ITV

Tag: MSO

  • MSOs, LCOs upbeat about Hinduja’s NXT Digital HITS platform

    MSOs, LCOs upbeat about Hinduja’s NXT Digital HITS platform

    MUMBAI: The Indian television industry is bracing itself for the third phase of digitisation as the deadline for Digital Addressable System (DAS) ends on 31 December, 2015.

    Phase III deadline of digitisation is what the broadcast ecosystem has been talking for a year now. While on the one hand, the government of India has time and again made it clear that there will be no extension of deadline, which is 31 December, 2015, on the other, stakeholders are pointing fingers at the system as the teething issues like inter-connect agreement (ICA), CPS deals et al are yet to be taken care of. In a recent notice the Ministry of Information and Broadcasting (MIB) headed by Arun Jaitley and MoS RajyavardhanSingh Rathore, has asked broadcasters to stop beaming analogue signals to all MSOs. Now with only days to go, people are still unclear as to what’s ahead.

    Amidst the chaos of litigations between stakeholders and various pot-shots being fired, Hinduja’s Headend In The Sky (HITS) platform NXT Digital found its calm in doing actual ground work before launch.

    Harvard Business School professor Rosabeth Moss Kanter once said, “Leaders must pick causes they won’t abandon easily, remain committed despite setbacks, and communicate their big ideas over and over again in every encounter.” And that’s exactly what the team helming NXT Digital did. Prior to its launch on 16 September, the HITS platform carried out road shows involving Last Mile Operators (LMOs) in over 19 cities spread across the length and breadth of the country to communicate the new idea.

    While the initial reactions from the operators weren’t that encouraging, the lack of collaboration on-ground between existing MSOs and LCOs turned out to be a blessing in disguise for NXT Digital, which in turn fuelled its penetration into the hinterland. Now, MSOs and LCOs that Indiantelevision.com spoke to are upbeat about the new platform.

    An independent MSO from the North Eastern Province tells Indiantelevision.com, “I recently invested Rs 50 lakh to establish a cable head-end but as of now I don’t know how much I will be charging the consumers. The Cost Per Subscriber (CPS) model is not even talked about yet. Broadcasters are giving out different deals to different MSOs. If anybody asks me for a suggestion, I would tell them to go for HITS as it is a much more transparent platform.”

    Another impeding problem that the industry will soon face is a serious crisis of Set-Top-Boxes (STBs). While the boxes are assembled in India, the components are still being shipped from China. “The components have not yet been ordered. While a few have placed the first round of orders, there are many who are yet to do that. It takes three months for the components to be delivered from China and then an additional one month to assemble them. So it is certain that the boxes will not reach on time. The STB crisis will be there for NXT Digital too,” said a senior official of an established MSO.

    However, NXT Digital is unperturbed. A senior official of the company says, “There was going to be a set-top box crisis and we always knew about it. Hence we placed an order for four million boxes and there are close to 1.1 million boxes available for us at this stage. So NXT Digital is pretty sorted from the STB point of view.”

    If sources are to be believed, Star is charging Rs 38 for its bouquet in DAS Phase III areas, whereas the Zee bouquet costs close to Rs 30. Sony Pictures Networks India (erstwhile Multi Screen Media) is pricing its bouquet at Rs 24, while India Cast is charging Rs 20.

    On the other hand, NXT Digital is charging Rs 71 per box. “It’s a good deal. It’s just that they don’t have Zee in their package yet. But I don’t think it will take long for them to get them in,” says a reputed member of a Southern cable federation. “They are giving a total of over 300 channels and if there is a spike in demand, they have the infrastructure to meet it too. So it’s a good long term investment.”

    NXT Digital follows a prepaid model, which the Indian ecosystem is not yet used to. “That’s not really a big issue; people usually get used to it. I am getting a lot of positive feedback from the industry about the HITS platform. However, there’s one thing that I will request Mr Tony to look at and that is the exchange of STBs. People are not ready to forget the STB investment that they have already made to have one. If they give an exchange offer, it would be great for us,” opines an LMO.

    Now it remains to be seen how NXT Digital proceeds further and to what extend they succeed in capitalising the hinterlands.

  • MIB reminds broadcasters & MSOs of DAS Phase III signal transmission laws

    MIB reminds broadcasters & MSOs of DAS Phase III signal transmission laws

    NEW DELHI: After the Telecom Regulatory Authority of India (TRAI) firmly ruled out any extension of Phase III of digital addressable systems (DAS), the Information and Broadcasting Ministry today told broadcasters that “it is obligatory to stop TV signals to multi system operators (MSOs) and local cable operators (LCOs) who are not registered with the Ministry for operation in DAS notified areas.”

     

    In a letter sent to all broadcasters and MSOs, Ministry joint secretary (broadcasting) R Jaya said, “All the broadcasters are requested to ensure to stop TV signals to those MSOs who are not registered with this Ministry for operation in DAS notified areas under Phase Ill and/or those who are not transmitting digitally encrypted TV signals in phase Ill areas after the cut-off date of 31 December, 2015.”

