ITV

Tag: LCO

  • Kolkata MSOs to increase channel package rates

    Kolkata MSOs to increase channel package rates

    KOLKATA: A revision in channel package rates is on the cards following the Telecom Regulatory Authority of India’s (TRAI) directions to multi system operators (MSOs) last week to ensure delivery of bills to subscribers by hand, post or email as opted for by them, and provide within 45 days an online payment option in their subscriber management system (SMS) for subscribers to pay their bills in the first phase of the digital addressable system (DAS).

     

    However, the percentage by which channel package rates will go up is not exactly known.

     

    Kolkata has nearly 30 lakh cable homes and till mid-January, MSOs were issuing ad-hoc bills to subscribers. According to several LCOs, despite having implemented gross (consumer) billing in the Kolkata Municipal Area (KMA) since January, end consumers are not willing to pay billed amounts to LCOs.

     

    When contacted, Siticable Kolkata director Suresh Sethia said, “Package rates will soon be revised. There are instances where consumers are not getting bills from LCOs. The law of the land is the same for everyone. So, we have to courier bills to end users and this involves costs.”

     

    “We are happy that TRAI is trying to make the system more transparent,” Sethia added.

     

    An MSO on condition of anonymity said, “We will have to depute collection agents and provide them with a salary or collection commission, whatever they think is better as LCOs are not able to collect money from end consumers. But we can’t use this as an excuse and will ensure we adhere to the TRAI rules, however cash-strapped we are.”

     

    A cable expert expressed the view that package rates will have to be increased as post implementation of DAS broadcasters have started bargaining a lot and have proposed to charge a much higher rate than before.

     

    “MSOs are bound to increase the price as they have to show the bill and pay the tax on that. Also, to follow the new bill delivery system of the TRAI, additional costs will be incurred in terms of software development and manpower. To justify that, they may increase the price,” said Incubators Group chairman Kaushlendra Singh Sengar.

     

    Sengar informed that the Regulator had also asked MSOs to ensure that an electronic acknowledgement is sent to subscribers on their registered mobile numbers or email addresses within 30 days of making the payment to the service provider.

     

    A cable analyst, Mrinal Chatterjee, begged to differ, “Cable TV operation is not telecom operation. Here, LCOs also work. MSOs have no network of their own but depend on last mile connectors. Customers are the clients of the LMO, so how can MSOs send bills to them?”

     

    Other industry sources argued that some MSOs didn’t even have an SMS in place so how could they start an online payment option in the SMS.

     

    Still other sources opined that MSOs and LCOs need to address the issues together. “Now it seems the authorities want to remove the LCOs from this trade altogether, but it is not that easy to do so,” said an LCO on condition of anonymity.

  • Digitisation at one-third of the investments by MSOs, claims JAINHITS

    Digitisation at one-third of the investments by MSOs, claims JAINHITS

    NEW DELHI: A campaign “Cable ka Shahenshah, DTH ka Baap” has been launched by JAINHITS, India’s only HITS based Direct to Network (DTN) service, relating to quality of services and its ability to deliver digitised content across terrains, anywhere in India.

     

    JAINHITS technology in partnership with Motorola (now ARRIS) and IntelSat offers a unique proposition to the LCOs (local cable operators) of an overnight plug and play digitisation solution that comes for an investment as low as Rs 4.99 lakh only. This makes them fulfill Telecom Regulatory Authority of India’s (TRAI) guideline requirements of All India digitisation by 31 December 2014.

     

    The HITS platform claims that if the 6,000 odd MSOs were to digitise their networks, they would require an investment of up to Rs 3 crores per MSO, thereby costing approximately Rs 18,000 crores as mere investments. JAINHITS on the other hand can provide direct services to over 60,000 LCOs spread across India with average investment of only Rs. 10 lakh per operator, thereby digitising the country for just Rs 6,000 crore, which is one-third of the investment required by MSOs. Thus, the massive saving of Rs. 12,000 crore is being passed on to the customers by providing cheaper services with enhanced quality viewing.

     

    Moreover, JAINHITS “Go Digital” entry scheme strategy will help LCOs to increase their subscriber base manifold in a short span of time. Not only this, through this partnership model LCO will witness significant increase in their customers ARPUs which are likely to double in 2014-15 with broadband and other VAS product/service roll outs. All this put together will help JAINHITS LCO partners enhance their business and earnings.

     

    With a mere investment of Rs 4.99 Lakh, an LCO will get all the necessary help in terms of technology, content and Set Top Boxes that will enable them to operate independently. JAINHITS offers LCO’s new product/ service roadmaps to address the ever- evolving market and customer needs along with the full technology solution roadmap for cable TV network upgradation. In addition, LCO’s also receive all necessary training on technical, legal, product, consumer satisfaction, compliance aspects etc. which facilitates them to offer standardised services.

