ITV

Tag: MSO

  • Steps taken to allow level-playing field in FDI for all MSOs and LCOs, rules tightened on ownership

    Steps taken to allow level-playing field in FDI for all MSOs and LCOs, rules tightened on ownership

    MUMBAI: In a major step to create a level-playing field, cable operators or multi-system operators who are not undertaking upgradation of networks towards digitalization and addressability will also be entitled to 100 per cent foreign direct investment.

     

    However as in other cases where it has increased the FDI to 100 per cent, entry beyond 49 per cent will be through the government route.

     

    There is also a change in the policy with regard to uplinking and downlinking of channels. The investment will be 49 per cent through the government route with regard to uplink of news and current affairs channels but uplinking of non-news and current affairs channels (GECs) will be 100 per cent through the automatic route. Downlinking of TV channels is also 100 per cent through the automatic route.

     

    The investment for terrestrial FM radio continues to be 49 per cent through the automatic route, subject to such terms and conditions specified from time to time by the Information and Broadcasting Ministry for grant of permission for setting up of FM Radio stations.

     

    These changes have come after a re-assessment of the relaxations allowed in fifteen sectors including broadcasting on 10 November.

     

    It was also clarified that in the I and sector where the sectoral cap is up to 49%, the company would need to be’owned and controlled’ by resident Indian citizens and Indian companies, which are owned and controlled by resident Indian citizens.

     

    The Department of Industrial Policy and Promotion of the Commerce Ministry said for this purpose, the equity held bythe largest Indian shareholder would have to be at least 51% of the total equity, excluding the equity held by Public Sector Banks and Public Financial Institutions, as defined in Section 4A of the Companies Act 1956 or Section 2 (72) of the Companies Act 2013, as the case may be.

     

    The term ‘largest Indian shareholder’ will include any or a combination of individual shareholders, or a relative of the shareholder within the meaning of Section 2 (77) of Companies Act 2013; and a company/group of companies in which the individual shareholder/HUF to which he belongs has management and controlling interest; in the case of an Indian company, a group of Indian companies under the same management and ownership control.

     

    For the purpose of this Clause, “Indian company” will be a company which must have a resident Indian or a relativeas defined under Section 2 (77) of Companies Act 2013/ HUF, either singly or in combination holding at least 51%of the shares.

     

    This is subject to the provision that in case of a combination of all or any of the entities will have entered into alegally binding agreement to act as a single unit in managing the matters of the applicant company.

  • TRAI calls for expediting interconnection

    TRAI calls for expediting interconnection

    MUMBAI: The implementation of Digital Addressable Cable TV Systems (DAS) in India is in progress in a phased manner. The entire structuring is planned in 4 phases.  In Phase-III, the    sunset  dates   for   analog   TV   transmission in   urban   areas   is 31 December, 2015.  

     

    The  MSOs (Multi System  Operators), who   have  been  granted registration  for  providing   cable  TV  services through  DAS,  are required to enter  into interconnection agreements with pay TV broadcasters for  re-transmission of  pay  TV  channels to  the  subscribers.

     

    According to the official report for implementation of DAS, the Authority has notified a comprehensive regulatory framework encompassing interconnection, quality of service, consumer complaint redressal regulation and tariff orders.

     

    The Regulatory framework for DAS  provides that every broadcaster shall  provide  the  signals of TV  channels to a  MSO, in accordance with  its  reference  interconnect offer  or as  may  be mutually agreed,  within  60 days from  the date of receipt  of the request and in case the request for providing signals of TV Channels is not agreed  to, the reasons  for such  refusal to provide signals  shall  be  conveyed to the  person  making  a request  within  60  days  from  the  date  of request.

     

    As the cutoff date for Phase-III areas is fast approaching, the registered MSOs are advised to make a written request to the broadcasters of pay channels for provisioning of the signals of TV channels as per their business requirement, so that they get signals of pay TV channels well before the cutoff date.

     

    The MSOs  who  have  approached  pay TV  broadcasters  for providing  signals  of TV channels  in accordance  with the provisions  of the interconnection  regulations  but have not been able to enter into interconnection  agreement even after passage of 60 days from the date of making request and also not received valid reasons for not entering into interconnection agreement from the broadcaster may write to TRAI by 28 November, 2015 through e-mail at das@trai.gov.in  for initiating action in such cases as per TRAI Act.

