ITV

Tag: LMOs

  • NXT Digital ‘hits’ Indian market with total outlay of Rs 5000 crore

    NXT Digital ‘hits’ Indian market with total outlay of Rs 5000 crore

    NEW DELHI : After three and half years of struggle, Hinduja’s Headend In The Sky (HITS) platform NXT Digital finally got rolling with a total project outlay of approximately Rs 5000 crore. The mammoth investment will be utilised as the business continues to design and develop new products and services for a growing customer base as well as strive to enhance its own standards.

     

    Information and Broadcasting Minister Arun Jaitley officially launched the venture in the presence of Hinduja Group chairmanAshok Hinduja and Grant Investrade MD Tony D’Silva.

     

    Launching the platform, Jaitley said, “Multiple carriage technologies will provide customers more choice as to which technology platform to choose.”

     

    While Hinduja Ventures has set an initial budget of Rs 5000 crore for the project, the chairman is open to investing more if necessary. “We are here to aggressively back this initiative and if necessary we will invest double or triple the allocated budget. Last mile operators (LMOs) are the one who started the business by laying the first cable and this venture is for them,” Hinduja said.

     

    The HITS project will not only facilitate over 100 million homes go digital in Phase III & IV digitisation markets but will also raise the standards of quality of service. 

     

    To acquire the base model of a Cable Operators Premises Equipment (COPE), one has to pay Rs 10.60 lakh while the premium one can be acquired after a payment of Rs 14 lakh. The amount appears high for the LMOs but Hinduja said that the Group also has a finance group, which would help the LMOs. “The project has a lot of securities and the investment is certain to provide returns so it is a safe investment. We have insurance schemes for the operators so their investment is safe,” he added.

     

    According to D’Silva, the consumer will have to pay a maximum of Rs 50 per month. NXT Digital is presently equipped to beam up to 500 channels and this capacity can be raised to 1000. The earth station is in Sector 62 in Noida in the National Capital Region (NCR) of Delhi. NXT Digital has six transponders at present.

     

    D’Silva also noted that it was interesting that the last two phases of Digital Addressable Cable TV System (DAS) provided for only 32 per cent of the revenue though they would cover a much larger area.

     

    The DAS Phase III and IV areas, which are estimated to have more than 120 million home, are the prime focus of NXT Digital. To succeed in occupying 15 per cent of the market, the company will have to provide set top boxes (STBs) to 20 million home, which is a huge demand to supply. However, Hinduja is bullish about meeting the demand on time and optimistic that the platform will not face a situation where there will be shortage of boxes.

     

    NXT Digital is also positioning itself as a adopter of the government’s Make in India, Digital India and Skill India initiatives, which according to Hinduja was the byword for the Group. The LMOs in the DAS III and IV areas have to be skilfully equipped with modern technologies that NXT Digital will be bringing in.

     

    Asked about how his system was different from the already existing – NSTPL’s JainHits – Hinduja said that the aim of the Hinduja Group was to protect the LCOs because it was they who had built this industry in the late eighties. “Therefore, the LMO will not lose out in any way, will be fully in charge of his own company, and will have full freedom to operate in his own way,” he said.

     

    When queried as to why it had taken the Group three years to get a licence when there was no cap on HITS, Hinduja said, “Formalities take time.”

     

    He also said that wherever someone tries to bring in transparency in any system, there are objections. He was also conscious that there was competition in the field and this may even lead to some legal hassles, but his Group was prepared for everything.

     

    Hinduja said that he was conscious of the matter relating to NSTPL pending in TDSAT, which sought that broadcasters treat HITS players at par with multi system operators (MSOs). He said the NXT Digital viewpoint had been presented at the hearings.

     

    Senior Hinduja executive Aubin Das said that the NXT Digital platform also took efforts to curb the issue of piracy and if LMOs attempt to put on the channel of a broadcaster in the slots meant for local channels, it could be immediately traced and stopped.

     

    Commenting on the training and development initiatives Castlemedia director Vynsley Fernandes said, “We are travelling to every nook and corner of the country to skilfully equip and train people about our technological upliftment and it is a chain system. Around 200 people have been trained under a ‘Train the Trainer’ programme and they will train others. And we are not equipping them only about NXT Digital we are introducing them to the next generation.”

