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Tag: MCOF

  • LMOs unite to form pan-India platform

    LMOs unite to form pan-India platform

    MUMBAI: The last mile owners (LMOs) will no longer be a fragmented body. This arm of the cable TV chain has decided to finally form a pan-India platform. The move comes after the national multi-system operators (MSO) formed the MSO Alliance, the direct to home (DTH) players got together to form DTH Operators Association of India and the broadcasters formed the Indian Broadcasting Foundation (IBF).

     

    No formal name has still been shortlisted; however, it will be during the upcoming cable TV exhibition in Hyderabad that the LMO association from across the country will meet to decide the name and the board members of the pan-India platform.

     

    The name would be kept under wraps until the body gets a confirmation from society registrar.

     

    Currently, six state cable TV associations from West Bengal, Maharashtra, Andhra Pradesh, Karnataka, Gujarat and Madhya Pradesh have come together to be a part of this pan-India platform. More state associations are expected to join the platform in the upcoming exhibition, which will be attended by LMO associations from Kerala, Tamil Nadu, Karnataka and Maharashtra amongst others.

     

    “LMOs at the grass root level have never been taken into consideration. A pan-India platform will give us proper representation and power. It will also help us take our views to the government,” says Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

     

    “It is in Hyderabad that we will decide on the functional constitution body of this platform,” he adds.

     

    So why come up with this association now? Answers Prabhoo, “We learn from our mistakes. In the past 20 years we have never had one voice. While even the domestic servants have an association, LMOs have never had a strong pan-India association, but individual voices. With digitisation, operators have understood what is in store for them, and so also understood that an united voice was much needed.”

  • 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.

  • MCOF conclave stresses on importance of broadband for LMOs

    MCOF conclave stresses on importance of broadband for LMOs

    MUMBAI:  It has been touted as one of the leading get together of the last mile owners (LMOs) in Maharashtra. The Maharashtra Cable Operators Federation (MCOF) National Conclave on Broadband and Cable (NCBC) 2014 saw its president Arvind Prabhoo put his best foot forward in trying to get the LMOs to buy into his vision of a digitised cable TV India where they are also prospering. Apart from formally launching Synergy Cable Operators Private Limited (SCOPE), the first Cable Virtual Networks Operator (CVNO), Prabhoo and a handful of industry vets and consultants, stressed on the importance of broadband and how LMOs could increase their business five-fold, using this tool.

     

    Prabhoo pointed out that number of active broadband subscribers in India is expected double in the next two to three years according to a Telecom Regulatory Authority of India report.  In Mumbai alone, the figure is expected to go up from the current 1.2 million to 4.5 million in the next couple of years. “Broadband will grow, and we need to utilize this opportunity,” Prabhoo said.

     

    Drawing comparisons with the US where 50 per cent of broadband services are provided by cable operators, he said, “We need to implement the same in India. As things stand, only a fraction of the broadband subscriber base is delivered by cable operators.”

     

    Apart from the emphasis on broadband, day one of NCBC 2014 saw heated debate over the existing three models i.e. MSO:LMO, HITS and the newly-minted CVNO, which seeks to provide white label cable TV services to smaller operators in phase III and phase IV.

     

    Presided over by indiantelevision.com founder, CEO and editor-in-chief Anil Wanvari, the session had all parties putting forth their points of view. The panel comprised Kulbhushan Puri of BR Cable Network, Atul Saraf of ABS Seven Star, Vynsley Fernandes of Castle Media, and Prabhoo.

     

    During the discussion, Wanvari expressed the view that the full rewards of digitisation have yet to trickle down to the broadcaster, MSO or LMO – as they viewed each other with suspicion, though things have improved in recent times. “There is a need for greater communication and understanding among the stakeholders,” said Wanvari. “The LMOs and MSOs need to understand that broadcasters are investing in content and they need to recoup that investment.  Broadcasters need to understand MSOs are investing in setting up infrastructure and that LMOs want a sustainable future. The cable ecosystem also needs to understand that broadband can be extremely rewarding as compared to simple video signals where subscribers tend to be wary of price increases.”