     

    JAINHITS is the only platform in the country, offering complete empowerment and ownership to even the smallest LCO by making him a Leader and Cable Owner and an ISO (Independent Service Operator).

     

    JAINHITS national sales head Jeet Narayan Singh said, “In our endeavor to enable 60,000 small and medium operators to become MSOs and go digital independently, we are offering end to end single window solutions. JAINHITS offerings are fully DAS compliant with wider choice of channels that are cost effective and fastest way to offer Digital Cable services in any part of India. Our Broadband offering gives additional edge to ISOs and helps them to increase their revenues.”

     

    Through this engagement, JAINHITS provides subscriber management system (SMS), which empowers LCOs to manage his own customer base and offer, customized packs to its subscribers. In addition to this, JAINHITS LCO will be able to manage billing and create his own subscriber records as required by regulators. The SMS also provides an inventory management system and MIS system which enables the LCO to operate his business, generate reports and manage taxation etc.

  • Mahesan Kaisarajan appointed Arasu TV MD

    Mahesan Kaisarajan appointed Arasu TV MD

    BENGALURU: The Tamil Nadu government today announced the transfer and appointment of Mahesan Kaisarajan as the Director of Information and Public Relations and Managing Director of Arasu Cable TV Corporation.

     

    Kaisarajan has also been posted as ex-officio Additional Secretary to Government, Tamil Nadu Development and Information Department.

     

    Kaisarajan, who was previously Director of Sugar and Managing Director of Tamil Nadu Sugar Corporation, replaces J Kumaragurubaran, who held the post of Director of Information and Public Relations and Ex-officio Joint Secretary to Government, Tamil Nadu Development and Information Department.

                                    

    Kaisarajan, an Indian Administrative Service office, is a post graduate in commerce, a cost accountant and a graduate in law.

  • Meghbela Cable to seed 10 lakh STBs in West Bengal by December-end

    Meghbela Cable to seed 10 lakh STBs in West Bengal by December-end

    KOLKATA: Multi-system operator (MSO) Meghbela Cable & Broadband Services aims to seed 10 lakh set-top boxes in areas earmarked for digitisation in phase III and phase IV.

     

    The company has already installed around 1.26 lakh STBs in Kolkata city, where digitisation of cable TV services happened in phase I.

     

    Seeding of 10 lakh STBs will involve an expenditure of Rs 110 crore.

     

    While in areas which fall under DAS III and IV areas like Haldia, Bankura, Arambagh and Hooghly, the company has 10 lakh cable TV subscribers and the majority of them are on the analogue network.

     

    When asked about the source of funding for the 10 lakh STBs, Meghbela Cable Chairman, Indranil Bhattacharya, said 80 per cent of the cost of the STBs would come from the local cable operators (LCOs) who would be collecting the amount from their subscribers. The remaining 20 per cent would be arranged by Meghbela through loans from banks.

     

    “In DAS III and DAS IV areas, we have already started the digitisation process,” said Bhattacharya.

     

    “Our digital customer base is around two lakh now,” said Bhattacharya.

     

    “In phase III and IV, the company is looking at a market share of 8-10 per cent, which is achievable,” industry experts said.

     

    The company has four digital head-ends in different parts of West Bengal with more than 7,500 km of optic fiber and coaxial networks providing cable TV services. “With a plan to expand operations at Durgapur and Purulia, we are looking at two interconnected digital head ends in Kolkata,” he said.

     

    The company’s chairman further said the company apart from providing channel packages to the customers in Kolkata, did sign the revenue sharing agreements with LCOs and has raised the bill as per the packages chosen by subscribers from the month of August.

     

    Talking about the prospects in DAS III and DAS IV areas in the state, he said there is an opportunity to seed 1 crore STBs in the state by December 2014.

     

    Meghbela Digital TV Services currently offers 500 channels. It plans to expand its capacity to 781 channels going ahead.

     

    Meghbela Digital has been equipped with technical capability for providing services in digital form along with features like music on demand (MoD), video on demand (VoD), pay per view (PPV), STB supported gaming and electronic programming guide (EPG), he added.

     

    Talking about the company’s ISP business, he said the company offers services such as broadband, leased line, VPN etc.

     

    Industry experts said since Meghbela Digital has interconnected head-ends, it can easily make its affiliated LCOs serve customers well.

  • Once we move to gross billing, revenue will increase three-fold: V D Wadhwa

    Once we move to gross billing, revenue will increase three-fold: V D Wadhwa

    These are changing times for the Indian cable TV industry, what with gross (consumer) billing starting in phase I cities and 27 January being the last date for submission of duly-filled Consumer Application Forms (CAF), following which, multi system operators (MSOs) will need to start major switch-off of signals.