     

    D’Silva said that under NXT Digital, the LMO gets to continue their ownership, enter into broadcasting deals, do packaging and pricing according to market demands, acquire STBs at cheaper rates, run up to 16 local channels, and compete with direct-to-home (DTH) operators.

     

    He added that DTH was on Ku-Band, which got disturbed in rainy or inclement weather, but HITS being on C-Band will not be disturbed. Furthermore, the HITS headend was on ground while DTH had to depend on satellites. Furthermore, NXT Digital will be able to service both DAS and non-DAS areas.

     

    NXT Digital focused marketing and subscription drive in the Phase III & IV markets. The company has so far travelled across 400 districts in 20 states to contact and inform the cable fraternity there about its offerings. As of now it has 14 vans touring various parts of the country to give live demonstrations to LMOs and LCOs. 

      

    Welcoming the move, Maharashtra Cable Operators Federation president and task force member Arvind Prabhu said, “I would like to congratulate AP Hinduja, with this initiative he actually kickstarts the process of digitisation. Mr Hinduja thought about the last mile operators and came up with NXT Digital, which will help LCOs getting their due. The other HITS platform is providing the COPE at a cheaper price and that will be a challenge. The pricing that we got from them are really good but considering the fact that DAS III and DAS IV areas do not come under ratings I believe there can be further negotiation with the broadcaster. Overall I believe it’s a move for the LCOs.”

     

    LCO from Assam and Task Force member Md Iquebal Ahmed also welcomed the HITS venture. “Operators cannot afford headends and MSOs take total advantage of it and in that context, it’s a great initiative. But the content pricing needs to come out transparently. Affordable pricing is what we are looking forward to.”

     

  • Ortel Communications files RHP for public issue

    Ortel Communications files RHP for public issue

    MUMBAI: Odisha based last mile owner (LMO) Ortel Communications has filed the Red Herring Prospectus (RHP) for a public issue.

     

    Confirming the same to Indiantelevision.com, Ortel Communications president and CEO Bibhu Prasad Rath said, “Yes, the RHP has been filed and the issue is scheduled to open on 3 March.”

     

    The company had filed for the Draft Red Herring Prospectus (DRHP) in September 2014.

     

    The LMO is looking at a primary issue of 60 lakh shares and sale of another 60 lakh share by New Silk Route, which currently owns 35 per cent share in the company.

     

    The IPO, which is being handled by Kotak Mahindra Capital, may raise close to Rs 250 crore. Ortel Communications will be utilising the funds for expansion of its network for providing video, data and telephony services. Additionally the company is also looking at developing its digital cable and broadband services with the infusion of funds.

     

    This issue is being made through the book building process wherein at least 75 per cent of the Issue shall be allotted to qualified institutional bidders (QIBs) on a proportionate basis out of which five per cent of the QIB portion (excluding the anchor investor portion, which shall be allocated on a discretionary basis) shall be available for allocation on a proportionate basis to mutual funds only, and the remainder shall be available for allocation on a proportionate basis to all QIB bidders, including mutual funds, subject to valid bids being received at or above the issue price.

     

    Further, not more than 15 per cent of the issue will be available for allocation on a proportionate basis to non-institutional bidders and not more than 10 per cent of the Issue will be available for allocation to retail individual bidders, subject to valid bids being received at or above the issue price.

     

    Attached is the PDF

  • 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.

     

  • Kolkata LMOs to join hands with smaller MSOs

    Kolkata LMOs to join hands with smaller MSOs

    KOLKATA: Cable TV industry in Kolkata is up for some change. The last mile owners (LMOs) who have for long been complaining about losing their consumers to the multi system operators (MSOs) because of digitisation, are now looking for different ways of retaining their customers. While it had started with setting up of cooperatives, the LMOs are now joining hands with the smaller MSOs, who are also DAS licence holders.

     

    As part of this arrangement, a group of LMOs will sign a Memorandum of Understanding (MoU) with the MSO. While the group will have access to the headend, SMS and other backend services of the MSO, it will be free to create its own packages and also bill the consumers. This will also help the LMO to own its customers.

