Tag: IPTV

India early adapter of new technology but not IPTV: Dataxis

NEW DELHI: India stands out as an early adapter of latest technology despite being a price sensitive market, according to a Dataxis Research report.

While on the one hand, India has the highest DTH subscribers as well as HDTV subscribers, on the other, public sector companies MTNL and BSNL have given up their hopes on IPTV. Airtel, ACT and Reliance are retaining the service only in few circles.

India, Pakistan and Sri Lanka are the three countries with active IPTV subscriber base in the SAARC region.

IPTV is still evolving and is not widely accepted as a pay-TV model by SAARC countries. The total active IPTV subscriber base in SAARC (adding these three countries) will be around 270,000+.

Sri Lanka’s IPTV subscriber base contributes to nearly 48 per cent of the overall SAARC IPTV subscribers, followed by Pakistan and India with about 33 per cent and 18 per cent respectively.

Sri Lanka and Pakistan are showing high interest in pushing IPTV. On the other hand, Nepal’s internet service providers are planning to launch commercial IPTV services by the end of 2015.

Meanwhile, the video markets of 12 East Asia Pacific countries tracked by Dataxis are forecast to generate total digital video revenues of $4.31 billion in 2017 – surpassing the physical video market for the first time driven by fast-growing, high-speed broadband penetration.

APAC Video Market 2015 analyses the transformation of the video market across the 12 countries covered over the period 2007-18, including physical and digital video unit sales, rentals, revenues and forecasts, as well as profiling each market and the individual digital video services available.

The four main markets in the region (Australia, Japan, New Zealand and South Korea) together accounted for about 96 per cent of total digital and physical video revenues end-2014, with Australia and Japan alone generating about $5.4 billion in physical video revenues, representing more than 90 per cent of total physical revenues across the region.

However, South East Asia is plagued by piracy and the official physical video market is almost negligible. Unauthorised CDs, VCDs, DVDs and CD ROMs proliferate due to the lack of affordable digital content and low disposable incomes. Indonesia, for example, had 5.75 million Pay-TV subscribers by end-2014, but only two Pay-TV players offered VOD services and Dataxis estimates that just 1.5 per cent of Indonesian TV households will be VOD-enabled by 2018.

October 4, 2015
Dish TV unveils VOD movie service DishFlix

NEW DELHI: Dish TV has launched a video on demand service that – unlike IPTV – works without the Internet and offers a choice of fifty English and Hindi films to choose from at any time.

While conceding that it was akin to the Internet Protocol Television (IPTV), which had been introduced without much success almost a decade earlier, Dish TV CEO R C Venkateish said that the difference was that DishFlix would work without the internet.

The new technology would require a small box costing Rs 5990 that will be attached to the set top box. Viewers can avail the service for a monthly fee of Rs 100. One film will be added every second day, making it a total of 15 new films every month. However, the total number of films would remain the same on the service.

Dish TV executive vice president Anjali Malhotra tells Indiantelevision.com that the company will be spending approximately Rs 20 – 25 crore in marketing the new product. DishFlix will be promoted on Zee and other channels as well as across theatres chains like PVR and INOX. Movie portals will also be seen sporting DishFlix ads.

While at launch the ratio of Hindi and English film on the service would be 70:30, other language films would be brought in at a later stage. The films were divided across five genres on DishFlix, informs Malhotra.

Dish TV MD Jawahar Goel informs that the new service would help curb piracy as lesser people would be templed to download films from the internet. Moreover, consumers could also bid goodbye to the problem of buffering caused by the slow Internet rate.

Venkateish added that this VOD version puts the power in the hands of the consumer. “It is a plug in service with films that would be completely free of advertisements,” he said.

Viewers will be able to pause, play, fast forward and rewind movies or TV shows at their own convenience. The service works sans any internet connection as the content will be pushed to the customer’s STB through satellite. Customers need to buy a DishFlix Box that comes preloaded with 50 movies. Out of these, 15 movies will be refreshed every month on first in first out basis so that the viewable movie library is always updated.

August 18, 2015
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.

June 6, 2015
Subscription is biggest contributor to TV industry revenues: TRAI

MUMBAI: India is one of the most profitable and growing markets when it comes to the television ecosystem. In terms of the broadcasting sector consisting of television and radio, India has the world’s third largest TV market after China and USA.

The annual report of Telecom Regulatory Authority of India (TRAI) for the year 2013-14 has detailed out activities of the Authority, which was presented in the Lok Sabha and the Rajya Sabha in March this year.

According to the annual report, as on March 2014, of the 270 million households, around 169 million have been projected to have television sets catered to by cable TV systems, DTH services, IPTV services and the terrestrial TV network of Doordarshan, put together.

While DTH has 64.5 million registered subscribers (37.2 million active subscribers), IPTV caters to around half a million subscribers. On the other hand, cable TV is estimated to have around 99 million subscribers, whereas the terrestrial TV network of Doordarshan covers about 92 per cent of population of the country through a vast network of terrestrial transmitters. The broadcasting and cable television services sector consists of 55 pay broadcasters, an estimated 60,000 cable operators, 6000 multi system operators (MSOs) (including 144 MSOs registered in DAS), six pay DTH operators, apart from pubcaster – Doordarshan, having free-to-air DTH service.