     

    In all of this, Essel Group-owned SitiCable Network, earlier known as Wire and Wireless (India) Ltd, has proved to be a game changer of sorts. Under the leadership of chief executive officer V D Wadhwa, the company has been at the forefront of change; whether it is giving access to the Subscriber Management System (SMS) to local cable operators (LCOs), launching local cable TV channels or the latest plan to launch a service on iOS and Android for consumers to view TV content on their Apple devices and smart phones.

     

    An alumnus of Harvard Business School and a fellow member of the Institute of Company Secretaries of India, Wadhwa served as managing director and CEO for business operations in India and SAARC countries with the Timex Group before taking charge as the CEO of SitiCable Network in May 2013.

     

    An avid squash player who dabbles in adventure sports, travelling and driving, Wadhwa took some time out from his busy schedule to speak to Seema Singh of indiantelevision.com on gross billing, setting up of cooperatives and the road ahead for SitiCable.

     

    How has phase I and II of digitisation been for SitiCable? How much has been invested and what have been the returns?

     

    We have approximately 10 million subscribers in the analogue universe. Of these, we have seeded 3.6 million Set Top Boxes (STB) in phase I and II of digitisation. The total investment so far has been to the tune of more than Rs 500 crore.

     

    As far as the returns are concerned, the investment has been done with a payback period of four years. Expecting anything in the short term is not a realistic scenario. No one gets returns on investments immediately.

     

    How many set top boxes will be needed for completing phase III and IV? What is the proposed investment for these phases? How are you looking at generating investment in the company?

     

    Phases III and IV of digitisation has a total universe of about 90 million. Of these, we are targeting 6-7 million homes. At a gross level, we will require an investment of Rs 1200 crore. On a net basis, we are expecting an investment to the tune of Rs 600 crore.

     

    The funding of Phase III will be largely done through warrants’ funding of Rs 243 crore, which is likely to be invested by promoters before March 2014. Balance funding requirement will be met through internal accruals and raising of further equity, as may be required.

     

    By when do you think you will be able to reap the benefits of digitisation? By what percentage do you see the revenue going up?

     

    The benefits of digitisation have already started trickling in and the full benefits will be visible from FY16.

     

    Once we move to gross billing, the revenue will increase over threefold of what it is currently. Right now, whatever revenue is booked in the books of accounts is on net and not gross basis. Last year for the year ended March 2013, our top line was Rs 483 crore. In the last two quarters, we have achieved revenue of over Rs 300 crore and this growth trend in the current quarter continues. Once gross billing starts, the revenue will increase to over three-fold. 

     

    Have you come to any consensus on revenue share and billing with Last Mile Owners (LMOs) in Maharashtra? Are you going to allow LMOs to bill in Mumbai? By when do you see billing starting in Mumbai?

     

    We have a 33 per cent revenue share with all our local cable operators (LCOs) and we do share 25 per cent of the carriage revenue with them, which is not the case with other Multi System Operators (MSOs). So, we are not facing any problem anywhere in the country. We have also given access to the Subscriber Management System to LCOs. Our approach is to consider the LCO as an integral part of the business and both the MSO and LCO have to co-exist. We, therefore, believe in empowering the LCOs by training them and providing them the backend support to enable them provide better customer services. This is the biggest advantage for SitiCable and this is helping us to significantly improve our subscription revenues as compared to other MSOs.

     

    Now that billing has started in Phase I cities, how has the response been? Do you think billing has succeeded in bringing in greater transparency? How is it helping the MSOs?

     

    It is too early to comment. The LCOs are not habituated to the system of gross billing. According to me, it will take at least two to three months for billing and collection to stabilise as per package. But there is gradual acceptance among the LCOs for the gross billing regime. .

     

    Also, I would like to add that in Delhi, between Hathway Cable & Datacom, DEN Networks and SitiCable, we have engaged Mckinsey to help us stabilise the gross billing and gross collection. They will ensure that all MSOs follow the common policy of billing, collection and dunning. Since gross billing started in December, it is expected to stabilise in the current quarter.

     

    The Telecom Regulatory Authority of India (TRAI) had given 27 January as the deadline to MSOs for collection of all Consumer Application Forms (CAFs) and feeding of details in the SMS for phase II cities. Are you switching off signals or is the process complete?

     

    We received 94-95 per cent CAFs in phase I cities and for the remaining, the signals have been switched off. So in that way, we have completed 100 per cent CAF in phase I and submitted the compliance report to the TRAI. For phase II, 91 per cent of CAF has been completed. The regulator for all these months has been patient in giving us extensions. And, I personally believe if the deadline goes on getting postponed, the work will never be completed. The ultimate solution for these problems is to switch off signals for those who have not filled the forms and that is what we are doing, which is in complete compliance with TRAI’s order. In fact, in the last one week, we have switched off 50,000 subscribers nationally. This is to ensure that compliance as per TRAI regulation is achieved.