     

    To this, Prabhoo invited all stakeholders to come together to discuss issues and take the industry forward while benefitting everyone. “Proper constructive pricing model can be worked out if broadcasters, MSOs and LMOs discuss issues on the same platform,” he said.

     

    Fernandes, who is involved in the upcoming HITS project of the Hinduja Group, said, “Packaging of content should be in the hands of the LMOs. Additionally, the LMOs need to invest in set top boxes which they will deliver to their subscribers so that ownership stays with them. And this is what the HITS project is set to do.”

     

    Prabhoo said that while there will be areas covered by the CVNO in phase III and IV of DAS called Headend on the Ground (HOGS), there would be some covered by HITS (Headend In The Sky). “There could also be areas where HITS and HOGS can work together to take digitisation forward,” proposed Prabhoo.

     

     Saraf said the future of DAS phase III and IV lay in MPEG4 and not MPEG2 STBs that were currently being seeded by operators. On the issue of low ARPUs in phase I and II, he said, “ARPUs can go up only by introducing value added services like Video on Demand (VOD), Movie on Demand and YouTube. We need hybrid STBs, which can provide both cable and internet services.”

  • First Indian Digital TV Honours celebrates digitisation’s leading practices

    First Indian Digital TV Honours celebrates digitisation’s leading practices

    NEW DELHI: It was a day when the stalwarts of the Indian cable, broadcast and direct to home television industry converged to witness the best or leading practices of the industry being recognised at indiantelevision.com’s first ever Indian Digital TV Honors (IDTH).  The event, held at the Lalit  Hotel in Delhi late last eveing saw 15 professional/initiatives/organisations getting a citation for evolving best practices during phase I and phase II of digitisation over the past 18-24 months, ever since digital addressable system (DAS) was mandated by the government.

     

    An advisory panel comprising 13 professionals from broadcast, cable TV, consulting and technology , along with the editorial team of indiantelevision.com, helped finalise the honoraries after a tough round of discussion for over a month on the merits and demerits of those being sought to be honoured for their great work and innovations.

     

    The  event was attended by close to 200 professionals from the cable, DTH and broadcast industry and the regulatory body.

     

    The evening was anchored by Indian Television Dot Com Founder, CEO and editor-in-chief Anil Wanvari along with TV actor Prerna Wanvari  who hosted the two hour long proceedings.

     

    The First Indian Digital TV Honours, which were powered by leading Indian MSO DEN Networks began with Tata Sky being honoured for its obsessive focus on consumer service and product quality. The direct to home operator (DTH) has for long being spoken of excelling in the area of customer services, and this honour  only further supported that perception.

     

    India’s oldest DTH operator Dish TV  was honoured for its dervish like focus on its financial health and for protecting and creating shareholder value. The citation was received by CEO RC Venkateish, who shared the fact that he has to answer to public and other shareholders regularly, making  it imperative for the company to be bottom line focused. 

     

    “We have been generating free cash flow for quite sometime, and probably are the only Indian DTH company to do so,” said  Venkateish. “Things could be better if we could rationalise content costs which are still way too high.”

     

    Videocon d2h was recognised for its technological innovations and for the use of indigenous set top boxes which the group’s sister organisation manufactures indiegenously

     

    Additionally MSO Hathway Cable & Datacom was honoured for its pioneering push into broadband internet services, way before anyone else in the business. “With over 400,000 users we have gained a lot of experience which will only further help us as we move forward. Consumers are demanding a lot more bandwidth as they are guzzling a lot more online content,”  said  Hathway CFO G. Subramaniam. “We will be the best company providing  the broadband internet service in the future.”

     

    Tata Sky was also recognised for its its Value Added Services (VAS)  which it says is helping lure subscribers to them.

     

    DEN Networks, which had in 2013 attracted an investment of $160 million from Goldman Sachs at a time when every other MSO was being turned away, was honoured for becoming a beacon for the cable TV sector in the area of raising capital. Elated with the honour, DEN Network CFO Rajesh Kaushal said, “This is a very cash guzzling business and so there is a lot of investment and infrastructure that is needed. We have enough capital with us to see us through Phase I, II  and III  of DAS.”

