quarter and increased 4.1 per cent (increased by $33 million) from $803 million (13.6 per cent of consolidated revenue from 4.6 per cent of overall customer relationships) in the immediate trailing quarter. Please refer to Fig E below.

    Revenue from Business Services High Speed data was more than 4 times the revenue from Business services video sub-segment or product in Q3-2015.

  • Metros consume news more on Internet than TV: TeleWeb

    Metros consume news more on Internet than TV: TeleWeb

    MUMBAI: While Times Now remains the undisputed leader when it comes to Broadcast Audience Research Council (BARC) India ratings, the newly set up joint venture between TAM Media Research and IMRB International TeleWeb, which will provide both television and web analytics, gives NDTV 24×7 the upper hand.

     

    NDTV’s combined reach of TV and web in six metros is just over 3047 (000s) of which 2240 (000s) come from web while TV brings in close to 950 (000s). The scenario with TV leader Times Now is a little different as the channel garners only 121 (000s) viewers through internet, compared to 1542 (000s) of TV, which takes the cumulative reach of the channel in six metros to 1652 (000s).

     

    India Today Television, of which the most followed journalist on the Internet Rajdeep Sardesai is a part of, follows NDTV 24×7 in terms of reach through Internet in the top six metros. The channel attracts over 779 (000s) people through web while the TV reach is estimated to be 1682 (000s), which takes the cumulative reach to 2375 (000s).

     

    CNN IBN’s internet reach as per TeleWeb is 168 (000s) whereas the TV reach is 981 (000s). The cumulative reach of the channel in six metros is 1136 (000s). The newest player in the top four English news category Kartikeya Sharma promoted NewsX’s cumulative reach in top six metros is estimated to be 900 (000s) where internet gets in a reach of 71 (000s) and TV earns a reach of 837 (000s).

     

    The data shows significant growth of news consumption on web in the top six metros. The combined reach of the news genre stands at 6093 (000s), of which TV’s reach is 2645 (000s), while the Internet reach is 3448 (000s).

  • Q2-2015: US Cable industry: Internet, biz services continue as growth drivers; video continues to lose subscribers

    Q2-2015: US Cable industry: Internet, biz services continue as growth drivers; video continues to lose subscribers

    BENGALURU: The cable industry in the US continues to bleed video subscribers, albeit slower than earlier, while internet and business services continue to be growth drivers in terms of subscription numbers and revenue, if one were to go by the results reported by five major players in the US for the quarter ended 30 June, 2015 (Q2-2015). Overall, YoY and QoQ subscription numbers or customer relationships of the bigger three of the five players in this report have increased.

    The five players in this report are Comcast Inc., Cable Communications segment, the largest player by far among the sample players in this report; Time Warner Cable, Inc., (TWC), a little less than half the size of Comcast’s Cable communications segment in terms of revenue; Charter Communications with revenues that are less than half again as TWC’s. Cablevision, the fourth player in the sample had a little more than two-thirds of Charter’s revenues in Q2-2015, while the smallest, Suddenlink whose major operating areas includeArizona, Arkansas, Louisiana, North Carolina, Oklahoma, Texas, West Virginia, had revenue that was a little more than a third of Cablevision’s revenue in Q2-2015.  

    Despite the continued slide in video customer relationship, the combined sum of video subscribers in Q2-2015 of the five entities is about 4.09 crore or almost two thirds (62 per cent) of the 6.6 crore video subscribers through wire in the US as of 2013. The five players in this report are generally considered amongst the biggest players in the US cable television industry. All have three major revenue streams – Video, Internet and Voice (VIVE).

    Note: (a) 100,00,000 = 100 lakh = 10 million = 1 crore

    (b) While denominations for $have been mentioned in millions or billions where applicable, denominations for numbers have been mentioned lakhs and crores.

    (c)Residential customer relationship numbers have been used in this report wherever the breakup has been mentioned in SEC filings by the concerned entity.

    (d) The results and the conclusions in this report may not necessarily reflect the true trends and nature of the cablecommunications industry in US.