There were 793 TV channels registered with the Ministry of Information and Broadcasting at the end of financial year 2013-14 out of which 187 were SD pay TV channels and 34 HD Pay TV channels. India’s TV industry grew from Rs 37,010 crore in the year 2012 to Rs 41,720 crore in the year 2013, thereby registering a growth of around 12.7 per cent.

“The subscription revenue accounts for the major share of the overall revenue of the TV industry. The subscription revenue grew from Rs 24,500 crore in the year 2012 to Rs 28,100 crore in the year 2013. The advertisement revenue in the TV sector in India grew up from Rs 12,500 crore in the year 2012 to Rs 13,600 crore in the year 2013,” states the report.

The last decade has significantly changed the dynamics of the Cable and Satellite (C&S) TV market. One of the most significant developments has been the digitisation of the cable TV sector in India. The process of digitisation is underway, in a phased manner. By the March 2014, more than 22 million Set Top Boxes were deployed. While implementation of digitization with addressability is going to be a game changer and would drive the growth of the broadcasting and cable TV services in the country, the DTH sector is registering a growth of around one million subscribers per month. This clearly indicates the growing popularity and acceptability of digital addressable platforms, which have a lot more to offer to all the stakeholders.

Stakeholders in cable and satellite TV service sector

As of March 2014, the total number of TV channels registered with the Ministry of Information and Broadcasting was 793, which include 187 SD pay channels, 34 HD pay channels and four advertisement free pay channels. These channels are owned by around 350 broadcasters (content owners), out of which 55 are the pay TV broadcasters.

Satellite TV channels

The number of satellite channels permitted by MIB has grown from 449 in 2009 to 793 in 2014. The number of pay SD channels has grown from 130 in 2009 to 187 in 2014. The report states that there are total 33 operational HD channels in India till 2013.

DTH Services

Since its inception in 2003, DTH operators have been adding new subscribers at a rate of around one million per month, attaining a registered subscriber base of around 64.82 million subscribers of pay DTH services catered by the six DTH operators by March 2014. This is besides the viewership of the free DTH services of Doordarshan. In March 2009, there were a total of 13.09 million DTH subscribers. This number grew to 21.30 million, 35.56 million, 46.25 million, 56.48 million to 64.82 million subscribers for the years 2010, 2011, 2012, 2013 and 2014 respectively.

Cable TV Services

Cable TV service is the largest television service sector with an estimated subscriber base of around 99 million subscribers. From 52 million subscribers in March 2004 it has risen by 58 million, 66 million, 72.5 million, 80 million, 84 million, 88 million, 92 million, 94 million and 99 million cable TV subscribers from 2005 – 2013 respectively.

Digital addressable Cable TV systems

As per data provided by various MSOs, there were around 85 lakh STBs deployed in the first phase areas of DAS implementation covering four metros namely Delhi, Mumbai, Kolkata and Chennai. In the second phase of DAS implementation, covering 38 cities, approximately 142 lakhs STBs were deployed as on March 2014.

Trends in the tariff in the Broadcasting sector

In order to provide cost effective broadcasting services to the consumer, TRAI has laid down regulatory framework, from time to time, in the form of tariff orders. The tariffs for areas served through non-addressable systems, notified DAS areas, and that for the addressable systems such as DTH, HITS and IPTV etc are governed by respective tariff orders issued by TRAI.

Further, the wholesale pricing has been prescribed with a certain cap, linked to non-addressable platforms tariff ceilings. With these provisions at the wholesale and retail levels, a trend is likely to emerge where the subscription pattern is consumer specific rather than defined by the service providers.

April 2, 2015
IPTV to drive growth of global pay-TV market

MUMBAI: The worldwide pay-TV market is expected to have grown five per cent in 2014, surpassing 924.4 million subscribers. “IPTV is expected to grow a market leading 14 per cent in 2014, followed by satellite TV platform at seven per cent. The growth rates of cable and terrestrial TV platforms are expected to slow to around three per cent,” said ABI Research VP and practice director of core forecasting Jake Saunders.

Global cable TV market growth is driven by the Asian-Pacific and Latin American markets. A combination of the two regions is likely to add over 13 million subscribers in 2014 while the cable TV market in North America is expected to decline approximately one per cent in 2014. In 3Q 2014, major cable TV operators in North America lost over 400,000 TV customers, although cable companies are doing well in broadband.

Video streaming services such as Netflix and TiVo, which cost less than $10 in monthly fees are attractive alternatives for pay-TV customers. Traditional pay-TV operators are now trying to compete with these services by developing their own video-streaming products or by integrating these services in their existing services. Online video service Netflix has agreed to deals with some of the pay-TV operators in Europe to offer its streaming service to European broadband customers. Canadian companies such as Cogeco, Rogers Communications, and Shaw Communications also recently announced deals to offer Netflix’s video streaming service to their own broadband customers.

Bundled packages help pay-TV operators try to reduce churn. In addition, HD channels, advanced PVR services and premium content such as sport content contribute to increased ARPU. “The worldwide HD subscriber base is growing on all pay-TV platforms. Approximately 57 per cent of total pay-TV subscribers will be HD subscribers by 2019. ABI Research forecasts the global pay-TV market will generate $324 billion in service revenues by 2019,” added industry analyst Khin Sandi Lynn.

