Tag: MSO

  • Pay channel’s a la carte rate to not exceed two times its RIO rate: TRAI

    Pay channel’s a la carte rate to not exceed two times its RIO rate: TRAI

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today said that the a la carte rate of a pay channel forming part of a bouquet offered by any digital platform should not exceed two times its RIO order rate offered by the broadcaster for addressable systems.

     

    TRAI also said that the sum of a la carte rates of all channels in the bouquet should not exceed three times the bouquet rate. 

     

    This applies to all multi-system operators (MSOs), direct to home (DTH) operators, internet protocol service (ISP) providers and Headend in the Sky (HITS) operators providing broadcasting services or cable service to its subscribers using a digital addressable system (DAS) and offers pay channels or pay and free-to-air (FTA) channels as part of a bouquet.

     

    These provisions are contained in the draft Telecommunication (Broadcasting and Cable) Services (fourth) (Addressable Systems) Tariff (Amendment order), 2015 that TRAI has prepared consequent to an order of the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) of 13 July.

     

    TRAI has also given the definitions of RIO and RIO rates in the draft, to which comments can be filed by 14 October with counter-comments if any, by 21 October.

     

    TRAI defines “RIO” as Reference Interconnect Offer published by a service provider specifying terms and conditions on which other service providers may seek interconnection from the service provider making the offer. On the other hand, “RIO rate” is the rate specified by the service provider in its Reference Interconnect Offer.

     

    The a-la-carte rates of all the channels offered by the service provider should be same for all the bouquet of channels formed by the service provider.

     

    The matter had gone to TDSAT as some platforms had objected to the “twin conditions” that were prescribed at retail level pricing of TV broadcasting services in order to link the a-la carte rates of channels to the bouquet rates in the Tariff order of 20 September, 2013.

     

    TDSAT, while disposing off the appeal vide its order of 13 July, stated that the Authority will consider the concerns of the appellants and take a final decision on the matter within four months from the date of the order.

  • TDSAT asks two Amritsar LCOs to clear MSO dues before proceeding with case

    TDSAT asks two Amritsar LCOs to clear MSO dues before proceeding with case

    NEW DELHI: Two local cable operators (LCOs) of Punjab, who are members of the Amritsar Cable TV Operators Sangharsh Committee, have been asked by the Telecon Disputes Settlement and Arbitration Tribunal (TDSAT) to settle their dues with multi system operator (MSO) Fastway Transmission Pvt. Ltd., Amritsar before the case can proceed further.

     

    As the two – Bhatti Cable and Sajjan Cable – are unable to clear all the dues in one payment, the Tribunal accepted their plea to pay in two instalments. Both have already cleared all dues till February this year. Bhatti Cable, admittedly, has 953 functional set-top-boxes (STBs), whereas Sajjan Cable has 622 STBs.

     

    The dues against Bhatti Cable upto 30 September amount to Rs 6,66,700 and against Sajjan Cable is Rs 4,38,500. 

     

    Bhatti Cable is willing to pay to the respondent the sum of Rs 4,30,000 (that would include the subscription fee for the month of September 2015) this month. On the other hand, Sajjan Cable will pay the sum of Rs 2,30,000 (including the subscription fee for September 2015). 

     

    If the LCOs fail to clear off the balance dues by 30 October, it would be open to Fastway to discontinue the supply of its signals to them, the Tribunal said.

     

    Apart from payment of the arrears, both the local cable operators will also pay the monthly subscription fee for October 2015.

     

    In case any of the STBs with the subscribers of the two cable operators is not operational in the meanwhile, they will give intimation to the Fastway and shall also return the non-operational STBs.

  • Change in investor mindset needed for MSOs to chart growth path

    Change in investor mindset needed for MSOs to chart growth path

    GOA: While the direct-to-home (DTH) sector has managed to attract investment from private investors because of its growth, the cable industry will be able to do so only if multi-system operators (MSOs) add broadband to their services.

     

    This was the general consensus of a session on ‘Investing in Digital assets – Gems and long bets’ at the ongoing Indian Digital Operators Summit (IDOS) 2015 organised by Indiantelevision.com and Media Partners Asia.

     

    HSBC Securities and Capital Markets (India) Pvt Ltd director of analyst telecoms, media and Internet Rajiv Sharma said that DTH had gained as it has shown growth in terms of average revenue per user (ARPU), and innovation.

