Tag: MIB

MIB amends DTH guidelines, directs players to clear dues for fresh licenses

NEW DELHI: The ministry of information and broadcasting (MIB) has made amendments to the existing DTH guidelines that will have a wide-ranging impact on the industry. The circular issued by the ministry mentioned that the existing licensees are required to apply afresh to get a license for providing DTH services. Further, the issue of fresh license to the existing licensees will be subject to their clearing all dues and fulfilling all obligations under the terms and conditions of existing license as well as those arising out of legal cases pending before various courts of law.

The license will be valid for a period of 20 years from the date of issue of wireless operational license by wireless planning and coordination wing of the ministry of communications. License may be renewed by 10 years at a time. However, the license can be cancelled/suspended by the licensor at any time in the interest of the Union of India.

A vertically integrated entity will not reserve more than 15 per cent of the operational channel capacity for its vertically integrated operator. The rest of the capacity is to be offered to the other broadcasters on a non-discriminatory basis.

No entry fee will be charged from the DTH operators holding license on the date of notification of these guidelines.

The licensee will have to submit a bank guarantee from any scheduled bank to the MIB for an amount of five crore rupees for the first two quarters, and, thereafter for an amount equivalent to the estimated sum payable, equivalent to the license fee for two quarters and other dues not otherwise securitised. For existing DTH operators, bank guarantee from any scheduled bank for an amount equivalent to the estimated sum payable, equivalent to the license fee for two quarters and other dues not otherwise securitised. Further, the bank guarantee shall be valid for a year which should be renewed on year-on-year basis in such a manner that the bank guarantee remains valid during the entire license period.

The amended guidelines will come into effect immediately, following the Union cabinet's approval of these amendments last week after a long period of uncertainty over DTH license fee.

Now, the licensee shall pay an annual fee equivalent to eight per cent of its adjusted gross revenue, calculated by excluding GST from gross revenue (GR) as reflected in the audited accounts of the company for that particular financial year. The minimum annual license fee shall be subject to 10 per cent of the entry fee. The license fee is to be paid on a quarterly basis, the quantum thereof to be equal to the actual license fee payable for the preceding quarter. The annual settlement of the license fee shall be done at the end of the financial year. The licensor will have the right to modify the license fee as a fixed percentage of AGR during the validity of license period.

The DTH operator would be permitted to operate platform services (PS) channels i.e. DTH operators' own channels exclusively available to its subscribers, to a maximum of five per cent of its total channel carrying capacity. A one-time non-refundable registration fee of Rs 10,000 per PS channel shall be charged from the DTH operator.

DTH operators willing to share DTH platforms and transport stream of TV channels, on a voluntary basis, would be allowed to do so, wherever technically feasible. The common hardware for their subscriber management system (SMS) and conditional access system (CAS) applications can also be voluntarily shared.

Set-top boxes offered by a DTH Service Provider shall have such specifications as laid down by the bureau of lndian standards (BlS) from time to time.

December 31, 2020
Dish TV receives MIB notice for payment of Rs 4,164.05 crore

KOLKATA:The Indian ministry of information & broadcasting (MIB) and direct to home television provider Dish TV have been at loggerheads over this matter for sometime now. And the latter has informed the Bombay stock exchange (BSE) that the former has brought up its demand to pay up long disputed licence fees totalling Rs 4,164.5 crore once again. The amount includes interest and the demand from the MIB is that Dish TV pay it up within 15 days.

The Jawahar Goel headed firm says that the MIB has clarified that the amount is further subject to verification and audit and the outcome of various court cases pending before the TDSAT, the high court of Jammu and Kashmir and the supreme court.

“In this regard, we would like to inform that the ministry of information and broadcasting had issued a demand notice in the year 2014 for the licence fee pertaining from the date of issuance of DTH License till financial year 12 – 13. The said demand notice was challenged by the company before the TDSAT and the said demand has been stayed by the TDSAT, which stay continues to be in force,” Dish TV said in the regulatory filing with the BSE. .

Further, the company's petition is also pending before the Jammu and Kashmir high court where it has challenged inter alia the quantum / applicability of licence fee and imposition of interest. Similar writs are also pending before the apex court.

Dish TV informed that it is studying the communication to determine its next steps. The DTH licence fee matter has already been through several rounds of litigation, the final outcomes of which are yet to be argued and concluded, it added. It would update the stock exchanges on any material developments.

The notice has come at a time when the government has opened up 100 per cent foreign direct investment in DTH, extended the duration of licences given to operators.