     

    The letter aimed at drawing the attention of all broadcasters is drawn to certain rules, regulations and guidelines related to transmission of television signals in connection with approaching cut-off date for Phase Ill of cable digitisation in the country.

     

    The letter said under Section 4A of the Cable Television Network (Regulation) Act 1995, it is obligatory for every cable operator to transmit or re-transmit programmes of any channel in an encrypted form through a digital addressable system with effect from the date as may be specified in the notification.

     

    Under para 5.6 of the Policy Guidelines for downlinking of Television Channels, the company will provide satellite TV channel signal reception decoders only to MSOs/cable operators registered under the Act or to a direct-to-home operator registered under the DTH guidelines issued by the Government or to an Internet Protocol Television Service (IPTV) provider duly permitted under their existing Telecom license or authorised by the Telecommunications Department or to Headend In The Sky (HITS) operator duly permitted under the policy guidelines for HITS operators issued by I&B Ministry to provide such service.

     

    Furthermore, the letter said under sub-regulation 3(2) (Chapter II- Interconnection) of Interconnect (Digital Addressable System) Regulations 2012, every broadcaster will provide signals of its TV channels to MSOs registered under rule 11 of the Cable Television Networks Rules 1994, making request for the same.

  • TRAI‘s Draft of interconnect agreement out; seeks counter-comments by Jan 7

    TRAI‘s Draft of interconnect agreement out; seeks counter-comments by Jan 7

    New Delhi: With an aim of reducing disputes and because the regulations for pacts between multisystem operators and local cable operators can only be entered into on the basis of interconnect agreements, the Telecom Regulatory Authority of India (TRAI )today issued a draft Model and Standard Interconnection Agreement for offering cable TV services through Digital Addressable Systems (DAS) .

     

    Stakeholders have been asked to give their comments and counter-comments on the draft latest by 31 December and 7 January respectively.

     

    The interconnection regulation further provides that the interconnection agreement between the MSO and its linked LCO shall have the details of various activities rendered by LCO and MSOs, and the revenue settlement between the parties for these services. The regulatory framework applicable for DAS also provides that the revenue share between LCO and MSO shall be as determined by mutual agreement. In case the MSO and the LCO fail to arrive at mutual agreement, TRAI has mandated the subscription revenue share between the MSO and the LCO as a fall back arrangement.

     

    The model is the outcome of interactions with MSOs and LCOs in the various parts of the country between January and October this year, with the objective of enhancing awareness about the regulatory framework among stakeholders and to assess the compliance of the regulatory framework.

     

    During these interactions, the stakeholders raised the issue that the terms and conditions of the agreement offered by the MSO were one sided and do not provide a level playing field to the LCOs. Often the obligation of both the parties for meeting the quality of service norms prescribed in the QoS regulation was not clearly defined in the interconnection agreement and due to which, in the event of dispute between the MSO and the LCO, the quality of service was adversely affected.

     

    The existing regulation and tariff orders applicable for DAS may also require suitable amendments to incorporate necessary provisions relating to Model and Standard Interconnection Agreements between the MSO and the LCO, TRAI said in a consultation paper.

     

    The Model and Standard Interconnection Agreements contains mandatory provisions to ensure the compliance of the regulatory framework available for DAS. The proposed draft consists of a Model Interconnection Agreement (MIA) and Standard Interconnection agreements (SIA) in a single document, namely draft model and standard interconnection agreements.

     

    The draft contains necessary terms and conditions, to ensure the compliance of the regulatory framework available for DAS, and to provide a level playing field to the MSOs and the LCOs. The draft agreement also lists roles and responsibilities as well as rights and obligations of each party separately.

     

    While notifying the regulatory framework in 2012, TRAI did not formulate SIA and left it to market forces as there could be various relationship models between the MSOs and the LCOs. It was envisaged that this would provide enough flexibility to the stakeholders while transitioning from analogue un-addressable systems to digital addressable systems.

     

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    In cases where the revenue settlement was mutually agreed between the MSO and the LCO, the MIA part of the draft agreement would be applicable. In other cases where the revenue settlement could not be agreed mutually between the MSO and the LCO; and it wasdecided to continue relationship based on the fall back subscription revenue share arrangement as prescribed in the tariff order, the SIA part of the draft agreement would be applicable. 

     

    Apart from clauses 10 to 12 of the proposed draft agreement, which relate to roles and responsibilities of the MSOs and the LCOs, billing, and revenue settlement, other clauses would remain same in the final Model and Standard Interconnection Agreement.

     

    In clause 10 of the proposed draft agreement, some of the roles have been clubbed together to assign common responsibility of these roles either to the MSO or to the LCO. Splitting of these roles may cause inconsistencies and gaps in delivery of satisfactory services to the consumers. However at consultation stage, the stakeholders can provide their valuable comments on re-grouping of roles, if felt necessary, with justifications.

     

    In case of the SIA, the responsibilities for various roles shall be fixed as per column 4 of the clause 10 of this draft agreement after considering the comments of the stakeholders. Similarly the billing and revenue settlement responsibilities shall also be fixed as per clause 11 and 12 respectively of this draft agreement after considering the comments of the stakeholders. Accordingly, all the terms and conditions of SIA which include the revenue share settlement conditions also, shall be standardised after prescription of SIA. No additions, deletions, and or alteration would be permitted thereafter in SIA terms and conditions.