February 16, 2015
TRAI issues new tariff order to balance consumer rate and broadcaster demands

NEW DELHI: In a major initiative aimed at simplifying tariffs and meeting demands of consumers, the Telecom Regulatory Authority of India (TRAI) today issued a new tariff order which apart from fixing tariffs also amended the definition of addressable systems (DAS) as understood at present.
The Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Fourteenth Amendment) Order, 2015 said “addressable system” means an electronic device (which includes hardware and its associated software) or more than one electronic device put in an integrated system through which signals of digital addressable system can be sent in encrypted form, which can be decoded by the device or devices, having an activated Conditional Access System at the premises of the subscriber within the limits of authorisation made, through the Conditional Access System and the subscriber management system, on the explicit choice and request of such subscriber, by multi-system operator or DTH operator or IPTV operator or HITS operator to the subscriber; and the expression “non-addressable system” shall be construed accordingly.
The Order shall come into force on the date of its publication in the Official Gazette.
The order also specifies that it will apply to specified states, cities, towns and areas notified from time to time and not the entire country.
The order has specified that if any new pay channel is launched or any free-to-air channel is converted to pay channel after the first day of January 2015, then the ceiling shall not apply if the new pay channel or pay channel converted from free-to-air to pay channel is provided on a standalone basis, either individually or as part of new, separate bouquet.The broadcaster shall declare the genre of its channels and such genre shall be either News and Current Affairs or Infotainment or Sports or Kids or Music or Lifestyle or Movies or Religious or Devotional or General Entertainment (Hindi) or General Entertainment (English) or General Entertainment (regional language).
The rates of channels, referred to in the first proviso shall be similar to the rates of similar channels existing as on the date of such launch of new channel or such conversion of free-to-air channel into a pay channel and the ceiling of charges, specified under sub-clauses (a), (b) and (c) shall not, in any case, exceed by the rates of channels referred to in the third proviso.
In case a multi system operator or a cable operator reduces the number of pay channels that were being shown on the date of coming into force of the Telecommunication(Broadcasting and Cable) Services (Second) Tariff (Fourteenth Amendment) Order 2015, the ceiling shall be reduced taking into account the rate(s) of the channel(s) so removed. In the case of the commercial subscriber, for each television connection, the charges payable by the Ordinary cable subscriber under sub-clause (a), shall be the ceiling.

If a commercial subscriber charges his customer or any person for a programme of a broadcaster shown within his premises, he shall, before he starts providing such service, enter into agreement with the broadcaster and the broadcaster may charge the commercial subscriber, for such programme, as may be agreed upon between them.
The charges referred to in sub-clause (a) shall in no case exceed the maximum amount of charges specified in the Part I or Part II, as the case may be, of the Schedule annexed with this Order.”
In determining the similarity of rates of similar channels referred to in the provisos below clause 3 above the following factors shall be taken into account:
(i) the genre and language of the new pay or converted Free to Air to pay channel; and
(ii) the range of prices ascribed to the existing channels of similar genre and
language in the price of a bouquet(s) and prices of bouquet(s) that exist.”
Every broadcaster shall offer or cause to offer on non-discriminatory basis all its channels on a-la- carte basis to the multi system operator or the cable operator, as the case may be, and specify an a-la-carte rate, subject to provisions of sub-clause (2) of this clause and clauses 3 and 3B, for each pay channel offered by him.
In case a broadcaster, in addition to offering all its channels on a-la-carte basis, provides, without prejudice to the provisions of sub-clause (1), to a multi system operator or to a cable operator, pay channels as part of a bouquet consisting only of pay channels or both pay and free to air channels, the rate for such bouquet and a-la-carte rates for such pay channels forming part of that bouquet shall be subject to the following conditions, namely:-
(a) the sum of the a-la-carte rates of the pay channels forming part of such a bouquet shall in no case exceed one and half times of the rate of that bouquet of which such pay channels are a part; and
(b) the a-la-carte rates of each pay channel, forming part of such a bouquet, shall in no case exceed three times the average rate of a pay channel of that bouquet of which such pay channel is a part and the average rate of a pay channel of the bouquet be calculated in the following manner, namely:
If the bouquet rate is Rs. ‘X’ per month per subscriber and the number of pay channels is ‘Y’ in a bouquet, then the average pay channel rate of the bouquet shall be Rs. ‘X’ divided by number of pay channels ‘Y’:
Provided that the composition of a bouquet existing as on the 1 day of December 2007, in so far as pay channels are concerned in that bouquet, shall not be changed: and nothing contained in the first proviso shall apply to those bouquets of channels existing on the first day of December 2007, which are required to be modified pursuant to the commencement of the Telecommunication (Broadcasting and Cable Services) Interconnection (Seventh Amendment) Regulation, 2014.

If there is a bouquet, comprising of 10 channels of 3 broadcasters as per the following details.

After the reconfiguration the bouquets to be offered by the individual broadcasters shall be as under:
Broadcaster B shall offer the bouquet as per the following details

Broadcaster C shall offer the bouquet as per the following details:

While the Broadcaster A can offer channel 1 at a-la-carte rate of Rs. 2.”
TRAI has aslo appended an Explanatory Memorandum which traces the history of discussions and orders over the last 11 years on its website trai.gov.in.

