Tag: MSO

MSO flat fee a hurdle, says CTMA while backing TRAI & WB’s underground cable

MUMBAI: The West Bengal government is preparing to build an underground network of cable TV lines in an attempt to keep the city clean, a state minister has said. Urban development minister Firhad Hakim said, in New Town, they had done it and would start soon in Bidhannagar. In Kolkata, they would as early as possible start a pilot project for underground laying of cable TV lines.

It was part of a plan by the chief minister Mamata Banerjee who wants the city to look more beautiful without wires, Hakim said while inaugurating a three-day Cable TV Show 2017 from 4 January 4 — the 20th annual show arranged by the Kolkata-based Cable TV Equipment Traders & Manufacturers Association (CTMA).

Over 10,000 cable operators, manufacturers, traders, channel partners, broadcasters, distributors, and multi-system operators (MSOs) from India and abroad are participating in the show.

CTMA secretary K K Binani said the plan would minimise possibilities of outside disturbances in connectivity as sometimes wires get damaged during calamities. The industry body said that flat licence fees for multi-system operators had become an entry barrier for small entrepreneurs.

Cable TV Show 2017 Kolkata, one of the biggest shows on satellite and cable television & broadband in India, was flagged off at the Netaji Indoor Stadium. Hakim inaugurated the event in the presence of minister-in-charge, housing & youth affairs, West Bengal, Aroop Biswas. There are 20 pavilions and 70 stalls erected this year for showcasing a wide range of state-of-the-art products and services related to the cable industry.

CTMA treasurer & chairman -exhibition Pawan Jajodia said, with the steady digitization of cable television sector and the Digital India campaign, the scope and importance of Cable Television (CATV) had increased manifold. The CATV sector had come a long way to become an organised sector and one that was an important player in promoting digitalisation through the spread of broadband Internet services.

This event has been sponsored by Darkhorse, and Euro Digital is the co-sponsor. Aishwarya Technologies, Inno Instrument, Globetek Infoway, RailTel, Meghbala, Cloudsky Broadband are associate sponsors.

Binani said that digitisation of delivery of Cable TV service through set-top box was now in its final and crucial lap as the whole of India would be covered in Phase IV by 31 March 2017. The digital-delivery-enabled networks were now ready to be taken to the next level of delivering value-added services such as broadband internet service, movies on demand, games, pay per view channels, and education etc.

Binani added that cable TV sector was ready for some sweeping transformation under regulatory intervention. The draft tariff order under consultation by TRAI would bring the addressable services from all delivery platforms such as HITS, MSO, DTH and IPTV under common regulation. The viewer might pay for only the channels that he wished to view/subscribe. Pay channel broadcasters would have to announce a genre and MRP for each of the channels. They must provide channels on terms universal to all delivery platforms. This would make the entry of new entrants feasible. Carriage fee was also proposed to be regulated, Binani said.

CTMA president Rajesh Doshi said that digitisation has been a game-changer that has transformed the cable sector. The number of licenses issued for downlinking satellite channels into the country crossed 850 channels and the viewer was spoiled for choice with most of the MSOs providing 400 plus channels covering a wide genre and languages. The Cable TV networks in India were ready to play a significant role in helping Internet penetration across India, Doshi added.

January 5, 2017
TRAI to meet b’casters, MSOs, DTH ops, telcos on ’17 roadmap

NEW DELHI: As promised by TRAI chairman RS Sharma, the regulator is getting pro-active. It has scheduled meetings with top executives of telecom, broadcasting, DTH and MSO companies over the next one week starting 6 January, 2017 to seek their opinion on issues to be taken up during 2017.

The first of these high-level meetings would take place Friday when TRAI Chairman and other officials would interact with CEOs of all telecom companies, including Bharti, Vodafone and Reliance Jio, to discuss and identify important issues that need to be taken up during the year, PTI reported.

A similar meeting is slated with top executives of cable, broadcasting, MSO and DTH companies on January 10, 2017, PTI quoted TRAI sources as saying.

“We have invited the CEOs of all telecom companies, including Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio and others for a discussion on January 6. Similarly, we have invited top executives of broadcasting companies, MSOs, and DTH companies on January 10,” the PTI report quoted sources as saying.

TRAI’s latest initiatives are in line with what Chairman RS Sharma had told indiantelevision.com in a year-end interview middle of December 2016 on charting a roadmap for 2017.