     

    The Indian Broadcasting Foundation (IBF) was recognised for its marketing and promotional campaign to encourage the smooth spread of digitisation.  Almost every channel aired the commercial several times a day to push the message and educate consumers about digitisation and set top boxes. The same was recognised by the Indian Digital TV Honours advisory committee.

     

    “We wanted to incite consumers through the ad campaign. We had aired the promos for at least eight times a day on 150 channels,” said IBF secretary Shailesh Shah while receiving the honour.  Leading broadcaster Star India was also recognised  for its strategy to invest big money in sports. Sports TV worldwide is a big driver of pay TV and Star India’s early initiative to invest big money is only going to see a similar play being played out here.  And this in turn will likely encourage the process of digitsation.

     

    SitiCable Network was honoured for fostering Local Cable Operator (LCO) partnerships and being the first ones to give carriage fee revenue share to the LCOs. “We believe that LCOs are an integral part of the cable TV ecosystem and that is the reason we have given them the access to our subscriber management system and also are sharing the carriage fee revenue with them,” informed SitiCable COO Anil Malhotra.

     

    It was in 2013 that Doordarshan owned DTH service DD Direct Plus was rechristened as Freedish. The DTH player which introduced several innovations for its consumers in the year was recognised for catering to the needs of Indian consumers through Freedish. “Freedish is the most profitable venture of Prasar Bharti. Broadcasters are changing their business model for us, which is welcome change,” said Doordarshan additional director general Ranjan Thakur while receiving the honour.

     

    Two industry leaders have put their shoulder to the wheel and have played a major role in promoting digitsation over the past 18-24 months and have themselves invested heavily in it: Hathway Cable’s Raheja family led by Viren Raheja and DEN Networks’ founder Sameer Manchanda. “If you have patience, scale and execution one can excel in this field which holds a lot of scope. Cable will grow exactly how mobile grew in India, but you will have to wait minimum for five years to see results,” opined Manchanda. “You have to have the passion to see your belief in cable TV come true.”

     

    The evening also saw Seven Star Digital Network being honoured for effectively managing digitisation as an independent operator. Honours were also given to Ministry of Information and Broadcasting and Telecom Regulatory Authority of India for their push in making India a digitised nation. Most of industry has begun hearing of the Maharashtra Cable Operators Federation (MCOF), which represents the interests of the last mile owner.  In time, if it does manage to facilitate a feasible formula on revenues and shares with MSOs, then it stands a strong chance to be honoured  in next year’s Indian Digital TV Honours.

     

    More power to the industry’s elbow!  

  • MCOF and its MSO-LMO revenue sharing proposal

    MCOF and its MSO-LMO revenue sharing proposal

    MUMBAI: The struggle to find a solution on how multisystem operators (MSOs) and cable operators (LMOs – last mile owners) will work together in a digitised India continues.  The discussions between Maharashtra Cable Operators Federation (MCOF) and Hathway Cable & Datacom to come up with a workable arrangement had given some hope for a smooth rollout of MOS-LMO revenue shares, and consumer billing in Mumbai. But talks between the two seem to have come to a standstill for some time now. 

     

    Indiantelevision.com has got a hold of the proposed revenue share model which has been hammered out after a lot of thought and conversation: it takes into consideration operational expenses (OPEX) and the capital expenditure (CAPEX) of both the LMOs and MSOs.

     

    “It is as much in our interest as it is in the MSO’s to resolve the bottleneck, differentiate amongst subscribers and cater to their needs to optimise the network resources and push ARPUs up in the shortest time,” says MCOF president Arvind Prabhoo.  

     

    According to the proposed revenue sharing structure, the MSO: LMO share for free to air (FTA) channels should be 37 per cent : 63 per cent. For basic pay packages, the price range of which is Rs 150-Rs 250 (excluding taxes), the proposed revenue share is 45 per cent : 55 per cent; for advanced pay channels, which are in the price range of more than Rs 250, the revenue share proposed is 50 per cent : 50 per cent. For special/VOD packages, it is 75 per cent : 25 per cent and for HD channel packages it is 60 per cent: 40 per cent.

