MUMBAI: The Bombay High Court has reserved the judgment in the case of the new tariff order amendments (NTO 2.0) as the hearing got over on Thursday. While the ambiguity still continues in the ecosystem, the court is expected to pronounce the judgment in a couple of days.
According to sources close to the development, Telecom regulatory Authority of India (TRAI) cited the judgment by Justice Nariman of Supreme Court delivered in 2018 and judgment of Delhi HC from 2007 to support that it has full right to regulate broadcasters. It alleged that regulating bouquet formation and discounts is important because broadcasters use the same to push unwanted channels to consumers and are only interested in increasing their advertisement revenue.
On the other hand, broadcasters argued that bouquets help to make large number of channels cheaper for consumers and also attempted to prove that due to competition from streaming services and telcos, regulation for broadcast TV ought to be reduced. As LCOs filed an independent writ petition asking for stay, they also argued that any attempt by TRAI to bring down NCF will kill their business.
Meanwhile, Kerela HC hearing a matter from MSOs protesting against an effort to reduce NCF has also reserved its order and will pronounce it soon.
As none of the high courts pronounced any clear order on interim relief, the amended regime came into play from 1 March. Among the DPOs, Tata Sky, Airtel, Dish TV, Siti Cable and IMCL have implemented NTO 2.0 and reduced their NCF.
MUMBAI: While All India Digital Cable Federation (AIDCF) in association with its LCO operator partners always strives to deliver better services to consumers, the federation has welcomed festive promotion by broadcasters offering a discount on select a-la carte channels. AIDCF hopes that such promotional schemes from broadcasters will continue.
“We from AIDCF commit that we will ensure all such benefits are passed to the consumers. We also hope that new consumer offers will come which will help in boosting consumption,” the federation said in a release.
Already, voluntarily AIDCF has announced its members will include 150 SD channels instead of 100 SD channels for those subscribers who renew on or before the due date. The decision by AIDCF members resulted in savings of Rs 40 in NCF charges for cable TV customers. AIDCF is looking forward to similar consumer-friendly steps from its broadcaster partners.
“We thank TRAI for the relentless pursuit to empower TV consumers and give consumers power of choice. To follow the spirit of NTO, cable operators enabled true customer choice by providing each customer choice to select any combination. Today, millions of unique plans are provided by cable operators despite all technical challenges. This is true consumer choice and level of customization is unmatched by any industry in India” AIDCF president SN Sharma said in a press conference.
AIDCF thanked its LCO partners for continuing to service customers for past 25 years. The federation also pointed out that the operator partners have always upheld the consumer service and successfully seen so many transitions- right from the analogue era to digitization to post NTO world today and they intend to keep this partnership going strong for future. AIDCF also noted that LCO community has been working very hard in helping implement the new NTO and enabling the consumer to choose channels as per her wish.
All members of AIDCF are pushing all boundaries and plan to announce new packages at attractive price points to offer superior value to subscribers. A few months experience with customer choice data post-NTO have enabled the MSO to create newer packages servicing customer specific needs in a better way by evolving packages.
MUMBAI: Telecom Regulatory Authority of India (TRAI) on Tuesday extended the last date for receipt of written feedback on its consultation paper titled "Review of the Regulatory framework for Interconnection".
According to a notification from the regulator, the last date for receipt of written comments has been modified to 4 July and counter-comments, if any to 18 July.
The regulator’s decision came after a request from some of the stakeholders. However, it has been decided that no request for any further extension of time will be entertained.
TRAI had floated the consultation paper in May to asses means of removing entry barriers for new companies and reduce the operational cost of existing operators by handing them greater flexibility.
KOLKATA: While the Telecom Regulatory Authority of India (TRAI) continues to reiterate that its new tariff order will benefit all stakeholders of the cable and broadcasting industry, implementation of the new norms has witnessed a mixed response on the ground. As the ecosystem adapts to this radical change, local cable operators (LCOs) in Kolkata have started bleeding as cable subscribers are migrating to DTH platforms.
Many consumers in the city have complained that they are experiencing channel blackouts despite shifting to new packages ahead of the deadline. In addition to that, they also contended that the operators are forcing them to opt for packages and not providing any options of a-la-carte channels. As a result, several consumers have switched over to DTH platforms in order to avoid this hassle.
One of the major local cable operators in south Kolkata said they have experienced 10-15 per cent churn rate post the new tariff order implementation. On the other hand, another operator in north Kolkata has claimed that his company experienced a 20-25 per cent churn rate. Both of them have opined that the churned out subscribers are not choosing other cable operator but DTH operators only.
Both the local cable operators blamed MSOs for not having a proper system in place to make the migration smoother. According to them, the websites of MSOs are crashing due to the traffic spikes. In turn, this is hampering the process of new package selection, with the a-la-carte channel activation getting delayed.