“What we plan to do in 2017 is something interesting. While there will be always issues that will need TRAI’s urgent attention — for example, the government may ask for advice on spectrum prices — we are trying to create a calendar for the next year…. highlighting the works that need to be taken up in 2017 and which will act as a roadmap,” Sharma had told indiantelevision.com.

Asked about the issues likely to be taken up by TRAI in2017, in consultation with the industry, Sharma had indicated it could involve data and consumer protection, Internet of Things (IoT), digital terrestrial broadcasting and other issues related to emerging technologies.

ALSO READ

“There would be a lot on TRAI’s plate in 2017” – RS Sharma

January 5, 2017
TRAI to meet b’casters, MSOs, DTH ops, telcos on ’17 roadmap

NEW DELHI: As promised by TRAI chairman RS Sharma, the regulator is getting pro-active. It has scheduled meetings with top executives of telecom, broadcasting, DTH and MSO companies over the next one week starting 6 January, 2017 to seek their opinion on issues to be taken up during 2017.

The first of these high-level meetings would take place Friday when TRAI Chairman and other officials would interact with CEOs of all telecom companies, including Bharti, Vodafone and Reliance Jio, to discuss and identify important issues that need to be taken up during the year, PTI reported.

A similar meeting is slated with top executives of cable, broadcasting, MSO and DTH companies on January 10, 2017, PTI quoted TRAI sources as saying.

“We have invited the CEOs of all telecom companies, including Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio and others for a discussion on January 6. Similarly, we have invited top executives of broadcasting companies, MSOs, and DTH companies on January 10,” the PTI report quoted sources as saying.

TRAI’s latest initiatives are in line with what Chairman RS Sharma had told indiantelevision.com in a year-end interview middle of December 2016 on charting a roadmap for 2017.

“What we plan to do in 2017 is something interesting. While there will be always issues that will need TRAI’s urgent attention — for example, the government may ask for advice on spectrum prices — we are trying to create a calendar for the next year…. highlighting the works that need to be taken up in 2017 and which will act as a roadmap,” Sharma had told indiantelevision.com.

Asked about the issues likely to be taken up by TRAI in2017, in consultation with the industry, Sharma had indicated it could involve data and consumer protection, Internet of Things (IoT), digital terrestrial broadcasting and other issues related to emerging technologies.

ALSO READ

“There would be a lot on TRAI’s plate in 2017” – RS Sharma

January 5, 2017
MSO Ortel strengthens digital payment services

MUMBAI: Multi-system operator Ortel Communications Limited (Ortel) has launched its new digital bill payment option using Paytm.

Ortel has made several efforts to bring in an easy way of paying bills for its customers. Apart from debit cards, credit cards, and net banking, customers of Ortel Communications can now pay their bills through mobile wallet, Paytm, without using cash. It further strengthens its digital payment options to reduce cash transactions for its customers offering more simplicity in their bill payment systems.

Commenting on the development, Ortel CEO and president Bibhu Prasad Rath, “We had already adopted online payment facilities in 2010 with an endeavor to provide our customers with multiple payment options. In addition to our online payment gateways, we will continue to provide more digital options to our customers as per their choice and convenience.”

Ortel services providers focused in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Telengana, Madhya Pradesh, and West Bengal.

January 2, 2017
MSO Ortel strengthens digital payment services

MUMBAI: Multi-system operator Ortel Communications Limited (Ortel) has launched its new digital bill payment option using Paytm.

Ortel has made several efforts to bring in an easy way of paying bills for its customers. Apart from debit cards, credit cards, and net banking, customers of Ortel Communications can now pay their bills through mobile wallet, Paytm, without using cash. It further strengthens its digital payment options to reduce cash transactions for its customers offering more simplicity in their bill payment systems.

Commenting on the development, Ortel CEO and president Bibhu Prasad Rath, “We had already adopted online payment facilities in 2010 with an endeavor to provide our customers with multiple payment options. In addition to our online payment gateways, we will continue to provide more digital options to our customers as per their choice and convenience.”

Ortel services providers focused in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Telengana, Madhya Pradesh, and West Bengal.

January 2, 2017
Demonetisation: Naidu claims there’s no slump in TV/film industry

NEW DELHI: Information and broadcasting minister M Venkaiah Naidu has denied reports of any slump in the entertainment industry because of demonetisation. Naidu said he had seen reports in the media but had not received any representations from any section of the television or film industry to the effect that it had suffered because of the demonetisation.

Addressing an end-of-year press meet, he said that there was no delay in the clearances of registration of multi-system operators and that was being done in accordance with the laid-down procedures, he said answering a question on security clearances being obtained “whenever needed’ for television channels or MSOs.