     

    In the case of the MIA, the responsibilities for various roles to be finalised in clause 10 of this draft agreement, can be mutually agreed by the parties and recorded in writing in the column 3 of clause 10 of this draft agreement. In this case, column 4 of the clause 10 of this draft agreement would not be applicable. Similarly the billing and revenue settlement responsibilities shall also be agreed mutually as per clause 11 and 12 of this draft agreement respectively and recorded in writing in the agreement. No deletions, and/or alteration would be permitted thereafter in MIA terms and conditions. However, the parties, through mutual agreement, may add certain additional terms and conditions subject to such terms and conditions do not dilute, override, and or alter the existing terms and conditions. In case of any conflict between the existing terms and conditions of the prescribed MIA, and new terms and conditions added through mutual agreement by the parties; the existing terms and conditions of the prescribed MIA shall prevail.

     

     

  • Sun given option to disconnect signals of Hyderabad MSO on non-payment of dues

    Sun given option to disconnect signals of Hyderabad MSO on non-payment of dues

    NEW DELHI: Sun Distribution Services Pvt. Ltd has been given the option of disconnecting the signals to multisystem operator Lifestyle Communication of Hyderabad for not clearing its dues.

     

    The Telecom Disputes Settlement and Appellate Tribunal said that it was satisfied that the MSO did not deserve any more indulgence as it had failed to make the payments as directed by the Tribunal. The Tribunal therefore recalled its restraint direction to Sun Distribution issued on 6 May and 4 September when time was given to the MSO against the petitioner. 

     

    However, the Tribunal said Sun Distribution must restore the supply of its signal to the MSO as soon as it receives the payment of the last installment in terms of the order passed on 6 May and also on clearance of the dues of licence fees for the current months.   

     

    The order came on a recovery petition filed by Sun Distribution for realization of its dues of licence fee. 

     

    Since a substantial amount of dues was admitted, the Tribunal had said on 6 May that the MSO will make an on-account payment to Sun of the sum of Rs One crore towards arrears for the analogue GHMC area for the period April 2014 to March 2015. “The payment shall be made in six equal monthly installments and shall also carry interest at the rate of 14 percent per annum. The interest will be computed from the dates, the payments became due till the dates of actual payment. In addition, the respondent shall also pay to the petitioner, monthly subscription fee for the aforesaid area at the rate of Rs 7 lakh per month”. 

     

    The Tribunal had been informed that the last installment payable by 31 October has fallen in default.   Sun Counsel Abhishek Malhotra said the MSO had also defaulted in making payment of the monthly licence fees and the licence fees for the months of October and November had not been paid.

  • HITS to be treated at par with pan-India MSOs; TDSAT advises TRAI to frame consolidated Broadcasting Code

    HITS to be treated at par with pan-India MSOs; TDSAT advises TRAI to frame consolidated Broadcasting Code

    NEW DELHI: In a judgment expected to have far reaching consequences on the Indian broadcasting industry, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today said that headend-in-the-sky (HITS) players should be treated on the same level as pan-India multi-system operators (MSOs) for commercial purposes.
     

    In a judgment on a petition filed by the Noida Software Technology Park Ltd (NSTPL) against Media Pro and others, the Tribunal said its judgment would come into effect from 31 March, 2016 by which time the relevant reference interconnect offers will be revised wherever necessary.

    The Tribunal said, “It is difficult to see a HITS operator as different from a pan-India MSO and in our considered view a HITS operator, in regard to the commercial terms for an interconnect arrangement has to be taken at par with a pan-India MSO and must, therefore, receive the same treatment.”

    Expectedly, the judgment will also help Hinduja Group’s HITS platform NXT Digital, which entered into the fray earlier this year.

    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava said both Star and Taj, as well as the other broadcasters who have joined the proceedings as intervenors are directed to issue fresh RIOs in compliance with the Interconnect Regulations, as explained in the judgment within one month from the date this order becomes operational and effective. It will be then open to NSTPL to execute fresh interconnect agreements with Star and Taj, and with any other broadcasters on the basis of their respective RIOs or on negotiated terms within the limits.

     
    Star and Taj will have to execute fresh interconnect agreements with the petitioner within two weeks from the date of issuance of their fresh RIOs. The agreement with Star would relate back to 30 October, 2015 and with Taj to 30 June, 2015. The issuance of the fresh RIOs by the broadcasters will also give right to other distributors of channels with whom the broadcasters may be in interconnect agreement to have their agreements modified in terms of clause 13.2A.7.
     

    NSTPL had executed an RIO based agreement with Media Pro. At that time, it did not complain before the Tribunal that it was being forced into the RIO based agreement even though it had ample opportunity to do so as the Media Pro application was pending before the Tribunal. Later on, after Media Pro ceased to be an agent of the broadcasters, NSTPL, even after filing the present petition, signed RIO based agreements both with Star and Taj. The agreement with Star was for the period upto 30 July, 2015 and the two agreements with Taj were upto 31 March, 2015.
     