They also pointed out that web portals of some national MSOs are malfunctioning for last two months. They added that subscribers, being unaware of the problems, are pinning the blame squarely on LCOs.
Last week the West Bengal government held a meeting with some of the stakeholders of the Indian broadcast and cable industry to understand the tariff issue and challenges in its implementation.
State government sources told Indiantelevision.com that the meeting, attended by a minister too, was called to explore what the stakeholders could do for local LCOs who have been having a trying time to convince and educate consumers, especially in rural areas of the state.
It is learnt that those who attended the meeting included senior representatives from Star India, MSO Hathway and Zee group. One of the requests made by the state government, according to official sources, was whether companies like Star and Hathway could also fund educational TVCs relating to the TRAI tariff order in the Bengali language that could be aired by the LCOs on their networks to make consumers better understand the issues relating to channel selection and their prices. Industry stakeholders, it is learnt, remained mostly non-committal on this particular matter of TVCs in Bengali.
Maharashtra Cable Operators Foundation (MCOF) committee member Asif Sayed, an LCO based out in Mumbai, too voiced a similar opinion, saying a-la-carte channel activations are getting delayed as MSO web portals aren’t equipped to manage the load.
According to him, the churn rate is actually 5-10 per cent and another 10-15 per cent may be switching off because of ongoing examinations. Hence, after one month, there would be clarity on the actual churn.
Since the beginning of tariff order rollout, many LCOs across the country have expressed their reservations about the new regulations. The 80-20 revenue share between broadcasters and DPOs has been a bone of contention, as they maintain there should be revenue cap separately for LCOs.
“NTO has come at a time industry had settled down after DAS. Obviously it's a major shift and hence causing confusion across the board. Negative propaganda does happen when any change takes place. For example when DAS was declared similar propaganda was there that MSOs are not equipped to provide channels, boxes, and that consumers are migrating to DTH. Some people strategically float these propaganda. DPOs offer packages that satisfy most consumers. If a particular MSO fails to implement that there could be migration to other DPOs which can be to DTH or to other MSOs,” KCCL CEO Shaji Mathews, a veteran in the industry, commented.
Mathews also added that the major MSOs are equipped to provide high-quality service to their consumers.
According to him, MSOs are in a better position to implement the order as cable operators are doing channel activations on ground. He added that in any case, there will be some amount of consumers who will keep jumping on both sides. He does not hold the view that there is any massive migration on either side, neither to cable nor to DTH.
“Whatever migration is taking place is driven by non-compliance of some stakeholders. While the SC has commented on the need to regulate bouquet rates in relation to a-la-carte rates, the broadcasters have taken liberty to overstep the basic objective of NTO and declare disproportionate rates. With the most important part of the NTO thrown to the wind it's as good as no NTO and is the fundamental cause of confusion. Secondly, I have come across a DTH operator in blatant violation of basic DAS itself and transmitting unencrypted channels including pay channels,” he further added.
Earlier TRAI said that in case of MSOs and LCOs, the biggest problem was discriminatory treatment by the broadcasters. As a result, it was almost impossible for smaller MSOs to get the content at an appropriate price from the broadcasters because the agreements were not transparent.
The new tariff order, however, was meant to change that and benefit both the MSOs and LCOs. While a part of cable industry continues to believe the same, a large number of LCOs, at least in Kolkata, are quite disappointed with what implementation of the new tariff order has resulted in.
MUMBAI: The telecom regulatory authority of India (TRAI) on Tuesday extended the deadline for consumers to pick their television channels under the new tariff regime till March 31. The sector regulator stated that old plans of consumers would continue until they exercise their options before the new deadline.
The subscribers that don’t opt for new channels would be moved to ‘Best Fit Plans’, which would be developed as per usage pattern, language and channel popularity.
While making 'Best Fit Plan’ for a subscriber, DPOs should ensure that payout per month of the 'best fit plan' generally does not exceed the payout per month of existing tariff plan of the subscriber, TRAI said.
Subscribers will be free to change their 'best fit plan' at any date and time on or before 31st March and DPOs will have to convert their 'best fit plan' into the desired pack (channel/ Bouquet) within 72 hours.
The TRAI also clarified that there will be no 'lock-in period' for the subscribers till 31st March who has been migrated to 'best fit plan' by DPOs.
Subscribers who have taken long term packs will continue to avail the services for the contracted period. However, they have the freedom to choose the channels of their choice under the new regulatory framework and in case if they exercise this option, money for the remaining period shall be adjusted for their future use.
TRAI stated that some subscribers are facing difficulties in selecting the channels/ bouquet of their choice. In some cases, LCOs have not been able to reach out to the subscriber to create awareness among them and collect the options.