    It is noteworthy that an even smaller company, Mediacom Broadband alone, without Mediacom LLC numbers, had revenue of about $246 million (Rs 1626.53 crore, ($1 = Rs 63.5363 as on 30 June, 2015) in Q2-2015, many times more than the revenue generated by the largest cable company in India. Mediacom Broadband’s revenue was less than half $608.02 million revenue reported by Suddenlink in Q2-2015.

    Performance in Q2-2015

    In general, six streams add to most of the five entities’ revenue – three products -Video, high speed Internet, Voice; Business Services (BS); Advertising; and Other. Collectively, the first three have been given the acronym VIVE by the author. Generally VIVE numbers, be they subscription or revenue indicate residential subscribers and revenue from these subscribers in this report. Some of the companies don’t indicate the breakup of VIVE revenue from business services, and hence these figures could be included in the overall VIVE revenue .This reports examines VIVE and touches briefly upon business services of some of the players in this report later on.

    In general, Internet has been driving growth, both in terms of revenue and subscription numbers. Contribution by business services is growing and is in the sub or low double digits in terms of percentage of overall revenue.

    Subscription numbers in Q2-2015

    Figure A below displays the subscription numbers of the five players considered in this report. Individual as well as combined Video subscribers or Video customer relationships have dropped year-on-year (YoY) and quarter-on-quarter (QoQ) during Q2-2015. Internet subscription numbers of all the five players in this report have increased, while Voice subscription numbers of four of the five companies have gone up. Cablevision has reported a small dip in Voice subscription numbers in Q2-2015.

    YoY and QoQ combined Total Customer Relationships of all the five players have gone up in Q2-2015 by 2.03 per cent and 0.24 per cent respectively. In Q2-2015, the combined Total Customer Relationships of all the five companies was 525.64 lakh as compared to 515.19 lakh in Q2-2014 and 524.41 lakh in Q1-2015. Though QoQ customer relationships of all the five companies have gone up, in the case of Cablevision and Suddenlink, customer relationships were actually lower in Q2-2015. Cablevision saw a decline 1.52 per cent in Q2-2015 to 31.17 lakh as compared to the 31.65 lakh in Q2-2014, while Suddenlink saw a QoQ decline of 0.86 per cent to 14.39 lakh in Q2-2015 from 14.52 lakh.

    Video

    As mentioned above, the US Cable communications industry continues to lose video customers. YoY, the combined Total Customer Relationships declined 1.53 per cent to 409.40 lakh in Q2-2015 as compared to the 415.74 lakh. QoQ the decline was 0.47 per cent from 411.32 lakh. Suddenlink saw the highest YoY drop among the five players in this report in Video subscribers at 5.66 per cent (lost 66200 subscribers) to 11.03 lakh in the current quarter as compared to 11.69 lakh in Q2-2014. Suddenlink’s YoY decline in Video customers was also the steepest among the five companies at 2.6 per cent (lost 29400 subscribers) from 11.32 lakh in Q1-2015. 

    In absolute numbers, TWC had the highest YoY decline of video subscribers among the five players in the current quarter of 2.27 lakh to 107.74 lakh from 110.11 lakh. QoQ, Comcast’s Cable communications has seen the largest fall in absolute numbers among the 5 companies, a fall of 69,000 (0.31 per cent) Video subscribers in Q2-2015 to 223.06 lakh from 223.75 lakh in the immediate trailing quarter.

    Internet

    Overall, the five entities reported a 6.07 per cent YoY increase in Internet subscribers in Q2-2015 at a combined total of 436.33 lakh from 411.36 lakh in the corresponding year ago quarter and a one per cent increase from 432.01 lakh in the immediate trailing quarter. The five entities gained 24.965 lakh subscribers YoY and 4.322 lakh subscribers QoQ in Q2-2015. As is obvious, the number of internet subscribers exceeds the number of video subscribers.