January 6, 2015
TRAI managed to give broadcasting as much importance as telecom in 2014

NEW DELHI: A decade after broadcasting was handed over to it, the Telecom Regulatory Authority of India (TRAI) appears to have given equal if not more time to the broadcasting sector, thanks largely to convergence of technology.

Thus, issues like spectrum, marketing and even FM radio have got equal space during the Regulator’s work as telecom, apart from the digital addressable system (DAS) introduced in 2011.

TRAI also mastered the art of marketing during the year 2014. It developed radio jingles in Hindi, English and 10 regional languages on VAS/UCC which were aired on various FM channels in 84 cities across the country for one week in the months of June, July, August and October 2014.

Admitting in its annual report that it had failed to carry out periodic reviews to make inflation- linked adjustments, TRAI said it had finally done so in concurrence with the Supreme Court. Thereafter it issued two tariff orders on 31 March and 31 December as far as broadcasting was concerned.

Based on the rise in the wholesale price index (WPI) over the last five years and considering other relevant factors, the Authority came to a conclusion that an overall 27.5 per cent inflation hike is to be allowed, both at the wholesale and retail levels. Taking into account the consumer’s interest, the Authority prescribed that this hike be implemented in two installments. The first installment of 15 per cent was made effective from 1 April 2014. This was notified vide the Telecommunications (Broadcasting & Cable) Services (Second) Tariff (Eleventh Amendment) Order 2014 dated 31 March 2014. The second installment for the remaining inflation-linked increase has been made effective from 1 January 2015. This is expected to give adequate and reasonable time to all stakeholders to adjust to these hikes. To take care of the second installment of the inflation linked hike, the Authority notified the Telecommunications (Broadcasting & Cable) Services (Second) Tariff (Thirteenth Amendment) Order 2014 dated 31 December 2014.

In a matter relating to a tariff order prescribing tariffs for commercial subscribers, the Supreme Court in April 2014, asked TRAI to come out with a new tariff dispensation for such subscribers. Accordingly, on 16 July and 18 July 2014, TRAI notified amendments to tariff orders / regulations pertaining to commercial subscribers of broadcasting and cable TV services. These amendments bring in clarity regarding the manner of distribution of TV signals to commercial subscribers, prescribe tariffs based on intended use of the TV signals, and aim to enhance transparency in tariff regulation.

During phase I and phase II of digitisation of cable TV sector, it was noticed that the authorised agents/aggregators of the broadcasters were forming large bouquets, combining channels of different broadcasters and forcing it on the DPOs viz. cable, DTH, HITS and IP TV operators. This was resulting in distortions in the market. Incidentally, the Ministry of Information and Broadcasting (MIB) had also sent a reference to TRAI requesting for a review of the regulatory framework with regard to aggregators. The amendments aim at contributing to the orderly growth and overall development of the sector by streamlining the distribution of TV channels from broadcasters to DPOs. The salient provisions in these amendments are:

A broadcaster is now defined as an entity having the necessary government permissions in its name. Only the broadcaster shall publish the Reference Interconnect Offers (RIOs) and enter into interconnection agreements with DPOs. However, in case a broadcaster, in discharge of its regulatory obligations, is using the services of an agent, such authorised agent can only act in the name of and on behalf of the broadcaster.

As far as FM radio is concerned, TRAI on the request of MIB made recommendations on the amount of migration fee to be charged from existing FM operators on their migration from Phase-II to Phase-III of FM Radio Broadcasting. The permissions for operating FM Radio as per Phase-II policy were granted by MIB during the period 2005 to 2009 in 86 cities. As per the Phase-II policy, the permissions were granted for a period of 10 years to each FM Radio operator and there is no provision for extension of permission in the Phase-II policy.

Therefore, Phase-II permissions will start expiring from 31 March 2015 onwards. There was no great incentive for an existing operator to pay a migration fee and operate as per the Phase-III policy only for the balance period of Phase-II permissions. Accordingly, the Authority in its recommendations on ‘Migration of FM Radio Broadcasters from Phase-II to Phase-III’ dated 20 February 2014 recommended a period of permission of 15 years after migration from Phase-II to Phase-III. The salient features of the recommendations are:
TRAI reiterated early implementation of its recommendations on minimum channel spacing of 400 KHz for FM radio broadcast issued on 19 April 2012, which will in effect increase the number FM channels in each city for auction. The period of permission to operate the existing FM channels on migration from Phase-II to Phase-III will be 15 years.

In the DTH Guidelines, under which licenses are issued to DTH operators, there is no explicit provision for an extension or a renewal of the licenses on completion of the license period. In this regard, the MIB sought recommendations of TRAI. After examination, the Authority concluded that to allow the DTH operators to continue their business after the expiry of the stipulated 10 year license period, the government will have to issue a new license. Accordingly, the Authority looked at the issues concerning the DTH sector holistically and, after following the due consultation process, sent its recommendations to the MIB on “Issues related to New DTH Licenses” on 23 July, 2014.

