NEW DELHI: The battle between Subhash Chandra’s companies, ASC Enterprise and Siti Cable, and other broadcasters like Star India and Sony Entertainment Television (SET) hots up – even as ASC has soft-launched its direct to home (DTH) service and is preparing to implement addressability through its headend in the sky (HITS) project.
The Monopolies and Restrictive Trade Practices Commission (MRTPC) today deferred a hearing on a case filed by ASC-Siti Cable against Star, Sony and ESPN-Star Sports (ESS) for refusing to make available their signals to a Zee-promoted HITS platform.
Even as the next hearing is slated for 27 and 28 October, the parties concerned are looking at the different interpretation of clause 4a of the amended cable TV (Networks) Regulation Act. The act states that all pay channels would have to be mandatorily routed through a set-top box in an CAS (conditional access system)-enabled regime.
While Chandra’s companies have interpreted this as being a clause that gives them the right to carry Star, Sony and ESS’ signals on their digital HITS platform, the others have a different stand on the interpretation.
According to industry sources, the lawyers of Star, Sony and ESS today sought more time from the MRTPC.
Last month, a two-judge Supreme Court bench, on being petitioned by Star Sony and ESS, had vacated an earlier order by the MRTPC. The apex court had stated that Star, Sony and ESS should continue to make available their signals to Siti’s HITS platform till the Commission came to a final conclusion on the matter.
After a marathon hearing on 3 September, the bench had reserved judgment on a special leave petition (SLP) filed by Star on 30 August appealing against the MRTPC order. The SC heard initial arguments on 1 September.
Sony, which had refrained from appealing against the MRTPC order, also joined issues through an SLP on 2 September, that was clubbed with Star’s and heard alongside. The decision was taken as Sony was already a respondent in the case filed by Siti -ASC.
Star and Sony’s argument revolved around the fact that the MRTPC observation on creation of a monopoly is not valid as they don’t have any commercial agreement with Siti-ASC on HITS.
Siti-ASC had moved the MRTPC against Star India, SET Singapore, SET India, ESPN- Star Sports and the MSO Hathway Datacom (in which Star has a 26 per cent stake) seeking prevention against trade practices that could amount to being monopolistic.
Siti-ASC’s petition before the MRTPC had stated, that all other pay channels had agreed to join the HITS platform, being conscious of their obligation to achieve what the government has sought to do by the introduction of CAS in the larger public interest.
Pointing out that the respondents were attempting to stifle competition and prevent the operation of free market forces, Siti-ASC had pleaded that “appropriate orders deserved to be passed by this Hon’ble Commission”.
It may be recalled that Siti has recently also moved the Delhi High Court against the government’s decision to defer CAS in the capital. The Dehi HC, which had reserved its judgment on the issue, is yet to issue a final verdict.
Tag: MRTPC
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Siti vs Star HITS case still in limbo as MRTPC postpones hearing to 27-28 October
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MRTPC directs Star, others to file reply on Siti HITS row
MUMBAI: The Monopolies and Restrictive Trade Practices Commission (MRTPC) today instructed Star, Sony and ESPN-Star Sports to file replies in the joint case brought before it by the Zee Group’s Siti Cable-ASC Enterprises regarding the headend in the sky (HITS) platform.
The MRTPC has scheduled the next hearing of the case on 14 October.
Siti had suffered a setback yesterday after the Supreme Court vacated an order issued earlier by the MRTPC that the three pay networks should continue to make available their signals to its HITS platform till a final ruling by the commission.
The SC judgment means that Siti would technically be violating Star and Sony’s copyright if it carries the networks’ channels on its HITS platform in the absence of an agreement.
Siti Cable and another Subhash Chandra company, ASC Enterprises, had moved the MRTPC against Star India, Sony Entertainment Television Singapore Pvt Ltd, SET India, ESPN- Star Sports and the MSO Hathway Datacom (in which Star has a 26 per cent stake) seeking prevention against trade practices that could amount to being monopolistic.
“Because the various acts/omissions of the respondents in refusing to cooperate and enter into any sort of arrangement/agreement with the complainants herein for the implementation of CAS via HITS is a monopolistic, restrictive and unfair trade practice in terms of the Monopolistic, Restrictive and Unfair Trade Practices Act, 1969,” Siti cable/ASC’s petition before the MRTPC had stated.