    All the five companies in this report witnessed a YoY increase in Internet subscribers. Charter had highest growth in percentage terms at 8.6 per cent ( gained 3.93 lakh subscribers) increase in Internet subscription in Q2-2015 with the subscriber base reaching 49.61 lakh from 45.68 lakh in the corresponding year ago quarter and 1.43 per cent higher (gained 70000 subscribers) QoQ from 48.91 lakh. 

    QoQ, both TWC (gained 7.47 lakh subscribers) and Charter reported 1.43 per cent growth in Q2-2015, while Comcast and Cablevsion reported 0.80 (gained 1.79 lakh subscribers) and 0.51 growth (gained 14000 subscribers) in Internet subscribers. Suddenlink reported a slight QoQ decline of 0.24 per cent (lost 2800 subscribers) to 11.81 lakh in the current quarter as compared to the 11.84 lakh in the immediate trailing quarter.

    In absolute numbers, Comcast Cable Communications reported the highest YoY and QoQ Internet subscription growth among the five companies in Q2-2015 at 12.77 lakh (six per cent) and 1.79 lakh (0.80 per cent) respectively.

    Voice

    The five entities reported a 6.19 per cent YoY growth and a 1.48 per cent QoQ growth in combined Total Voice Subscriber base of 224.55 lakh in Q2-2015. This translates to a YoY increase of 13.092 lakh and QoQ increase of 3.275 lakh subscribers in absolute numbers.

    Except for Cablevision, the other four players reported YoY and QoQ increase in subscription numbers. Cablevison reported a YoY decline of 2.86 per cent (65000) and a QoQ decline of 0.32 per cent (7000) in Voice Subscribers in Q2-2015 to 22.08 lakh from 22.73 lakh in Q2-2014 and from 22.15 lakh in Q1-2015 respectively.

    The highest YoY growth in Voice subscribers among the five players in this report in Q2-2015 in percentage as well as absolute numbers was 17.71 per cent and 8.81 lakh by TWC, which saw its numbers grow to 58.56 lakh from 47.75 crore in Q2-2014. TWC also reported the highest QoQ growth in percentage and absolute terms in Voice subscribers among the five players by 4.5 per cent and 2.52 lakh to 58.56 lakh in Q2-2015.

    Single, double and triple play numbers

    Four of the five players have indicated the breakup of their single, double and triple play customer relationships.

    Generally, all have been losing single play and double play subscribers either because of conversion from single to double or triple play, or from double to triple play, or because of subscriber churn, while Suddnelink has also reported numbers than indicate growth in its non-video customer relationships.

    Revenue numbers in Q2-2015

    Please refer to Fig A1 below. Combined Total revenue of all the five players in this report increased YoY 2.46 per cent ($517 million) to $21566 million from $21049 million in Q2-2014, but declined 0.2 per cent ($43 million) from $21609 million in Q1-2015. Charter saw the largest YoY increase of total revenue in percentage terms among the five at 7.57 per cent ($171 million) in Q2-2014. In absolute numbers, Comcast Cable Communications segment reported the highest YoY growth of total revenue of $700 million (6.35 per cent) and QoQ growth of $399 million (2.62 per cent) in the current quarter. QoQ, Suddenlink saw the highest growth in Total revenue among the 5 players in percentage terms of 3.36 per cent ($28 million) in Q2-2015.

    Combined YoY and QoQ VIVE revenues of all the five entities increased 5.15 per cent ($890 million) and 1.43 per cent ($257 million) respectively in Q2-2015$ 18170 million. Here also, Charter reported the highest YoY growth in percentage terms of VIVE revenue of 7.07 per cent ($134 million) in Q2-2015. QoQ, Suddenlink reported the highest growth among the five players in percentage terms at 3.49 per cent ($31 million) in the current quarter.

    As far as absolute US dollars are concerned, Comcast’s Cable Communications segment reported the highest YoY and QoQ growth at $455 million (5.07 per cent) and $154 million (1.66 per cent) respectively in Q2-2015.

    Among the three products, Video was the biggest contributor to revenue of all the five companies in this report. Video’s contribution to VIVE revenue was in the range of 50 to 60 per cent. Internet contributed between 25 and 35 per cent and Voice between 6 to 17 per cent to VIVE revenue.