    NSTPL must, therefore, be held bound by those agreements till the periods of those agreements and further, three months beyond that in terms of clause 8 of the Interconnect agreement. After those dates (29 October in case of Star and 30 June in case of Taj) the arrangement will be governed by the fresh agreements.

    The Tribunal said the non-discrimination obligation, which TRAI acknowledges as the pivot of those regulations, appears inconsistent with a regime where parties are allowed full latitude to mutually negotiate their agreements and also not disclose the commercial terms of the agreement to other market participants.
     

    There is the obligation to frame a meaningful RIO in which all bouquet and a la carte rates are specified, and there is also some room for mutual negotiation (even on rates) within certain specified parameters. This will achieve the objective of introducing a transparent non-discriminatory regime whereby distributors can obtain access to content, while still retaining some latitude to mutually negotiate the terms and conditions of access. It will also make the nexus between a la carte and bouquet rates, which the regulator thought fit to introduce, applicable to all mutually negotiated agreements. Negotiations must be within the parameters to those mandatory.

     
    At the same time, TDSAT said it was conscious that the present judgment may unsettle the way in which various parties in the broadcasting sector have entered into existing agreements. “We are further conscious that while the TRAI has taken a position broadly in line with our conclusions in this case, that has not always been the case. As the Amicus Curiae and the counsel for the Petitioner have pointed out, the positions taken by TRAI in the past have not always been fully consistent. In particular, we note the observation of TRAI in Consultation Paper No.15 / 2008 that in view of the confidentiality restrictions, the automatic implementation of non-discrimination clause in Interconnect Regulation is practically difficult,” it said.
     

    Thus, as far back as 2008, TRAI was aware that the non-discrimination clause – which, in these proceedings, it has sought to place on a very high pedestal – was effectively inoperative. And yet, matters in the broadcasting sector have been allowed to lie where they are by TRAI.
     

    TDSAT said it had on past occasions as well, made similar suggestions with the hope of nudging the Regulator to take proactive steps to reduce the scope of disputes arising out of the Regulations. At the same time, the fact that regulatory intervention may be the ideal way forward cannot and should not be an excuse for this Tribunal to shirk the interpretative issues that have come before us. This is particularly so when there appears to be regulatory inertia.
     

    This was the reason for suspending the operation of this judgment till 31 March, 2016. The judgment shall take effect on 1 April, 2016. “While we are aware that this is not a common procedure, we are of the view that it is appropriate in the peculiar facts and circumstances of this case, since the effect of this judgment may be to unsettle a number of existing agreements and necessitate re-negotiation,” the Tribunal said.
     

    In the meanwhile it will be open to TRAI to undertake a comprehensive restructuring of the Regulations, which would hopefully clarify many of the issues that arise in these proceedings. “We make it clear that this Tribunal is issuing no such direction to TRAI. The delayed operation of the judgment is only to afford an opportunity to TRAI to consider the matter and act in the intervening period, if appropriate,” it further added.
     

    As a greater part of the country would come under the DAS regime with effect from 1 January, 2016 the Tribunal said it would be advisable that TRAI should try to frame a consolidated Broadcasting Code instead of the large number of Regulations dealing with different aspects of the service and each having undergone numerous amendments. In order to make a serious effort in that direction, TRAI would be required to get hold of all the negotiated interconnect agreements between the broadcasters and the distributors of channels, which the broadcasters are in any event obliged to submit to TRAI. The Regulator may even feel the need to take a re-look at the tariff orders framed by it.

     
    Needless to add that in case TRAI issues any fresh Regulations before 1 April, 2016, the petitioner and the broadcasters would be obliged to execute agreements on that basis. In case, however, no fresh Regulations are issued by TRAI, this judgment and order will come into effect from the aforesaid date and the parties would be obliged to follow the directions give above.

    Suspension of this judgment is in the larger interest of the broadcasting sector. But this leaves open the question of the petitioner’s liability to pay licence fees to the broadcasters Star and Taj for their signals received by it during the pendency of the petitions before the Tribunal and further until execution of fresh agreements in terms of this judgment or in terms of fresh Regulations, if any, framed by TRAI. And since it will not be fair that the broadcasters should continue to supply signals to the petitioner without any payment for the next several months, some interim arrangement under which the petitioner should make payment of licence fees to the two broadcasters until after execution of fresh agreements accounts are finally reconciled. For this purpose, the petition against the broadcasters was de-tagged from this judgment and kept pending.
     

    Star has already filed an application in Petition No. 314 (C) of 2015 claiming the dues of licence fees from the petitioner. Petition No. 526 (C) of 2015 is directed to be tagged with Petition No. 314 (C) of 2015. In these two petitions, the Tribunal proposes to determine the Petitioner’s liability to pay the license fees to Star and Taj on an ad hoc basis and as an interim measure until the execution of the agreements with the two broadcasters, and when the accounts of the two sides may be reconciled to determine any final liability of the Petitioner or Respondents to make any further payments.
     

    It also made clear that all future deals between broadcasters and MSO/HITS players will be bound by the RIO agreements.

     
    While the case was initially filed against Media Pro in mid-2014, NSTPL had subsequently in December last year filed another petition against Star India and Taj TV.
     

