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Tag: LCOs

  • TDSAT dismisses Media Pro’s 14 petitions seeking payments from cable ops

    TDSAT dismisses Media Pro’s 14 petitions seeking payments from cable ops

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has dismissed 14 petitions by Media Pro Enterprise India, Mumbai against cable operators as “there is no material on record even to show what were the dues, if any, of the respondents on the date their respective agreements came to end.”

     

    TDSAT chairman Justice Aftab Alam and member Kuldeep Singh said in fact that three cases by the petitioner were plainly barred by limitation. 

     

    The judgment said, “We are satisfied that in none of the cases in the batch, the claim of the petitioner is fit to be allowed. All the petitions are accordingly dismissed with costs at Rs 5,000 per petition payable to the TDSAT Employees’ Welfare Society. A receipt showing payment of the cost should be filed in the Registry within a month from the date of the judgment.”

     

    The three petitions barred by limitation (time-barred) were against S.M. Advertising, Maharashtra; Nileshwar Cable TV Network, Kerala; and Tara Cable Network, Maharashtra.

     

    The other local cable operators (LCOs) against whom the petitions had been filed included five from Gujarat – Narmada Cable Service, Five Star Network, Star Marketing, Anjali Cable Network, and Jai Santoshi Maa; two from Maharashtra – Bhusawal Network and H.R. Entertainment; Rathore Network, Rajasthan; Apna In Cable Broad Band Services, Andhra Prdesh; Nandgaon Cable Network, Chhattisgarh; and Haridwar Cable Network, Uttarakhand. 

     

    Media Pro used to be the agent and intermediary of several broadcasters, including Zee Turner Ltd and StarDEN Media Services on the basis of agreements executed with the broadcasters. According to the averment made in the petition, it started its operations as their agent in July 2011. Before that the channels of the aforesaid two broadcasters were given to the distributors on the basis of agreements executed by the broadcasters themselves. 

     

    The 14 petitions are for recovery of different sums of money as dues of monthly subscription fees. According to the petitioner, the 14 LCOs were receiving the signals from Zee and Star DEN on the basis of agreements executed with them on different dates, on payment of different sums of money as subscription fees in terms of their respective agreements. It is further the case of the petitioner that on the basis of agreements executed with the broadcasters, it took over the control and distribution of their channels and was also authorised by its principals to collect their outstanding dues from all the distributors, including the present LCOs.

     

    According to Media Pro, after assuming the role of agent and intermediary, it raised invoices against the LCOs for payment of monthly subscription fees as also the past dues of the principal broadcasters. The LCOs, however, failed to make payments against the invoices and as a result dues accumulated, leading to the petitions. Media Pro has claimed the amounts due along with interest at 18 per cent from the date the amount became due till the date of the filing of the petition. 

     

    The Tribunal noted that in all cases, the subscription agreement had come to end before Media Pro stepped into the shoes of the agent and the intermediary of the broadcasters. Furthermore, the supply of signals to the LCOs continued for many months even after the agreements had come to end – a fact admitted in the petitions and by witnesses examined.

     

    None of the 14 cable operators appeared despite service of notice. Hence, all the petitions in the batch were proceeded with ex parte. As all are based on similar facts with the exception of the amounts of money claimed and the date of disconnection of signals, all were heard together. 

     

    The witnesses said Media Pro requested the LCOs to renew the expired agreements but the latter delayed this on one pretext or other and invoices were raised. The TV channel signals accordingly continued to be retransmitted by LCOs to their subscribers until May 2012. 

     

    The said retransmission by the respondent to its subscribers has been duly verified and corroborated by the petitioner through ground verification conducted from time to time and as recent as on April – May 2012.  

     

    However, the Tribunal noted, “the averment of Media Pro is thus directly in teeth of the clear directive of the Regulations.” 

     

    The Tribunal said clause 4A of the Telecommunication (Broadcasting and Cable Services) Interconnect Regulations 2004 with effect from 17 March, 2009 is clear that the Interconnection Agreements have to be in writing. It further says no broadcaster of pay channels or distributor of TV channels, such as multi system operator or headend in the sky operator shall make available signals of TV channels to any distributor of TV channels without entering into a written interconnection agreement.