    YoY, combined Total Video and combined Total Internet revenue increased by 2.04 per cent and 13.22 per cent respectively, while Voice revenue declined by 1.89 per cent. QoQ, Video, Internet and Voice revenue in Q2-2015 increased by 1.08 per cent, 2.41 per cent and 0.15 per cent respectively.

    Video

    Despite a drop in Video Customer Relationships, combined Total Video revenue YoY increased by $204 million and increased QoQ by $109 million to $10198 million in Q2-2015. The highest increase in Video revenue among the five players was by Comcast at 3.66 per cent and $192 million in Q2-2015, while Suddenlink saw its Video Revenue drop by 0.68 per cent and $2 million in Q2-2015.

    Internet

    Combined Internet revenue of the five players in this report increased by 13.22 per cent and $720 million YoY and increased QoQ by 2.41 per cent and $145 million to $$6171.4 million in Q2-2015.

    The highest YoY as well as QoQ growth in percentage terms of Internet revenue among the five players was by Suddenlnk with 17.07 per cent ($31 million) and 4.40 per cent ($9 million) respectively in the current quarter. In absolute US dollar terms, Comcast Cableshowed the highest YoY and QoQ growth at $282 million (10 per cent) and $57 million (1.87 per cent) respectively.

    Voice

    Though Voice subscription numbers have been growing, the combined Voice revenue of the 5 players declined YoY by 1.89 per cent ($35 million) to $1800 million. The combined voice revenue of the players increased marginally QoQ by 0.15 per cent ($3 million) in the current quarter. 

    The big three players – Comcast Cable Communications, TWC and Charter saw their YoY Voice revenue decline by 2.06 per cent ($19 million), 2.45 per cent ($12 million) and 6.9 per cent ($10 million) respectively. Cablevision and Suddenlink saw their YoY Voice revenue increase by 2.2 per cent ($5 million) and 2.53 per cent ($1 million) respectively.

    Comcast Cable Communications and Suddenlink saw their QoQ Voice revenues drop 0.33 per cent ($3 million) and 0.48 per cent ($0.25 million) in the current quarter, while TWC and Charter saw their YoY Voice revenues increase by 1.06 per cent ($5 million) and 0.75 per cent (one million) respectively . Cablevision’s Voice revenue remained flat in Q1-2015 and Q2-2015 at $232 million.

    Comcast Cable, TWC and Charter have indicated business services revenue in their quarterly filings. Please refer to Fig B below. As is obvious, business services revenue (BSR) has been going up in value as well as in terms of percentage of Overall or Total Revenue (OR)

  • India wants greater democratisation & broad-basing of Internet governance

    India wants greater democratisation & broad-basing of Internet governance

    NEW DELHI: Stressing that it wanted democratisation and broad-basing of the global affairs of telecommunications and internet governance, the Government has begun a series of meetings with stakeholders in relation to the ongoing overall review by the General Assembly of the implementation of the outcomes of the World Summit on the Information Society (WSIS+10 Review). 

     

    In pursuance of its declaration towards multi-stakeholder approach to Internet governance, the Information Technology Ministry recently organised discussions involving business, civil society, government, academia and technical community.

     

    The recent meeting on this issue was held in New Delhi on 18 September. There has also been remote participation from Internet Corporation for Assigned Names and Numbers (ICANN), Asia-Pacific Network Information Centre (APNIC) and Learning Initiatives on Reforms for Network Economics Asia (LIRNEasia) in these meetings.

     

    The discussion by the Department of Electronics and Information Technology was in collaboration with National Internet Exchange of India (NIXI) under Internet Governance to discuss the priorities and concerns of Indian stakeholder in relation to the ongoing UN review. 

     

    India wants that the International Telegraphic Union should take leadership and partner with UN and other International/Regional organisations in executing the Information and Communication Technology projects and programs in developing countries. India also wants the ITU to be the supervisory authority of Space Assets. India expressed its desire that ITU should play a more active role in the global Internet governance as envisaged during the World Summit on Information Society (WSIS). 

