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Tag: LCO

  • Siti Cable could go prepaid within three months

    Siti Cable could go prepaid within three months

    MUMBAI: National multi system operator (MSO) Siti Cable is looking at options of going prepaid.

    While the MSO will test the viability of the model in Delhi first, it will also replicate it in other states, at a later stage. “What we have seen is that whatever we do in the Delhi market, when replicated outside, works well,” says Siti Cable CEO VD Wadhwa.

    The prepaid model that Siti Cable is looking at will be based on the local cable operator (LCO) depositing an advance to the MSO and then collecting the same from the consumer.  “We have given the power of managing the subscriber management system (SMS) to the LCO, so they can change packages or switch on or switch off boxes of customers who do not pay them the cable TV bill,” informs Wadhwa.
    The LCO according to the prepaid model will get the signals from the MSO so long as his credit balance remains. “The LCO will have to keep renewing his credit balance to get uninterrupted services, the moment his balance becomes zero, we will disconnect the signal,” he says.

    The LCOs through this model will have to find the defaulters and take corrective action accordingly. The key to moving prepaid is to give access of SMS to the LCOs.

    Not only this, going forward the LCOs can also make the system prepaid at their end by billing the customers in advance. This will also help the LCOs find out defaulters.

    While Siti Cable also has the option of recharging through their website, they have realised it upsets the LCOs. “We have to build the trust between the LCOs and MSO and let the LCO handle the customers,” he opines.

    Wadhwa is hopeful that the system will be in place within three months.

     

  • With broadcaster backing, MSOs eye voluntary digitisation

    With broadcaster backing, MSOs eye voluntary digitisation

    MUMBAI: When the industry was moving in full force towards digitising phase III and phase IV cities, the Information and Broadcasting Ministry announced the postponement of digitisation till 2016. The news may have elated a few, but multi system operators (MSOs) and broadcasters have been critising the move. 

     

    “It is the MSOs who have to invest in digitisation,” says Siti Cable CEO VD Wadhwa and president of the newly formed All India Digital Cable Federation (AIDFC). In such a scenario, Wadhwa has suggested voluntary digitisation in these phases.

    The MSOs have a feeling that with delayed digitisation, the local cable operator (LCO) will not pay them the incremental money, since digitisation is not taking place.
     

    With delayed digitisation, broadcasters who were looking for a hike in their subscription revenue from the phase III and phase IV markets will also have to put a break to their dreams. 

    The MSO too is at loss. Currently, an MSO invests close to Rs 1500 per set top box and additional money on connectivity. “With this delay, the MSOs are not going to get any return on their investments for the next 15 months.  So whether I pay today or after 15 months, my interest cost will keep getting high, since I will be borrowing money and then investing,” informs Wadhwa.

    To tackle this situation, Wadhwa suggests that since the industry has to in any case move to digitisation in the next two years, they can start with voluntary digitisation.  “Broadcasters will have to back the MSOs to achieve this,” he says adding that Siti Cable is ready for voluntary digitisation, provided that broadcasters do not charge the MSO for the next 15 months.

    “Since the MSO is bringing in the money, the broadcasters should agree to not charge for next 15 months,” he says.

    Wadhwa also suggests that voluntary digitisation can be smooth provided the LCOs increase the cable bill in phase III and IV markets by Rs 50-Rs 60. “LCOs have till today been charging only Rs 150-Rs 180 from the consumer for some 60 channels. I would suggest that since with digitisation the number of channels will go up to 200-250, the LCOs should increase the bill by Rs 50-60 per subscriber.”

    Wadhwa is of the view that the LCOs can keep 50 per cent of the amount they increase in the cable bill. “With this, till digitisation is complete, while the ARPU for the MSO increases, the LCO can also get 50 per cent more on what he is currently getting,” he opines.