  • Will foreigners buy into easing of FDI in cable TV, DTH?

    Will foreigners buy into easing of FDI in cable TV, DTH?

    MUMBAI: The government has earlier this week announced the lifting of Foreign Direct Investment (FDI) barriers for 15 sectors as a Diwali bonus to industry.

     

    Hereon, the limit for uplinking of news and current affairs for television channels has been increased from 26 per cent to 49 per cent. Foreign majors wanting to look at a long term play in the broadcast distribution space can now pump in 100 per cent in cable TV networks (multi-system operators and local cable operators), DTH, teleport, headend-in-the-sky (HITS) and mobile TV ventures as against the 74 per cent earlier Distribution platforms can raise as much as 49 per cent FDI through the automatic route. If companies want to go beyond that, they will need government approval. The radio sector has got some welcome breathing space in that investment limits have been hoicked to 49 per cent from 26 per cent earlier.

     

    What does this all mean for the television ecosystem? Will there be a flood of money flowing into cable TV, DTH, teleport, HITS and mobile TV ventures from overseas? Will news channels attract foreign investment by the sackful?

     

    We, at indiantelevision.com, believe that none of this likely to happen in a hurry in all the segments that have been prised open.

     

    Distribution is a tough play in India as history has shown. It is relatively unorganized, with low ARPUs, it lacks transparency, is small in scale, and is short on capital, which makes it an unappealing asset to invest in. Digitisation of cable TV has led to some improvement, but it is still a halfway house. The lack of last mile customer ownership, paucity of subscriber information, lack of two way addressability, and business norms and ethics make it a relatively high risk investment.

     

    Things may change if Reliance Jio makes inroads into cable TV and brings some order into it. However, its management may well discover that distribution is like a slippery soap in a shower, that  it is more complicated than distributing electricity or exploring and drilling for oil.
     

     

    It is the MSOs’ broadband businesses that are a lot more transparent,  that have in any case been spun off into separate companies keeping in mind government regulations and restrictions.  And this is what may catch the interest of investors.

     
    In the nineties, Rupert Murdoch partnered with Subhash Chandra in Siticable – only to exit a little later with his knuckles bruised. A few years later he once again took a shot at it when Star India invested in the Rajan Raheja promoted Hathway Cable & Datacom. Once again, he had to exit yelping in pain. Since then, Star has been extremely averse to investing in cable TV.

     Most of the major distribution ventures are listed: Siticable, Hathway Cable & Datacom, Ortel, Hinduja, Den Cable, SunTV, DishTV, Airtel, Reliance Big (the management is currently getting it delisted),  and some even have attracted private equity investments. But the stock market has not really bought into pure play distribution initiatives and the shares have been depressed as compared to the prices they could command. The PEs which have parked funds in them are still waiting for a nice fat return on their investments.

     Where FDI has worked is in the DTH space and the sole exception is DTH operator Tata Sky in which Twenty First Century Corp holds a 30 per cent stake.  Then there is Videocon d2h, which is listed on Nasdaq, following to the support of its lead investment partner Harry Sloan of Silver Eagle. The Essel group owned Dish TV has got the thumbs up from the market and has got a buy recommendation from many research firms.

     
     
    DTH operators, unlike their cousins on the ground, are more organized, professional, have transparency of operations and have recently started getting some payback from their upfront and cumulative investments over the past decade or so building scale in their customer base.

     
    Hence, it is quite possible that Dish TV, Airtel, Videocon, and Tata Sky might see some activity following the loosening of FDI.  But even prior to the announcement, not many investor suitors had lined up looking to partner with them.

    At the time of writing this report, the stock markets had reacted positively to the news about the easing of FDI in media, and had pushed up the share prices of Dish, Siticable, DEN Networks by 10 per cent plus before Diwali.

     Sun TV, has so far been happy being a lone player with a stranglehold on its markets, and has desisted from partnerships with local players. One does not know if promoters Kalanithi and Kaveri Maran will change their thinking now.