At the press meet which was largely about demonetisation and the stand of the opposition to it, Naidu said that the country was digitising at a pace that was unexpected. Young people who constituted the majority of the population were taking to mobile modes of payment and encouraging cashless banking. He denied any ‘policy paralysis’ and said digitisation was taking place in every sphere of public life.

Over ten million people had switched over to digital modes of payment in just 20 days after demonetisation. Even media analysts who had predicted negatively will have to admit the transformation and the fact that the present government was a scandal-free government.

Speaking later to indiantelevision.com, Naidu said it was for the MSOs to ensure that subscribers were not forced to buy cheap set-top boxes that did not meet the standards of the Bureau of Indian Standards.

December 29, 2016
Demonetisation: Naidu claims there’s no slump in TV/film industry

NEW DELHI: Information and broadcasting minister M Venkaiah Naidu has denied reports of any slump in the entertainment industry because of demonetisation. Naidu said he had seen reports in the media but had not received any representations from any section of the television or film industry to the effect that it had suffered because of the demonetisation.

Addressing an end-of-year press meet, he said that there was no delay in the clearances of registration of multi-system operators and that was being done in accordance with the laid-down procedures, he said answering a question on security clearances being obtained “whenever needed’ for television channels or MSOs.

At the press meet which was largely about demonetisation and the stand of the opposition to it, Naidu said that the country was digitising at a pace that was unexpected. Young people who constituted the majority of the population were taking to mobile modes of payment and encouraging cashless banking. He denied any ‘policy paralysis’ and said digitisation was taking place in every sphere of public life.

Over ten million people had switched over to digital modes of payment in just 20 days after demonetisation. Even media analysts who had predicted negatively will have to admit the transformation and the fact that the present government was a scandal-free government.

Speaking later to indiantelevision.com, Naidu said it was for the MSOs to ensure that subscribers were not forced to buy cheap set-top boxes that did not meet the standards of the Bureau of Indian Standards.

December 29, 2016
Hathway Cable files GTPL details with BSE

BENGALURU: Among the largest cable television operators in India, the listed Hathway Cable and Datacom Limited (Hathway) has a number of subsidiaries and partnership in the television signal carriage and broadband ecosystems in the company. The company has various levels of investments in these associations. One of its most profitable associations, and probably one of the largest contributors (besides Hathway itself) to Hathway’s consolidated numbers across major financial and operational parameters is GTPL Hathway Limited (GTPL), a material subsidiary, in which Hathway owns a 50 per cent stake.

Besides Hathway, another major shareholder of GTPL is its co-founder, Aniruddhasinhji Jadeja who directly owns 14.6 per cent and controls another 29.1 per cent through another shareholding entity Gujarat Digi Com Private Limited which is majority owned by him. The other co-founder Kanaksinh Rana owns 5.2 per cent shares of GTPL.

As reported by us earlier, the Hathway board has given approval to the initial public offering (IPO) proposal which seeks to raise funds for GTPL through a fresh issue of equity shares while giving an option to existing GTPL shareholders to sell their holdings. Hathway holds around 90 lakh shares in GTPL, according to a filing with the Bombay Stock Exchange, over the weekend.

Operational Matrices of GTPL

According to the presentation, GTPL is the largest MSO in Gujarat with 67 per cent market share and the second largest MSO in Kolkata and Howrah with a 24 per cent market share (in 2015, based on cable television subscribers).

As of 30 September 2016 (Q2-17),GTPL had active relationships with 13,775 local cable operators (LCOs). It says it has added 4,004 and 1,286 LCOs on a net basis in FY-16 and FY-15 respectively, and another 2,507 LCOs on a net basis as of 30 September 2016

As of Q2-17,GTPL is present in 169 towns across ten states of the country. The company claims a cable subscriber universe of 74.3 lakhas of 31 August 2016 of which 54.1 lakh (72.8 per cent) were active subscribers. GTPL claims to have seeded 61.9 lakh set top boxes or 83.3 per cent of its cable universe. Primary cable ARPU as on Q1-17 is Rs 220.34 and has been increasing steadily as per Hathway’s investor presentation submitted to the bourses.Currently in Gujarat, GTPL offers various monthly pay channel packages, including HD packages, to its digital cable television subscribers ranging from Rs 250 to Rs 470, including all applicable taxes.