     

    While the stocks of cable industry initially went down, a reading of the figures of both cable and DTH showed that there was some recovery towards the end of the year. “The MSOs have not matched up to expectations, partly because of MSO-local cable operator problems,” Sharma said.

     

    In the session moderated by Castle Media ED Vynsley Fernandes, Sharma said that broadband can be the catalyst, which can bring in growth but only one or two MSOs have entered the broadband space.

     

    “The scale of growth is directly linked to attracting investments. If LCOs (local cable operators) can show that they own subscribers, they will get investment,” Sharma said. However, he was quick to add that broadband infrastructure and broadband compliant STBs (set top boxes) would help.

     

    Asked about collaborations, Sharma said that the media can learn a lot from telecom where networking and collaborations led to the government thinking in terms of letting them sell or share spectrum. “Telecoms focus on revenues to share, while the cable industry wants finance for set top boxes,” he said.

     

    Replying to a question about the slow growth of broadband in the country, he said, “Anything that is wireline will grow slowly whereas wireless will grow much faster. The consumer is willing to pay but it is for the government to facilitate this.”

     

    Sharma also added that the quality of management, profitability and network will attract investments. He regretted that the cable industry had failed to learn any lessons from the first two phases of the Digital Addressable Systems (DAS).

     

    Concurring with Sharma, MPA executive director Vivek Couto added, “Investors reward growth and DTH did exactly that.” However, he was of the opinion that the last mile operator (LMO) will consolidate under the Headend In The Sky (HITS) platform and that may change the situation. “The results will begin to show in the three to four years,” he said.

     

    Referring to NXT Digital, which was prepared to offer funding, he said that LMOs may now come forward.

     

    Couto added that while organized MSOs were doing well, investment in broadband in the short term would bring in benefits in the long term.

     

    In reply to a question, he said that India was the only country where content generation was growing. “But in all this, the cable industry was feeling lost,” he opined.

     

    Indiantelevision.com founder CEO and editor-in-chief Anil Wanvari had the last word when he said that the mindset of investors had to change as few MSOs in India could today afford the kind of growth their counterparts had shown in foreign countries.

     

    In another session, Maharashtra Cable Operators Foundation president Arvind Prabhoo and Sagar E-Technologies executive director Sudhish Kumar agreed that the cable industry had to organise itself better if it was to attract investments and grow in the digital era.

     

    Prabhoo said he had succeeded to an extent in this by getting the LCOs to be seen as the last mile operator (LMO). In an example of how the LMOs can grow, he said, “30 LMOs in Nagpur have joined together to form an MSME and were not prepared to invest in other LMOs,” he said.

     

    He added that if investors put in money to help create model services, there will be a major change in the next six months or so. “If cable operators offer other services through their STBs, there will be a churn in the industry,” he said.

     

    Kumar, who has a headend in Bangalore, lamented that finance was a major problem. “One STB cost around Rs 1500, but some of the larger MSOs sell boxes for around Rs 1000 and this forced others to sell at lower rates, which in turn results in a loss,” he said.

     

    Emphasising on the fact that MSOs were not concentrating on marketing, he said that if they did, it would help in consolidating the industry.

     

    Citing his own example, he said that he had not lost a single LMO despite having had ups and downs in his company because of the faith reposed in the company.

  • TDSAT asks Bangalore MSO not to cut signals of local association’s LCO members

    TDSAT asks Bangalore MSO not to cut signals of local association’s LCO members

    NEW DELHI: All Digital Network Ltd of Gandhi Nagar in Bangalore has been directed by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) to main status quo and not to disconnect the signals to any member of the All Digital Cable TV Operations Welfare Association of Bangalore.

     

    The Tribunal said that in case there is any disconnection of the supply of signals by the respondent to any of the cable operators in this petition, All Digital Network will restore the connection till any order is passed.

     

    TDSAT chairman Aftab Alam and members Kuldip Singh and B B Srivastava listed the matter for 22 September.

     

    All Digital Network counsel Sharath Sampath has been given time to get proper instructions in the matter.

  • TDSAT asks Star India to not disconnect signals to Digi Guntur Network

    TDSAT asks Star India to not disconnect signals to Digi Guntur Network

    NEW DELHI: Star India has been directed by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) to not disconection the signals to Digi Guntur Network India Ltd provided the petitoner pays Rs 24.10 lakh by 30 September. 
     