     

    “The best way for the industry to not only survive but prosper to its true potential is to work as a pure and true partnership business. MCOF will act as the collection management and settlement entity,” adds Prabhoo.  

     

    The MCOF model assumes that every MSO has two systems in place: the subscriber management system (SMS) and Financial Accounting System (FAS). The SMS hosts the entire subscriber details and is the basis of value chain reconciliation and audit.  

     

    “We have proposed that the MSO use this to generate end-customer bills with full details, factoring the LMO income share and taxes at various levels. These bills would be raised in the name of the LMO network and carry the tagline powered by the MSO,” says Prabhoo.

     

    The billing details, as per the proposal, will be pulled by MCOF and placed on the cloud and each LMO would gain access via the worldwide web using a mobile device or through a desktop.  The collection data is planned to  be captured in real time using MCOF approved technology, which is currently UPASS and updated on the MCOF cloud in real time and at the MSO-end either in real time or on an end of day basis.

     

    “We will work out the tax liability at LMO levels and guide them to use the technology to compile tax returns/challans. We will also reconcile the MSO-LMO accounts taking into account prepaid/post paid, online payments made to the MSO and unpaid customers,” informs Prabhoo.  

     

    Explaining the reason for the proposed revenue share, Prabhoo says, “The LMO has certain base expenses to cover, such as employees, office rent, repairs and replacements of shared infrastructure, audit and tax returns.”

     

    The effective OPEX for an LMO, according to MCOF for 1000 subscribers is Rs 109,500 a month. “The LMO’s per subscriber cost comes to Rs 109.5. We need at least Rs 109- Rs 110 to pay the employees and other costs. So this is the minimum and then comes profitability,” he highlights.

     

    The average CAPEX per subscriber is close to Rs 4000. Also, MCOF points that while the subscribers/employee ratio for an LMO is around 400, it is expected to be more than 5000 for a MSO. Thus making the OPEX element much higher for an LMO than an MSO.  

     

    Prabhoo feels that while the MSO is a wholesaler and LMO the retailer, the assumption of equal sharing as envisioned by the Telecom Regulatory Authority of India (TRAI) needs to be rectified and replaced by equitable sharing.

     

    “We have had detailed discussions with the TRAI on this and the matter will be reviewed sooner or later, but for sure it is not correct on TRAI to assume equal sharing by all three stakeholders,” he says.   

     

    The collection cost currently is entirely on the LMO while a good part of the monies flows to MSOs. This, according to MCOF needs to be allocated in the revenue share formula, if not actually computed and reimbursed. “For all practical purposes the LMO’s work load will increase as he acts as the marketing arm and administrative support system for the MSOs. Also, another round of set top box (STB) deployment/retrieval/repairs/replacement by HD boxes will entail quite a lot expense.”

     

    MCOF, in the email to MSOs, has also suggested that carriage fees should be clubbed with customer revenues, being a mathematical product of STBs in place and carriage fee per STB.

     

    MCOF has agreed that the UPASS technology, devices and connectivity costs will be borne by the LMOs. Also while integration, payment gateway, electronic processing and settlement system costs are incurred by the MSOs for direct connections or internet services, for any additional integration, the cost can be shared with the LMOs on a pro-rata basis.

     

    The LMOs are also suggesting carriage fee sharing as a loyalty bonus. “This can be mutually worked out,” says Prabhoo.  

     

    The new system will enable the MSO to see and monitor the exact collections made each month by the LMO and also the revenue due to the MSO, excluding taxes. While revenue will be booked in both books as per packages, the LMO will pay the MSO per month for all the collections made during the previous month after deducting taxes and the LMO share within seven days of the invoice being generated by the MSO.

     

    While MCOF is trying to move things forward, what’s stopping the MSOs? “Well! There are talks going on between the promoters of the MSOs. There is no consensus amongst the MSOs and that is what is taking time,” says a Hathway official on condition of anonymity.