  • Siti Cable to not disconnect signals to 5 Faridabad LCOs

    Siti Cable to not disconnect signals to 5 Faridabad LCOs

    NEW DELHI: Siti Cable Networks has committed before the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) that it will not disconnect the signals of the five local cable operators (LCOs) of Faridabad.

     

    These cable operators are members of the Excellent Cable Operators Association.

     

    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava directed that these cases be also listed on 8 October.

     

    This case will now be heard along with the batch of cases from Progressive Cable Network Association, Faridabad.

     

    The Tribunal noted that it had received Rohit Vasvani’s report in the case.

  • Ground level challenges delay digitsation benefits to MSOs & broadcasters: ICRA

    Ground level challenges delay digitsation benefits to MSOs & broadcasters: ICRA

    BENGALURU: In a vast country like India, ground level challenges is a key reason that has delayed in multi-system operators (MSOs) and broadcasters reaping the benefits of digitisation. The digitisation of the TV distribution industry, initiated in 2011, is yet to achieve its target of addressability and transparency in billing systems, which was expected to yield significant benefits to MSOs and broadcasters as per a report by Indian investment and ratings agency ICRA on the Indian Media and Entertainment Industry – TV Distribution (September 2015).

     

    Some of the noteworthy points mentioned in the report are as follows:

     

    As MSOs struggle with last mile ‘addressability’ hurdles for its digitised customer base, the industry’s ability to deliver customised / value added content remains restricted. As a result, the expected benefits of higher subscription revenues for MSOs and broadcasters are yet to be achieved. The end consumers are also yet to benefit from targeted subscription packages, which were expected to optimise the user experience. ICRA believes that end consumers are also yet to benefit from targeted subscription packages. Roll out of channel packages by MSOs remains crucial for driving ARPU growth and profitability as content costs increase.

     

    Implementation challenges and slow progress in Phase I and Phase II markets have restricted monetisation for MSOs due to slow progress in Consumer Application Form (CAF) collections – effectively LCOs have retained their control over the subscriber base, disputes in sharing of entertainment tax, ARPU is constrained and as yet determined on per subscriber basis, and not on basis of channel packages chosen.

     

    While distributors have witnessed 25-30 per cent decline in carriage income, overall carriage income for distributors has remained buoyant because the disbanding of channels aggregators has given distributors leverage with smaller broadcasters and new channels. Also, new channel launches and wider audience measurement metrics will keep carriage revenues buoyant for MSOs.

     

    DTH players and regional MSOs are likely to take the lead in implementation of Phase III and Phase IV. Extension of deadline for Phase III and Phase IV markets provides adequate time for resolving ground issues as well as coverage for large subscriber base; however lower purchasing power and price sensitive nature of subscribers make investments less attractive. DTH players remain well positioned for tapping growth opportunities in Phase III and Phase IV markets due to inherent technology advantage and easier access to cable dark areas.

     

    Credit profiles unlikely to improve significantly on account of debt funded capex plans.  Longer than expected timelines in monetisation opportunities, higher content costs for digitised areas coupled with ongoing investments for Phase III and IV would keep the return and coverage indicators of MSOs muted in near term. 

     

    While a significant amount of equity funds supported the investments in Phase I and II markets for major MSOs, investments for penetrating Phase III and IV areas, broadband penetration as well as offering value added services (such as Video on Demand) may be largely funded through debt; correspondingly the borrowing levels are expected to remain high over the next two years while the profitability generation from digitised areas stabilise gradually.

     

    In spite of execution delays, in the longer term, digitisation is expected to benefit MSOs, DTH operators and broadcasters through greater customer wallet resulting in higher subscription revenues.

     

    Sizeable subscriber penetration opportunity persists in Phase III and Phase IV markets. The market share dynamics between MSOs and DTH players are expected to change with an uptick in run rate for DTH operators (approximately 20-25 per cent market share in Phase I/II) as the industry progresses towards the Phase III and Phase IV.