Apart from removing the ambiguity over renewal of licenses, these recommendations suggest that the government came out with a new licensing regime for DTH sector which, amongst others, allows for longer license period, rationalised license fee, rationalised and regulated cross-holding and vertical integration between broadcasters and distribution platform operators including DTH operators. The recommendations also suggest a mechanism for migration of operators from the existing regime to the new regime. A new licensing regime, incorporating the provisions in the said recommendations, is expected to bring in, amongst others, certainty in DTH business, ease taxation pressures, attract better investments in the sector etc. and, thereby, promoting the overall efficiency in DTH operations.

Ensuring plurality of voices in the media, that is, availability of fair, balanced and unbiased representation of a wide range of opinions and views, is critical for any democratic polity. Ensuring both external plurality, namely multiple voices in the national media market, and internal plurality, that is presentation of a range of facts and news in an unbiased manner by a media outlet, are fundamental in the working of a democracy.

Regulatory restrictions on cross-media holdings seek to ensure external plurality in the media market, while restrictions in vertical holding by any entity of a broadcaster and a distribution entity are important to ensure that the distribution channels remain open to all desirous of presenting an opinion or view to the public. Finally, content regulation is critical in a time when news is increasingly seen as an asset belonging to a media entity’s owners to be monetized for political/ business/ or pecuniary gain.

Recommendations on “Issues related to Media Ownership” were issued on 12 August

The key issues addressed and the concerned recommendations included defining who owns a media entity and controls it – in brief, an entity that possess not less than 50 per cent of voting rights in the media entity or can appoint more than 50 per cent of the members of its board of directors will be deemed to control it. The Recommendations also take into consideration control through debt, and has recommended the loan threshold that will deem the lender to be in control of a media entity.

The restrictions recommended on cross-media ownership apply on the media entities that cover news and current affairs genres in the television and print segments only, as impact of radio and internet in India on opinion formation is marginal. In the print segment, only daily newspapers, including business and financial newspapers, should be considered.
The MIB had sent a reference to TRAI seeking recommendations of the Authority on extension of permission granted to Community Radio Stations (CRS) in India. According to the 2006 Policy Guidelines for CRSs, the period of validity of Grant of Permission Agreements (GOPA) is five years and the guidelines contain no provisions for the renewal/ extension of permissions. The validity of the GOPAs issued under these Guidelines for some of the CRSs, had expired on completion of five years, requiring them to stop operating. The Authority, therefore, in an interim reply suggested continuation of the GOPAs on the same terms and conditions.

CRS are an important medium for empowerment and social development of the local communities. Therefore, going beyond the terms of reference from MIB, the Authority in a pre- consultation process sought inputs from CRS permission holders on the issues relevant for the growth of CRS in the country based on their experiences over the past decade. Several responses were received; these inter alia included comments on procedural matters; technical issues; content; aid and assistance.

In addition to the issues highlighted, the Authority also noted the important role, the CRS play in serving the local communities by providing relevant information/alerts during natural calamities and emergency situations. The Authority, after analysing all issues comprehensively, sent ‘Recommendations on Issues related Community Radio Stations’ to MIB on 29 August, 2014. The salient features of the recommendations included initial permission for operating a CRS to be five years; extension of permission for five years at a time, to be allowed following performance evaluation; and CRS to be allowed to broadcast locally relevant news and current affairs content sourced exclusively from AIR, in its original form or translated into the local language/ dialect.

MIB sent references to the Authority to provide its recommendations on issues relating to ground based channels being operated by cable TV operators and programming services being offered by DTH service providers to their subscribers. Collectively these kinds of programming services provided by the Distribution Platform Operators (DPOs) are referred to as Platform Services (PS).

At present, the PS offered by DPOs are not subject to any specific regulations or guidelines. Similarly, there are several ground-based broadcasters who provided local TV channels to cable operators for distribution which are also not covered by any specific regulations. Since, all of these platform services and local channels are being operated and distributed without even a simple registration system in place; the possible impact of the content carried on these channels on the law and order/ security situation is a cause for concern. In addition, the differentiated treatment under the different policy guidelines applicable to the different types of DPOs has to be addressed, to provide for similar regulatory frameworks for what after all are inter-changeable services. Therefore, there is an urgent need to establish a simple, robust and fair regulatory system that addresses all concerns regarding the PS being distributed on cable TV networks.

After an extensive consultation process in which open houses discussions were held with stakeholders in all four regions in India, the Authority forwarded its recommendations on ‘Regulatory framework for Platform services’ to the government on 19 November 2014.

January 2, 2015
“Traditional STBs can no longer handle complex requirements of innovative operators”: Matthias Greve

IPTV is moving from a pure linear product to a complete TV experience with live TV, on demand services and third party content. This new world of connecting the TV to the Internet means both, opportunities and challenges for operators, developers and integrators.

ABOX42, is one of the leading provider of hybrid, IPTV and OTT DVB smart set top boxes (STBs), with five years expertise and knowledge in end-user mass-market products and a deployment of over 120 OTT applications. ABOX42 developed a new generation of smart STBs for the global market. The ABOX42 smart STB platform is the ideal solution for any IPTV and OTT content providers, cable-operators and ISPs, who are aiming to provide an own STB for its services to its customers. The platform was designed for fast moving OTT providers, cable operators, IPTV providers and internet service companies. With its powerful smart SDK, the Smart SaaS Services and additional Smart Solutions, the ABOX42 platform offers its customers a short project cycle, short lead times in production and includes lifecycle management for ongoing software maintenance and service updates.