    Since the issues in both petitions were similar and any judgment would affect the broadcasting sector as a whole, TDSAT had on 30 July this year issued a public notice asking all stakeholders to present their case on the issues involved.
     

    In an earlier case in 2013 between NSTPL and Media Pro Enterprise India Pvt. Ltd. TDSAT had on 12 September, 2013 directed Media Pro to provide signals of its TV channels to NSTPL.
     

    Later, NSTPL moved the Tribunal against Media Pro in which Taj Television Ltd and Star India Private Limited were brought in. Telecom Regulatory Authority of India (TRAI) was also a party in the two petitions of 2014.

     
    The first petition 10 July, 2014, NSTPL raised some questions regarding RIO and wanted the Tribunal to declare Clause 3.2 of The Telecommunication (Broadcasting and Cable Services) Interconnection Regulation 2004, as amended from time to time should mandate that all distributors be offered the same rate per subscriber per month which is the rate specified in the broadcaster’s RIO, unless the conditions of Clause 3.6 of Interconnection Regulation are fulfilled.

     
    It also wanted declaration in terms of Clause 3.6 of Interconnect Regulation to the effect that any discounted volume related scheme must be disclosed in a transparent manner, so as to enable the similarly placed distributors to avail of the same.
     

    It demanded that Media Pro be directed to disclose the volume related schemes at which it offers TV channel signals to distributors that are similarly placed with NSTPL and permit NSTPL to avail of such schemes.
     

    The second petition on 12 December, 2014 was against Taj and TRAI, which impugned the disconnection measures that had been initiated by Taj against NSTPL on account of alleged defaults like non-payment of certain amounts of subscription fees.

  • TDSAT appoints advocate commissioner to examine subscription claims of Chirala MSO

    TDSAT appoints advocate commissioner to examine subscription claims of Chirala MSO

    NEW DELHI: An Advocate Commissioner has been appointed by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to carry out a sample survey of the SLRs of Chirala Cable Network, which is seeking signals of Taj TV, Eenadu TV, Maa TV and Sun Distribution Services.

     

    The Tribunal said Advocate Commissioner Tushar Singh would go on a date duly intimated to all concerned to Chirala town and its rural areas where the multi system operator (MSO) claims it has subscribers. All the parties may nominate their representative to accompany the Advocate Commissioner in course of the survey. 

     

    Singh will go to all panchayat areas named in the SLR submitted by the petitioner. In each area he will visit at least 10 houses named in the SLR and 10 houses outside the SLR to verify whether any one of them are the petitioner’s subscribers or they are taking their signals from some other MSO/LCO. 

     

    Listing the matter for 4 January, the Advocate Commissioner was asked to submit a report within three weeks and he will be paid, apart from actual expenses, an honorarium of Rs 30,000 per day.

     

    The order came on a petition by the MSO wanting the signals of the four respondents against whom it has filed these four petitions. The petitioner is operating in Chirala town and adjoining rural areas. The controversy between the parties is mainly in regard to the petitioner’s SLR in rural areas, adjoining Chirala town.

     

    The Tribunal noted that Chirala town falls under Phase III of the DAS regime and the rural areas adjoining it come under Phase IV. In Chirala town, the petitioner is getting Sun’s signals through A.C.T Digital. 

     

    During the proceedings, the petitioner filed two or three SLRs, which on verification by Sun are said to have been found incorrect. According to Sun, the petitioner does not have any subscriber in the rural areas around Chirala town and it is making an attempt to penetrate the rural areas on the basis of incorrect SLRs “which would make it very difficult for the broadcasters to raise their invoices.”

     

    The Tribunal also noted that the petitioner had once again filed a fat affidavit giving its latest SLRs according to which it has 3219 subscribers of which 1138 are in Chirala town and the rest in the rural areas.

     

    The ascertainment that the correct SLRs that should form the basis for determining the licence fee payable by the petitioner to the broadcasters is an issue of facts, which may be determined on the basis of evidences led by the parties.

  • TDSAT issues bailable arrest warrants against two directors of Sahara India TV Network

    TDSAT issues bailable arrest warrants against two directors of Sahara India TV Network

    New Delhi: In a power rarely exercised by it, the Telecom Disputes Settlement and Appellate Tribunal has issued a bailable warrant of arrest against Sahara India TV Network Directors Govind Tiwari and Devendra Kumar Srivastava in a case of non-payment of dues to multi-system operator Delhi Distribution Company.  

     

    Listing the matter for 22 December, Chairman Aftab Alam and members Kuldip Singh and B B Srivastava said: “From the earlier orders, it appears that the Directors of the company are willfully flouting the directions of this Tribunal. The Tribunal is, therefore, left with no option but to secure their presence through coercive measures.” 

     

    It was also noted that neither the details of moveable and immoveable properties of the company were filed nor any payment being made towards the discharge of the decree. 

     

    Sahara India counsel Pankaj Agarwal who was present said he had been instructed that he would be handed over the cheque to be handed over to the MSO but was later told no cheque was being sent.