It has 2.2 lakh broadband internet (broadband) subscribers and a broadband ARPU of Rs 463.87. Data consumption has been increasing steadily. Broadband ARPU has been increasing steadily over the past few years as per the Hathway’s investor presentation submitted to the bourses.

GTPL owns and operates 28 channels offering localised content across a wide range of genres including religious, culture, film, music and education.

Financial Performance

Please refer to Figure A below for GTPL’s revenue break-up over a five a period starting FY-12 (year ended 31 March 2012) until FY-16 (year ended 31 March 2016) as well as for the quarter ended 30 June 2016 (Q1-17). Further, Figure B below shows revenue breakup in Rs crore for the five year period starting FY-12 until FY-16.

In absolute rupees, all revenue or income heads have been increasing. In terms of per centage of operational revenue, this is not always the case.

As is obvious, contribution from activation revenue to operational revenue has been increasing with the implantation of DAS from FY-12 to FY-16 in terms of percentage of revenue, as well as in absolute rupees. However, contribution from activation revenue has declined in Q1-17. Broadband internet is another service that MSO’s have been offering for increase of overall ARPU, that has shown an upward trend, both in absolute rupees as well as in terms of percentage of operational revenues.

Though contribution from Placement/Carriage income to operational revenues has been declining in terms of per centage of revenue, it has been increasing steadily in absolute rupees.

The company has been a profitable one – both in terms of operating profits as well as in terms of profit after tax and has been earning money for its shareholders as is evident from its EBIDTA as well as profit after tax (PAT) numbers for the past five years and Q1-17 as well. Margins have been improving as is evident from Figure C below.

Notes: (1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
(2) While the author has referred to an investor presentation submitted by Hathway to the Stock Exchanges, the surmise and opinions expressed in this report is his own. The author has no material stake in Hathway or GTPL or other associated or subsidy entities of Hathway or GTPL.

December 26, 2016
Hathway Cable files GTPL details with BSE

BENGALURU: Among the largest cable television operators in India, the listed Hathway Cable and Datacom Limited (Hathway) has a number of subsidiaries and partnership in the television signal carriage and broadband ecosystems in the company. The company has various levels of investments in these associations. One of its most profitable associations, and probably one of the largest contributors (besides Hathway itself) to Hathway’s consolidated numbers across major financial and operational parameters is GTPL Hathway Limited (GTPL), a material subsidiary, in which Hathway owns a 50 per cent stake.

Besides Hathway, another major shareholder of GTPL is its co-founder, Aniruddhasinhji Jadeja who directly owns 14.6 per cent and controls another 29.1 per cent through another shareholding entity Gujarat Digi Com Private Limited which is majority owned by him. The other co-founder Kanaksinh Rana owns 5.2 per cent shares of GTPL.

As reported by us earlier, the Hathway board has given approval to the initial public offering (IPO) proposal which seeks to raise funds for GTPL through a fresh issue of equity shares while giving an option to existing GTPL shareholders to sell their holdings. Hathway holds around 90 lakh shares in GTPL, according to a filing with the Bombay Stock Exchange, over the weekend.

Operational Matrices of GTPL

According to the presentation, GTPL is the largest MSO in Gujarat with 67 per cent market share and the second largest MSO in Kolkata and Howrah with a 24 per cent market share (in 2015, based on cable television subscribers).

As of 30 September 2016 (Q2-17),GTPL had active relationships with 13,775 local cable operators (LCOs). It says it has added 4,004 and 1,286 LCOs on a net basis in FY-16 and FY-15 respectively, and another 2,507 LCOs on a net basis as of 30 September 2016

As of Q2-17,GTPL is present in 169 towns across ten states of the country. The company claims a cable subscriber universe of 74.3 lakhas of 31 August 2016 of which 54.1 lakh (72.8 per cent) were active subscribers. GTPL claims to have seeded 61.9 lakh set top boxes or 83.3 per cent of its cable universe. Primary cable ARPU as on Q1-17 is Rs 220.34 and has been increasing steadily as per Hathway’s investor presentation submitted to the bourses.Currently in Gujarat, GTPL offers various monthly pay channel packages, including HD packages, to its digital cable television subscribers ranging from Rs 250 to Rs 470, including all applicable taxes.

It has 2.2 lakh broadband internet (broadband) subscribers and a broadband ARPU of Rs 463.87. Data consumption has been increasing steadily. Broadband ARPU has been increasing steadily over the past few years as per the Hathway’s investor presentation submitted to the bourses.

GTPL owns and operates 28 channels offering localised content across a wide range of genres including religious, culture, film, music and education.