     

    “We have already prepared an agreement with a DAS licence holder who will levy a minimum price against every set top box (STB) that we take from him. Joining of other LMOs is in progress,” said an enthusiastic LMO on condition of anonymity.

     

    According to market sources, some of the MSOs that may get into such an arrangement are Sristi Cable TV Network, Kailash Cable Network, Meghbela Cable & Broadband Services and Barasat Cable TV Network. The smaller MSOs are looking at increasing their topline and bottomline and strengthening their presence in the region by partnering with the LMO group.

     

    “LMOs will partner with DAS licence holders either by forming a cooperative or working independently with him using his network,” informs a cable TV industry source.

     

    Meetings in this regard had started a year ago between the two parties operating in the KM area which currently has close to 33 lakh digitised cable TV homes. The LMOs will not be swapping the STBs in the current digitised homes, but will try and capture the new homes which have not yet been digitised.  

     

    The partnership will give the LMO the power to bill its subscribers, create packages based on consumers’ choice, and get a share of carriage fees as well as ownership of STBs.

     

    Cable Operators Sangram Committee general secretary Apurba Bhattacharya while confirming the development said, “It is good that LMOs are looking for new business models to earn their living. The operators are happy to get into this space. We will run the business ourselves.”

     

    LMOs in Kolkata are moving to this arrangement, since setting up of a headend not only takes time, but is expensive as well. “Setting up the headend requires a lot of permissions and an investment of some crores, so it is better to get into partnership with existing DAS licence holders than to set up our own headend,” says a LMO.

     

    A last mile owner who is in talks with one of the smaller MSOs concludes, “During the analogue regime, the revenue share between the MSO and LMO was 20:80 but after digitisation, this has come down to 65:35. The business model is not at all lucrative anymore.”

  • MCOF sets up CVNO SCOPE with signal from BR Cable

    MCOF sets up CVNO SCOPE with signal from BR Cable

    MUMBAI: Multisystem operators (MSOs) are in for some serious competition. This time from a MSO cooperative formed by the Maharashtra Cable Operators Federation (MCOF) along with BR Cable Network, christened SCOPE (Synergy Cable Operators Private Limited).  

     
    The first-of-its-kind cable virtual network operator (CVNO) will be formally inaugurated on 2 May, which coincides with the opening day of MCOF’s conference for LMOs called the National Conclave on Broadband and Cable (NCBC-2014).

     
    Already, SCOPE has starting seeding boxes in Mumbai. “While we have seeded boxes in Vile Parle and Thane, in the next 10 days, we will be seeding boxes in 50 other locations in Mumbai and Thane,” MCOF president Arvind Prabhoo tells indiantelevision.com.
     

    The newly-minted set-up will borrow its infrastructure from BR Cable Network while operations will be handled by MCOF. “This is a way to re-empower the last mile owners.  It is they who will manage the subscribers. They will have full ownership of the customers, unlike what is happening in the current scenario, where the MSO claims ownership of the customers.  Also, the LMOs will have limited access to the SMS, where they can feed all details about the customer and bill the subscriber,” explains Prabhoo.
     

    Unlike the rest of the cable TV industry, SCOPE will enter the market, with packages in place. “We will create packages according to the needs of subscribers. While other players have still not got packaging in place, we will give consumers the choice to watch what they want to,” informs Prabhoo. “We will not deal with broadcasters on our own. We will take the channels from BR Cable and then package them to give them to our subscribers.”

     
    SCOPE will pay BR Cable 15 paise per channel, per set top box, per month as signal processing charges. SCOPE will pay a minimum of Rs 15 per STB per month and a maximum of Rs 25 per STB per month for any number of channels it takes from BR Cable. Over and above this, SCOPE will pay the operator content cost charges as per the package. For subscribers, minimum package cost will be Rs 125 and this will include all the Marathi channels and have a top-up channel facility. The LMO will get 60 per cent of the package fee, the subscriber opts for. SCOPE has already bought 50,000 STBs and placed an order for an additional 2 lakh boxes. Currently, all members of MCOF are part of SCOPE. Ask Prabhoo how big is SCOPE and he laughs, “The number of LMOs who have come together is staggering, beyond someone’s belief.”