  • TRAI issues dos & don’ts for MSOs and LCOs

    TRAI issues dos & don’ts for MSOs and LCOs

    MUMBAI: With industry not yet bearing the full fruits of digital addressable systems (DAS) rollout in phase I and phase II areas, the Telecom Regulatory Authority of India (TRAI) today issued a few dos and don’ts, which it believes will help give a broad operational framework to local cable operators (LCOs) and multisystem operators (MSO).

     

    The dos and don’ts have been issued on three levels: first, in respect of subscribers and customers of digital addressable cable TV; second, for LCOs providing cable TV services through DAS and thirdly for MSOs providing cable TV services through DAS.

     

    A brief overview of the same follows:

     

    (A) Dos & Don’ts for MSOs & LCOs in respect of Subscribers/Customers of DAS:

     

    DOs

     

    1. Representatives should carry a valid ID when visiting customers/subscribers premises.

     

    2. Ensure that the customer seeking cable TV connection through DAS is given a Customer Application Form (CAF)

     

    3. Handover a copy of the completed CAF along with the Manual of Practice (MOP) to the subscriber.

     

    4. Share a surrender application form with customer on request.

     

    5. Explain the T&C for providing STB to the customer along with tariff options.

    6. Ensure that all details are explained to the customers in detail.

     

    7. Provide with a bill and payment receipt to every subscriber.

     

    8. Send acknowledgement of receipt of payment electronically to the subscriber.

     

    9. Ensure that the subscriber is informed about his current status of his account.

     

    10. Reduce subscription charges if any channel is subscribed to be a subscriber becomes unavailable on the network of the MSO.

     

    11. Publish & prominently display the toll-free consumer care number and contact number of the Nodal Officer for redressal of consumer grievances.

     

    12. Set up a web-based complaint handling/monitoring system.

     

    13. Conduct periodic consumer awareness programmes about Quality of Service (QoS) Regulation provisions for subscribers.

     

    DON’Ts

     

    1. Activate STB before entering the details of customer and his choice of channels.

     

    2. Discontinue any channel to a subscriber, if the subscriber paid subscription amount for that channel in advance and that channel is available on your platform.

     

    (B) Dos & Don’ts for LCOs providing cable TV services through DAS

     

    DOs

     

    1. Register with Head Post Office before offering cable TV services.

     

    2. Renew registration with Head Post Office every year.

     

    3. Enter into an agreement with the MSO whose signal you will carry.

     

    4. Keep a copy of agreement with you.

     

    5. Give the completed CAF to the MSO for processing and retain one with yourself.

     

    6. Provide complete details of payment made by each subscriber to your MSO within the agreed time frame.

     

    7. Give the respected surrender application form to the MSO for processing.

     

    DON’Ts

     

    1. Transmit cable TV service without valid registration as this is illegal.

     

    2. Transmit cable TV signals to subscribers without proper written interconnection agreement with the MSO.

     

    3. Discontinue the transmission of cable signal without giving 21 days notice to the MSO, clearly specifying the reasons for the proposed discontinuation.

     

    4. Change the MSO of the subscriber, till the subscriber request so by filling a surrender application form for the existing MSO’s connection and a new CAF for the new MSO’s connection. The new STB should be activated only after entry of the details, as provided in new CAF, into the SMS of the new MSO.

     

     

    (C) Dos & Don’ts for MSOs providing cable TV services through DAS

     

    DOs

     

    1. Register with the Ministry of Information & Broadcasting (MIB) as an MSO.

     

    2. Enter into an agreement with LCO, if you are providing the cable TV service to subscribers through one or more LCOs.

     

    3. Ensure a copy of the agreement is handed to the LCO within 15 days from date of signing and receipt is duly acknowledged.

     

    4. Ensure that the T&C of the agreement conform to the TRAI regulations.

     

    5. Ensure that the agreement explicitly mentions the date of coming into force and the date of expiry.

     

    6. Ensure the agreement mentions the list of responsibilities of the MSO and the LCO, respectively, the revenue share agreed, and the procedure for uploading the consumer complaints, received by your linked LCOs, in the complaint handling/ monitoring system.

     

    7. Ensure that the interconnection agreement contains explicit provisions for settlement of disputes.

     

    8. Provide access to the relevant data in the Subscriber Management System (SMS) to all of your linked LCOs for the purposes of settlement of revenue shares in accordance with the agreement.