     

    Where do you see entertainment tax headed? What led to taking the matter to court? Do you think the ruling will be passed in your favour? Do you believe that entertainment tax should be reduced?

     

    As per the law, the MSO is responsible for entertainment tax. We approached the Delhi High Court, since we have always been collecting and depositing entertainment tax, and we did not want to face any coercive action being taken by the tax authorities. As per our information and inputs received from the market, other MSOs are also collecting tax from LCOs regularly. While the H’ble high court has asked SitiCable to keep submitting the entertainment tax, the high court has given the stay against any coercive action being taken by the Tax Department against other MSOs since they have taken the plea that they are not invoicing and collecting tax so far. No decision has been taken on who will be responsible for collecting and paying the entertainment tax as yet.

     

    In SitiCable, we firmly believe that the payment of entertainment tax should be with the MSOs. Since the invoice is being raised by the MSO and the LCO is collecting the subscriber fee, I feel the power of collecting and depositing entertainment tax should be with the MSOs.

     

    I have a very different view on entertainment tax. I do not understand why a consumer needs to pay both service tax and entertainment tax. When we provide them with cable TV, what is it? Is it a service or entertainment? Even for movies, consumers pay only entertainment tax, then why is it that the consumer has to pay entertainment tax and service tax for cable TV. We have raised this issue on several occasions to both the Information and Broadcasting Ministry and the TRAI, but without any heed.

     

    The tax rate has to rationalise across the country. In UP, the monthly entertainment tax is 25 per cent of the subscription fee, while in Maharashtra, it is Rs 45; Delhi – Rs 20; Bengaluru – 6 per cent of the total subscription fee; and Kolkata, it is Rs 10. This differential tax structure will not allow the industry and gross billing to stabilise in these respective states.

     

    I am hopeful that the tax will come down once the process of digitisation is complete. Currently, the tax department is unable to gain significantly due to digitisation. With complete digitisation, there will be transparency and hence, more tax collection. Then there will be rationalisation of tax.

     

    By when do you think the process of digitisation will be complete?

     

    There is no reason why digitisation will get delayed. The I&B Ministry is dedicated and so is the TRAI. Even the MSOs are gearing up for funding, getting STBs and seeding them. So I don’t see any delay in completion of digitisation.

     

    Is the cable TV industry prepared to offer consumer service as available internationally?

     

    I think there is a long way to go for that. We are taking one thing at a time. Currently, the Indian consumer is not even habituated to gross billing and taxation. The Indian cable TV market has not matured enough to be able to offer services like those internationally. Once gross billing is stabilised and every one becomes habituated with the system, only then we can move forward.

     

    However, from the Value Added Services (VAS) point of view, we have started broadband service in the east and soon, we will be starting in the north. Also, we will be providing content on multiple screens to our subscribers.

     

    Is broadband a key play in your revenues going forward? How will it be delivered?

     

    Of course, broadband will play a key role. We will also soon introduce Docsis 3.0, which is the future. Besides broadband, by the end of this quarter, the content available on TV will also be available on iOS and Android platforms. The technical team is working on it and if there are no glitches, we will be launching the service on both the platforms together. We are the first cable TV operator to have thought of this service.

     

    Do you believe building local cable TV channels is the way forward? How much will you invest in this? And what is the monetisation opportunity?

     

    Local cable TV channels help in connecting with the consumers. We plan to launch four to five channels in each geography. While we have seven channels in central India, seven in Jaipur and four in Delhi, we plan to continue with this in other parts as well.

     

    Launching local cable TV channels does not cost much since we already have a studio facility in areas where we have a presence. Such endeavours give a competitive edge over the Direct-to-home operator, since they cannot operate a local channel with local content and the MSO, as they do not have the facility for launching a local channel or have a rather small presence.

     

    A local channel helps in giving out local news in local languages and most people prefer this. Then, advertisements help in generating revenue. So commercially launching such channels makes sense for the MSO.

     

    How do we see the national landscape panning out: will there be a few key national MSOs? Who will these be?

     

    Like in phase I and II of digitisation, the market will be dominated by four national MSOs: Hathway, DEN, SitiCable and InCable. It is only after complete digitisation that the country can expect foreign players to enter the market. These foreign players will bring better technology, transparency and competition. This will prove beneficial for the national players as well.

     

    How do you see the MSOs coping with phase III and phase IV? Will DTH benefit? Or will we see new local players emerging?

     

    While in phase III, the existing MSOs will play a major role and benefit, phase IV will witness DTH playing a major role. In phase IV, with towns having 5,000-10,000 households, it will not be commercially viable for cable TV operators unlike DTH players.