According to the TRAI, close to 65% cable subscribers and 35% DTH subscribers have already exercised their channel options under the new tariff regime.
MUMBAI: The Gujarat High Court issued a notice to the Telecom Regulatory Authority of India (TRAI) and the centre on 1 February 2019, over a petition filed by local cable operators (LCOs) challenging the decision to fix the ratio of profit sharing between LCOs and multi-system operators (MSOs).
In 2017, TRAI issued a notification fixing the ratio of sharing of service charges collected towards cable connections at 55:45 between MSOs and LCOs. This was done by inserting clause 12(7) in the Telecommunications (broadcasting & cable) Services Interconnection (Addressable Systems) Regulations.
A bench headed by acting chief justice A S Dave has sought reply from the authorities and posted the matter for further hearing after two weeks.
The Cable Operators Association Of Gujarat filed the petition through advocate Pratik Jasani challenging the insertion of the clause, fixing the revenue sharing between MSOs and LCOs. The cable operators have urged the HC to quash the arrangement before implementation of the 2017 notification, though the government consulted other stakeholders.
MUMBAI: In a major development, the Calcutta High Court, which has jurisdiction over West Bengal and the Union Territory of the Andaman and Nicobar Islands, on Thursday vacated the stay imposed by it on the implementation of the tariff order till February 18.
Local cable operators (LCOs) have now been given time till 8 February to negotiate contracts with multi-system operators (MSOs). Thereon, revenue share within the distribution value chain will be split in line with the TRAI’s tariff order.
On Wednesday, the court had asked the TRAI to submit a report on the matter on 13 February, which is when the next hearing was due to take place. The court’s directive was a result of 80 cable operators filing a petition against the TRAI mandate.
However, realizing the urgency of the situation, the regulator's lawyers, on Wednesday itself, filed an application to vacate the stay.
In its application, TRAI had argued that the court had been misled by the petitioners, and placed the Supreme Court judgment in the court.
The petitioners’ lawyer Debabrata Saha Roy argued that the revenue-sharing model under the new regime will significantly reduce the cable operators’ share to just nine per cent.
With 80% will go into the broadcasters’ kitty, MSOs stand to get just 11 per cent, thus making it an unsustainable business proposition for operators.
Earlier the regulator had offered an extension till 31 January to the distribution platform operators (DPOs) for implementation.
MUMBAI: Just two days ahead of the deadline for consumer migration to new channel packages under Telecom Regulatory Authority of India’s (TRAI) tariff order, Calcutta High Court has stayed the switchover till 18 February.
The court has also asked the TRAI to submit a report on the matter on 13 February, which is when the next hearing will take place. The court’s directive was a result of 80 cable operators filing a petition against the TRAI mandate.
The petitioners’ lawyer Debabrata Saha Roy argued that the revenue-sharing model under the new regime will significantly reduce the cable operators’ share to just nine per cent. With 80% will go into the broadcasters’ kitty, MSOs stand to get just 11 per cent, thus making it an unsustainable business proposition for operators.
Earlier the regulator had offered an extension till 31 January to the distribution platform operators (DPOs) for implementation.
MUMBAI: The Madras High court rejected the interim prayer plea in a petition filed by Chennai Metro Cable TV (CAS) Operators Association declining to stay the implementation of Telecom Regulatory Authority of India's (TRAI) tariff order. Justice S Vaidyanathan issued notice to TRAI as well as posted the matter to 3 January for further hearing.
The cable TV association’s petition was against two notifications on the new regulations issued through media releases on 19 November and 18 December fixing December 29 as the deadline for implementing the new regime. They sought to quash the two notifications along with an interim stay on the implementation of the regulations.
The regulatory body’s council submitted that the matter was already raised before the Supreme Court. Moreover, now TRAI itself has given additional one month for smooth transition allowing consumers to choose the plan till 31 January.
The objections were first raised by a social activist after the first communication on 19 November, as submitted by the petitioner association. It claimed that TRAI, without considering the objections, passed the second release specifying the deadline.
Under the new regime consumers have to choose channels and local cable operators will have to collect the required fees. The petition claimed this arrangement unworkable. It also claimed it would curtail the right of consumers to see all channels.
MUMBAI: Cable operators across the country, and particularly in Maharashtra, seem to have upped the ante in their confrontation with the Telecom Regulatory Authority of India (TRAI) over the new tariff order that will be applicable to the broadcast sector from 29 December 2018. At a protest gathering in the city on Wednesday, the Cable Operator and Distributors’ Association (CODA) called for a cable TV blackout from 7 to 10 pm today.