     

    The entire Review process will be concluded by a high-level meeting of the UN General Assembly on 15-16 December, 2015 in New York. Currently, the United Nations is facilitating a preparatory process for the WSIS+10 Review in consultation with Member States and relevant stakeholders.

  • STB market set to grow globally with HD channels & falling prices of smart TVs

    STB market set to grow globally with HD channels & falling prices of smart TVs

    NEW DELHI: Even as India has embarked on a Make in India programme, an international research says that availability of High Definition (HD) channels and falling prices of smart TVs are expected to surge set top box (STB) market growth between 2015 and 2022.

     

    Cooperation between STB operators and the manufacturers along with efficient customer support is expected to positively contribute towards market growth, according to Grand View Research.

     

    The Asia Pacific STB market is expected to witness rapid growth due to growing consumer adoption and favorable government mandate in the region.

     

    Regulations mandating the digitization of traditional cable television and the subsequent migration from analog to digital TV have led to an increased demand for STBs over the past few years. Technological advancements and better quality of signal transmission may further supplement STB market growth over the next seven to eight years.

     

    The improvements in technology and better quality of signal transmission in digital television are expected to spur market growth over the forecast period. Moreover, features such as recording, live streaming through internet, and remote viewing through smartphones and tablets are further expected to drive STB market growth.

     

    However, high costs of such STBs and associated costs of pay channels could challenge market growth. Cable service providers who are unwilling to participate in rolling out of STB due to major capital expenditure amidst business uncertainties may also challenge market growth. Factors such as operator upgrades to high definition technologies, attractive development policies, plans, growth interest in over-the-top hybrid set top box designs, and rising global penetration of pay-TV are expected to provide growth opportunities for the set top box market over the forecast period.

     

    Types of set top box include Internet Protocol Television (IPTV), satellite Direct-To-Home (DTH), cable, and Digital Terrestrial Transmission (DTT). The IPTV segment is expected to account for a major share in the market.

     

    Strategic acquisitions and mergers are expected to play a key role in expanding market share. For instance, in April 2015, ArrisGroup Inc., a broadband media technology, and Pace PLC, a UK-based technology provider for the Pay-TV and Broadband industries, announced that Arris would acquire Pace for a cash consideration of $2.1 billion. The acquisition is expected to enhance the company’s product portfolio and its presence in the satellite segment, the California-based research group said.

  • President asks for concerted steps to be taken for India’s Internet growth

    President asks for concerted steps to be taken for India’s Internet growth

    NEW DELHI: President Pranab Mukherjee called upon concerned authorities to ensure availability of infrastructure for Internet and ICT-enabled services across the country and use it in a systematic manner.

     

    Noting that India is at the 89th position in Network Readiness Index with countries like Singapore, Finland and Sweden having become leaders, he said Wi-Fi services could be rolled out in public places across the country both in urban and rural India. 

     

    The President was speaking after inaugurating 24 Hot Spots with 30 Wi-Fi access points in the President’s Estate by which the Estate became 100 per cent Wi-Fi.

     

    The President said India, with 244 million, ranks third after China and USA in terms of number of internet users. “However, the penetration of internet use as a percentage of the population is only twenty, indicating not only a huge gap but significant potential for future growth as well. With 960 million mobile phones today, India stands second in the world behind China and soon it is expected to become one billion mobile phones. We have more than 77 mobile phone connections per 100 citizens, which is commendable in terms of the penetration achieved by us in mobile telephony,” he said. 

     

    Mukherjee said that the idea of bringing information to the doorsteps of citizens through network is a revolutionary step to transform India to a Digital India.  

     

    Communications and Information Technology Minister Ravi Shankar Prasad, Electronics & IT Secretary R S Sharma, National Informatics Centre DDG Ms Shefali Sushil Dash, officers and staff of Rashtrapati Bhavan and their family members were present on the occasion.