     

    9. Educate your linked LCOs about the various schemes you are offering for procuring a set-top-box (STB) by a subscriber and also the channel(s)/ bouquet(s) available on your network.

     

    10. Provide adequate number of spare STBs to all of your linked LCOs to meet the timelines set in the Quality of Service Regulations of TRAI, to avoid long disruptions in service to any subscriber due to malfunctioning STB.

     

    11. Ensure that prior notice of 15 days is provided through local newspapers and through scrolls on TV Screen to inform subscribers who are likely to be affected due to the disconnection. Such notice should be published in two leading local newspapers of the State in which affected LCOs are providing the services, out of which one notice should be published in a newspaper in the local language.

     

    12. Ensure that sufficient number of Customer Application Forms (CAFs) and Manual of Practice is available with your linked LCOs for distribution to the customers at the time of providing connection.

     

    DON’Ts

     

    1)Provide cable TV services without valid registration as MSO as this is illegal.

     

    2)Provide cable TV signals to LCOs without a written interconnection agreement as this is illegal.

     

    3)Give pre-activated STB to any LCO or to any customer.

     

    4)Disconnect the signals of TV channels of your linked LCO(s) without giving 21 days notice to such LCO(s) and clearly specifying the reasons for disconnection.

  • Initial licence should be for 10 years as VNO is new concept: TRAI

    Initial licence should be for 10 years as VNO is new concept: TRAI

    NEW DELHI: Virtual Network Operators (VNO) in the telecom sector should be permitted for all segments of voice, data and video as well as for all services notified in the unified license (UL) for a period of ten years, extendable by ten years at a time. 

     

    The Telecom Regulatory Authority of India (TRAI) in its recommendations has said VNO should be introduced through proper “licensing framework” in the Indian telecom sector.

     

    For introduction of VNO in the sector, there should be a separate category of license namely UL (VNO). Like UL authorization, only pan-India or service area-wise authorizations may be granted under a UL (VNO) license.

     

    The recommendations were given after the Department of Telecommunications (DoT) through its reference of 7 July last year had sought recommendations of TRAI on the subject.

     

    TRAI said that VNOs are service delivery operators, who do not own the underlying core network but rely on the network and support of the infrastructure providers for providing telecom services to end users and customers. 

     

    VNOs can provide any or all telecom services, which are being provided by the existing telecom service providers.

     

    VNO should be introduced in the network based on the basis of mutually accepted  terms and conditions between NSO and the VNO. The terms and conditions of sharing the infrastructure between the NSO and VNO are left to the market to determine.

     

    VNOs should be permitted to set up their own   network equipment where there is no requirement of interconnection with other NSO.  However, they should not be allowed to own/install equipment where interconnection is required with another NSO.

     

    Local Cable Operators (LCOs) and Multi Service Operators (MSOs) can become VNO and are permitted to share infrastructure with VNOs.

     

    There should not be a restriction on the number of VNO licensees per service area and there should be no restriction on the number of VNOs parented by an NSO.

     

    Customer verification and number activation shall be the responsibility of a VNO for its own customers.

     

    VNOs that enter the network would do so based on arriving at a mutual agreement between an NSO and a VNO.

     

    The Authority recommended that VNOs should be permitted for all services notified in the UL.                                            

     

    TRAI recommended that the terms and conditions of sharing of infrastructure between the NSO and VNO should be left to the market i.e. on the basis of mutually accepted terms and conditions between the NSO and the VNO.       

     

    The Authority recommended VNOs be permitted to set up their own network equipment viz. BTS, BSC, MSC, RSU, DSLAMs, LAN switches, where there is no requirement of interconnection with other NSO(s). Therefore, they should not be allowed to own/install equipment viz. GMSCs, Soft-switches and TAX.

     

    Equipment permitted to be owned/installed by VNOs should conform to the technical standards prescribed by standardization bodies like TEC and ITU.

     

    VNOs may also be allowed to create their own service delivery platforms in respect of customer service, billing and VAS. MSOs and LCOs who want to provide broadband services through their cable network may do so by obtaining a VNO license. MSOs/LCOs may also share their cable infrastructure with VNOs, after the MSO/LCO register themselves as an IP-I service provider.