     
    Each LMO has made an initial investment of Rs 1 lakh in return for 100 STBs. “The best part of the cooperative is that irrespective of the number of subscribers one owns, every LMO has five shares in the company,” informs Prabhoo

     
    MCOF hopes that SCOPE will serve as a role model for DAS phase III and phase IV. MCOF also hopes that in the beginning, SCOPE customers will achieve savings of 25 per cent over the prevailing MSO packages and at least 15 per cent over comparable DTH offerings.

     
    About adding customers, Prabhoo says, “Well initially, we will convert 25 per cent of our existing customer base to SCOPE customers, replacing their existing boxes with the SCOPE box, at no additional cost. If any customer wants to upgrade, we will give them the SCOPE HD STB.” The SCOPE SD box will cost Rs 1,100 and the HD box Rs 1,500. 

     
    The new entrant will also provide high speed internet service to its customers.  “The service will be provided by Bolt. Subscribers can opt for any kind of speed they want and at 30 per cent less than what is provided by others,” says Prabhoo. Plans are afoot for bundling services like a cable and internet combo pack. The MSO will also launch an Android box. 

     
    SCOPE is eyeing not only Maharashtra, but the whole country. Even as its collaboration with BR Cable Network takes off, it has also got into an arrangement with CCN from Siliguri. “This model can be applied throughout the country.  People will realise this is the way forward,” says Prabhoo, who is hopeful that more MSOs will want to get associated with SCOPE once they understand the model.

     
    “We don’t want LMOs from phase III and IV, to suffer the way we did. And so this set up,” he signs off.

  • Skill training course for Maharashtra LMOs

    Skill training course for Maharashtra LMOs

    MUMBAI: As the digitisation process moves to a new stage kick starting of phases III and IV and the billing process beginning in phases I and II, the consumers are set to adapt to newer methods as well. Digitisation is going to change the way the industry functions and in the best interest of the last mile owners (LMO), who often lag behind because of lesser knowledge, a skill training programme is being launched for them.

     

    The Telecom Sector Skill Council of India (TSSCI) and Mumbai based Druv Tech Systems is launching a course that would equip the cable operators with latest technologies in the digitised world and bring them at par with the Multi System Operator (MSO).

     

    The two companies entered into a Memorandum of Understanding (MOU) to work together on re-skilling broadband cable TV operators and their employees on nuances of sales, marketing, deployment and customer management. The MoU was signed between TSSCI CEO Lt. Gen. S.P. Kochhar (Retd) and Druv Tech Systems managing director Ravindra Deshmukh.

     

    “In this digitised world, where technology is changing fast, cable operators need to equip themselves well. While there is an element of customer care with the coming in of channel packaging, the operator has to deal with billing also. Things are no longer what it used to be couple of years back for the LMOs. And the course readies them for this change,” informs Deshmukh.

     

    An initiative by the government of India managed by private players, the 60-hour course will commence from the first week of March in Mumbai and Pune.

     

    Deshmukh says, “The idea of the course is to inculcate amongst operators soft skills which will help them learn the art to speak to customers, register complaints, market different services like content and broadband plan etc,” he adds.

     

    Deshmukh thinks that cable operators now need to be trained in all aspects of operations: cable TV and broadband. “The idea is to ensure that both the LMO and MSO are on the same page,” he says. Also while earlier the LMOs were not accountable to anyone, now everything needs to be reported. “For the player to become a mainstream player, this course is a must,” he adds.

     

    “Also, consumers will soon move towards electronic mode of payment. The LMO needs to understand how to accept online and card payment. The aim of the course is to bring uniformity in the industry operating standard,” he informs.

     

    To ensure maximum participation, the course has been designed such that the LMO can choose from a weekend course which is a full day course on Saturday and Sunday or an alternate day course which will be held every Monday, Wednesday and Friday in the evening. “The course aims at rescaling the operator,” he says.

     

    The batch will comprise 25 operators who will be assessed independently by TSSCI appointed professionals. The study material provided will be in English. “But there is also a provision wherein, a translated version of the study material will be available. And for the start, we are giving study material translated in Marathi for Maharashtra,” informs Deshmukh.