ABOX42 is taking a new approach with the ABOX42 Smart Platform and its advanced customised IPTV, OTT and Hybrid Smart STBs to solve the most important key challenges by providing the solid hardware foundation and the software features for a unique TV proposition with least cost and low development effort. In an interview, ABOX42 founder and CEO Matthias Greve answers essential questions about the rapidly changing market.

Excerpts:

What role do STBs play now and in future, considering Smart TVs and cloud based services?

Modern STBs like the ABOX42 M-series are designed for local TV applications as well as for emerging cloud based TV services. Since on one hand the operators need to control the user experience and on the other hand need to be ahead of competition with the introduction of new TV features, it will be more than ever mandatory to have a modern, flexible and scalable Set Top Box platform for the first screen TV experience of paying end-users. Smart TVs offer a certain range of OTT applications, but will not replace the main Set Top Box device in end-users home, which provide a unified, rich TV experience on the first and second screen.

Do you see a “SetTopBox-less” future for operators?

There is currently some talk from operators about virtual STBs as SmartTV apps or STBs as CI+ modules. Since there is today no standard for the virtual STB applications and the vast majority of the installed flat screen TV in the household do not support these new applications, the operator still needs to focus on its core STB. This is the device, which can be shipped to all subscribers regardless of the type or age of the TV set.

What view should an operator take on the virtual STB?

The best way to view these issues is to treat the virtual STB like the operator would treat an App on iPad, XBOX or PlayStation. It is an add-on but not the core of the operators TV solution.

What are the challenges of virtual STBs as apps?

With the virtual STB apps within SmartTV, the operator does not have the same freedom on the user interface side. Also the quality of service cannot be guaranteed over the live time of the app. It is out of the operators´ control, how for example future software updates of the SmartTV manufacture might affect the compatibility and proper functioning of the operators TV service.

Also Virtual STB apps are not free of charge and need costly maintenance. If you support different manufactures and different version of TV sets it quickly sums up to 5 to 10 new platforms which have to be supported each year.

What is the major shift in the STB market?

Traditional closed STB platforms are not any longer able to handle the complex requirements of innovative operators. The market will move from old integrated, proprietary STB products to modern SmartSTB platforms where the focus has moved to the software layer. This is a similar shift like we experienced in the last few years with the move from traditional feature phones to modern Smart phones. The same trend we see in the TV middleware segment, where operators want to move from closed propriety systems to open solutions based on modern internet technologies and open standards.

What are the specific operator challenges solely advanced STBs are able to match?

The biggest challenge for operators today is to understand what the difference of new IPTV & OTT solutions is and how the operator can in an effective way get to the target solution in least time.

Basically almost all Cable and Satellite Pay TV operators want to deliver new services like network PVR, VOD and want to add OTT delivery of specific channels to free up bandwidth in their traditional DVB networks. IPTV operators who started several years ago need to upgrade their user experiences from inflexible first and second-generation STB platforms to latest (third) generation. This new generation STB platforms allow the fast development of modern user interfaces, compelling services and the integration of third party services based on HTML5. In addition these new Smart STB platforms are upgradable and much more future proof than legacy STBs.

Do SmartSTBs already match operators´ current and future demands?

SmartSTBs have arrived and delivery of HD live TV channels over the internet with OTT technologies is a market proven technology deployed in the mass market already. A new concept of OTT DVB, allows not only live TV signal delivery over the internet, but to also include multiple audio tracks, classical TeleText, DVB Subtitle as well as modern HbbTV application via HLS streaming.

Will future trends in the operator area be in favour of STBs?

There are two major trends increasing the demand for STBs. Operators who already run an older generation IPTV service plan to upgrade to a latest generation IPTV & OTT solution which is modern and scalable, which can be integrated seamlessly and offers new compelling features (additional OTT services, HbbTV, nPVR, Smart TV applications) and multi-screen capabilities.

Operators without an existing installation who want to move into the TV space with a modern IPTV (or even more often OTT) solution which is easy to role out, does not require long integration work and offers a great first screen experience combined with multi-screen capabilities.

What are the unique possibilities given with OTT solutions and STBs?

OTT is a great opportunity for new players to enter the TV market, or for existing operators and internet service providers to reach new customers and add new features. ABOX42 has been an innovator in the advanced Set Top Box platform field for quite a while and we recognise that our solution is picked by both traditional operators who want to move to a future proof, modern and complete solution, as well we are serving new OTT operators who are entering the TV field with compelling new product offerings and disruptive business models. We see a major increase of our business and getting more and more request from traditional operators.

What distinguishes the new STB generation from the preceding models?

The new SmartSTBs will be able to handle many different standards side by side, such as streaming protocols, DRM and CAS systems. This new SmartSTB generation is HTML5 browser based and much more easier for development. A new focus will become the management of the software lifecycle and cloud services to manage the SmartSTB during the entire lifecycle, like we are all used nowadays with e.g. the iPhone.

What are characteristic innovations in the area of OTT and IPTV technologies?