December 26, 2020
Revised guidelines bring a note of positivity for DTH sector

KOLKATA: The government has finally clarified the uncertainties in DTH licensing norms. According to new guidelines, DTH licenses will now be issued for a period of 20 years. Although the latest move may not be game changing for the operators, it has definitely brought a sense of positivity to the sector.

“We are grateful to Shri Javadekar for resolving the long standing impasse on the DTH License policy which will provide certainty to the sector. We look forward to a level playing field via parity of Licence Fee with Cable TV which too is Licensed by MIB and follows the same prices and margins as regulated by TRAI’s NTO,” Tata Sky MD& CEO Harit Nagpal said.

I&B minister Prakash Javadekar stated on Wednesday that changes have been approved for 100 per cent foreign direct investment (FDI) in the DTH sector which was limited to 49 per cent. He also added that the decision was taken earlier by the ministry of commerce and industry but the sector could not avail the benefits due to existing MIB guidelines.

Moreover, DTH license will be issued for 20 years and license fee will be collected quarterly. Further, the period of license may be renewed by 10 years at a time. The cabinet has also approved the sharing of infrastructure between DTH operators. Distributors of TV channels will be permitted to share the common hardware for their subscriber management system (SMS) and conditional access system (CAS) applications. Javadekar said that the decision has been taken to create level playing field.

Another expert from a DTH company who preferred to be anonymous added that the latest decision would streamline license agreements. He added that anybody who would like to invest in the DTH companies would get a sense of certainty with the longer license period which was getting affected with the 10-year license term. A senior industry expert added that the FDI has been allowed because the sector is dying as the companies are turning into loss-making entities, with streaming of video taking off exponentially in India. Says he: "Internationally companies which invested in DTH platforms are today saddled with diminishing returns on their investments. They are looking at buyers – whether Sky in the UK or Direct TV in the US. Here, theIndian government hopes to eject some equity in the DTH sector so as to stimulate investment and hence growth, in the sector "

“Overall it's better for the DTH sector, which plays a big role in digitising India. Giving them a certainty for licensc that it would be there for 20 years, will help them to invest more and grow the market. Also, the saving of two per cent AGR, will help them to improve their profitability,” EY India partner and media & entertainment leader Ashish Pherwani said.

Moreover, license fee has been revised from 10 per cent of GR to 8 per cent of AGR. Elara Capital VP research analyst (media) Karan Taurani added that it is mild positive due to reduction in license revenue. He also added that Dish TV may find its potential buyer post-announcement.

India’s DTH subscriber base grew by 3.2 lakh during the April-June quarter, as per the Indian Telecom Services Performance Indicators April-June 2020 by the Telecom Regulatory Authority of India (TRAI). The sector saw better, albeit marginal growth compared to the January-March quarter. Currently, pay DTH subscriber stands at 70.58 million, compared to 70.26 million in the previous quarter. At the end of 2019, pay DTH subscriber base was 69.98 million.

December 24, 2020
DTH license to be issued for 20 years, 100% FDI allowed in the sector

KOLKATA: The ministry of information and broadcasting (MIB) announced major key decisions for the direct-to-home (DTH) segment on Wednesday. The cabinet has revised guidelines for providing DTH service in India as well as licensing norms.

I&B minister Prakash Javadekar stated in a briefing that 100 per cent foreign direct investment (FDI) will be allowed for the DTH sector. He also added that the decision was taken earlier by the ministry of commerce and industry but the sector could not avail the benefits due to existing MIB guidelines.

Moreover, DTH licenses will be issued for 20 years and license fee will be collected quarterly. Further, the period of license may be renewed by 10 years at a time. The cabinet has also approved the sharing of infrastructure between DTH operators. Distributors of TV channels will be permitted to share the common hardware for their subscriber management system (SMS) and conditional access system (CAS) applications. Javadekar said that the decision has been taken to create a level playing field.

The other salient features of the decision are:

DTH operators shall be permitted to operate to a maximum of five per cent of their total channel carrying capacity as permitted platform channels. A one-time non-refundable registration fee of Rs 10,000 per platform service channel shall be charged from a DTH operator.

The cap of 49 per cent FDl in the existing DTH guidelines will be aligned with the extant government (DPIIT's) policy on FDl as amended from time to time. The decision will come into effect as per revised DTH guidelines issued by the ministry of information and broadcasting.