     

    According to the official, the proposed revenue share by MCOF is acceptable, with minor changes. “But, all the MSOs operating in the state, have to come to a consensus, which I don’t see happening soon,” he says. The official feels that billing in Mumbai is most likely going to  be delayed further.

     

    SitiCable Network, which also has a presence in the country’s financial capital says it may soon conclude on how it will share revenues. “We are negotiating. We may announce our revenue share in a couple of days. Since, we have a small presence in the state, we are seeing what other MSOs are doing there,” explains  SitiCable Network chief operating officer Anil Malhotra.

  • 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. 

  • MCOF gets entertainment tax extension in Maharashtra

    MCOF gets entertainment tax extension in Maharashtra

    MUMBAI: The last mile operators (LMOs) in Maharashtra have got a further extension until 21 January from filing joint affidavits along with the multi-system operators (MSOs). The cable operators can also in the interim continue paying entertainment tax to the Bombay High Court, following an extension given by it today. The next hearing of the case is on 21 January.

    The Maharashtra Cable Operators Federation (MCOF) had on 13 December 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.

    The Court during the 17 December hearing gave interim relief to the LMOs from filing joint affidavits along with the MSOs. The case was up for hearing today. “The state government advocate wasn’t ready with its response and hence the case was adjourned to another date,” says advocate Sudeep Nargolkar.

    While the case is still on in the Court, the public accounts committee (PAC) of the Maharashtra state legislature has come up with the recommendation of bringing in a few amendments in the Entertainment Duty Act, 1923. The amendments have been recommended based on: one, the numerous advertisements running on cable TV networks, which according to a Times of India report runs into crores; and two, while private TV channels need to follow procedures and seek permission from the Telecom Regulatory Authority of India (TRAI) before launching a new channel, there is no body governing the channels that the cable TV operators run.

    The committee has also objected to the absence of tax that should be levied on cable TV operators for running advertisements on their network.

    The PAC has suggested measures to increase the revenue from entertainment tax. This includes: creating a database of cable and DTH viewers; decentralising entertainment tax collection at district and taluka levels; and regular inspection by both the IT department and revenue officials to find out the number of cable TV subscribers under each operator.

    The changes are being thought of at a time when the LMOs are fighting against the high entertainment tax fees.Are we in for another round of litigation? 

  • MCOF-MicroScan broadband package for Maharashtra LMOs

    MCOF-MicroScan broadband package for Maharashtra LMOs

    MUMBAI: We have often heard broadband delivered over cable TV is pure moolah. Now, last mile operators (LMOs) in the western state will also be able to pocket some of that courtesy the Maharashtra Cable Operator Federation (MCOF) and Mumbai-based MircoScan Computers which signed a proposal on 17 December to promote a special purpose vehicle (SPV) under the name SCOPE.

    “This is a joint venture with Microscan which will help provide high speed broadband service to all LMOs,” says MCOF president Arvind Prabhoo. Microscan is an ISP and fibre infrastructure provider to telcos in Mumbai and Pune.

    “Broadband until now wasn’t well structured in the LMO universe,” points out Prabhoo, who had earlier, in September during the India Digital Operators Summit 2013 (IDOS) organised by Indiantelevision.com in Goa mentioned about the huge pipeline lying with the LMOs which was being unutilised. “We needed an internet service provider to partner with us to provide high speed internet to serve consumers in a better way,” he reveals.

      
    Microscan provides fiber to the homes under an arrangement with Sterlite Technologies and MCOF has pooled in LMO fibre rings for optimising mutual resources. “SCOPE will offer true high speed broadband services under BOLT, the trade mark announced by it a few weeks ago,” says Prabhoo. 

    The deal was signed between Prabhoo and Microscan managing director Sandeep Donde on Tuesday. “This is set to alter the broadband service space in a major way,” adds Prabhoo.

    Microscan, which was established in 1996, by engineer turned entrepreneur Donde has more than 450 km of underground fibre. “The partnership will help us provide standardised broadband services to the existing 1500 MCOF members and also those who join later,” he informs.