     

    The fee that comprises sessions of one-and-a-half hour each is Rs 10,000. “But if one successfully clears the exam will get an immediate cash return from the government of India, making it free of cost for the operator,” he says.

     

    It’s a part of corporate social responsibility of the company and is a way for them to connect better with their operators. The course will cover areas like broadband services, CPE and devices management, marketing, back office and customer care, to name a few.

     

    Druv Tech has partnered with the Maharashtra Institute of Technology School of Telecom Management (MITSOT) in Pune for the course. “People from Hathway Cable & Datacom, IndusInd Media Communication Ltd, Tata Communications, UPASS and telecom will form the part of teaching faculty,” he informs.

     

    Deshmukh thinks that the MoU is the most important initiative undertaken by Druv Tech. “This will equip the ecosystem to play a significant role in the transformation of broadband and cable TV sector through unique combination of technology and skill development training,” he concludes.

     

    The first batch for the course has been fully booked by Maharashtra Cable Operators Federation (MCOF) as a part of its member empowerment initiative.

  • “IndusInd to soon start pre-paid cable TV services”: Tony D’silva

    “IndusInd to soon start pre-paid cable TV services”: Tony D’silva

    Almost a-year-and-a-half ago Hinduja Ventures Limited (HVL) brought Tony D’silva – a man with more than four decades of experience across sectors such as media, FMCG and pharma – on board as the president of the company to spearhead its Headend in the Sky (HITS) business.

     

    Now, D’Silva has been given responsibility as MD & group CEO of IndusInd Media &  Communications Ltd (IMCL)  with long time  MD &  CEO of HVL’s flagship cable company Ravi Mansukhani stepping down earlier this week. As he takes on a bigger role, he is looking at betterment of the company with introduction of newer services. He sounds quite optimistic while suggesting prepaid model for billing and doesn’t hesitate in saying that he wants to give the local cable operators (LCOs), the rightful ownership of their subscribers.

     

    In an exclusive interview with Indiantelevision.com’s Seema Singh, D’Silva talks about his plans for InCable and HITS.

     

    Excerpts:

     

    What does becoming the MD and CEO of IMCL and CEO of Hinduja Group-media mean to you? How is this development going to change Hinduja Group’s media businesses and your life professionally? What are your immediate challenges?

     

    I have mixed feelings because the challenges are very steep. The future is exciting but there are grey areas to be covered before we achieve the state of growth with digitisation and monetisation. While I am looking forward to the challenges, I am wary of the fact that many hurdles need to be crossed. Bringing along processes is difficult and ultimately to monetise this business, the only way is to go prepaid.

     

    The industry must refocus itself to become customer friendly and start customer care services. Everybody in the digitised world is looking at increased revenues. The only way to make more money is by starting packaging, bundling and including small packages with regional and sports channels. The customers need to be segmented. Those who can afford to pay more can take higher priced packages, while those who can’t can opt for the basic pack. Unfortunately, there is a mental block in the mind of the consumers towards cable TV. They are not ready to shell out much for cable TV experience, but there is no such block to pay for broadband or triple play or video on demand (VOD).

     

    That’s where the entire industry should move. They should look at offering more value added services (VAS) and TV Everywhere services. This is what needs to be monetised. My focus will be on bringing the infrastructure to meet these requirements, putting procedures and making the whole business transparent so that every stakeholder in the value chain gets a share of the revenue.

     

    As the Group CEO – media and MD & CEO of IMCL, you will be responsible for restructuring the entire media business and value creation, how are you planning to do that? 

     

    We have two-three different businesses. My role is to monetise all these businesses so that the value of the group’s media businesses can grow. While phase I and II of digitisation was all about packaging, bundling etc, phase III and IV is all about HITS. I am very clear that ultimately it is the local cable operator who should own the network. Even in the HITS business, Grant Investrade Ltd (GIL) will be the white label which will be a pure technology service provider, with VOD and VAS.