Financial Performance

Please refer to Figure A below for GTPL’s revenue break-up over a five a period starting FY-12 (year ended 31 March 2012) until FY-16 (year ended 31 March 2016) as well as for the quarter ended 30 June 2016 (Q1-17). Further, Figure B below shows revenue breakup in Rs crore for the five year period starting FY-12 until FY-16.

In absolute rupees, all revenue or income heads have been increasing. In terms of per centage of operational revenue, this is not always the case.

As is obvious, contribution from activation revenue to operational revenue has been increasing with the implantation of DAS from FY-12 to FY-16 in terms of percentage of revenue, as well as in absolute rupees. However, contribution from activation revenue has declined in Q1-17. Broadband internet is another service that MSO’s have been offering for increase of overall ARPU, that has shown an upward trend, both in absolute rupees as well as in terms of percentage of operational revenues.

Though contribution from Placement/Carriage income to operational revenues has been declining in terms of per centage of revenue, it has been increasing steadily in absolute rupees.

The company has been a profitable one – both in terms of operating profits as well as in terms of profit after tax and has been earning money for its shareholders as is evident from its EBIDTA as well as profit after tax (PAT) numbers for the past five years and Q1-17 as well. Margins have been improving as is evident from Figure C below.

Notes: (1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
(2) While the author has referred to an investor presentation submitted by Hathway to the Stock Exchanges, the surmise and opinions expressed in this report is his own. The author has no material stake in Hathway or GTPL or other associated or subsidy entities of Hathway or GTPL.

December 26, 2016
Clarify status with Star India, TDSAT asks Canara Star

NEW DELHI: Canara Star Communications Pvt. Ltd Karnataka, which has a long-pending dispute with Star India with regard to payments, has been given one more opportunity by the Telecom Disputes Settlement and Appellate Tribunal to reply to an affidavit of 23 March 2016 by the broadcaster alleging there was no entity of the name of the MSO on the website of the Corporate Affairs Ministry.

Canara Star was given one more week from 20 December 2016 to file its affidavit, and Star India was permitted to respond to the affidavit if it so desired.

Members B B Srivastava and A K Bhargava put up the matter for further hearing on 20 January 2017.

The Tribunal said: “It is seen that the affidavit which has been filed by Canara Star is not prima facie in conformity with the directions given by the Tribunal on 18 December 2015.

Canara Star had originally come before the Tribunal against disconnection notices by Star India as for default in payment. One of the grounds on which the disconnection notice was challenged was that another MSO had started operating in those areas and, as a result, the petitioner’s subscriber base had gone down substantially and the petitioner had been making request for downgradation of its subscriber base and consequently a reduction in the fixed fee payable by it as monthly subscription fee.

As there appeared to be some substance in the petitioner’s grievance, and, on a joint request, the matter was referred to the Mediation Centre. The Tribunal was informed that, before the Mediation Centre could intervene, the parties were able to arrive at some understanding in regard to Kumta and Bhatkal areas but Canara Star was also getting signals from Star India for transmission in the DAS area of Bangalore and there too the MSO happened to be in default in payment of the subscription fees.

Star India wanted a comprehensive settlement that should cover both analogue and digital areas covering Bangalore also.

Canara, which has allegedly sold its business to another MSO called All Digital, was to produce its deed of transfer of establishment to All Digital which was made a party in the petition filed by Star India.

Earlier this year, Canara Star had been asked by the TDSAT to present a payment schedule to Star India to settle their dispute.

However, then chairman Justice Aftab Alam and members — Kuldip Singh and B B Srivastava accepted the plea by Star India counsel Arjun Natarajan that this schedule should not come in the way of its requirement to furnish a guarantee. Earlier, on 4 February, the Bench had granted a week’s time to Canara Star represented by Counsel Tushar Singh, to furnish a guarantee.

In terms of the earlier order of 14 January, the directors of Canara Star were present in person before TDSAT on 29 January.

In the hearing in third week of December, the Tribunal had asked Canara Star to intimate Star India whether it admits the SMS reports submitted by the broadcaster for the period 2014 to January 2015.

The common order by the Tribunal on three petitions including one by Star India against Canara Star claiming recovery dues of around Rs 3 crore pertaining to the MSO’s operations in DAS area of Bangalore said this was subject to the two parties failing to arrive at a final settlement.

Also read:

Canara Star asked by TDSAT to pay Star India Rs 18.91 lakh subject to final outcome of dispute

December 23, 2016