    Microscan will provide an internet speed ranging between 2 mbps-50 mbps to the end user with a compression ratio of 1:1 or 1:8 as per their choice. “We have our own infrastructure across Maharashtra. This is a strategic partnership with MCOF, through which we will provide internet connection to all its members,” says Donde.

    According to Prabhoo, it is the broadband service that will give a push to the ARPUs for cable TV operators. “Broadband will help LMOs monetise customers.”

    Donde assures that the internet speed available will be standardised and at a lower price. “The rates could vary from Rs 300 to Rs 2,000 to the end customer,” informs Donde.

    Says Prabhoo, “Though the service tariff is low in comparison to other players providing the service, the LMOs will make more money than in any other arrangement they would have entered into.” 

    Not disclosing the revenue share model, Donde says, “We are still working on it.”

    The LMOs through Microscan can enjoy services like, ‘thin client internet connections’, ‘local area cloud’ and ‘content anywhere.’ “We will also be providing value added services like video-on-demand,” informs Donde. 

    Microscan, which has MSO DigiCable as one of its clients, incidentally holds a DAS license in 38 cities and an IPTV license for Mumbai. 

    “What we are offering is certainly a treat for cable TV subscribers and which may be a threat for legacy players,” concludes Prabhoo.

  • Maharashtra’s LMOs get favorable Bombay HC interim order

    Maharashtra’s LMOs get favorable Bombay HC interim order

    MUMBAI: Maharashtra’s last mile cable TV operators  (LMOs) have got some relief. The Bombay High Court today gave them interim relief to the LMOs from filing joint affidavits along with the multi-system operators (MSOs).

    The Court has given an interim stay on the amended GR. We can continue depositing the entertainment tax to the court, says Arvind Prabhoo

    The Maharashtra Cable Operators Federation (MCOF) had on 13 December 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.

    “The case was heard today and the court has given us an interim stay on the amended GR. We can continue depositing the entertainment tax with the court,” inform MCOF president Arvind Prabhoo.

    The case comes up for further hearing next Monday, that is, 23 December.

  • MCOF takes Maharashtra govt to court on ent tax

    MCOF takes Maharashtra govt to court on ent tax

    MUMBAI: The Maharashtra Cable Operators’ Federation (MCOF) moved the Bombay High Court on 13 December challenging the Maharashtra state government’s amended gazette resolution (GR) regarding entertainment tax. The association will send a notice to the state government on 14 December.

    Both MCOF and the Nashik District Cable Operators Federation had in April challenged the first GR issued by the government on 7 March in the courts, according to which multi-system operators (MSOs) were made responsible for paying entertainment tax. Now, MCOF has challenged the second GR which the government released in November as an interim solution.

    “What we don’t understand is that how can the government come out with an amended GR when the first GR is already in court,” asks MCOF president Arvind Prabhoo.

    The association has filed the petition on two issues. “The first issue is on renewal of licence for last mile owners (LMOs) according to section 4(2)(b) of the Entertainment Duty Act, Bombay 1923. Second, is the amended GR, which makes it compulsory for the LMOs to file a joint affidavit with the MSOs to pay entertainment tax,” informs Prabhoo.

    The Maharashtra government issued the new GR, stating it was losing out on tax collections. “What is the need for a joint affidavit, when with digitisation the whole system has become transparent? Also when we are depositing the entertainment tax to the court, till no verdict is announced, why this GR?” he questions.

    MCOF has filed the petition to ensure that the government doesn’t indulge in anymore GRs till the verdict is declared. The earlier petition filed in April is up for hearing in the Bombay High Court on 10 January.

    “We hope that while the first issue is resolved in the coming hearing, our new petition comes up for hearing soon,” he adds. The case will be represented by advocate-High Court Sudeep Nargolkar.

    It should be noted, that the joint affidavit means that in case of any irregularity in paying the entertainment tax, both the MSOs and LMOs will be either jointly or separately made responsible.

    “We are ready to pay the tax directly to the government. Why should the LMOs suffer, if the MSO doesn’t deposit the entertainment tax to the government collected by the LMOs?” asks Prabhoo.