ITV

Tag: LCO

  • TRAI attempts to rein in TV channel aggregators in new consultation paper

    TRAI attempts to rein in TV channel aggregators in new consultation paper

    NEW DELHI: It has been saying it will bring some order to the TV channel aggregation and distribution business. And the Telecom Regulatory Authority of India (TRAI) is now showing that it means what it has been saying.

    It today issued a consultation paper attempting to regulate the distribution of television channels from broadcaster to platform operators and discipline the distributors (aggregators). The paper involves amendments to the Tariff and Interconnection orders, and Register of Interconnect Regulations, and so TRAI has given stakeholders time till 27 August to send in their comments.

    The essence of these is that it wants to clip the immense clout that the four main aggregators MediaPro Enterprises (distributes 75 channels), IndiaCast UTV Media Distribution (distributes 35 channels), Sun Distribution Services and MSM Discovery (distributeing 30 channels each) have on the TV ecosystem in India.

    The main points of the consultation paper are that:

    * Broadcasters and not the authorised distribution agency shall publish the reference interconnect offers (RIO) and enter into interconnection agreements with the distribution platform operators.

    * If a broadcaster appoints a person as its distribution agent, it shall ensure that –

    a) The authorised distribution agent does not change the composition of the bouquet formed by the broadcaster while providing it to the distributors of TV channels.

    b) The authorised distribution agent does not bundle bouquet or channels of the broadcasters with the bouquet or channels of other broadcasters. In other words, in case the authorised distribution agency represents more than one broadcaster, they shall not link offerings of broadcasters they represent.

    c) While acting as an authorised distribution agent, such person acts for, on behalf and in the name of the broadcaster.

    The regulator has also proposed that it will give broadcasters three months to rework the RIOs and to enter into fresh interconnect agreements and filing the same with it.

    Based on the above, it has issued several orders under which it has chosen to amend earlier orders issued by it.

    These include:

    * The Telecommunication (Broadcasting & Cable) Services (Fourth) (Addressable Systems) Tariff (Third Amendment) Order 2013 to amend The Telecommunication (Broadcasting & Cable) Services (Fourth) (Addressable Systems) Tariff Order 2010 (1 of 2010)

    * The Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Tenth Amendment) Order 2013 to amend The Telecommunication (Broadcasting & Cable) Services (Second) Tariff Order 2004 (6 of 2004)

    * The Telecommunication (Broadcasting & Cable Services) Interconnection (Seventh Amendment) Regulations 2013 to amend The Telecommunication (Broadcasting & Cable Services) Interconnection Regulation 2004 (13 of 2004).

    * The Telecommunication (Broadcasting & Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Second Amendment) Regulations 2013 to amend The Telecommunication (Broadcasting & Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations 2012 (9 of 2012).

    * The Register of Interconnect Agreements (Broadcasting & Cable Services) (Fifth Amendment) Regulations 2013 to amend The Register of Interconnect Agreements (Broadcasting & Cable Services) Regulation 2004 (15 of 2004)

    Background to TRAI’s attempt to regulate Aggregators

    In the paper, the TRAI says that broadcasters, MSOs, cable operators, DTH, HITS and IPTV operators are recognised as entities in the policy guidelines and regulatory framework of the Ministry and TRAI respectively. Aggregators have not been specifically defined anywhere; neither in the law or the statutory rules, nor in the regulatory framework for the broadcasting and cable TV services sector.

    As on date there are around 233 pay channels (including HD and advertisement-free channels) offered by 59 pay broadcasters. These channels are distributed by 30 broadcasters/aggregators/ agents of broadcasters.

    In the broadcasting and cable TV sector, TV channels are distributed by the broadcasters themselves or through their authorised distribution agencies to the distribution platforms viz cable TV, DTH, IPTV, HITS etc. Many such agencies operate as authorised agents (aggregators) for more than one broadcaster. After obtaining the distribution rights from one or more broadcasters, such distribution agencies form bouquets, many of which also consist of channels of one or more broadcasters. They publish Reference Interconnect Offers (RIOs), negotiate the rates for these bouquets/channels with operators of various distribution platforms and enter into interconnection agreement(s) with them.

    As on date, the distribution business of around 73 per cent of the total pay TV market, including high definition (HD) TV channels, is controlled by a few authorised distribution agencies. These channels include almost all the popular pay TV channels. These authorised distribution agencies wield substantial negotiating power which can be, and is, often misused leading to several market distortions.