     

    Local players may emerge in some markets, but as seen in phase I and II, the industry has been going through consolidation since digitisation requires huge Capex. The local players emerge since they can manage initial investments. But, they are not technology ready to serve consumers. Also, this is a highly regulated industry, which will be difficult for them to cope with. Considering they do not get placement fee from broadcasters, they can operate for a maximum of one to two years. 

     

    What challenges do you anticipate in Phase III and Phase IV?

     

    Content is the biggest challenge. Currently, the ARPUs for phase I and II cities is not more than Rs 150. If it remains the same for phase III and IV, it will be difficult for us to operate in these towns. Broadcasters need to have differential pricing for these markets.

  • MSOs ask LCOs to collect CAFs from remaining cable homes in Kolkata

    MSOs ask LCOs to collect CAFs from remaining cable homes in Kolkata

    KOLKATA: That the Telecom Regulatory Authority of India (TRAI) has asked MSOs in Kolkata to start gross (consumer) billing from 15 December, 2013, indiantelevision.com had already reported. Word just in is that MSOs in the Kolkata Municipal Area (KMA) have requested local cable operators (LCOs) to expedite the process of collecting Consumer Application Forms (CAF) and channel package details from the remaining five per cent of nearly 30 lakh cable TV homes in the city.

     

    “We are asking the LCOs to cooperate and collect the remaining five per cent CAF so that we can start generating accurate bills against their names,” said SitiCable Network director Suresh Sethia, adding that the region had already collected 95-97 per cent CAF. 

     

    Manthan Broadband Services director Sudip Ghosh informed that apart from taking details from consumers in the prescribed handwritten format, “MSOs have also created a system in their servers, where LCOs could send CAF details to further advance the process of DAS.”

     

    Meanwhile, an official from GTPL-KCBPL said the company had got CAF and SAF details of only over five lakh customers out of the seven lakh active set top boxes (STBs). “Unless we get the CAF and SAF details, we cannot generate bills in the names of the customers,” he remarked. “But we will try to complete the process for the remaining 2 lakh customers and give bills to them in the next one or two months,” he added after a pause.

     

    According to few industry sources, while players like SitiCable and Manthan have said they have achieved 100 per cent CAF rate, it is possible they haven’t accounted for situations where certain households have two set top boxes and the consumers haven’t gone through the CAF process or homes that have been closed after the residents left the city and so on. Still, other sources questioned how MSOs can start the billing process when they haven’t yet started the package.

  • Kolkata MSOs won’t change package price till June 2014

    Kolkata MSOs won’t change package price till June 2014

    KOLKATA: On 6 December last year, the Telecom Regulatory Authority of India (TRAI) met the multi-system operators (MSOs) in Kolkata to extend the deadline for initiating gross (consumer) billing from 10 December to 15 December.

     

    Now, the MSOs have assured cable TV subscribers that they will try and keep the package price unchanged till June this year, although they are contemplating a price rise post June.

     

    The MSOs have also requested subscribers to collect bills from local cable operators (LCOs) before dishing out the subscription fee for January. This is to bring in transparency in the billing process for the Kolkata Municipal Area (KMA).   

     

    It is further learnt that the MSOs are meeting regularly to discuss smooth rollout of gross billing in the KMA area, especially after having been asked by the West Bengal as well as central government authorities to expedite the billing process.

     

    Said Manthan Broadband Services director Sudip Ghosh: “We will continue with the package and we all are trying to keep the price of package untouched till June. The MSOs will try to absorb the cost themselves.

     

    According to Siticable Kolkata director Suresh Sethia, the entire process would take some time. “Customers are happy. Operators too want the billing to be in place. Also, we have put up advertisements in newspapers for consumer awareness regarding billing apart from local channels,” he said.

     

    As per TRAI regulations, subscribers get a period of 15 days from the date of the bill to make the payment.

     

    “In case the subscriber fails to make the payment after the expiry of the due date of payment, we will charge interest on the outstanding amount,” Sethia informed.

     

    Director of Den, Sanjoy Basu, opined that the new facility introduced as per the TRAI regulations would usher greater transparency in billing.

     

    With nearly 30 lakh cable homes, gross billing is definitely expected to regularise the hitherto ad-hoc system of billing.

  • 2014: Industry hopes high

    2014: Industry hopes high

    MUMBAI: A year of risks and several speed breakers has come to an end and the horizons of the New Year are already showing a silver lining. Every member of the media and entertainment industry in the country is expecting magical spells to be cast in 2014. Let’s look at what to anticipate from the next 12 months.