"The proposed reduction is intended to align the license fee regime applicable to telecom sector and will be prospectively applied. The difference may also enable DTH service providers to invest for more coverage leading to increased operations and higher growth and thereby enhanced and regular payment of license fee by them. Registration fee for platform services is likely to bring a revenue of approximately Rs 12 lakh. Sharing of infrastructure by the DTH operators may bring in more efficient use of scarce satellite resources and reduce the costs borne by the consumers. Adoption of the extant FDI policy will bring in more foreign investment into the country," the government said in a press statement.

The authority also added that the DTH sector is a highly employment intensive sector that operates pan-India. It directly employs DTH operators as well as those in the call centres, besides indirectly employing a sizeable number of installers at the grass-root level. The amended guidelines, with longer license period and clarity on renewals, relaxed FDI limits, etc will ensure a fair degree of stability and new investments in the DTH sector along with employment opportunities.

December 23, 2020
MIB cautions TV channels on ‘misleading’ online gaming ads

KOLKATA: Amid concerns over misleading advertisements on online gaming and fantasy sports, the ministry of information and broadcasting (MIB) has issued advisory to TV channels to follow guidelines issued by the Advertising Standards Council of India (ASCI) on 24 November.

“All broadcasters are advised that the guidelines issued by ASCI are complied with and advertisements broadcast on television adhere to the guidelines of the ASCI. It may also be ensured that advertisements do not promote any activity which is prohibited by statute or law,” MIB stated.

A large number of commercials on online gaming, fantasy sports etc have been appearing on television, MIB noted in the advisory. But those ads appear to be misleading, do not correctly convey to the consumers the financial and other risks associated thereof.

Hence, MIB, along with the ministry of consumer affairs and the ministry of electronics and information technology, convened a stakeholders consultative meeting on 11 November with ASCI, News Broadcasters Association, Indian Broadcasting Foundation, All India Gaming Federation, Federation of Indian Fantasy Sports and the Online Rummy Federation.

After discussions, it was agreed that ASCI would issue appropriate guidelines for the benefit of the advertisers and broadcasters to ensure that the ads are transparent and protect consumers.

According to the recent ASCI guidelines issued on the same, no gaming advertisement may depict any person under the age of 18 years engaged in playing an online game for real money winnings, or suggest that such persons can play these games.

December 5, 2020
MIB directs digital media entities with FDI to share details within one month

KOLKATA: A month ago, the department for the promotion of industry and internal trade (DPIIT) clarified certain aspects of 26 per cent foreign direct investment (FDI) in digital media. The ministry of information and broadcasting (MIB) has now directed the entities having foreign investment to share details of the company and its shareholding pattern along with the names and addresses of its directors and shareholders within one month.

They have to share other details like names and address of promoters, significant beneficial owners, a confirmation with regard to compliance with pricing, documentation and reporting requirements under the FDI Policy.

Entities which, at present, have an equity structure with FDI exceeding 26 per cent will have to inform MIB and take necessary steps for bringing down the foreign investment to 26 per cent by 15 October 2021 and seek approval of the ministry. To bring any fresh investment, the entities have to seek prior approval of the government.

“Every entity has to comply with the requirements of citizenship of board of directors and of the chief executive officers (by whatever name called). The entities are required to obtain security clearance for all foreign personnel likely to be deployed for more than 60 days in a year by way of appointment, contract or consultancy or any other capacity for the functioning of the entity, prior to their deployment. For this purpose, the entities will apply to MIB at least 60 days in advance and the proposed foreign personnel shall be deployed by the entity only after prior approval of this ministry,” the ministry added in the notification.

Earlier DPIIT clarified that the rule would apply to:-

· Entities uploading/ streaming news and current affairs on websites, apps, other platforms;

· News agencies which supply news to digital media entities and/or news aggregators;

· News aggregators which, using software / web applications, aggregate content from various sources in one location.

November 16, 2020
Will MIB crack the whip on online content: Experts debate

KOLKATA: It's been an oft debated issue over the past few years: how does one keep a tab on free as a bird, digital sector – OTT and digital news platforms? With the government bringing it under the regulatory oversight of the ministry of information and broadcasting (MIB) many a conservative who has complained about the content on streaming services may well heave a sigh of relief. But it is exactly this which is creasing the brow of many a digital executive as they wonder now if their creative freedom is about to be curtailed with the leash of a draconian censorship law. But experts believe there is no reason to panic at the moment.

They say that so far, the matter of digital content regulation was neither here nor there, dangling between the MIB and ministry of electronics and information technology (MEITY). The government’s move was aimed at drawing lines and clearly defining what comes under whose ambit. According to industry experts, MEITY has less knowledge about content and was also not very active in the sphere.