ABOX42 as innovator in the IPTV & OTT segment is already delivering products, which offer all the latest innovations. This includes support of all major DVB features in both IPTV & OTT, supporting HbbTV services, other OTT services and third party applications with different streaming formats, different DRM systems side by side on the platform. More efficient streaming with H.265 will for sure boost the video quality especially for OTT and will allow more efficient content delivery for operators.

Do SmartSTBs and especially ABOX42 solutions meet the customers´ demands?

ABOX42 is supporting all demanded new features with its Smart SDK and Smart mobile Toolkit for the advanced ABOX42 STB platform. We see this as one of our competitive advantages to provide a broad compatibility to OTT services, streaming formats, DRM systems as well as the support of various TV Middleware solutions.

This way a network operator can flexibly and easily upgrade all existing customers (digital and analog TV watchers) with new OTT and interactive services such as Catch-Up TV, Video on Demand and many more. ABOX42 offers short project cycles, short production lead times and includes lifecycle management, ongoing software maintenance and service updates.

What are currently the typical demands of ABOX42´s customers?

Depending on legal requirements in a certain country, cloud based recording (network PVR & network timeshift) is the most compelling feature. But also HbbTV offers a great set of additional features and on demand content which is supported by more and more countries / operators. Last but not least ‘Multi-Screen’ applications are getting more and more popular since it is not only about ‘on demand’, but about ‘any place, any time’ nowadays. In general it is all about high quality content and an intuitive user interface. This is what end-users like on the new TV experience.

What are the prospects for a retail market as a channel for multiple services and devices?

We believe the operators including new OTT operators are in the driver’s seat to deploy compelling multi screen solutions to their customers. Most markets are dominated by pay TV offerings by operators. Looking into the hardware devices, already today lots of retail devices (iOS or Android based) can be enabled as a second screen device, where the operator controls the application for these devices (for OTT services). For the main screen (e.g. IPTV), the operator will control and provide as well the hardware device (STB).

November 19, 2014
TRAI asks stakeholders to give views on AGR

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has asked the stakeholders to give their views on their definition of adjusted gross revenue (AGR).

In a pre-Consultation Paper on ‘Delinking of license for networks from delivery of services by way of virtual network operators,’ TRAI has also sought the views by 17 September on what will the model of agreement be between Network Service Operator (NSO) license and Service Delivery Operator license created under the draft National Telecom Policy 2011.

It has asked if this would be left to the market or regulated like mandating NSOs to provide services to SDO licensees and mandating charges etc.

In its Policy, Department of Telecom had said NSOs would be licensed to set up and maintain converged networks capable of delivering various types of services e.g. voice, data, video, broadcast, IPTV, VAS etc. in a non-exclusive and non-discriminatory manner.

SDOs would be licensed to deliver the services e.g. teleservices (voice, data, video), internet/broadband, broadcast services, IPTV, Value Added Service and content delivery services etc.

In its latest reference to TRAI, the DoT has envisaged the entry of Virtual Network Operators (VNOs) for delivery of services by delinking them from licensing of networks.

Virtual Network Operators (VNOs) are SDO licensees who do not own the underlying network(s) but rely on the network and support of the infrastructure providers, telecommunications operators (who are owner(s) of towers, radio access networks, spectrum etc.) for providing telecom services to end users/customers. As these operators do not have their own networks, they are termed as Virtual Network Operators. VNOs can provide any telecom service being provided by the network providers viz. tele-services (voice, data, video), internet/broadband, IPTV, Value Added Services, content delivery services etc. The most popular among VNOs are Mobile Virtual Network operators(MVNOs).

India is a diverse country, large in size and had very poor telecom networks when the government decided to open the sector to private participation.

Therefore, in order to ensure development and proliferation of telecom infrastructure across the length and breadth of the country, the government took a conscious decision that all TSPs would have their own network for providing services to their customers. To meet this end, each TSP was mandated to comply with certain roll-out obligations and even sharing of infrastructure was not permitted initially. To encourage tower sharing amongst operators, the government initiated a project ‘Mobile Operator Shared Tower (MOST)’ in March 2006, and later on, in April 2008 sharing of active infrastructure, except spectrum, was also permitted.

At present, most access providers are integrated operators who have their own infrastructure for both access and long distance services. Having already established their networks, the issue to deliberate upon is whether delinking the network from service delivery will have any effect on the working of these TSPs. The new licence regime has come into existence only about a year back.

In the proposed licencing framework, based on the VNO model, one issue could be whether the existing TSPs, will have to obtain a NSO licence or both NSO & SDO licences on migration to the new licensing regime.

A linked issue for deliberation will be about the necessity of changing the licensing regime at all, at such a short interval since UL was introduced.

At present, there are 7-13 licensees in various service areas. Therefore, another issue for deliberation could be about the need for introduction of more competition in the form of VNOs.

Apart from access services, for other services like V-SAT, PMRTS/CMRTS, GMPCS, it needs to be deliberated whether any business case/revenue potential exists for a standalone Virtual Operator for these services.

In India, the TSPs have infrastructure, including spectrum, which is just about sufficient to cater to their own requirements. Would they really be able to spare their infrastructure for new SDOs, TRAI wants to know.

It can also be deliberated whether the reference of DoT envisaged an entirely new licensing regime or could be considered to mean that a chapter may be added to the existing UL for facilitating licenses to the VNO.