    Explaining its move, TRAI said the business of distribution of TV channels from the broadcaster to the consumer has two levels:

    i) Bulk or wholesale level – wherein the distribution platform operator obtains the TV channels from the broadcasters, and ii) Retail level – where the distribution platform operator offers these channels to the consumers, either directly or through the last mile operator.

    Even as TRAI was in the process of reviewing the regulatory framework for broadcasters and their authorised agencies, the Information and Broadcasting Ministry said there have been several complaints from Multi system operators (MSOs) about the modus operandi of such entities, e.g. it has been highlighted that MSOs are forced to subscribe to certain packages. Concerns have been vehemently voiced by various MSOs and LCOs regarding the monopolistic practices of such major authorised distribution agencies of broadcasters, in view of their control over a large number of popular channels.

    The MSOs have complained that the aggregators have abused their market power by forcing them to accept all the channels of the aggregator, fixed fee deals, charging based on the entire subscriber base and not as per actual uptake of channels, insisting on minimum guarantee and other unreasonable terms and conditions.

    The TRAI further adds, in the consultation paper, that in the absence of any regulatory framework for the aggregators (including possible restrictions on the authorised agencies), they started to bundle channels of more than one broadcaster and form bouquets. These bouquets, having popular channels of a number of broadcasters, provided a better marketing proposition. These bouquets grew larger and larger with time, as the aggregator started to piggy back more and more channels, especially those having lesser standalone market values.

  • MSOs to crack the whip on LCOs on customer forms issue

    MSOs to crack the whip on LCOs on customer forms issue

    MUMBAI: India‘s multisystem operators (MSOs) got a dressing down yesterday from TRAI boss Rahul Khullar about the lack of KYC or CRF forms giving details about their subscribers. Khullar ordered them to get their acts together, giving a deadline of 30 June 2013 for the forms to come in, failing which they would be prosecuted.

    With the proverbial Damoclean sword hanging over their heads, they have decided to fall in line.

    Says DEN Networks CEO S.N. Sharma: “We are all working together, to follow the directions given by TRAI. We are already in the process of collecting customer data and are positive that we will be able to meet the 30 June deadline.”

    According to sources, the four MSOs got together post the TRAI meeting and have agreed to act in coordination with each other. The idea is to switch off all the set top boxes for which the MSOs don‘t have the customer details. The switch-off will be done area wise and hopefully this will force local cable operators to share the forms with MSOs. The latter have also agreed to not allow cable TV operators to switch MSOs or play one MSO against the other.

    “Subscribers are bound to suffer during this exercise as they may have given the details to their operator but would have not been forwarded to the MSO. They should contact the MSOs directly to ensure that their details are registered or they can face a switch off,” emphasises InCablenet MD Ravi Mansukhani.

  • LCOs on the warpath in Kolkata, allege MSOs not playing fair in DAS

    LCOs on the warpath in Kolkata, allege MSOs not playing fair in DAS

    NEW DELHI: Cable TV operators in Kolkata have launched an agitation against the multi-system operators (MSOs) and broadcasters for failing to set proper rates and bouquets for the consumer.

    A representative of the operators told indiantelevision.com in Kolkata that the state government had added a further complication by levying a charge of Rs 70 as service tax for every set top box installed which the LCOs feel is illegal.

    The LCOs have sought a meeting with the State finance [Click and drag to move] minister in Kolkata in this connection.

    Even though the revenue share between the LCOs and MSOs is not clear and the packages being offered to the consumers are vague with no agreements having been signed, the LCOs say that Siti Cable and Indian Cable Network Company Ltd have sought help from the police which has imposed Section 144 for restricting entry of LCOs.

    Ratan Jaiswal who represents the Sangram Committee of the LCOs told indiantelevision.com that the number of digital STBs installed at present was less than forty per cent in the eastern metropolis.

  • TRAI initiates action against LCOs for failure to get forms filled by consumers

    TRAI initiates action against LCOs for failure to get forms filled by consumers

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has initiated action against cable operators who are violating the new laws relating to digitisation.

    It is learnt from LCOs that around fourteen operators have so far been issued notices.

    When questioned about this, a TRAI official confirmed to indiantelevision.com that the regulatory body had been contemplating action for some time against offending cable operators.

    However, he said a press release would be issued in due course as and when such action is taken.
     
    Complaints have been raised against LCOs for not filling the forms with details about the consumers.

    However, several cable operators contacted by this website said the form had to be filled by the consumer, who was refusing to comply because his charges were going up manifold.

  • Trai likely to issue consultation paper on TV channel aggregators

    Trai likely to issue consultation paper on TV channel aggregators

    NEW DELHI: Telecom regulatory authority of India (Trai) chairman Rahul Khullar today indicated that a consultation paper would be issued shortly about the revenue sharing and other issues related to television channel aggregators under the digital addressable system (DAS).