     

    My aim is also to push the broadband segment which is lagging so far. We have a vast infrastructure for broadband which hasn’t been utilised. It is one area we will start developing now. We are not using that broadband, we are renting it out and they are monetising it. Now, we will restructure that segment as well.

     

    I will look at restricting the business to area specific responsibility. Our focus will be on customer care, which involves interface with customers through call centres and backend support. We will also focus on the LCO: MSO relationship as cable operators are another crucial part of our business model. The third is the broadband and new services.

     

    I would also want to make all our centres, profit centres.

     

    As far as HITS is concerned, it is a separate business with a different team and focus.

     

    Recently, Grant Investrade Ltd announced an investment of Rs 300 crore in the cable distribution business. How do you plan to utilise that investment? Will your approach for the growth of the company be different from your predecessor? How will you ensure HITS turns out to be profitable?

     

    The previous management did a great job. There is no other way than HITS to deal with phase III and IV. With HITS, the average cost of delivering data that comes to be Rs 18 per customer through optical fibre will go down to Rs 8.

     

    The HD box is the future and we will give HD boxes in the price of SD boxes. The operator in the HITS business is competing with DTH. The LCOs have the money but they face difficulty in buying bulk boxes. Thus, we are giving them the option of cash and carry. The operator has the option of buying boxes as per his need.

     

    My profit is by profit of numbers. As my subscribers increase, my cost will come down. Initially, I may incur losses but then it’s a volume game for me. If we are serious about digitisation, the government should have first cleared our HITS project. We are saying the LCOs can own the consumers and can do the packaging. We will help them seed boxes. It is different than JAINHITS. We have three to four different boxes and they get an option to choose.

     

    How much has been invested in HITS? Is more investment needed? When do you see the licence being cleared by the Information and Broadcasting Ministry?

     

    We have been waiting since 14 months to get the licence. We have already spent close to $10 million in the technology which is handled by Castle Media and people. Another $100 million will be invested in HITS project. This investment will happen once we get the licence.

     

    We are suffering because of the wait. When we started the project, the dollar rate was close to Rs 43, now it is Rs 63. Who will take the responsibility to pay for the escalation?

     

    There is a turf war going on between the LMOs and MSOs? Are you looking at resolving these issues?

     

    We are losing the focus in this fight, which is the customer. Industry is beginning to realise that just having subscriber numbers is not enough. We may not be the largest MSO in the country, neither am I aiming for that. My mission is to make InCable the most respected MSO in India. And that’s what the business model should be.

     

    By when will the VAS and VOD services come in to effect? Will HITS benefit IMCL? Do you think the customer in phase III and phase IV will readily pay for these services?

     

    A lot of this is application and we have a full fledged plan. Hopefully, when we launch HITS we will launch it with these services. These services will also be provided on InCable. IMCL will be HITS’ customer. The values and charges will be the same for IMCL as for other LCOs.

     

    The content requirement differs in phase III and phase IV and so HITS becomes an important platform. We will provide different packages based on the requirement. In fact we are encouraging LMOs and MSOs to strike their own deal with broadcasters.

     

    The customers in phase III and IV has money as well. We are targeting 20-25 per cent of the phase III and IV market through HITS. And that market is available.

     

    Phase III and IV need 90 million STBs. How many of these will be seeded by IMCL? Is DTH a competition for phase I and phase II? Will you set up new headends for phase III and IV?

     

    We will not seed STBs if our licence is not cleared.

     

    It is true that in phase I and II cities, the MSOs have to up their antennas and come up with VAS services. 70 per cent of the boxes are SD boxes when the market world over is moving to HD. Are we expected to replace all the boxes later? That will be an expensive proposition. Most part of DTH and mobile is pre paid, so we should move towards that. This will promote transparency. We should be launching prepaid in couple of months. HITS will be a complete prepaid model.

     

    No new headends will be set up in phase III and IV.

     

    In how much time can we expect changes at IMCL?

     

    I have given myself two months to at least start changing the process, procedures and start customer friendly actions by upscaling our call centres like those of DTH players.

     

    By when will the ARPUs for MSOs go up? What would the increase be? Do you see it rising to Rs 500 in the next one year?