     
    Admitting the petition by the MSO challenging the disconnection notice, the Tribunal listed the matter for 28 October.
     
     
    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava said the payment will be without prejudice to the rights and contentions of the parties and the parties will abide by the final decision in this petition.
     
     
    Star India counsel Rajshekhar Rao accepted notice and was directed to file the reply within three weeks. Rejoinder, if any, may be filed within two weeks from the date of receipt of a copy of the reply.
  • MSOs Sun & Prabhu Cable resolve dispute on allegations of piracy

    MSOs Sun & Prabhu Cable resolve dispute on allegations of piracy

    NEW DELHI: Sun Distribution Services Pvt Ltd has informed the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) that it will not take any steps against Prabhu Cable Network on allegations of piracy.

     

    Both multi system operators (MSOs) also informed the Tribunal that they had agreed to treat the provisional interconnect agreement agreed into at the instance of the Tribunal as a final agreement.

     

    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava accordingly treated the petition by Prabhu Cable Network as withdrawn.

     

    The Tribunal by orders of 6 July and 4 August had directed Sun Distribution to enter into the provisional interconnect agreement with the petitioner and to supply its signals to it until final disposal of the matter.

     

    During the pendency of the matter, the parties have come to terms and Sun said it was willing to treat the provisional interconnect agreement as the final agreement.

  • DAS: TRAI seeks details of disputed cases pending in Bombay HC from MSOs & LCOs

    DAS: TRAI seeks details of disputed cases pending in Bombay HC from MSOs & LCOs

    NEW DELHI: All local cable operators (LCOs) and multi system operators (MSOs) who have any pending problems relating to inter connect agreements for Digital Addressable System (DAS) have been asked to inform the Telecom Regulatory Authority of India (TRAI).

     

    In a proforma issued today, TRAI asked LCOs and MSOs in the matters pending before the Bombay High Court to give details of the problems they are facing and for which they want the intervention of the Authority.

     

    The directive by TRAI follows an order of the High Court of 1 September that TRAI should resolve such disputes within four weeks.

     

    TRAI made it clear that all MSOs and LCOs should respond by 14 September.

     

    MSOs and LCOs can address their responses to Deputy Advisor (B&CS) G S Kesarvani preferably via e-mail at das@trai.gov.in.

  • Multiple unregistered cable operators: A case of ignorance or mutual offence?

    Multiple unregistered cable operators: A case of ignorance or mutual offence?

    MUMBAI: More than 50 per cent of cable operators in the Pune district are found to be operating without the necessary registration. A special drive conducted by the Pune district entertainment department discovered that 500 out of the 960 cable operators in Pune do not possess postal registration, which is mandatory as per norms set by the Telecom Regulatory Authority of India (TRAI).

     

    “It has come to light that more than half of the existing cable operators are operating without following the TRAI guidelines. The operators were given two months to register themselves with the head post-office. But after regular inspection, it was found that the operators continued to evade registering with the post offices and notices have been issued to these operators. The issue has been pending for the past two years,” an official was quoted as saying by The Indian Express.

     

    Tax evasion can be one of the biggest reason behind this irregularity in registration. “These cable operators extract tax from people and do not deposit the same to the department. With the TRAI rules, we are getting to know about the evasions and the entertainment department has been asked to meet the target and get all the registrations,” added the official.

     

    However, when contacted by Indiantelevision.com, a senior official in the cable fraternity was loathe to accept the quoted number of operators, who were operating without the necessary registration. “What we came to know so far is that the operators of few fringe areas, which merely has a subscriber base of 25 – 50 may not have registered. It’s impossible that the number is so high. Moreover, what we are looking to find out is if those operators were charged entertainment tax. Our sources tell us that these operators have been paying entertainment tax. If that is true, then a pertinent question to ask the authorities is how taxes were charged to illegal operators.”    

     

    For city areas the tax per consumer is Rs 24 while the rural areas pay Rs 15.

     

    According to TRAI guidelines, it is mandatory for cable operators providing services via digital addressable systems (DAS) to register with the head post office before offering services. Cable operators are also required to enter into inter-connection agreements with multi-system operators (MSOs) whose signal they carry.