     

    In order to make this possible, Wadhwa will first try to bring consensus amongst MSOs and then will talk to all the broadcasters. “If the broadcasters support us, we will go ahead with voluntary digitisation.  We will also go to each state and talk to the LCOs,” he concludes. 

     

  • DAS task force to meet on 8 October amidst protests

    DAS task force to meet on 8 October amidst protests

    NEW DELHI: Almost a month after its constitution, the task force set up for the implementation of digitisation in the country and particularly overseeing the execution of the last two phases of Digital Addressable System (DAS) is expected to meet on 8 October at 10:30 in Delhi.

     

    However, local cable operators who have already expressed their protest at not being given a voice in the Task Force have not been invited to the meeting.

     

    Talking about the meeting, Information and Broadcasting Ministry secretary Bimal Julka told indiantelevision.com that all the stakeholders named in the task force order of 12 September had been nominated and are expected to be at the meeting. Although an official of the Information and Broadcasting Ministry denied this.

     

    LCOs who form the backbone of the cable television system in the country said no organisation of LCOs had been included in the task force or invited in the meeting.

     

    Meanwhile, ASSOCHAM Media and Entertainment Committee co-chairman Sujatha Dev informed the industry body that she is unaware of how a representative of ASSOCHAM was nominated to the task force.  

     

    National Cable & Telecommunication Association president Vikki Choudhry has in a letter to the I&B Minister Prakash Javadekar alleged that “In spite of all your endeavours taken to clean up the mess that had been created on account of DAS by the previous UPA government, few officials still attached to the MIB are bent on misleading and misguiding you on this much controversial DAS issue.”

     

    He has also pointed out that certain categories had not been invited to the task force meeting despite them being directly involved in implementation of DAS which included five Independent MSOs one each from North, South, East, West and North East region, five registered LCO associations one each from North, South, East, West and North East regions, a representative of the Association of Regional Television Broadcasters of India/ Regional News Broadcasters Association, five prominent consumers organisations, one each from North, South, East, West and North East regions, a representative of ASSOCHAM and a representative of Telecom Equipment Manufacturers Association of India (TEMA).

     

    Choudhry added that while there had been mention of these in the order of 12 September constituting the task force, no persons had been nominated for these categories.

     

    Additionally, he also revealed that there was no representation / invitation sent to Conditional Access System Vendors (an integral part of the entire DAS) and Subscriber Management System (SMS) that controls the entire DAS ecosystem after integration with the CAS.

     

    According to the 12 September order, the new task force was to be headed by I&B additional secretary as chairperson, with Telecom Regulatory Authority of India (TRAI) principal advisor for broadcast and cable satellite, I&B Ministry joint secretary broadcasting, representatives from the MSO Alliance, five independent MSOs one each from north, south, east, west and north east regions, five registered LCO associations one each from north, south, east, west and north east regions, representatives from the Indian Broadcasting Foundation, News Broadcasters Association, Association of Regional Television Broadcasters of India, DTH Association, FICCI, CII, ASSOCHAM, CEAMA, Department of Telecommunications, Department of Electronics and Information Technology, DG: Doordarshan, DG: All India Radio, BECIL, BIS, five prominent consumer organisations one each from north, south, east, west and north east regions and 33 state level nodal officers one each from the states/union territories governments.

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

     

    While NBA and IBF will be participating in the meeting, representatives of cable operators associations from different states are protesting against the exclusion of LCOs and MSOs from the meeting. 

     

     

  • LCOs threaten to boycott TRAI OHD meet on 29 September

    LCOs threaten to boycott TRAI OHD meet on 29 September

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has called an Open House Discussion (OHD) on the draft amendment Registration India International regulations, the Standards of Quality Service (Digital Addressable Cable TV Systems) (Amendment) Regulations 2014.

     

    The meeting is being held in Delhi on 29 September and local cable operators and other stakeholders have been asked to register by 26 September evening.

     

    However, most local cable operators from different parts of the country have decided to boycott the meet, alleging that TRAI ‘management ran away’ in the last Open House Discussion.