     

    There should be a separate category of license namely UL (VNO). This UL (VNO) will contain similar authorizations for services and service areas as provided in the existing UL.

     

    An operator who wishes to provide telecom services to its customers utilizing the underlying network and/or access spectrum of an existing NSO will have to obtain UL (VNO) license. 

     

    The Authority recommended that resale of IPLC presently under the UL shall be shifted from the existing UL to UL (VNO) licensing in order to make a clear distinction among the class of operators.

     

    A VNO should be a company registered under the Indian Companies Act 1956 (as amended). The entry fee for UL (VNO) with a given authorisation will be 50 per cent of the entry fee prescribed for the UL. Financial Bank Guarantee will be equal to the amount of two quarter license fee. Minimum equity and minimum networth may be kept at 40 per cent of the amount prescribed under UL. 

     

    The Authority recommended that under UL(VNO) the provision for restriction of 10 per cent or more equity cross holding to be applicable between (i) a VNO and another NSO (other than VNO’s parent NSO) and (ii) between a VNO and another VNO authorized to provide access services using the access  spectrum of different NSO in the same service area.                                                                         

    A VNO shall be liable to pay LF as a percentage of AGR at the same rate as that of the parent NSO.

     

    VNO shall also be liable to pay the SUC for the wireless service(s) it offers to the customers. The SUC rate will be same as that of the parent NSO.

     

    Since Quality of Service is in the exclusive domain of TRAI, the Authority will put in place comprehensive regulations on QoS parameters to be complied separately by NSOs and VNOs.

  • AMBC targets installation of additional 1.6 lakh STBs by Dec 2016

    AMBC targets installation of additional 1.6 lakh STBs by Dec 2016

    KOLKATA:  The West Bengal based multi-system operator (MSO), Advance Multisystem Broadband Communication (AMBC), is aiming to install 1.6 lakh set top boxes (STBs) by December 2016.

    AMBC claims to be the first private limited company in cable industry that is still run by a professional management team built by cable operators only. Launched in 2000, the company has more than 450 LCOs affiliated with it at present. AMBC in the Kolkata municipal area (KMA) claims to have more than 1.83 lakh digital connections.
     
    The company has one digital headend, which caters to the Kolkata municipal area and three analogue headends. The analogue headends at Arambag and Birbhum were to be converted into digital ones with the implementation of DAS in analogue areas. The company had earlier earmarked Rs 5 crore for converting the analogue headends into digital ones, but now the company has ‘withdrawn the signal’ from some non-potential areas.
     
    In the DAS areas, AMBC has seeded STBs in Hooghly, Howrah, Nadia, Salt Lake and North 24 Parganas among others, while in locations like Burdwan, Birbhum and parts of Bankura, it has more than 2.5 lakh analogue cable TV connections.
     
    “We were preparing to seed STBs in phase III and IV, and are encouraging the LCOs to do as much as they can, but RIO arrangement of SIPL is becoming a major drawback,” said AMBC managing director Sujit Das.
     
    Das informed that the company had already accounted for stock and trade interest rate due to postponement of digitisation deadlines when his company had taken loans to procure STBs’.
     
    “We are looking for some loops in KMA,” revealed Das. “Actually we are trying to saturate our core market with topmost priority. A set back after making a new venture in a new market may spoil our name and deflect our target,” he shared.
     
     Speaking about the challenges in cable TV digitisation, Das said, “As the market is still directed mostly by the LCOs, we need to have their confidence first, and then the job will become easier. A confused ground partner can be harmful for the operation. We need to work with cooperation with the LCOs, not with compulsion.”
     
     “Value chain is also a big factor. For the remaining phases we need to start by breaking even,” he said.  “Only a la carte channels offer will not be feasible enough as LCOs have to bear high cost to carry the channels.”
     
    Das feels that the experiment of digitisation will be over before the next phase starts and the market will be mature enough to work with. “So we may reduce our capex loss in seeding of STBs and operational cost as well. In phase 1and 2 we all were riding on the tiger’s back.”
     