     

    Starting with the Ministry of Information and Broadcasting (MIB) the eagerly awaited forecast is that phase I and II of Digital Addressable System (DAS) are completed without any obstructions or delays. And phases III and IV flow smooth like silk so that India can boast of a digitised environment by the next New Year (2015).

     

    Broadcasters are expected to follow content norms as well as invest more in creating better content. With general elections coming up, channels are set to heat up their mercury levels to prove who is the best in the genre. Prasar Bharati is getting Rs 3,500 crore funding from the MIB which should enable modernisation of the pubcaster with high quality production and better quality shows as well as yield more revenues and profit.

     

    The Telecom Regulatory Authority of India (TRAI) has had a tough time this year dealing with the multi-system operators (MSOs), local cable operators (LCOs), direct-to-home (DTH) players, aggregators and broadcasters. With the year seeing too many conflicts between all the players of the industry, TRAI will surely want that all the stakeholders to find solutions. The regulator will also hope for smooth role out of DAS phase III and IV and gross billing to begin for phase I and II.   

     

    The regulator that recently came out with a consultation paper to curb monopoly of MSOs will be looking at curtailing excessive power clout and monopolies in every sector of television – cable TV, content aggregation and broadcasting.

     

    Moreover, TRAI will hope that all that it started in 2013 sees light in 2014. One such initiative is the acceptance of the ad cap regulation by all broadcasters. It would also hope that the quality of service for TV viewers is consistently kept in mind by broadcasters. Last, but not the least, it would also want that the new regulations for DTH licences are passed.

     

     Broadcasters are the happiest of the lot as they see better revenues flowing in the next year as digitisation pans out across India. Channels will be embroiled in acquiring or producing new innovative shows that will give them an edge over their competitors. Generating better TVTs either through new shows or hit movies that will help them dislodge the leader. Broadcasters are seeing much potential in the soon to be launched new rating system Broadcast Audience Research Council (BARC) which is expected to show their performances in true light.

     

    However, nothing is as eagerly awaited as the fate of the ad cap that is currently hanging mid air with the Delhi High Court. Even as some broadcasters are more than happy with the 12 minute advertising air time limit, most of them feel it is a hindrance to their functioning and will hamper their revenues if put to effect before digitisation is complete. At the same time they are also looking forward to strike better deals with their advertisers as well as better syndication for their programmes in the international market providing them a global exposure.

     

    As digitisation sets in, distribution should also be easier and transparent. Even as channels will engage with domestic DTH and cable TV platforms for better carriage and revenue share deals, they will look forward to reaching out to more audiences through international platforms.

     

    Bottomlines will be managed better as broadcasters will control their costs by trimming their staff, scaling up their programming, enhancing distribution and controlled marketing. With several TV channel licenses being stuck with the MIB, new channels are waiting to see the light of the day in 2014.

     

    The cable TV sector which has undergone immense change in 2013, will surely expect great returns in the coming year. One thing which they will be hoping for is internet on cable TV to spread thereby generating VAS revenues.  Their long wish list will also include reduction in import duties on STBs, preferably subsidies from the government for promoting digitisation, higher ARPUs from consumers, better synchronisation with other MSOs, fair entertainment and service tax – preferably service tax holidays, fair charges for usage of public utilities for distribution, higher carriage fees from broadcasters, lower content costs from broadcasters and aggregators and longer licensing norms from I&B. The year also witnessed a few announcements by the MSOs for acquiring content for their cable channels. These MSOs will hope that the venture is successful and helps them reap benefits with better revenue flow.

     

    On the DTH front, operators have high hopes that the tag of having the lowest ARPUs in the world will fade away as higher ARPUs will flow in. The dream is that content costs will be lowered which will help them generate better revenue as well as invest in getting innovative technologies for the future of TV and mobile.

     

    Digitisation for DTH players means high net addition of subscribers and lower churn in 2014 as some subscribers will shift from cable TV to the DTH platform. Leading players want to offer better packages to their subscribers with more availability of channel which can only come with more capacity bandwidth that is in the hands of the Indian Space Research Organisation (ISRO).

     

    At the production front, 2013 wasn’t really big on experiments; at least as far as TV shows are concerned. Only a few like the adaptation of the international format – 24, the reality show Connected Hum Tum and Comedy Nights with Kapil made some difference in programming. As we usher in to the New Year, we obviously expect more newness in the shows produced. But for that, the production houses need to get respite from the issues that keep bothering them.

     

    One of the major issues that cripple the production houses is the restrictions by broadcasters on the budget per episode. And then, it is for sure that the production houses in the New Year would wish for a better budget approval from the broadcasters. Another issue is the ever-rising demands of the crew unions, including the technicians and other crew members. The crew members have not just been fighting for a raise in their salary but have demanded many other privileges that have kept the production houses on their toes. Because of this, some production houses prefer working outstation than in Mumbai in order to cut down on costs.