     

    The TDSAT office was directed to issue bailable warrants of arrest on the addresses being furnished by MSO Counsel Vibhav Srivastava to ensure their personal appearance on the next date fixed in the matter.

  • Durgapur MSO assures Star India and TDSAT it would rectify errors in its head-end

    Durgapur MSO assures Star India and TDSAT it would rectify errors in its head-end

    New Delhi: Durgapur-based multi-system operator Akash Tori Infocom Services Pvt Ltd has assured the Telecom Disputes Settlement and Appellate Tribunal  (TDSAT) that it will rectify the errors in its system pointed out by Star India.
     
    Chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava adjourned the matter to 11 December for further hearing after hearing counsel for both sides.
     
    TDSAT had on 4 November directed the MSO to make it convenient for Star India to examine its headends in Durgapur. Accordingly, Star India had conducted a technical audit. Some shortcomings were found and this was conveyed to the MSO by Star India in a letter.
     
    Akash Tori counsel Radhika Gupta admitted that shortcomings have been found in relation to set top boxes.
     
    Star India counsel Arjun Natarajan said the audit had revealed that Akash Tori’s Subscriber Management System (SMS) is not integrated with CAS for activation/deactivation of STB, which are not possible from SMS. Furthermore, the basic addressable features in STB, like channel encryption, package activation/deactivation are not available. Natarajan also said fingerprinting and OSD or messaging is not happening in STBs.
     
    Star India asked Akash Tori to rectify the shortcomings and after rectification, it said Akash Tori may either approach Star India for a re-audit, or go for an audit by Broadcast Engineering Consultants (India) Ltd.
     
    Ms Gupta said she would seek instructions from her client in this regard and take appropriate steps. The MSO had filed a petition seeking Star’s signals in digital mode on RIO terms. 
     
    In the earlier hearing on 4 November, TDSAT was informed by Akash Tori counsel Radhika Gupta that the MSO had not yet received some set top boxes it had ordered.
     
    When the matter had first come up on 19 October, the Tribunal had noted that Akash Tori was a ‘fledgling multi-system operator’ and ‘Star India cannot have any objection to give its signals on RIO terms to it, permitting Star to examine the headend of the MSO.
  • MSO clearances finally cross 550 with less than six weeks left for completing Phase III of DAS

    MSO clearances finally cross 550 with less than six weeks left for completing Phase III of DAS

    New Delhi: The number of multi system operators has raced to 553 by 24 November from around 470 early this month, as the government races to prepare to meet the deadline of completing the third phase of digital addressable system.

     

    Of these, 230 have got ten-year licences with three provisional licencees getting permanent licences, and a total of 323 (against 246 early this month) getting provisional licences. One temporary licencee was also given permanent licence till 2024 after its area of operation was changed.

     

    Information and Broadcasting Ministry sources said it had still not received any formal communication of the Home Ministry’s decision to do away with security clearances for MSOs, while some had been given provisional licences pending certain formalities relating to shareholders and so on.

     

    According to the list put on the I and B Ministry’s website today, Kal Cables of Chennai and Digi Cable Network Pvt Ltd of Mumbai remain on the cancellation list. Scod 18 Networking Pvt Ltd of Mumbai has also been refused security clearance while SR Cable TV Pvt Ltd of Bangalore has shut down its business.

     

    Two MSOs which had earlier been granted permanent licences were permitted to change their areas of operation.

      

    The new entrants in the permanent licence list include Waltair Entertainment Pvt. Ltd for Phase II in Vishakapatnam; Den Manoranjan Satellite Pvt. Ltd of Pune for Maharashtra; and Seemanchal Digital Network of Purnea for Bihar.  

  • Wired Broadband: ACT, Airtel lead growth in Sep 2015; MSOs’broadband numbers increasing

    Wired Broadband: ACT, Airtel lead growth in Sep 2015; MSOs’broadband numbers increasing

    BENGALURU:  ACT continues to lead the wired broadband growth in calendar year 2015 with 1.9 lakh subscribers(or 23.46 percent of the total all India additions since December 31, 2014) additions fromDecember 31, 2014 until September 30, 2015. However, month-on-month, Bharati Airtel leads growth in subscription numbers by contributing 40,000 additions or 30.77 percent of the 130,000 broadband numbers added all India in the month of September 2015. ACT added 30,000 subscribers or 23.08 percent of the total broadband subscribers added in September 2015. BSNL added 10,000 or 7.69 percent of the total subscribersadded in September 2015. Both MTNL and You BB did not report any change from their August 2015 subscription numbers.

    Are the MSOs’ initiatives by carrying internet on their cable TV infrastructure beginning to show? Definitely yes! Will they surpass the numbers attained by the top 5 ISPs’? Maybe with a concentred effort, yes they may, but it will take plenty of doing and make take some time.Please read on.

    Note:(1) 100,00,000 = 100 Lakh = 10 million = 1 crore

    (2) Trai reports indicate data in millions of numbers up to 2 decimal places. Hence it is assumed in this report that a figure of 0.47 million (4.7 lakh) subscribers for You BB for July-2015 would be granular to the nearest 10,000. While percentages perforce have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.