  • FICCI Frames: Internet has increased distribution pipe but lacks monetization

    FICCI Frames: Internet has increased distribution pipe but lacks monetization

    MUMBAI: India is going through a sea change when it comes to content and technology and the country is still grappling with the changes. With sudden boom of multiple distribution systems, the internet and satellites have started playing a larger role in distribution of content. The traditional distribution system has also undergone change and this is not only in the area of production and distribution, but also in the space of marketing.

     

    With the increase in the number of distribution platforms, what the country is witnessing is convergence of businesses. “While we have been talking about convergence in telecom and entertainment for over two decades, it is now that we see it is becoming more relevant,” said Department of Telecom, Government of India special secretary Rita Teaotia in her opening remarks, on day two of FICCI Frames 2015.

     

    According to Teaotia, one of the most important feature of convergence is the heightened significance of the internet in actually delivering content. “This has led to increased choices to consumers, which in turn has led to changed consumer behaviour. They are no longer captive audience,” she said, while addressing the keynote for the session ‘Dancing or Dueling? – the Interplay of Content and Carriage in a Converged World.’

     

    Convergence has also seen a fragmentation around the value chain. While there are a number of players, including the telecom, cable TV, broadcasting stations, equipment vendors, content distribution owners, content owners among others, one can see blurring of boundaries of those in the value chain.

     

    Teaotia pointed out that the huge explosion for demand of data had led to the transformation of existing networks. “So broadcasters are looking at broadband to offload content, mobile networks are converging with fixed networks and alternate platforms are being developed to speed up the process of delivering content,” she said, adding that there was increasing competition between mobile, fixed network operators and broadcasters for content delivery.  

     

    With convergence has come challenges. “One of the major concerns is how to respond to the new regulations and regulatory challenges emerging from convergence and ensure that customers continue to obtain full benefit of the emerging technologies,” questioned Teaotia.

     

    While traditionally there has been a clear division for regulation of telecom networks and broadcasting content with separate regulatory regimes, content regulation has been focused largely to address movie and TV content over traditional broadcasting platforms. “The blurring which we are seeing now of the vertical supply chains for production and delivery of content and new business models for monetizing it have generated new and complex regulatory issues and questions about how effective our current regulation are,” pointed out Teaotia.

     

    Content Monetisation in Converged Environment

     

    Even with more and more content being distributed using different pipes, there is little or no monetization opportunity in the country. “Monetization is still a suspect in the short term, in the long term we have to see how traditional media evolves in India. The big money is still in traditional media and if you want to monetize the content, you will have to rely on traditional media,” said Indiacast Media Distribution group CEO Anuj Gandhi.

     

    According to Gandhi, the industry needs to evolve. “We need to get a structure to the windowing business we do. Everybody will need to have access. As we see more screens and content, we will have to monetize the content on each window opportunity and I think that will become a reality,” he opined.

     

    The industry, needs to come up with a formula for clever windowing. “The west has done it effectively where consumers pay a premium to watch content first and then the cost keeps coming down with advertisements,” pointed out Gandhi. 

     

    India: A Global Entertainment Superpower

     

    With the huge amount of content being created in India, IT industry establishing a strong footprint globally with almost 55 per cent market share globally and the entertainment industry growing from Rs 1 lakh crore in 2014 at 40 per cent to Rs 2 lakh crore by 2019, India is right on the path of becoming a global entertainment superpower. However, while this seems a very natural ambition, is it that simple?

     

    Answering the same was NASSCOM president R. Chandrashekhar. “With convergence, there is blurring of lines between businesses. But with this, you have to worry about competition not just within your business, but from other businesses as well, which can wipe out everything,” he said.

     

    The advent of internet as an extremely dominant medium for distribution of content, has lowered the many barriers that content producers faced in the past to distribute their content.

     

    According to 9.9 Media CEO and founder ISB Ashoka University founder Pramath Sinha, convergence has helped in bringing down the barriers to distributing content. “Not only this, it has also led to lowering of the cost of distribution,” he said.

     

    Chandrashekhar, however said that while distribution of content has become easier, its discovery in the huge space could be a challenge. “We need to find out who the gatekeepers are who are standing between finding that content and how is interplay between the gatekeepers being managed,” concluded Chandrashekhar.