                   

    Several organisations of LCOs from Gujarat, West Bengal and other parts of the country pointed out that many LCOs had come to Delhi on 24 September and alleged that ‘the management of TRAI does not have respect towards this religious faith’ and has given a deadline of 26 September for the next OHD despite the Navratri festival.

     

    It was pointed out to indiantelevision.com that even the next OHD was clashing with the festive season and not enough time was given to the LCOs to be able to get bookings to come back to Delhi.

     

    LCOs alleged that ‘there was no discussion and no LCO was allowed to share in a fair or justified way in the last OHD and it looked like some dictatorship where the authority only wants to levy amendment on the LCOs’.

  • IDOS 2014: Trust amongst stakeholders holds the key to increasing ARPUs

    IDOS 2014: Trust amongst stakeholders holds the key to increasing ARPUs

    GOA: The broadcasters, multi system operators (MSOs) and the local cable operators (LCOs) need to trust each other to solve most of the issues that affect the cable TV industry. While the dialogue between the trio has begun, there is still lack of trust and this has to change, is what the industry stalwarts expressed at the ongoing India Digital Operators Summit (IDOS) 2014, organised by Indian Television Dot Com and Media Partners Asia.

     

    “The current reality is that the players within the chain have at least started talking to each other, which was missing earlier. So with digitisation, this is one of the most positive moves that has happened,” says IndiaCast CEO Anuj Gandhi. He also emphasises on the need for the MSOs to resolve the jigsaw puzzle with the LCOs to ensure better Average Revenue Per User (ARPU). “The MSOs need to get the LCOs on table and understand their issues,” he says while adding that the last mile needs to be seen as partners in the cycle.

     

    Agreeing with him was Hathway Cable and Datacom MD and CEO Jagdish Kumar, who feels that the last mile needs to get returns on the services he provides. “But that will need collective work. We need to grow the ARPUs from the current Rs 180 to Rs 250-Rs 300,” he says.

     

    For Siti Cable CEO VD Wadhwa, the reason for lack of trust lies in the history of cable television ecosystem. “Historically, the understanding has been that the last mile retains a large part of revenue. Now with digitisation, underdeclaration is not possible and so the LCO is suffering from fear psychosis that he will lose his subscribers,” he says.

     

    The Siti Cable CEO also feels that there is a need for MSOs to give the LCOs access to the SMS so that they can feel a certain ownership towards their customers. “There is a need for a policy which is well documented, transparent and honoured,” he adds.  

     

    From the time government announced digitisation of cable TV homes, it is the regulations and the courts that have been driving the business. “Let’s not get the regulator involved in areas where we can resolve the issues. We need to put together a commercial document which is uniform across,” opines Star India president and general counsel Deepak Jacob.

     

    One of the biggest concerns for the stakeholders is increasing the currently low ARPU. “The DTH industry has done well on this front. While we started with Rs 150 in 2008, we have gone up to Rs 200-Rs 220 in phase III and phase IV markets, where the cable industry still has a ARPU of Rs 150,” informs Videocon d2h CEO Anil Khera. He also feels that the cable industry cannot have different rates for different markets.

     

    The DTH industry faces a huge threat from Freedish, which is becoming a great proposition in phase III and phase IV. “I see more threat from Freedish, if the platform gets the general entertainment channels onboard. According to me, all these channels should be made ‘pay’ on Freedish as well,” opines Khera.

     

    While talking of the threats the industry currently faces, Jacob also highlights the threat that comes from state governments playing a role in the content and distribution market. “The Tamil Nadu and Punjab markets are pretty much locked because of the monopoly of the state government in the region. The disease is growing, with more states looking at the same. We should ask the government to implement recommendations to curb this,” he says.