     

    He assured the cable operators present that the meet was on media ownership and he would meet the LCOs separately on their problems.

     

    As expected, the open house on media ownership where he made the announcement turned out to be a general meet of sorts, with cable operators turning up in great numbers to seek answers to questions facing them including those relating to billing and the consumers refusing to pay the high fee, revenue sharing with MSOs and other issues.

     

    Trai had alerted the police in this regard and restricted entry, and the venue saw the presence of a large number of police personnel.

     

    Trai has already directed the pay broadcasters/aggregators and MSOs to produce in writing the terms and conditions of their interconnection agreements with MSOs or other service providers wherever they are providing cable television services through DAS.

     

    Trai had noted that there has been a hue and cry over the last month. And the broadcasters and MSOs have been extremely slothful in signing channel agreements with each other. The regulator took note of this and asked all of them to furnish the names of the MSO or the service provider with whom the interconnection agreement has been entered into along with the service area covered and the validity period of the said agreement by the week beginning 13 May.

     

    It is expected that the consultation paper would be based on the responses received from broadcasters and aggregators by Trai.

     

  • Kanpur LCOs forced to pay user charges for cable despite any provision by TRAI

    Kanpur LCOs forced to pay user charges for cable despite any provision by TRAI

    NEW DELHI: Although there is no reference to any charge being levied on right of way given to cable television operators to use electricity poles after launching of digital access system, the Kanpur municipal corporation has forced LCOs to deposit up to Rs 10,000 even as a final settlement has yet to come.

    Sources in the Information and Broadcasting Ministry as well as the Telecom Regulatory Authority of India denied to indiantelevision.com any mention of charges and said the law only spoke of facilitating the work of LCOs.

    Furthermore, LCOs and MSOs in Kanpur confirmed to indiantelevision.com that no such charge is being levied in the other cities in Uttar Pradesh – Allahabad, Lucknow, Agra, Ghaziabad, Meerut and Varanasi – covered in Phase II of DAS.

    The Kanpur municipal corporation had recently imposed user charges of Rs 0.50 per meter on cable operators who operate via Kesco, Nagar Nigam and telephone poles.

    The LCOs had gone on strike last week when Nagar Nigam officials set a deadline for depositing user charges and also cut the cable lines of some operators at various places.

    During the meeting with state chief minister Akhilesh Yadav, the operators urged him to make an inquiry as they were being heavily taxed, which included central tax, state tax or entertainment tax and now the new user charges. Yadav had then asked the divisional commissioner of Kanpur to make an inquiry and settle the issue.

    However, municipal commissioner N K Singh Chauhan told LCOs that the government had issued the order for charging the operators with user charges.

    Cable Operators Federation of India president Roop Sharma and All India Dish Antennae Aavishkaar Sangh president A K Rastogi strongly condemned the action. Rastogi said his organisation would help the LCOs in whatever manner possible.

  • TRAI decides to restrict entry to Open House on Media Ownership

    TRAI decides to restrict entry to Open House on Media Ownership

    NEW DELHI: Alarmed by the disruption of the Open House on Media Ownership in Hyderabad by local cable operators and multi-system operators, the Telecom Regulatory Authority of India (Trai) today issued a notice restricting entry into the Open House to be held in Delhi on the same issue later this week.

    In a mail sent to some prospective participants, Trai asked them to come with indentity cards and to register themselves in advance.

    The Cable Operators Federation of India President Roop Sharma said this would mean cutting out a large section of consumers since the mail has been sent to a select few, and also bar those who have not received the mail. The initial notice on the Trai website says ‘Interested Stakeholders/industry representatives are invited to participate.’

    She said that this also amounted to a violation of the transparency clause enshrined in Section 11(4) of the Trai Act.

    During the Open House in Hyderabad yesterday, a large number of LCOs and MSOs wanted the Trai officials to attend to their queries and the meeting had to be called off mid-way.

  • Hyderabad-based MSO chooses Conax for transmitting signals to LCOs

    Hyderabad-based MSO chooses Conax for transmitting signals to LCOs

    NEW DELHI: Indian multi-system operator Bhagyanagar Digital Services Pvt Ltd of Hyderbad is using selected Conax to transmit signals to cable TV operators with a cost effective and flexible content security (CAS) solution for enabling smooth digital migration and development of subscriber bases.