     As far as news is concerned, major news organisations worldwide have enough on their hands. They are grappling with the changing paradigm of news gathering and dissemination, courtesy the explosion in social media and their live streaming apps which threaten to make individuals  – whether journalists or online stars – with huge followings, a rival to large news networks. For the new millennials, online is the preferred source of news, which they consume on their twitter or facebook timelines.

     India has a surfeit of news channels or ‘views channels’; many of them are run for purposes of influence, and not as commercial initiatives. For the relatively more professional ones, the key question is whether foreign investors – especially those in the news business would be happy with a less- than majority equity position in a news television channel. For that to appear attractive they will look for dividends or a northward movement in the stock price.
     

     
    News organizations normally are obsessive about keeping control over the content on a news channel. But you there have had been licensing deals – like in the case of CNN-IBN.  Others have come in on their own, after getting downlinking and uplinking clearances.

     

    It’s not as if news television in India is a very scalable business opportunity.  At least, so far. The largest news network does revenues of around Rs 500 crore.  This could go up to Rs 1000 crore with the expansion in regional news and distribution internationally. The limited scalability despite, amongst the news players some of whom look alluring figure: NDTV, Times Now, Zee Media, TV9, TV Today, ITV group, and  India TV. Of course some smaller players like BAG Films E24 group might attract FDI.

     

     What should come as a relief is the allowing of 100 per cent FDI through the automatic route in non-news and current affairs channels. Many new channels and broadcast networks which are looking  to expand their global footprint to include the Indian audience may now do so, either through mass and/or niche channels. Full ownership means they can control their destinies in India.
     
    Now that the government has opened its house on FDI in media, it would do well by making the procedures simpler and faster. TV broadcast players managements have to perforce get ministry of home affairs, ministry of information and broadcasting’s  and RBI’s clearances. The  bureaucrats,  directors and officers in these bodies need to be trained to reflect the Modi government’s approach in being industry enabling, rather than being obstructionist. Maybe a single window clearance approach could help. Otherwise, even this FDI liberalization may end up being another well-intended-but-misplaced initiative.

     

  • MSO clearances spurt as DAS Phase III deadline looms; DEN Ambey gets permanent license

    MSO clearances spurt as DAS Phase III deadline looms; DEN Ambey gets permanent license

    NEW DELHI: The panic button appears to have been pressed. With the looming end of year deadline of completion of digital addressable system (DAS) Phase III, the number of multi system operators (MSOs) has jumped to 473 as of 4 November from 429 as on 21 October.

     

    Of these, 227 – one more in the past fortnight – have 10-year licences and a total of 246 (against 203 on 21 October) have obtained provisional licences.

     

    The only new entrant in the permanent licence list, cleared yesterday, is New Delhi’s DEN Ambey Cable Networks, which will provide DAS signals in Uttar Pradesh except Agra, Lucknow, Ghaziabad, Meerut and Varanasi.

     

    Information and Broadcasting (I&B) 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&B Ministry’s website, Kal Cables of Chennai and Digi Cable Network of Mumbai remain on the cancellation list. On the other hand, Mumbai based Scod 18 Networking has also been refused security clearance while Bengaluru’s SR Cable TV has shut down its business.

     

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

  • Interconnect agreements mandatory for provision of signals: TRAI

    Interconnect agreements mandatory for provision of signals: TRAI

    NEW DELHI: Following several cases in this regard before the Telecom Disputes Settlement & Appellate Tribunal (TDSAT), the Telecom Regulatory Authority of India (TRAI) today proposed that no signals can be provided to multi system operators (MSOs) or cable operators after the expiry of the Interconnect Agreement.

     

    The draft Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Sixth Amendment) Regulations 2015 says that: “It shall also be mandatory for the broadcaster to enter into written interconnection agreement with the multi system operator for retransmission of the pay channel(s) even if nil subscription fee is charged by the broadcaster or paid by the cable operator.”

     

    All stakeholders have been asked to respond with their comments by 20 November with counter-comments by 27 November.

     

    The draft says that it will be mandatory for the service providers to enter into new agreements 21 days prior to the date of expiry of the existing agreement “to ensure that inconvenience is not caused to the consumers by sudden disconnections of signals due to failure of the service providers to enter into new interconnection agreements.”