It had further said that all other pay channels had agreed to join the HITS platform, being conscious of their obligation to achieve what the government has sought to do by the introduction of CAS in the larger public interest.
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Star-Siti HITS row case: SC vacates MRTPC stay
MUMBAI: It is advantage Star India in its battle with Zee Group cable arm Siti Cable over making available signals to the MSO’s HITS (headend in the sky) platform.
The two-judge Supreme Court bench of Santosh Hegde and BP Singh this morning vacated an order by the Monopolies and Restrictive Trade Practices Commission (MRTPC) stating that Star, Sony and ESPN-Star Sports should continue to make available their signals to Siti’s HITS platform till tomorrow’s (10 September) crucial hearing on the issue by the commission.
After a marathon hearing on 3 September, the bench had reserved judgment on a special leave petition (SLP) filed by Star on 30 August appealing against the MRTPC order. The SC heard initial arguments on 1 September.
Sony, which had refrained from appealing against the MRTPC order, also joined issues through an SLP on 2 September that was clubbed with Star’s and heard alongside. The decision was taken as Sony was already a respondent in the case filed by Siti Cable-ASC Enterprises with the MRTPC.
Star and Sony’s argument revolved around the fact that the MRTPC observation on creation of a monopoly is not valid as they don’t have any commercial agreement with Siti / ASC Enterprises on HITS.
Former finance minister and lawyer P Chidambaram represented Star, while Sony’s lawyer was Ashok Desai. Congress MP and lawyer Kapil Sibal represented Siti Cable-ASC Enterprises.
The SC judgment means that Siti would technically be violating Star and Sony’s copyright if it continues to carry the networks’ channels on its HITS platform in the absence of an agreement.
Siti Cable and another Subhash Chandra company, ASC Enterprises, had moved the MRTPC against Star India, Sony Entertainment Television Singapore Pvt Ltd, SET India, ESPN- Star Sports and the MSO Hathway Datacom (in which Star has a 26 per cent stake) seeking prevention against trade practices that could amount to being monopolistic.
“Because the various acts/omissions of the respondents in refusing to cooperate and enter into any sort of arrangement/agreement with the complainants herein for the implementation of CAS via HITS is a monopolistic, restrictive and unfair trade practice in terms of the Monopolistic, Restrictive and Unfair Trade Practices Act, 1969,” Siti cable/ASC’s petition before the MRTPC had stated.
It had further said that all other pay channels had agreed to join the HITS platform, being conscious of their obligation to achieve what the government has sought to do by the introduction of CAS in the larger public interest.
Pointing out that the respondents were attempting to stifle competition and prevent the operation of free market forces, Siti/ASC had pleaded that with the ” said acts/omissions the respondents are preventing the operation of free market forces; appropriate orders therefore deserve to be passed by this Hon’ble Commission.”
It may be recalled that Siti has recently also moved the Delhi High Court against the government’s decision to defer CAS in the capital.
In the light of today’s SC ruling, what decree that MRTPC issues in the matter of Siti vs Star/Sony will be closely watched.
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SC reserves judgment in Star-Siti HITs case
NEW DELHI: The two-judge bench of Santosh Hegde and B P Singh today reserved a judgment on a special leave petition (SLP) filed by Star last Saturday with the Supreme Court, appealing against an order given by the MRTPC last week.
The MRTPC, petitioned by Siti Cable and ASC Enterprises, had said that till the next date of hearing on 10 September, Star, Sony and ESPN-Star Sports should continue making their signals available to the HITS platform promoted by ASC, which is part of media baron Subhash Chandra’s empire.
After a marathon hearing that began before noon and lasted several hours, the judges Hegde and Singh, reserved their judgment, implying that they would write the order at a later date. Both the petitioners and the respondents expect an early direction from the apex court on the case.
However, the apex court did not give any interim relief to the petitioners, which was expected since Siti Cable-ASC Enterprise’s HITS platform has already been soft-launched and is providing signals to some subscribers of Star and Sony.
Sony, which had refrained from appealing against the MRTPC order, also joined issues through an SLP yesterday that was clubbed with Star’s and heard today. The decision was taken as Sony was already a respondent in the case filed by Siti Cable-ASC Enterprises with the MRTPC.