     

    Another point discussed during the session on ‘Unity and the way forward for the next five years’ was if the DTH operators have an opportunity in phase III and phase IV markets with the extension of digitisation dates.  Says Dish TV CEO RC Venkateish, “DTH in phase I and II continued doing what it did when it had started. But phase III and IV is a different kettle of fish and so we at Dish launched Zing. The delay means loss in momentum.”

     

    Hathway is looking beyond cable in the phase III and IV markets. “We are looking at broadband as the margins from here are far higher than cable,” informs Kumar who says that while broadband currently is at 20 per cent, it will increase significantly in the future.

     

    As for increasing ARPUs, Gandhi suggests that there is need to look at the basic packs. “We need to work on making the basic pack light, so that consumers see value in the higher packs,” he says. According to him, the MSOs like the DTH operators should start getting into a multi-year or five year deals with broadcasters, rather than the one year deal that they have currently. “This will help him sort his content cost and also give them more confidence, which they can then pass on to the LCOs,” opines Gandhi.

     

    The MSOs have taken a lot of debt for digitising phase I and phase II. “Now when we approach the investors, we will need to have a roadmap for them to invest,” informs Kumar.

    Can phase III and phase IV be underestimated, answers Jacob, “We shouldn’t underestimate these two phases. The households in phase III spend close to Rs 300-Rs 350 on telecom and VAS services, while phase IV spends some Rs 250 on it. And these households are trying to watch all the content on their phone. So this is the matrix the cable TV industry should follow.”

  • Additional time for comments on regulatory framework for platform services as Delhi OHD ends abruptly

    Additional time for comments on regulatory framework for platform services as Delhi OHD ends abruptly

    NEW DELHI: An Open House Meeting in New Delhi on issues relating to the regulatory framework for platform services operated by television distribution platform operators ended abruptly when a set of cable TV operators insisted that other problems relating to LCOs should also be discussed.

     

    TRAI chairman Rahul Khullar assured the operators that time would be given after the agenda items were over, but the meet was ended abruptly after 45 minutes when no heed was paid to his plea and because of ‘sustained disturbance’.

     

    Later, local cable operators held a demonstration outside the venue and also filed a police complaint against TRAI officials including Khullar, saying he first invited them but refused to listen to them, and called the police to keep them under control. They also alleged he was only interested in appeasing the broadcasters lobby. 

     

    TRAI later said the meetings for the other three regions – Mumbai on 12 September; Bangalore on 16 September; and Kolkata on 19 September – were constructive wherein not just the issues on the agenda but also other matters relating to development of the cable industry, including digitisation, were discussed.

     

    In view of the abrupt ending and to enable stakeholders to make other recommendations relating to the regulatory framework for platform services operated by TV distribution platform operators, TRAI has decided to permit stakeholders to give any additional comments by 29 September. Platform services include the local channels shown on cable TV.

     

    The meeting in Delhi, organised for the stakeholders in the Northern region, was the last of a series of four open house discussions organised in different parts of India.

     

    The four OHDs were to enable the Authority obtain first hand information regarding the views and opinions on the issues involved from a wide cross-section of the stakeholders.

     

    Representatives of the local cable operators; multi-system operators; broadcasters; DTH operators; HITS operators; content creators; consumer organisations, research institutions etc. came for the OHDs. 

     

  • LCOs in Kolkata to submit interconnection agreement to MSOs soon

    LCOs in Kolkata to submit interconnection agreement to MSOs soon

    KOLKATA: Local cable operators (LCOs), operating in the Kolkata Municipal Area with more than 33 lakh cable television homes, plan to submit a draft of the interconnection agreement to the multi system operators (MSOs) without any further delay. The agreement has been drafted after extensive discussion between both the MSO and the LCO.

     

    Sources said that MSOs like Siticable and Manthan among others have executed the interconnection agreement with their affiliated LCOs, while there are a few who have yet not worked out the details of the agreement.