     

    Furthermore, broadcasters or MSOs, as the case may be, will give notice to the MSO or the linked local cable operator (LCO), as the case may be, to enter into the new agreement 60 days prior to the date of expiry of the existing interconnection agreement.

     

    In case the service providers fail to enter into new interconnection agreement, the MSO or the linked LCO, will have to inform the consumer the disconnection of signals 15 days prior to the date of expiry of the agreement.

     

    TRAI said it had been observed from the Interconnection details submitted by the service providers that signals of TV channels are being provided by several broadcasters to MSOs and MSOs to LCOs even in the absence of interconnection agreement in writing.

     

    This continuation of retransmission of signal without valid interconnection agreement on the pretext of continued mutual negotiations often results into disputes and sometimes abrupt disconnection, which affects the quality of service to the consumers.

     

    Another area of concern brought to the notice of the Authority was regarding the effective date of applicability of new agreements: that is, whether the new agreement shall apply from the date of entering into the new agreement or it shall apply from the date of expiry of earlier agreement. It not only results in complaints but also disputes between service providers.

     

    Therefore, TRAI has reviewed the present regulations, which provide scope for mutual negotiations even after expiry of the agreement has been reviewed so that no signal can be provided after expiry of the interconnection agreement between the service providers.

  • Reliance Jio Media on track for Phase 1 of cable TV rollout between Jan – Mar 2016

    Reliance Jio Media on track for Phase 1 of cable TV rollout between Jan – Mar 2016

    MUMBAI: Reliance Jio Media, which acquired a pan-India multi system operator (MSO) licence from the Ministry of Information & Broadcasting (MIB) in June this year, is on track for the roll out of its cable television business across digital addressable system (DAS) in Phase 3 areas.

     

    Calling a recent report published as “misleading,” which stated that the company is going to  focus more on 4G and broadband,  as compared to digital television and distribution, a senior Reliance Jio official tells Indiantelevision.com, “MSO business is an integral part of our services and we are as focussed on it as we were from the very beginning.”

     

    Reliance Jio Media has already shortlisted the cities for the first round of MSO rollout. “We will start with 15 cities initially and eventually will reach out to more than 100 cities over the next three years. The first round of launch will take place anytime between January to March 2016,” the official informs.

     

    The MSO will offer both standard definiion (SD) and high definition (HD – incluing Ultra HD)  services to garner high average revenue per user (ARPU). “We will follow a model, which is sustainable in the long run. Having all the viewing experiences for consumers is an important factor and we won’t compromise with that,” added the official.

     

    “Headends, technological partnerships and other infrastructure deals have already been sealed with a few vendors and we will have everything sorted out before 31 December. We are in conversation with several LCOs for both broadband and cable partnerships. Post Diwali we will have the final round of discussion with LCOs for digital cable business,” said the official.

     

    Reliance Jio CEO K Jayaraman leads the company’s MSO business.

     

    A source from the industry opined, “The team that they’ve got in place has the muscle power to deal with any situation. I don’t think there is any lacklustre attitude towards the MSO business from the conglomerate.”

     

    Another senior official from a technological giant, on condition of anonymity said, “We have been working closely with Reliance Jio creating different products for them. We are actively pursuing our partnerships and have no information of a slow down or postponement of launch of distribution of cable TV.”

  • MIB asks stakeholders for details of DAS public awareness campaigns

    MIB asks stakeholders for details of DAS public awareness campaigns

    NEW DELHI: All broadcasters, multi system operators (MSOs) and cable operators have been asked by the Ministry of Information and Broadcasting (MIB) to send details of the public awareness campaign being carried out by them about the third phase of digital addressable system (DAS) and the need for having a set top box (STB) in every television home.

     

    The stakeholders have been asked by MIB Joint Secretary (Broadcasting) R Jaya to send this information within 15 days along with documentary proof.

     

    Stressing that every TV home has to have an STB, she said it was essential that MSOs and cable operators carry only digital encrypted signals after 31 December this year.

     

    At the outset, she said that since the cut-off date was very near, it was presumed that broadcasters, MSOs and LCOs had already done their bit.

     

    Under Section 44 of the Cable Television Networks (Regulation) Act 1995 and the Rules framed there-under, the centre had notified phased implementation of DAS in the country by the cable operators.