     

    The year 2013 witnessed a really interesting case — there was a huge hoopla when an actor portraying the popular character, Gutthi (from Comedy Nights with Kapil on Colors) decided to pull out of the show over few differences with the production house and the channel. While the actor said the right to the character belonged to him, the production house thought otherwise. By the end of the year, nobody got a clear picture about who really owned the character. However, we hope the New Year doesn’t just bring clarity to this particular case but the industry also works in order bring a system in place about the entire intellectual property rights (IPR).

     

    The wish list for the New Year would never end. But some of the other desires that the production houses perish include better following of discipline by the actors on the set, better creative people with improved ideas that grabs the eyeballs, less interference from broadcasters in the production process and of course, many more new and intriguing shows that not only brings more viewers but good business that would improve the functioning of entire industry.

     

    The expectations are high but they aren’t too farfetched. With time, discussions and a little bit of a push we can see much of it becoming a reality.

  • MSO Alliance launches ad campaign on monthly billing

    MSO Alliance launches ad campaign on monthly billing

    MUMBAI: Soon consumers will find bills coming to them for using cable TV service. And the message will be reaching them loud and clear through a print campaign that was launched today in the New Delhi edition of The Times of India and Navbharat Times. The print campaign which aims at educating consumers of monthly billing reads: “Attention Digital Cable TV subscribers- Now pay as per your selected channel pack. Get a cable TV bill from your MSO every month starting December 2013.”

    The campaign is an initiative of the multi-system operator (MSO) Alliance that comprises national players: DEN Networks, Hathway Cable & Datacom, Siti Digital Cable Television and InCableNet. The MSO Alliance also has announced that the subscribers who have got a set top box (STB), submitted the ‘Know-Your-Client’ details and channel package selection, will get a bill for their cable TV service every month. The first bill will be generated for the month of November. The new facility has been introduced in keeping with the Telecom Regulatory Authority of India’s (TRAI) regulation on starting gross billing from December.    

    “This move is important as it will ensure that there are no additional or random charges levied on the subscribers. Our viewers will thus pay only for what they watch and they must insist on a bill from their local cable operator or MSO at the time of monthly payment,” said MSO Alliance secretary and DEN Networks CEO S.N Sharma. 

    As per the TRAI regulations, subscribers will get 15 days from the date of the bill to make their payment. In case the subscriber fails to make the payment after the expiry of the due date of payment, the MSO or the affiliate LCO has the right to charge interest on the outstanding amount.

    The Union Government and the TRAI had rolled out a four-phased plan for digitisation of cable TV across India early last year. Phases I & II of this process covering Delhi, Mumbai, Kolkata and 38 other major cities have already been completed. According to the Ministry of Information and Broadcasting, over 26 million STBs were installed in these cities, over 70 per cent of which were by digital cable companies.

  • DAS & the LCO fightback for survival

    DAS & the LCO fightback for survival

    It’s the festival of lights. And for many the festival of noise courtesy exploding fireworks. In the hope of reducing the number of those belonging to the latter tribe, we, at indiantelevision.com, decided to put a display of firecracker articles for visitors this Diwali. We have had many top journalists reporting, analysing, over the many years of indiantelevision.com’s existence. The articles we are presenting are representative of some of the best writing on the business of cable and satellite television and media for which we have gained renown. Read on to get a flavour and taste of indiantelevision.com over the years from some of its finest writers. And have a happy and safe Diwali!

    Written By Seema Singh

     

    (Seema today is senior manager – PR & Communication at the Broadcast Audience Research Council. She wrote this article in 2013.)

     

    Posted on : 05 Dec 2013 09:45 pm

     

    MUMBAI: With no one giving them any guarantees about their long term survival under the government-mandated DAS regime, small time local cable operators (LCOs) are banding together as cooperatives in pockets nationally, agglomerating funds, and setting up their own headends. From Bengaluru to Kolkata to smaller towns, this is being mirrored across the country.  Digitisation has spurred a new wave of entrepreneurialism in the cable TV business.

    “Analogue cable TV spread like wildfire in the 80s and early 90s thanks to small time business men who invested and toiled away to deliver satellite TV via cable to homes,” says a cable TV industry observer.

     “Now digitisation in its current form is designed to kill those very last mile operators, big or small,” points out  Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

    “Some have given up and have joined hands with the MSOs, fearing the huge investments needed for digitisation and the backlash from the national MSO,” says the cable TV industry observer. “But don’t expect all the guys who have built the cable TV industry to what it is today to yield without a fight; hence the new wave of entrepreneurialism.”

    Take the case of the Bengaluru boys.  70 independent cable TV operators got together to set up their own cable TV headend and distribution infrastructure in March 2013.