     

    The customer will pay if you give him the services he wants. He has no restriction on the amount of money he pays for his mobile phone services. So there is no restriction on the money he pays. But don’t expect the ARPUs to go up if you do not upscale your services.

     

    With gross billing, will there be more transparency in the system? Are you ready to share the carriage fee with LCOs?

     

    I have serious concerns with gross billing. Who is responsible for service tax and entertainment tax? I do not have a problem if it is a prepaid model. The authorities have to realise that relevant issues need to be addressed before gross billing begins.

    As of today, the carriage fee has supported the business model for the MSOs. We get the money from there. If the model changes, we will be happy to share the carriage fee.

     

    Can we expect the launch of local cable TV channels from your end? Any numbers you are looking at?

     

    We already have local cable TV channels. But now, as per regulation, these channels need to be encrypted. In InCable, we are revamping the system and encrypting the local channels. We have a separate company that deals with these channels.

    In HITS, the local cable TV channels will be handled by the LCOs.

     

    How do you plan to strengthen your broadband service? Any expansion plans in newer regions? Is there a plan to launch Docsis 3.0 broadband? What will differentiate you?

     

    Broadband is one of the key to monetising. We have broadband, but not well utilised. We will use DOCSIS 3.0 and promote it now. We need to focus on the requirements.

     

  • Now, MSOs to collect entertainment tax in Maharashtra

    Now, MSOs to collect entertainment tax in Maharashtra

    MUMBAI: Cable operators in Maharashtra have been fighting tooth and nail to reduce the Rs 45 entertainment tax (ET) levied on them by the state government but nothing seems to be working. Now, in a fresh move, the state cabinet has approved an amendment which makes the multi-system operators (MSOs) responsible for the collection of ET from the Last Mile Owners (LMOs).

     

    Earlier, the onus was on the LMOs, who were supposed to collect the ET along with the service tax and give it to the state. In December, the Maharashtra Cable Operators Federation (MCOF) moved the Court challenging the Maharashtra state government’s amended gazette resolution (GR) regarding entertainment tax. According to the amended GR, it was mandatory for the LMOs to file a joint affidavit with the MSOs while paying entertainment tax. However, last month the Bombay High Court ordered an interim stay on the amended gazette resolution (GR) of ET.

     

    MSOs and LMOs are all wondering whether this amendment will come into effect or  will it be regarded as as contempt of court, since the High Court’s stay order is in place. As of now, no notification or communication has been issued to the parties involved. “We can only comment after the notification is passed. But we wonder what will happen since the matter is sub judice and the LMOs are stating that it is their business to deposit the tax,” says Hathway president Milind Karnik.
     

    Indusind Media (InCable) managing director  Ravi Mansukhani is puzzled about  the government’s move.  “”How can they pass this?,” he asks. “The case is pending in several courts.” But he adds that he is  “absolutely fine if the LMOs want to do it. It will be difficult for us to reach out to subscribers the way they do. The reason why the government has taken this step is  because it is easier to collect it from a few MSOs rather than so many LMOs”

     

    MCOF is looking at approaching either the High Court or the Supreme Court depending on the circumstances. “We will definitely not comply and will continue giving the tax to the High Court only,” says MCOF task manager Bobby Shah.

     

    The Maharashtra government expects MSOs in the state to give their customers bills that will include an additional Rs 45 as entertainment tax besides the service tax of 12.36 per cent following the notification. “Majority of people will have to shed more money for the cable TV service while a few will have to give marginally more than what they are currently paying,” says Shah.

     

    However, the operators are still protesting against the high ET rate and want it to be reduced. “The amendment is not bothering us much, but what is important is the high rate of entertainment tax that needs to be brought down,” says Cable Operators and Distributors Association (CODA) president Anil Parab.

     

    MOS ABS Seven Star CMD Atul Saraf says that he is fine with collecting ET from the LMOs. “But the amount needs to be reduced to just Rs 10 to Rs 15 so that the customer isn’t burdened with the extra cost,” he opines.

     

    Now, it’s a wait and watch situation if the Maharashtra cabinet’s decision is regarded  as contempt of court, or if it will come into effect from the date of notification! Whatever happens, it’s surely going to bring clarity on the revenue that the government earns. 