“There is certainly a need for some kind of regulation. If self-regulation is adopted, exercised, and disciplined, that would have been ideal. That’s what the industry had signed up for some time back. Putting everything under censorship would be one extreme step which could be very difficult for the industry to work on as the OTT segment is a very different business in terms of content, infrastructure, investment, and challenges,” said PwC India media, entertainment & sports advisory partner a& leader Raman Kalra.

He went on to add that there would be a need for the government to work in very close consultation with the various stakeholders in the industry and arrive at a middle ground. “You can’t have a completely unregulated environment. On the other hand, you can’t have a very tightly controlled censorship driven framework,” he quipped.

Elara Capital VP – research analyst (Media) Karan Taurani conjectured that the ministry may be formulating a framework for regulating the OTT space but that may not be very anti-digital in nature.

Since the industry cannot be left unregulated, the government’s gazette notification will ensure that the entire media ecosystem will be aligned in terms of processes and overview under MIB, commented former SonyLiv head and Kurate Digital Consulting’s Uday Sodhi.

“It is still early days to predict the impact. I think it has done the re-categorisation and recognised OTT as a proper medium and therefore put it under MIB. This is the right way to go about. It basically integrates the entire content ecosystem whether it is entertainment content or news, whether it is digital or TV,” he added.

In terms of censorship, Sodhi was of the view that change in ministry will not change the Centre’s take on the matter, which has been a hot button issue for a while now. But he believes that MIB will not impose any censorship, rather it will follow the self regulation model in traditional media.

On the subject of investment in the OTT sector, Kalra stated that it will be affected if – and only if – there is a heavy regulatory environment. The harder it becomes to create a good content funnel, the slower will be the growth of the sector. However, he qualified his statement by saying that it’s still early days. On the other hand, Taurani claimed this will not discourage global OTT giants from investing, or impact the streaming sector negatively in a big way.

“We look forward to working with the ministry to implement our industry's self-regulation efforts. As responsible content creators, we want to ensure this act not only takes cognisance of the nature of content being released, but also ensures that we safeguard creativity in this rapidly growing sector,” MX Player CEO Karan Bedi clarified.

On a slightly different note, another senior media professional added that the move is aimed more at the news segment. The good part, he said, is that MIB will now be able to keep a check on fake news and foreign companies’ control over news determination. But he cautioned against the misuse of power as well. Things will get sticky from a political point of view if the action turns out to be ‘A vs B.' However, the ministry will need a piece of huge machinery if it really tries to monitor every piece of news content.

With an increasing number of services getting into streaming – and some have content which can be construed as crossing the line of decency by a sensitive India today – it behooves the mainline streaming players to quickly come up with a self regulatory mechanism which is acceptable to the MIB. Also, those streamers who have not signed on the dotted line, need to arrive at an agreement with those who have. So far the fledgling sector's efforts to come up with self-regulation under the IAMAI have not really excited the regulator.

Advertisers, agencies, and entertainment and news broadcasters have – in their time – got together, buried their differences and drawn up mechanisms which have kept audiences, and the government satisfied. OTT and digital outlets need to keep a picture in their minds: being forced to run to the censor board for every piece of content that they produce, should they fail to get a self regulatory code in place. That's a nightmare no OTT executive would like to go through.

November 12, 2020
Online content and news finally comes under MIB’s jurisdiction

KOLKATA: The meteoric rise of digital media has put high focus on how online content will be regulated. Until now there were no particular guidelines to regulate the exhibition of online content, even though talks have been going on for a long time. Now, the government has brought online news platforms and content providers under the ambit of the ministry of information & broadcasting (MIB).

The latest gazette notification issued by the Prakash Javadekar-headed ministry stated that films and audio-visual programmes made available by online content providers, as well as news and current affairs content on online platforms will come under MIB’s purview.

Earlier this year, MIB secretary Amit Khare said at FICCI e-Frames that the ministry is proposing to take over jurisdiction on online content regulation from the ministry of electronics & information technology.

“OTT being a digital platform will fall under the purview of the ministry of IT. We are proposing a decision that content should fall under purview of I&B. Convergence of ministries is extremely necessary,” Khare had remarked.

Amid intense pressure from the government, Internet and Mobile Association of India( IAMAI) also tried to push a self-regulatory model for online content curators. About 15 OTT players operating in the country came together to sign a code, but this was later disapproved by MIB. The ministry asked IAMAI to look at other models.