Former finance minister and lawyer P Chidambaram represented Star, while Sony’s lawyer was Ashok Desai. Congress MP and lawyer Kapil Sibal represented Siti Cable-ASC Enterprises.
According to information available with indiantelevision.com, Star and Sony’s argument revolved around the fact that the MRTPC observation on creation of a monopoly is not valid as they don’t have any commercial agreement with ASC Enterprises.
Since no contractual agreement exists between ASC Enterprises and the broadcasting companies, the question of providing the channels’ signals to the HITS project does not arise, the petitioners contended today at the hearing. Sibal argued that the Siti-ASC combine was executing what had been permitted by the government, and agreements existed between the channels and Siti Cable.
However, Chidambaram said, through HITS-based transmission Siti wanted to wipe out the control of the content provider over the subscriber base and was behaving as if it was the owner of the signals even when it had no agreement with Star for transmission through HITS.
Several references to CAS were also made during the hearing that lasted almost till 4 pm. It was argued that in the wake of CAS being deferred in Delhi and its future uncertain elsewhere, the HITS project has lost its relevance – a line of argument that was hotly contested by Sibal.
Sibal also contended that Star is promoting its cable company Hathaway in cable operations and therefore wanted to create a monopoly situation by denying Siti the signals of major channels. Star holds a 26 per cent stake in Hathway.
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Supreme Court adjourns Star-Siti HITS row case
NEW DELHI: The Supreme Court today adjourned the case of Star-Siti Cable for later this week after hearing the initial arguments.On Saturday (31 August), Star had moved the Supreme Court appealing against a MRTPC order last week that had stated that cs should continue to make available their signals to Zee Telefilms’ headend in the sky (HITS) platform till the next hearing date on 10 September.
According to information available with indiantelevision.com, today at the Supreme Court, Star’s lawyer contended that the basis of the MRTPC order was wrong as Star had no existing agreement with Siti Cable, Zee Telefilms’ cable arm that is the biggest multi-system operator (MSO) in the country.
Siti Cable and another Subhash Chandra company, ASC Enterprises, had moved the MRTPC against Star India Pvt. Ltd; Sony Entertainment Television; Singapore Pte Limited, SET India; ESPN- Star Sports and Hathway Datacom seeking prevention against trade practices that could amount to being monopolistic.
“Because the various acts/omissions of the respondents in refusing to cooperate and enter into any sort of arrangement/agreement with the complainants herein for the implementation of CAS via HITS is a monopolistic, restrictive and unfair trade practice in terms of the Monopolistic, Restrictive and Unfair Trade Practices Act, 1969,” Siti cable/ASC’s petition had stated at the MRTPC.
It had further said that all other pay channels had agreed to join the HITS platform, being conscious of their obligation to achieve what the government has sought to do by the introduction of CAS in the larger public interest.
It had been submitted that the complainants have been negotiating with various pay channels other than those of the respondents and those that have agreed in principle to join the HITS platform included CNBC, Cartoon Network, Nickelodeon, CNN, Raj TV, MTV, Reality TV, Ten Sports, Alpha Bangla, Alpha Gujarati, Alpha Marathi Alpha Punjabi, ETC, Zee Cinema, Zee TV, Zee English
Zee MGM, Zee News and NDTV.The petition had further stated: “It is most respectfully submitted that the above-mentioned pay channels being conscious of their social and legal obligations, have all agreed in the larger public interest to enter into agreements with the complainants herein for the distribution of their signals via HITS in the CAS regime. However, the respondents herein without any justifiable or valid reason are refusing to do so and are, therefore, guilty of commission of monopolistic, restrictive and unfair trade practices and are liable to be penalised under the MRTP Act.
“Because all others, apart from those of the respondents herein, have in fact appreciated the benefits of CAS implementation via HITS including the broadcasters, cable operators, other pay channels and the government since the said technology effectively eliminates the menace of under-declaration.”
Pointing out that the respondents were attempting to stifle competition and prevent the operation of free market forces, Siti/ASC had pleaded that with the ” said acts/omissions the respondents are preventing the operation of free market forces; appropriate orders therefore deserve to be passed by this Hon’ble Commission.”