    When being asked to comment on the phase III and phase IV of DAS, he said the locations where the company has analogue presence are price sensitive market and the monthly subscription fee hovers around Rs 100-Rs 110. “Keeping in mind the price sensitive market, we might do various permutations and combinations while providing the channel package to consumers in DAS 4 areas. A price hike in small towns and rural Bengal will slow down STBs seeding,” he added.
     
     
    Ground networking and channel placing are major factors for acceptance of a signal to the consumers. AMBC also works with the best channel sequence, which is reviewed from time to time depending upon the feedback from the ground, Das informed.
     
    AMBC says that it gets immense support from its LCOs’ to deliver quality service and technical support to meet consumer demands.

     

  • LCO forums appeal to Minister Javedekar for their inclusion in new task force

    LCO forums appeal to Minister Javedekar for their inclusion in new task force

    KOLKATA: The local cable operators (LCOs) have once again appealed to the Minister for Information & Broadcasting Prakash Javedekar that the last mile owners (LMOs) associations/federations from all the four corners of the country must be a part of the new task force.

     

    The task force was set up for the implementation of digitisation in the country and particularly to oversee the execution of the last two phases of digital addressable system (DAS).

     

    It should be noted that on 8 October, when all the stakeholders met, the LCOs expressed their view of not being given a voice in the task force.

     

    “We have requested our president Arvind Prabhoo to communicate to the Minister and to ensure that MCOF be a part of the new task force and that LMO associations/federations from north, south, east and west of India must be part of the new task force,” said Maharashtra Cable Operators Foundation (MCOF) core committee member Bobby Shah.

     

    He added, “The Minister himself has noticed and mentioned that more than two to four LMO association/federation must be in the task force.”

     

    Reiterating the new government’s plan to transform the country into Digital India with the ideology ‘saabke sath saabke liye’, Kolkata-based Cable & Broadband Operators’ Welfare Association’s secretary Swapan Chowdhury said the forum has sought government’s intervention to the system, which would work in a transparent manner with a scope of protecting the livelihood of millions of people of our country.

     

     “We appreciate government’s endeavors to re-look and re-construct the digital addressable cable TV system and accordingly take up time to reconstruct the task force,” the LCOs said.

     

  • Regulations skewed against broadcasters: Star India counsel Dwivedi

    Regulations skewed against broadcasters: Star India counsel Dwivedi

    NEW DELHI: Noting that the Telecommunications (Broadcasting and Cable) Interconnection (Digital Addressable System) Regulations 2012 ‘are skewed’ against the broadcaster in every respect’, Star counsel Rakesh Dwivedi said today that there are provisions only for ‘must provide’ and not ‘must carry’.

     

    Thus, the broadcaster does not get paid by a multisystem operator (MSO) for providing the channels, but only when a subscriber wants to take it from the MSO.

     

    Furthermore, Clause 5 is clear that no broadcaster can compel a MSO to provide his channel to the subscriber and gives an option to the subscriber to choose the channel he wants, Dwivedi said in the ongoing hearing before the Telecom Disputes Settlement and Appellate Tribunal in the cases linked to Taj TV signals for Turner and Zee TV.

     

    The Regulations also say that if a broadcaster insisted on a placement of his channel, it would amount to unreasonable terms. The same applied to creation of bouquets by the broadcaster.  

     

    Referring to the charge that the RIO does not mention bouquet, Dwivedi said there is no question of a bouquet, adding that there would be no point in creating bouquets if the MSO has the right to unbundle it.

     

    Furthermore, offering all the channels of the broadcaster does not amount to a bouquet, because even the dictionaries define ‘bouquet’ as an assortment out of which the subscriber can choose.

     

    Even in the case of MediaPro, Dwivedi said no bouquets had been offered and if MediaPro on its own offered any channels in the form of bouquets, it said so.

     

    Referring to the arguments advanced on behalf of the MSOs, he said there was no reference to being reasonable in clause five which was confined to mutual negotiations and this reference was only with reference to the Reference Interconnect Offer.

     

    He said that it was also necessary to understand that an RIO was only an offer and not an agreement or contract and therefore ‘cannot be judged on the anvil’.

     

    Even otherwise, the MSOs had not challenged the RIO but that it should have been brought in only after negotiations fail. 