November 11, 2020
TRAI report shows healthy growth in DTH subscriber base in Q1 FY21

KOLKATA: Witnessing two consecutive quarters of growth, India’s DTH subscriber base grew by 3.2 lakh during the April-June quarter, as per the Indian Telecom Services Performance Indicators April-June 2020 by the Telecom Regulatory Authority of India (TRAI). The sector saw better, albeit marginal growth compared to the January-March quarter.

Currently, pay DTH subscriber stands at 70.58 million, compared to 70.26 million in the previous quarter.At the end of 2019, pay DTH subscriber base was 69.98 million.

Tata Sky has retained its leadership position in the segment clocking in a market share of 32.09 per cent . During last four quarters, the DTH operator has gained 7.5 lakh subscribers in line with the growth of the DTH sector. Among other players, the leader is followed by Dish TV India (28.67 per cent), Bharti Telemedia (23.83 per cent), Sun Direct (15.41 per cent)

“We remain the No. 1 DTH and No.1 Pay TV platform having increased the lead over our nearest competitor. It is heartening to see the overall DTH sector maintain its resilience even in this quarter,” a Tata Sky spokesperson commented.

While the TRAI report indicates healthy growth of the DTH sector in FY21, a recent Crisil report also said DTH operators have added a significant number of subscribers and could register a 4-6 per cent revenue growth this fiscal. In the last financial year, DTH sector had declined by 2 million.

A total number of 909 private satellite TV channels have been permitted by the ministry of information and broadcasting (MIB) for uplinking only or downlinking only or both uplinking and downlinking, as on 30 June 2020. There are 332 pay channels, which include 235 SD (standard definition) pay TV channels and 97 HD (high definition) pay TV channels.

Currently, there are 1666 MSOs registered with MIB. Moreover, there are 12 MSOs and one HITS operator who have subscriber base greater than one million.

The latest TRAI report has also stated that the total number of internet subscribers increased from 743.19 million at the end of the last quarter of FY20 to 749.07 million at the end of the first quarter of FY21, registering a quarterly growth rate of 0.79 per cent. In addition to that, wired Internet subscribers increased from 22.42 million at the end of Mar-20 to 23.06 million at the end of Jun-20 with quarterly growth rate of 2.86 per cent.

November 10, 2020
MIB amends HITs guidelines focusing on infrastructure sharing

KOLKATA: The ministry of Information & broadcasting (MIB) has amended the policy guidelines for Headend in the Sky (HITS) operators. According to the newly added guidelines, sharing of transport stream between HITS operators and MSOs will be permitted but on certain conditions.

HITS is a digital distribution platform and provides subscribers with a cheaper alternative to digital cable TV (operational expenses of managing multiple head‐ends on the ground are very high) and DTH.

As per the new guidelines, a HITS operator willing to share its transport stream with an MSO, should ensure that MSO has a valid written interconnection agreement with the concerned broadcasters for distribution of pay TV channels.

The ministry has added two new paragraphs to the existing guidelines. As per the MIB the directive, wherever technically feasible, the HITS operator should share the platform infrastructure on a voluntary basis for distribution of TV channels provided that the signals of the HITS provider are distributed to subscribers through cable operator only and the encryption of signals, addressability and liabilities are not compromised.

For sharing of infrastructure by a HITS operator with an MSO, the operator will be allowed sharing only on Indian controlled satellites. In addition to that, written permission from the department of space (DOS) would be required in this regard. Sharing of satellite resources and uplinking infrastructure will be allowed with the written permission of MIB and WPC and NOCC, DoT.

The adherence and compliance with all the provisions of the rules and guidelines issued by MIB and NOCC and WPC, DoT for grant of licence to the HITS operator will be the responsibility of both, the existing operator and the new applicant proposing to share the infrastructure.

The regulator further added that sharing parties may use common hardware for CAS and SMS. But details of such an arrangement should be intimated to MIB and broadcasters 30 days in advance. However, the respective HITS operator, MSO or cable operator will be accountable for the integrity and security of CAS and SMS data pertaining to the respective operator.

To avoid any conflict in payment, each operator sharing the stream should be individually responsible for setting up the system and processes. This move will ensure that the broadcasters can exercise right for disconnection in case of default of payment or due to any other reason in terms of interconnection agreements between the broadcaster and the operator as well as the relevant regulations in place.

“Each operator in the sharing environment should undertake to ensure the encryption of signals and addressability to all the subscribers in all circumstances and provide requisite access for audit or for authorized officers of government wherever demanded,” MIB stated.

November 10, 2020