    (3) Industry sources say that Trai numbers in the case of ACT for May-2015 are incorrect at 0.66 million and the correct number would be 0.693 million. This paper considers the number as 6.93 lakh or 0.693 million.

    (4) MSOs’ have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger. Hathway is a case in point.

    (5) Ortel’s numbers for Q3-2015 have been estimated from the numbers released by it for Q1-2015, Q2-2015, Q4-2015 and FY-2015.

    (6)  The term ‘operating revenue’ in this paper indicates ‘total income from operations’.

    The Top 5 ISPs’

    The latest subscription numbers disclosed by The Telecom Regulatory Authority of India (Trai) as on September 30, 2015, reveal that the total number of wired broadband subscribers in India stood at 161.3 lakh. Hence 8.1 lakh subscribers were added between December 31, 2014 and September 30, 2015, and 1.3 lakh subscribers were added in September 2015. Please refer to figure 1 below

    The pecking order for the top 5 wireline internet service providers or ISPs’ remains the same with the top three – Bharat Sanchar Nigam Limited (BSNL), Bharati Airtel (Airtel) and Mahanagar Telecom Nigam Limited (MTNL) also providing voice (telephone) services and many of their wired internet customers use both services – voice and data. The big three are followed by ACT (Atria Convergence Technologies) and You Broadband India Private Limited (You BB).

    Please refer to figure 2 below. As mentioned above, ACT still continues to lead the growth in wired broadband subscriptions with a net addition of 30,000 subscribers in September 2015, taking its tally to 1.9 lakh subscribers (23.46 percent of the all India additions) added sinceDecember 31, 2014.Hence ACT’s market share in the wired internet space in India improved by 15 basis points to 4.96 percent in August 2015 as compared to 4.81 in Aug-2015. Since December 31, 2014, ACT’s market share has gone up 98 basis points (from 3.98 percent) based on a granularity of 10,000.

    However, telecom major Bharti Airtel is swiftly closing the gap. Like in August2015, the behemoth added 40,000 wiredinternet subscribers in September 2015, taking its tally to 1.7 lakh subscribers (20.99 percent of the all India additions) added between December 31, 2014 and September 30, 2015.  Airtel’s market share improved 17 basis points to 9.80 percent in Sep 2015 as compared to 9.63 percent in Aug 2015. Airtel had a market share of 9.20 percent on December 31, 2014.

    You BB did not report any subscriber additionsin September 2015, its tally remained the same at 4.8 lakh subscribers until September 30, 2015, and it had a net addition of 60,000 subscribers (7.41 percent of the all India additions) since December 31, 2014. Hence You BB’s market share has declined by 2 basis points to 2.98 percent in September 2015 as compared to the 3 percent in August 2015. You BB had a market share of 2.74 percent as on December 31, 2014.

    The public sector BSNL increased its subscription numbers by 10,000 to 99.3 lakh or 61.56 percent of the all India total. However, BSNL’s market share declined by 44 basis points as compared to 62 percent in August 2015.As on December 31, 2014, BSNL had a market share of 65.14 percent

     MTNL subscription numbers were the same as the numbers reported for June 2015, July 2015 and August 2015, and hence there appears to be no net growth in wired broadband subscribers on its part. However, since the overall market size is increasing,MTNL’s market share has also declined even further. MTNL lost 5 basis points to reach a market share of 7.01 percent as compared to 7.06 percent in August 2015. As on December 31, 2014MTNL had a market share of 7.38 percent.

    MSOs’ contribution to broadband

    The combined subscription number of the top five wired ISP’ as on September 30, 2015 was 139.2 lakh or 86.30 percent of the total number of the 161.3 lakh wireline broadband subscribers in India. On December 31, 2014, the corresponding combined number was 135.5 lakh or 88.45 percent of the total number of 153.2 lakh broadband wireline subscribers in the country. The combined share of overall wired internet subscribers of the top five companies is declining, with other players increasing their contribution to wireline broadband subscription numbers.

    The decline between December 31, 2014 and September 30, 2015 was 147 basis points. Other ISP’s share of subscribers has increased to the same extent. Among the ‘Others’ are included Cable TV MSOs’. MSOs’ in India are looking at broadband revenues to prop up their cable revenue numbers because of the comparatively higher ARPUs’ from broadband internet services.  Please refer to Fig 3 below.

    In the three month period starting July 1, 2015 until September 30, 2015 or Q2-2016 (current quarter), the wired internet subscriber base in the country has grown by 4.3 lakh. Of these, the top 5 ISPs added 2.3 lakh subscribers or 53.49 percent of total additions in Q2-2016. At the same time, MSOs’ have started reporting double digit increase in internet subscribers and revenue.  Four MSOs’ – Hathway, Siti Cable, Ortel and Den added 1.09lakh (25.34 percent of total additions in Q2-2016) subscribers during that period as per their financial reports filed at the bourses.QoQ, the combined broadband subscribers in Q2-2016 added by the four MSOs’ increased by 58.36 percent from 0.69 lakh added in Q1-2016.