     

    At the outset, Dwivedi said the charge against Star and Zee was that they were conspiring with other MSOs because of the closeness to Den and to drive the petitioner MSOs out of business. He also denied the contentions made by the petitioner MSOs that certain other MSOs were being given greater discounts.

  • TRAI extends deadline for pre-consultation paper on standards of QoS amendments

    TRAI extends deadline for pre-consultation paper on standards of QoS amendments

    MUMBAI: Nearly a week after issuing the notification that the Telecom Regulatory Authority of India (TRAI) is looking at making amendments to the Standards of Quality of Service (digital addressable cable TV systems) (amendment) regulation 2012 (12 of 2012) for ensuring better billing practices by MSOs and LCOs, it has decided to extend the date for receiving comments from stakeholders.

     

    The earlier deadline of 8 September 2014 has been extended to 12 September 2014 on the request of stakeholders. However it states that no further extensions will be entertained.

     

    The amendment, when approved, will come into effect 30 days from the date of publication and will be called Standards of Quality of Service  (digital addressable cable TV systems) (amendment) Regulations 2014.

     

    TRAI says that the main purpose of issuing this new amendment was because it kept receiving complaints from subscribers about not getting proper bill and receipt. The regulator feels that financial disincentives should be levied on non-compliant MSOs and LCOS, similar to how it happens in the telecom field where this action has yielded result.

  • TRAI blames MSOs and LCOs for delay in DAS implementation

    TRAI blames MSOs and LCOs for delay in DAS implementation

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has come up with certain amendments to the Standards of Quality of Service (digital addressable cable TV systems) (amendment) regulation 2012 (12 of 2012). The regulation has laid down norms for billing of subscribers in digital addressable system (DAS) areas.

     

    It says that even after coming up with the QoS regulation, it kept receiving several complaints from subscribers about not getting proper bill and receipt. Subsequently, the regulator issued a direction in December 2013 directing MSOs to offer prepaid and postpaid payment options, generate bills and issue receipts.

     

    It also made a team consisting of representatives from TRAI and the Broadcast Engineers Consultant India Limited (BECIL) to inspect the head-end and subscriber management system (SMS) of MSOs in Delhi. During the inspection it noticed non-compliance by cable operators. Some cable ops are not offering prepaid option of payment while those who did offer, didn’t give an option of electronic payment.

     

    It again issued a direction on 27 May 2014 to ensure bill delivery either by hand, post or e-mail, within 45 days of the direction to provide online payment option in its SMS, electronic acknowledgement to subscribers on payment. MSOs and LCOs are still delaying implementation of the same.

     

    Since no details are being inserted in the SMS, it is hampering the transparency of financial transactions between MSOs and LCOs thereby affecting smooth implementation of DAS.

     

    TRAI states that ‘in the absence of proper billing and accounting of receipts, there is a distinct possibility of loss of revenue accruable to government’.

     

    Due to all these reasons, the regulator feels that financial disincentives should be levied on non-compliant MSOs and LCOS, similar to how it happens in the telecom field where this action has yielded result.

     

    For non-compliance of issuing bills, a disincentive of not exceeding Rs 20 per subscriber will be levied on the MSO and/or its linked cable operator and for the second time, penalty would be Rs 50. For non-compliance of regulations, Rs 100 will be penalised on each MSO for each contravention. If the MSO and LCO have entered into an agreement, both of them will be penalised for faults while in the case of no deal being signed, only the MSO is liable to pay.

     

    The regulator says that the MSO may offer multiple denomination schemes for recharging, with an expectation that monthly recharge schemes would be one of the options.

     

    Another amendment that has been suggested is to ensure that bills have service tax registration number and entertainment tax registration number of either the MSO or the linked cable operator.

     

    However, before imposing penalties, TRAI will give opportunities to the concerned MSO or LCO to represent its case.

     

    The amendment, when approved, will come into effect 30 days from the date of publication and will be called Standards of Quality of Service  (digital addressable cable TV systems) (amendment) Regulations 2014.

     

    Stakeholders can provide comments before 8 September.

     

    Click here for the press release

     

    Click here for the amendment