    Conax will empower Bhagyanagar Digital Services with smooth transition to the benefits of digital services and the integration of new secure content distribution offerings and easy upgrade to future services and business models such as multi-device and broadband content delivery.

    Bhagyanagar Digital Services is a large consortium of cable TV operators based in Hyderabad. Conax will guide the Bhagyanagar cable TV operators in navigating the new digital landscape and deploying secure distribution of new pay TV content models. The partnership will enable Bhagyanagar Digital Services‘ operators to significantly reduce churn, overcome the challenges of digitisation and harness the opportunities provided by the new digital environment.

    The new solution, complimented by Conax‘ advisory role, will help position and secure the Hyderabad operator‘s regional roadmap into the future. The Conax Contego Broadcast solution will also offer Bhagyanagar with total, state-of-the-art security for one-way operations and comprehensive support for subscription, pairing, fingerprinting and messaging, with optional support for DRM control and pay-per-view. Introduction of new consumer offerings such as video-on-demand and advanced multiscreen services can be smoothly integrated to the existing platform to support future growth demands.

    Bhagyanagar Digital Services MD A V Pullarao said, “Key factors in selecting Conax include the expert guidance we have received, flexibility, India based 24/7 support service, long experience in digitization and strong proven security track record in both India and around the globe. Additionally, Conax offers us short-time-to-market and a wide range of security-certified, cost effective set-top-boxes.”

    Conax vice president (Asia sales) Are Mathisen added, “In deploying Conax Contego Broadcast, Conax will guide Bhagyanagar Digital Services‘ pay-TV operators in building a strong foundation for subscriber and revenue growth during this exciting digitization phase, including a strong roadmap for integrating additional types of networks and services in the future. Conax has a long tradition of furnishing world-class content security, features and functionality for small, medium and large -sized operators.”

  • Trai Open House on media ownership called off as LCOs, MSOs raise demands on DAS

    Trai Open House on media ownership called off as LCOs, MSOs raise demands on DAS

    NEW DELHI: An open house called by the Telecom Regulatory Authority of India (Trai) in Hyderabad on media ownership had to be called off mid-way when cable operators and multi-system operators insisted that they should be heard on their problems relating to digitisation.

    Around 200 LCOs and MSOs wanted an end to the vertical monopoly of large media houses and sought protection from the Government.

    They also raised issues relating to revenue share not being fair, and said it was the LCOs who had built the industry from scratch and made it possible for the broadcasters to reach the consumers.

    They also wanted the bouquets drawn up by large broadcasting houses to be broken and rates to be fixed channel-wise.

    Some LCOs said the customer had become like a ‘robot‘ that could be manipulated by the broadcasters.

    Some of the speakers also said the LCOs had built the industry without foreign direct investment (FDI), and therefore any discussion on FDI was meaningless unless their questions were answered.

    The Trai delegation included principal advisors N Parameshwaran and Anuradha Mitra, deputy advisor G S Kesarwani, and secretary Rajeev Agrawal.

    Trai officials had come armed with just over thirty questions relating to media ownership issues on which it has already issued a consultation paper. Less than twenty were discussed.

  • SC admits LCOs plea against Tdsat’s DAS order

    SC admits LCOs plea against Tdsat’s DAS order

    NEW DELHI: The supreme court today admitted for hearing an appeal by united cable operators welfare association (Ucowa) challenging the revenue sharing model under the digital addressable system (DAS) for cable television.

    Chief justice Altamis Kabir, justice Vikramjit Sen and justice S A Bobde also issued notice to the telecom regulatory authority of India (Trai) and the information & broadcasting ministry.

    The court also decided to list for hearing this appeal along with the appeals filed earlier by Incable and Digicable.

    All the three appeals are against the judgment of the telecom disputes settlement and appellate tribunal (Tdsat) of 19 October last year.

    In its petition, the Ucowa said the tariff order and regulations were aimed at helping the television broadcasters and the direct-to-home platforms.

    They said it was also clear that the channels were deliberately not revealing their retail tariff per channel.

    The counsel stressed that they were not opposed to introduction of digital DAS but some infirmities had to be corrected.

    The LCOs had failed to get any relief from Tdsat on their plea that the revenue sharing pattern of 55:45 on the basic service tier (free to air television channels) of Rs 100 and 65:35 on the upper tier of Rs 150 (combination of FTA and pay channels), and their appeals were dismissed.

    The appeals by the MSOs had been filed against the unfair fixation of the wholesale rate the price broadcasters can charge of channels for DAS at not more than 42 percent of the non-Cas area rate. The MSOs are concerned about the rate that would be fixed after DAS is implemented countrywide (by December 2014).