  • National MSOs to meet in Mumbai on gross billing issue

    National MSOs to meet in Mumbai on gross billing issue

    MUMBAI: The national multi-system operators (MSOs) are meeting on 3 January in Mumbai to discuss the smooth rollout of gross billing in Maharashtra. While the deadline set by the Telecom Regulatory Authority of India (TRAI) to achieve 100 per cent customer application forms (CAFs) for phase II cities and submitting compliance report for gross billing for phase I cities came to an end on 31 December 2013, the MSOs have been unable to start gross billing in Maharashtra. The meeting has been called to discuss on the matter and come up with ways to ensure that gross billing begins in the state.

    “Since the issue of entertainment tax, which is supposed to be included in the bills generated to the consumer, is in the Bombay High Court, we cannot start gross billing in the state. We will be meeting on Friday to discuss issues at hand,” informs a MSO who will be attending the meeting.

     The MSOs are claiming to have achieved 90-95 per cent CAF and also submitted the compliance report for Delhi and Kolkata to TRAI. “But, the situation is a little different in Maharashtra,” admits the MSO.

    While no independent MSO will be a part of the meeting, the national players operating in Maharashtra: Hathway Cable & Datacom, DEN Networks, SitiCable and InCable will meet tomorrow.

    But, the last mile operators (LMOs) have decided to not allow gross billing in Maharashtra. “The case is anyways in the Bombay High Court and so the MSOs cannot start gross billing in the state. Though Hathway has verbally agreed to give partial access to its subscriber management system (SMS) to the LMOs and said that while it will bill the LMOs, the latter can bill the subscriber, thus being the owner of its subscriber, there has been no response from DEN and IMCL on the same,” informs Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

    “We will not allow gross billing to start in Maharashtra till all the issues are resolved,” adds Prabhoo.

  • 100 Kolkata LCOs group to set up a new headend

    100 Kolkata LCOs group to set up a new headend

    KOLKATA: One would imagine that cable operators would be a happy lot, considering the country is on the threshold of the last two phases of digitisation. However, the truth is LMOs (last mile operators) or LCOs are unhappy with the Telecom Regulatory Authority of India (TRAI) ruling on consumer application forms (CAF) and billing, which according to them, makes multi system operators (MSOs) the owners of consumers.

    Earlier this week, indiantelevison.com reported how a group of LCOs and independent MCOs met the Parliamentary Committee on Information and Technology in New Delhi to put forth their views on the subject.

    The latest, sources reveal, is that around 100 Kolkata-based LCOs – some affiliated with Siticable, others with Manthan – have come together and invested between Rs 2 and Rs 3 crore toward setting up a headend and accompanying infrastructure at Salt Lake College More in the city.

    This group is believed to be in the process of setting up a cooperative venture and is eager to start its own services. With the LCOs’ rising concern over MSOs becoming the owners of their hard-won subscribers, the development does not come as a surprise to the industry.

    However, “MSOs are creating hurdles for these LCOs,” sources added, without divulging any details.

    Swapan Chowdhury, convener of the Kolkata Cable Operators Digitalisation Committee of the Association of Cable Operators confirmed that this new cooperative had indeed been formed and that the LCOs might name the service Bengal Brand. “It is a difficult time for LCOs in Kolkata as the MSOs are not allowing them to go ahead with their plans,” he said.

    Rajiv Sharma, lead analyst (telecom and media), HSBC Securities, opined: “The local cable operators are also thinking of becoming MSOs by coming together… Not good news for the stock prices of existing MSOs which have raised funds from the public even if LCOs fail eventually.”

    Namit Dave, cable TV analyst, stated that bunching together was probably a good option for smaller operators. “A 200 channel headend costs nearly Rs 1 crore; a smaller operator with subscribers running into a few thousands would not find the investment profitable in a small town. However, if operators were to get together, it could end up being a profitable venture,” he pointed out.

    Kolkata-based Manthan Broadband Services director Sudip Ghosh sees more cable ops coming together in east India. Says he: “Players with a subscriber base of more than 500,000 may not consolidate headends. But Kolkata can see the consolidation of players with others having a subscriber base of around 300,000-400,000.