The cable operator fraternity has taken affront to the TRAI formula that dictates the revenue sharing model. As per the regulator’s math, MSOs and LCOs will split the network capacity fee (NCF) of Rs 130 in a minimum 55:45 ratio, with no share for the broadcasters. Consumers will have access to 100 FTA channels, including 26 mandatory Doordarshan channels, by paying the NCF. For pay channels, broadcasters will pocket 65 to 80 per cent of the MRP with the MSO and LCOs sharing the rest in a 55:45 ratio.
“The protest is about two things, one is the price hike which is going to affect the customer and second the revenue share. The cable operators must get 40 per cent and the remaining 60 per cent should be divided between the broadcaster and the MSO,” said CODA’s Anil Parab.
Apart from the sector regulator, the Maharashtra cable operators seem to have trained their guns at the Star India Network too. There’s a protest planned at Lower Parel’s Urmi Estate, which houses the Star India office, at 2 pm on 28 December. Not just that, LCOs say they will also refrain from pushing Star’s channel pack to consumers.
“We are boycotting Star India channels. We are going to sit outside Star office in Lower Parel on 28 December at 2 pm. We will not book Star India channels initially,” added Parab.
The reason for their ire at Star is the broadcaster’s alleged refusal to meet and negotiate with cable operators.
“All the broadcasters except Star are in communication with us and are willing to sit across the table to iron out differences,” Maharashtra Cable Operators’ Federation committee member Asif Syed told Indiantelevision.com.
He also said that dissuading consumers from opting for the Star pack won’t be all that difficult given the personal equations LCOs share with most of them.
“It takes about a week to change the viewing preference of consumers. We have first-hand experience of this,” he added.
While the distribution ecosystem is now up in arms, it was Star India that fought the TRAI tooth and nail in the Madras High Court and then the Supreme Court over the tariff order.
In private conversation, however, some operators agree that they should have voiced their concerns on the matter ahead of time. The last-minute agitations may not yield the desired results, but the faction-riddled cable fraternity is determined to put up a united front.
“We demand that the revenue sharing should be around 60 and 40 per cent. 60 per cent of the pay channel revenue should be shared between the MSOs and the broadcasters, and the remaining 40 should purely go to the LCOs. On the FTA channels, minimum fee of Rs 20 should be taken by the MSO for carrying channels up to the LMOs headend, as after that he distributes on his own network. 80 per cent of the networks where FTA channels are carried are in the hands of the LCOs. 20 per cent of the FTA channels revenue should be given to the MSOs,” argues MNS Cable Sena VP Jagdish Joshi.
While the LCOs are spoiling for a fight, MSOs don’t seem to be wanting a piece of the action.
“The protest is about the amendments in the sharing revenue model on pay channels and want it to be changed to 60:40 from 80:20 currently. There is no support from us,” a member of the senior management of a national MSO told Indiantelevision.com on the condition of anonymity.
This protest isn’t just a Mumbai phenomenon. LCOs from over 30 associations across the country descended on New Delhi’s Jantar Mantar on Wednesday asking TRAI to amend the tariff order.
The Vadodara Cable Operator Association, joined by their counterparts from Ahmedabad, called for a complete blackout on 28 December night to let their displeasure known to the regulator during a gathering at the Gandhinagar Gruh.
In Hyderabad on Tuesday, the Old City Cable TV Operators Welfare Association threatened to blackout paid channels and stop payments to MSOs if they were compelled to pay based on the new tariff regime.
“We are not against the tariff order; we just want some amendments to be done before the implementation. As per the trends going in the country, if the revenue share is very unfair, nobody is ready to do business in the country,” Joshi concluded.
Stepping up its efforts to enable a smooth transition, TRAI said it is preparing a detailed Migration Plan for all the existing subscribers. On Wednesday, the regulator issued a circular allaying fears of a potential blackout.
“The authority has noticed that there are messages circulating in the media that there may be a black-out of existing subscribed channels on TV screens after December 29, 2018. The authority is seized of the matter and hereby advises that all broadcasters/DPOs/LCOs will ensure that any channel that a consumer is watching today is not discontinued on 29.12.2018. Hence, there will be no disruption of TV services due to implementation of the new regulatory framework,” the circular said.
Earlier this month, filed a petition seeking clarification on the issue of 15 per cent cap on discount on a bouquet price of TV channels to consumers that had been set aside by Madras High Court while upholding TRAI’s right to regulate the broadcast sector. The matter will be listed when the top court resumes post the winter break in January 2019. There’s another case being heard in the Delhi High Court involving Tata Sky, Airtel Digital TV and Discovery India that will be heard on 10 January.
The LCOs are closely monitoring these matters. They also don’t rule out raking up the ongoing issue with the TDSAT. For now, however, they intend to show their might to TRAI and the broadcasters as the country prepares to adopt a new tariff regime. It remains to be seen what impact they can conjure up.