     

    “The LCOs have decided to submit a draft interconnection agreement to their MSOs, since they do not want to be blamed for non-signing of the agreement by the MSOs,” said Sangram Committee secretary Apurba Bhattacharya.

     

    In a meeting held recently, Sangram Committee addressed issues pertaining to the interconnection agreement; notice of the Telecom Regulatory Authority of India (TRAI) on the amendment to be introduced shortly; the MIB notice to the MSOs and lastly the local issues of LCOs.

     

    The move comes after TRAI had instructed the MSOs and LCOs to mutually draft an interconnection agreement for better operation. The Authority had also said that if the two parties failed to mutually draft the agreement, it would come up with one, which will then have to be signed by both.   

  • MIB warns MSOs against disconnection signals to LCOs

    MIB warns MSOs against disconnection signals to LCOs

    MUMBAI: The Government today warned multi-system operators against disconnecting signals of local cable operators without due notice specifying reasons and said any violation of this would viewed seriously and action against erring MSOs.

     

    The directive comes even as more than twenty cases are pending before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) relating to disconnection of signals by distributors to MSOs or MSOs to LCOs.

     

    The Information and Broadcasting Ministry said Chapter V of Standards of Quality of Service (Digital Addressable Cable Systems) Regulations 2012 issued by Telecom Regulatory Authority of India (TRAI) is clear that ‘no multi system operator (MSO) shall disconnect the signals of a TV channel of a linked local cable operator, without giving three weeks’ notice to such local cable operator, clearly specifying the reasons for the proposed disconnection.’

     

    The Regulation further says notice of disconnection of signals of TV channels is also required to be published in two leading local newspapers of the State in which the service provider is providing the services, out of which one notice shall be published in the newspaper in the local language of the area.

     

    The Ministry said it had been brought to its notice that some MSOs are disconnecting signals to cable subscribers without giving any notice in violation of the Regulation.

     

    The Ministry said this is also in violation of the undertaking given by MSOs in form 2 of their application which states: ‘We shall ensure that my/our cable television network shall be run in accordance with the provisions of the Cable Television Network (Regulations) Act 1995 and the rules made thereunder, regulations, orders, guidelines or the directions issued by the Central Government or the Authority from time to time.’

  • TRAI issues consultation paper on regulating local TV channels

    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

  • JAINHITS creates LCO friendly schemes

    JAINHITS creates LCO friendly schemes

    MUMBAI: Giving more power to the local cable operator (LCO), India’s only HITS service JAINHITS has come up with special schemes that will enable LCOs to choose content as per their customers’ needs and pay for that.

     

    The schemes ‘double happiness dhamaka’ and ‘double freedom dhamaka’ that are valid till 30 September aim to streamline operations, improve efficiency and maximise profits. ‘Double happiness dhamaka’ has two variants, ‘Happy 15’ and ‘Happy 17’ allowing LCOs to choose up to 21 pay channels over and above 140 free to air channels and are valid till June 2015 and June 2017 respectively.

     

    Under ‘Double Freedom Dhamaka’, ‘Freedom 11’ and ‘Freedom 12’ are two sub themes that target regional viewers apart from other channel packages. MPEG4 quality set top boxes are available at the starting price of Rs 1699.  “Our offerings are a testimony to our belief in mutual growth along with our partners and wish to boost our partner ecosystem with robust growth opportunity. We would continue to facilitate our partners with such opportunities in the days to come,” stated JAINHITS head Rakesh Gupta.

     

    “These schemes will assist LCO’s in reaching out to greater audiences with best-in-class TV viewing solutions and  enable them to maximize profitability, improve efficiency as well cater to the consumer expectations,” states a release from the company.

     

    JAINHITS technology in partnership with ARRIS and IntelSat is a fast plug and play digitisation solution that comes for an investment of as low as Rs 4.99 lakhs. By signing up for the new schemes, LCOs also get technical updaradation with 24X7 sales service, CAF and CRF and marketing and promotion support which are all DAS compliant.