    For Q1-2016, if the drop in broadband subscription numbers to the extent of 50,000 and 10,000 by BSNL and MTNL respectively is neglected, the other three players among top five wirelineISPs’ in India added 1.2 lakh (37.50 percent of total additions in Q1-2016) of the 3.2 lakh subscribers added in that period.If the drop in subscriber numbers by BSNL and MTNL is considered, the top 5 ISPs’ added just 0.6 lakh wireline broadband subscribers or 18.75 percent of the total subscribers added in Q1-2016. The four MSOs’ contribution to the subscriber base was approximately 0.69 lakh or 21.50 percent of the total additions in Q1-2016. Hence in Q1-2016, four MSOs’ actually added more subscribers than the combined number of subscribers added by the top 5 wired ISPs’ in India.

    Cable companies such as Hathway reported consolidated internet subscription numbers of 5.15 lakh with 2 lakh asDocsis 3.0at the end of the current quarter (Q2-2016). While ACT has laid separate optical fibre for internet and is exploring territories beyond which it has cable TV operations, for the other MSOs’ it is a lot cheaper to have the internet signal ride on their existing cable TV networks wires.

    Last quarter (Q1-2016), Ortel announced that it had introduced free broadband option for all Ortel Cable TV subscribers in the states of Odisha, West Bengal and Chhattisgarh as a complimentary special value added service in order to target to deeper penetrate into markets by making internet affordable. Ortel says that its offer includes a free data limit every month for a year. The subscriber will be charged a nominal amount after exceeding the free data usage for the month.

    Some MSOs’ broadband numbers

    Broadband contributes in double digit percentages to the total incomes or operating revenue of two of the four sample companies in this paper – Hathway (about 25 percent and growing) and Ortel (declined from 21.07 percent in Q1-2015 to 16.80 percent in Q2-2016). Please refer to Fig 4 below. In the case of Siti Cable and Den, revenue from broadband services contributed to less than 5 percent to their operating incomes.

    Hathway reported broadband revenue of Rs 71.9 crore (26.24 percent of operating revenue) in the current quarter, 58.4 percent higher YoY than the Rs 45.4 crore (17.23percent of operating revenue), and 10.4 percent more than the Rs 65.1 crore (24.62 percent of operating revenue)in the immediate trailing quarter.Last quarter, the company said that it had added 50,000 broadband subscribers in Q1-2016, and claimed a broadband subscriber base of 4.6 lakh, of which 1.7 lakh were under Docsis 3.0. Hathway says that broadband ARPU increased 6.8 percent QoQ to Rs 616 from Rs 577 and that its Docsis 3 consumer ARPU has reached Rs 750.

    Siti Cable says that it has added 16,950 broadband subscribers in Q2-2016, taking its broadband subscriber base to 91,450 from 74,500 in the previous quarter. Broadband revenue increased 50 percent YoY in Q2-2106 to Rs 9.30 crore (3.30 percent of operating revenue) from Rs 6.20 crore (3.95 percent of operating revenue) and increased 3.3 percent QoQ from Rs 9 crore (2.83 percent of operating revenue).

    Ortel’s broadband customers grew 8.9 percent to 63,663 in the current quarter from 57,528 in Q2-2015 and grew 4.5 percent from 60,900 in Q1-2016.Ortel’s broadband ARPU in Q2-2016 was Rs 395, in Q2-2015, it was Rs398 and in Q1-2016, it was Rs 393. Ortel reported 11.7 percent growth in YoY total broadband services revenue to Rs 8.1 (16.80 percent of operating revenue ) crore in the current quarter as compared to Rs 7.3 crore (19.89 percent of operating revenue ) and a 7.9 percent QoQ growth from Rs 7.5 crore(17.40percent of operating revenue).

    Den says that it has added 21,000 subscribers in the current quarter as compared to 12,000 in Q1-2016. Its total broadband subscriber base in Q2-2016 was 57,000 as compared to 35,000 in Q1-2016 and 16,000 in Q2-2015.Den’s broadband revenue increased 58 percent in the current quarter to Rs 8.23 crore(3.03 percent to operating revenue)  as compared to the Rs 5.21 crore (1.96 percent of operating revenue) in Q1-2016 and Rs 1.44 crore (0.49 percent of operating revenue) in the corresponding year ago quarter.

    End points

    The four ISPs’(other than ACT) in this report that use their MSO platform for internet service delivery currently are –Hathway, Siti Cable, Ortel and Den in that order in terms of number of broadband internet subscribers in Q2-2016. Three of the four have cable TV subscribers in excess of 100 lakhs each on a consolidated basis, while Ortel had around 5.72 lakh revenue generating units (RGUs)as on September 30, 2015.

    The largest cable TV ISP among them is Hathway with 5.15 lakh subscribers, or just around 5 percent of its total cable TV subscriber base. In the case of Siti Cable and Den, their own internet penetration within their respective cable TV subscriber bases is less than 100 basis points. Many of these MSOs’ subscribers must have opted for internet services from other ISPs’, and all must have some non-cable TV  broadbandinternet subscribers. For these MSOs’ (and other MSOs’) the potential for converting their cable TV subscribers to double play subscribers is huge. This is the low hanging fruit that the MSOs’ can easily pluck if they do it right and increase their revenues and profitability.