    Explains one of the members – Sagar E Technologies’ executive director Sudhish Kumar: “There were two reasons: digitisation and revenue share. We had at several instances raised voice against the MSOs with regards to billing, ownership of set top boxes (STBs) and ownership of consumers. The TRAI suggested revenue share model showed that the revenue shared between the LCOs and MSOs will be 35:65 or 40:60. We were being given a small pie. The same was the case as far as cable TV carriage, placement fees or value added fees. We were to get nothing.”

    Branded as Mirai Communication, the consortium is registered as a private limited company and has 10 directors. Its headend is located in Electronics City, Bengaluru. It is through this that the operator provides feeds across Bengaluru. “In Bengaluru we cover areas like: Central Bengaluru, Central Railway Station, Whitefield and ITPL among others,” informs Kumar.

    And Kumar says its headend is future-ready technologically. “We have a Harmonic headend, costing Rs 3 crore, with a carrying capacity of 500 channels.” 

    Some 50,000 STBs imported from DTM, China with CAS from NSTV and SMS from Magnquest, have been seeded amongst its subscribers and the plan is to take the number to one lakh soon. Since some of the LCOs in the joint venture were link operators for the major MSOs in Bengaluru, their boxes have been replaced with the Mirai Communication STBs.

    “These are standard definition high quality MPEG4 boxes with one GB of DVR,” informs chief technology officer Sriram. The price tag of each box is between $16 and $19 (around Rs 1200). The final cost works out to Rs 2000- 2500. This includes CAS, cost of headend, import duty and the cost of STB.” 

    Issues with DAS implementation and revenue share got us together to setup our own headend says Sudhish Kumar

    The company has spent close to Rs 30 crore on the whole setup, which includes infrastructural help from Tata Teleservices, using the optical fibre it has laid across the garden city. “Though we have our own hybrid fiber-coax (HFC), we are using almost 400 km of Tata Teleservices underground OFC, since maintaining the network across the city is a huge task. It has given us drops at several points across the city through which the signal is made available to homes,” says Kumar.

    So what are the challenges the group has faced? “Well, the current 10 directors got along to form a team. We then proposed what we were planning to do to others in the city. It was a challenge to bring everyone to come together, but it has worked out well since,” he informs.

    Each of them was asked to choose between acting as a collection agent by becoming a link operator for a national MSO  becoming an owner by becoming a part of Mirai Communication. “Though it earlier seemed like a herculean task, with 70 operators coming together, we realised that we had to pay only Rs 2000-2500 per box. We were anyways paying Rs 1000-1500 to the MSOs for seeding boxes. So, now by paying extra Rs 1000-1500, we could own the STB and also keep our consumers intact,” explains Kumar.

    It was the Hyderabad based Fibre Optics that offered a one-stop solution and the challenge has not yet ended.  “It is an ongoing task. We have managed to get feeds from all broadcasters.  We are paying them for one lakh subscribers, when currently we have 50,000 subscribers. But, we hope to seed more boxes soon,” adds Kumar.

    What is the revenue share between the 70 cable ops who have formed the consortium? “Well! It is simple. The operator gets a share against the active boxes which are part of his own subscriber network,” he informs. Mirai Communication has started generating bills. “The revenue has started rolling out now,” he informs.

    Bengaluru’s operators are not the only ones, who have come together to setup their own headend. Following their footsteps are the 100 cable operators from Kolkata that recently announced the setting up of ‘Bengal Broadband’. As reported by Indiantelevision.com, the new entrant will be functional from FY2015 (LCO’s form ‘Bengal Broadband’ to be effective from FY15).

    Says Prabhoo, “LMOs all over India like in Bengaluru and Kolkata must group together and form a co-operative model in such a way that even the smallest LMO can survive and sustain. LMOs must register under small scale industry so that they can avail of collateral free bank loan up to Rs 1 crore.”

    We have seeded standard definition high quality MPEG4 boxes with one GB of DVR, informs Sriram
    While the State Bank of India already is providing such facilities, MCOF is also in talks with IDBI Bank and Canara Bank to offer the same. 

    “Time is running out for the MSOs and if they do not learn to act fairly soon enough then many co-operative headends will come up in most cities of India. One may find another 100-200 headends coming up with 200-300 different cooperatives formed and that will continue for a year or two and then there will be consolidation. And I see it happening. These are large cooperatives with a 500,000 or million universe,” adds Prabhoo.

    Kumar points out that they are already in talks with both independent MSOs across India and also LCOs in Mumbai, Delhi, Nasik, Kerala, Chennai, Hyderabad and Gujarat for setting up more such co-operative headends. “We are in talks with independent MSOs and asking them to collectively set up one headend for the entire country,” he concludes. 

    Change as we say is the only constant. Even in cable TV land.