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SET plans novel use of STBs
NEW DELHI: With the conditional access system (CAS) gone for a six at least in Delhi and Mumbai, Sony Entertainment TV (SET) India is looking at offering special packages of programmes and services to those subscribers who already have set-top boxes (STBs). This will be in association with multi-system operators (MSOs).
Pointing out that this is the best time for the industry to “move the boxes” in a market-friendly manner, SET India CEO Kunal Dasgupta today said, “We are looking at the business opportunity of supplying content on demand to subscribers through STBs, now that the uncertainty over CAS has almost been removed.” Dagupta was interacting with journalists on the sidelines of a press conference here to announce the launch of Jassi Jaissi Koi Nahin.
Dasgupta was of the opinion that the broadcasters, MSOs and other stakeholders can come together at this time to take advantage of the situation. He said some boxes have been seeded in the market, in anticipation of CAS. His plan can now be leveraged to “move the boxes in the market faster”.
Dasgupta also confirmed that Sony would be part of Zee Group Cable arm Siti Cable’s headend in the sky (HITS) plan for CAS delivery as well as Zee’s direct-to-home (DTH) programme.
His comments are pertinent in the light of the strong assertion made yesterday by Discovery-SET India president Shantanu Aditya refuting a report on indiantelevision.com that the “Monopolies and Restrictive Trade Practices Commission (MRTPC) had directed Star, Sony and ESPN Star Sports to provide signals to the Zee-promoted HITS platform till the next hearing, which is scheduled for 10 September.”
With Dasgupta’s confirmation that SET would be on the HITS platform, the question of the MRTPC issuing a directive becomes superfluous.
Coming back to the subject of supplying content to subscribers through STBs, though SET hasn’t opened up talks with other broadcasters on this, Dasgupta feels that his company would start work on this plan as soon as possible, probably “as soon as next week”.
As an illustration, Dasgupta cited Sony’s acquisition of telecast rights of the blockbuster Hindi movie Saathiya, starring Vivek Oberoi and Rani Mukherjee. “Ideally I would like to premier Saathiya as part of this special package over cable for those subscribers who would like to pay to watch this film through their STBs. Later the movie can also be shown on Max or Sony,” he explained.
The special packages of programmes and services that SET India is looking at include movie package, classic music concerts like those of Lata Mangeshkar, sports, and even gaming solutions and music for downloading from the digital cable head-end servers.
“The box, in the absence of CAS, would sit idle. So why not make use of them to provide suck packages and services. I am also looking at introducing gaming packages and this is the way to move the (boxes) market,” Dasgupta said.
He opined that the gaming packages can be sourced from SET India’s parent company Sony, which is a big player in the computer gaming sector worldwide with the likes of Playstation series.
According to Dasgupta, SET India can be ready with such special packages and services “within three months” as Sony is already in the process of digitalising its content.
Meanwhile, Dasgupta feels that with the Shiv Sena staunchly opposed to CAS in Mumbai, addressability issue now would get deferred to after the general elections late next year.Also Read:
MRTPC directs Star, Sony, ESS to join HITS? -
MRTPC directs Star, Sony, ESS to join HITS?
NEW DELHI: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has directed Star, Sony and ESPN Star Sports to provide signals to the Zee-promoted HITS platform till the next hearing, which is scheduled for 10 September.
Star and ESPN-Star Sports had earlier refused to join the Zee distribution platform while Sony too had dithered on the issue of a tie-up with Zee for the Rs 4000 million HITS platform.
Zee’s distribution subsidiary Siti Cable, which is marketing HITS under the Galaxzee brand name, had been talking to the other broadcasters on this project for some time now, but had reached a dead end. The MRTPC order provides it the interim relief it needs as HITS takes off from 1 September.
However, Discovery-SET India president Shantanu Aditya denied that this is true. He says, “We have not received any notice from the MRTPC. So where is the question of an order from the commission? The claim appears to be motivated. We are awaiting legal and technical clarifications from Siticable before we make our position known.”
The refusal of the rival broadcasters to send their signals for Zee’s HITS system had meant that houses covered by Siti Cable in the CAS-notified areas may not receive these channels from 1 September.