September 3, 2014
TRAI issues consultation paper on regulating local TV channels

MUMBAI: The Telecom Regulatory Authority of India (TRAI) is going to look at putting in place regulations relating to local TV channels now.

In a consultation paper released today, the TRAI has sought stakeholders’ opinions on the regulatory framework that could be drawn up for local content channels in order to put them on a par with TV channels that are broadcast via satellite.

The ministry of information and broadcasting (MIB) – through its secretary Uday Kumar Verma (in January 2013) – had asked the regulator to come up with its recommendations for the same.

The TRAI consultation paper states that MSOs, LCOs, DTH operators, HITS and IPTV service providers (all called as distribution platform operators – or DPOs- henceforth) are running local channels aka platform services (PS) that don’t have the MIB’s permission. Some channels that are transmitted by the DPOs through the PS channels have content similar to regular TV channels.

TRAI has made it clear in the consultation paper that DAS has changed the context for DPOs and their PS as far as cable TV operators are concerned. The reason: with digitization, it is only the MSOs who can transmit encrypted signals from their headends on cable TV networks; LCOs can no longer transmit their own local ground based channels.

The regulator states that there has been a debate on whether PS channels can be considered as a conventional TV channel or a value added service (VAS) because broadcast TV channels are charaterised by continuous dissemination of content in a push mode to all subscribers through DPOs. On the other hand, PS channels provide content in a pull mode triggered by a specific need or demand of consumers.

TRAI has queried whether stakeholders agree with the following definition of a PS and if not then to suggest an alternative: “PS are programs transmitted DPOs exclusively to their own subscribers and does not include Doordarshan channels and TV channels permitted under downlinking guidelines.”

Programmes on PS

PS generally includes music, movies, news, devotional, entertainment, local news, live events, teleshopping, kids programs, serials, documentaries, regional programs, local plays, infotainment, market news, educational, and interactive games.

TRAI has asked stakeholders to provide their views on whether a PS channel cannot transmit news or current affairs, coverage of political events, programmes already shown on DD or other TV channels, international/national and state level sporting events or games like IPL, Ranji Trophy. Whether what it shows can include programmes such as movies, VOD, interactive games, coverage of local events and festivals, traffic, weather, educational/ academic programs (such as coaching classes), information regarding examinations, results, admissions, career counseling, availability of employment opportunities, job placement, Public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts etc. as provided by the local administration, Information pertaining to sporting events excluding live coverage, live coverage of sporting events of local nature i.e. sport events played by district level (or below) teams and where no broadcasting rights are required.

It has also asked the timeframe for reviewing whether a PS is trespassing into the domain of a regular TV broadcaster.

Eligibility criteria for PS

All categories of DPOs, apart from MSOs, are required to be registered under the Companies Act. To ensure uniformity in the legal status of all DPOS, TRAI suggests that a DPO offering a PS must register under the same. Therefore, the process of incorporation as a company has been simplified. Since the act allows even one person to register as a Company, small MSOs that are registered with the MIB can now register under the Companies Act.

TRAI has asked whether it is mandatory for all DPOs to be registered as companies to be allowed to operate PS or to suggest an alternative.

FDI limit for PS

Currently news channels are allowed only 26 per cent FDI and a recommendation to increase it to 49 per cent is pending with the government. On the other hand, MSOs can have FDI up to 74 per cent. The regulator states that exclusion of ‘news and current affairs’ category of programmes from a PS channel would address this unevenness. It asks views on the same.

Other issues

As per the downlinking guidelines, an applicant company needs to have a minimum net worth of Rs 5 crore to downlink of its first TV channel and Rs 2.5 crore for any additional channel. It asks if there is a need for a minimum net-worth requirement for offering PS channels. Additionally, it also seeks to know if such channels should be subject to similar security clearances as applicable to private satellite TV channels.

The TRAI also requests inputs on registration of PS channels with the MIB for which it would introduce a time bound centralised online registration system. Registration can be for 10 years with renewal for another 10 years. At the time of registration, the DPO should also declare the type of programmes it will transmit and any changes should be informed 30 days prior to a change.

Although TRAI feels market forces would compel the DPOs to restrict transmission of channels to a local geographical area, it still asks for stakeholders’ views on should there be any limit in terms of geographical area for PS channels. Also, if there should there be a limit on the number of PS channels which can be operated by a DPO.

Inputs on other obligations/restrictions that need to be imposed on DPOs for offering a PS such as non-sharing of a PS with another DPO and compliance with the programming and advertising code and TRAI’s regulations on quality of service and complaint redressal are also sought.

Certain DTH operators transmit radio channels while some radio stations provide it through the net as over the top services. It asks whether a DPO should be permitted to re-transmit already permitted and operational FM radio channels under a suitable arrangement with the FM operator and if there should be a limit on the number of such channels.

In order to monitor the kind of content that is being transmitted through the PS channels, DPOs may be mandated to keep a record of programmes for 90 days and produce it as and when required. The regulator asks for a monitoring mechanism.

Whether a PS should be penalised in a manner similar to TV broadcasters, is also asked. Lastly, it seeks a timeframe for the registration of existing PS channels once it is notified by the MIB.

Comments are required to be submitted by 14 July and counter comments by 21 July.

Click here to read the TRAI consultation paper on regulating local TV channels

June 23, 2014