     

    Phases I and ll of cable digitisation had been completed and Phase lll of digitisation, which will cover all the remaining urban areas in the country was scheduled for completion by 31 December this year, while rural areas would be covered in phase lV to be completed by 31 December, 2016.

     

    Jaya said that the public must be aware that they require a STB before the cutoff date and drew attention to the provision under Rule 12 of the Rules, which states, “Every Broadcaster, MSO and LCO shall create public awareness among, and provide information to, the subscribers in the notified areas from a period at least thirty days prior to the date such areas are notified either through advertisements in the print and electronic media or through such other means including leaflets, printing on the reverse of website, the receipts, personal visits, group meetings with subscribers or consumer groups. This should contain the salient features of DAS.”

  • Fewer new MSO applicants held up for lack of security clearance by MHA

    Fewer new MSO applicants held up for lack of security clearance by MHA

    NEW DELHI: Imparting a pace of urgency in view of the approaching deadline for implementation of digital addressable system (DAS), the last three Open House meetings between the Ministry of Information and Broadcasting (MIB) and multi system operators (MSOs) showed greater positivity with most applicants being told their applications had been processed.

     

    This is contrary to the practice a few months earlier when MSOs were told in most meetings that the Ministry of Home Affairs (MHA) had not yet given security clearance to them.

     

    While there were some cases where such clearance is awaited, MSOs like DEN Discovery, DEN Premium, DEN Ambey, Den Enjoy, Mahvir DEN, GTPL and Good Media News were given other reasons for delay but were generally given an optimistic message.

     

    The MHA had some months earlier streamlined and relaxed national security clearance norms for certain sensitive sectors including the media sector.

     

    The Parliament had been informed by the Home Ministry that its new policy guidelines included doing away with national security clearance for MSOs in the media sector. 

     

    The guidelines are aimed at bringing about a healthy balance between meeting the imperatives of national security and facilitating the ease of doing business and promoting investment in the country.

     

    However MIB sources told Indiantelevision.com that the Ministry had still not received any note from the Home Ministry in this regard.

     

    Sources also said that a majority of the 203 MSOs who had been given provisional licences by 20 October are awaiting security clearance from the Home Ministry. 
  • Number of MSOs for DAS areas touches 429 with 200 provisional licensees

    Number of MSOs for DAS areas touches 429 with 200 provisional licensees

    NEW DELHI: Even as two months remain for digital addressable system (DAS) Phase III deadline of 31 December, 2015, a total of 429 multi system operators (MSOs) had obtained licences for DAS as on 21 October.

     

    Of these, 226 MSOs have 10-year licences, whereas 203 have obtained provisional licences since the Information and Broadcasting (I&B) Ministry has still not received any formal communication of the Home Ministry’s decision to do away with security clearances for MSOs.

     

    According to the last list issued on 30 September, the Ministry had registered a total of 400 MSOs including 173, which were provisional.

     

    Thus while there has been no increase in the number of permanent (10-year) licence holders, the number of provisional MSOs has gone up to 203.

     

    According to the list put on the I&B Ministry’s website, Kal Cables and Digi Cable Network Pvt Ltd of Mumbai remain on the cancellation list.

     

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

     

    The only new entrant in the permanent licence holder is Nilgiri Cable TV Private Ltd for the third and fourth phase of DAS in Tamil Nadu.

  • TDSAT permits Star to examine MSO’s headend before signing agreement

    TDSAT permits Star to examine MSO’s headend before signing agreement

    NEW DELHI: Noting that it was a ‘fledgling multi-system operator,’ the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has said that ‘Star India cannot have any objection to give its signals on RIO terms to Akash Tori Infocom Services Pvt. Ltd.

     

    However, accepting the plea by Star India to inspect the MSO’s headend, TDSAT chairman Aftab Alam and members Kuldip Singh and B B Srivastava asked the MSO to inform the broadcaster about the date when it can examine the headend. 

     

    The MSO had filed a petition seeking Star’s signals in digital mode on RIO terms. 

     

    Star counsel Arjun Natarajan accepted the notice on behalf of his client.

     

    Adjourning the matter for 4 November, the Tribunal asked Natarajan to inform it about the result of the headend inspection.