     

    While the issue has come to light in Pune as of now, it is a matter of major concern as to how many other cities and districts have a similar problem. Given the vast length and breadth of the country, the task at hand is onerous to say the least.

  • DAS: A mirage that moves farther, the closer one gets to it

    DAS: A mirage that moves farther, the closer one gets to it

    New Delhi/Mumbai: When developed countries like the United States and the United Kingdom decided to adopt digital addressable systems (DAS), they knew there would be major road blocks.

    Not only did these countries decide to complete digitisation by 2017-end, but admitted that both analogue and DAS would have to co-exist for some time until all viewers realised the advantages of digitisation.

    In its effort to beat these bigger countries, India decided it would set out a deadline wherein analogue and DAS would not co-exist.

    The result was a mirage that was shown to most Indians and – as it happens with a mirage – the realisation became more distant as the deadlines approached.

    It was exactly a decade earlier (14 September, 2005) that the Telecom Regulatory Authority of India (TRAI) presented its first report on Digitisation of Cable Television. Five years later, in August 2010 it gave recommendations relating to DAS.

    However, it was only in April 2011 that the Ministry of Information and Broadcasting (MIB) finalised the schedule for digitisation. According to that decision, which was notified in November that year, the entire country was to have adapted to digital addressable cable systems by December 2014. The first phase covering the metros was to be completed by 31 March, 2012, Phase II covering cities with a population more than one million by 31 March, 2013, Phase III covering all urban areas (Municipal Corporations/Municipalities) by 30 September, 2014 and Phase IV covering the rest of India by 31 December, 2014.

    Since then, the deadlines have been pushed at least twice. The first was when Phase I was delayed by six months, whereas the second was when the current Government decided that the Phase III deadline would be extended to December 2015 and Phase IV to December 2016.

    And clearly at a time like this, it would be apt to quote these popular lines from Robert Frost’s poem made famous by the country’s first Prime Minister Jawaharlal Nehru – ‘The woods are lovely, dark, and deep, But I have promises to keep, And miles to go before I sleep.’

    Indeed there are miles to go even as Phase I in the metros claimed to be major success. But it is well known that DAS continued to be barred by a stay order of the Madras High Court, and there are large pockets in the other three metros (Mumbai, Delhi & Kolkata) where analogue TV continues to thrive. 

    Phase II also suffered in that many of the cities are still not digitised and this is evidenced by the large number of cases pending before the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT).

    Keeping in mind ground level realities, the government initially contemplated merging the final two phases, but realised that this might lead to major embarrassment. Therefore, it was decided by the Narendra Modi led government to implement Phase III by the end of 2015 and the rest of the country in Phase IV by the end of 2016. The third phase includes 38.79 million television households spread across 630 districts and 7,709 urban areas.

    In a recent conversation with Indiantelevision.com, MIB additional secretary J S Mathur, who heads the Task Force for the final two phases, ruled out any possibility of extension of deadline. He said, “There is no reason for any extension of dates for completion of phase III. Work is proceeding as per schedule.”  

    However as the saying goes, there are many a slips between the cup and the lip. So even as the first deadline is barely four months away, there are many hurdles in the way that need to be crossed.

    Apart from several legal issues, the last Task Force itself laid bare many of these hurdles.

    SHORTAGE OF MSOs

    Although the Home Ministry has in principle decided to do away with security clearance for multi system operators (MSOs), the fact is that India still has not even touched the figure of 375 in the number of MSOs. As per the last report dated 20 August,2015, while 226 MSOs have 10-year licences, 146 have only provisional licences. It does not need a bright mind to figure out that the number stands out as a joke when one considers the number of television households in the country.

    SET TOP BOXES

    The country still does not have adequate STBs and it is claimed by many local cable operators (LCOs) that the STBs being supplied are those that are meant for direct-to-home (DTH) transmission and not cable and therefore create problems. The other option is to take cheap China-made STBs.

    Despite the Make in India campaign, very few manufacturers have come forward with proposals for reliable STBs. 

    The Consumer Electronics and Appliances Manufacturers Association (CEAMA) complained at the Task Force meeting that no major orders were being placed with it by MSOs. However, a representative of the CEAMA said, “There is little time to place orders if they want the STBs, which are required to be delivered before the cut-off date.”

    The FICCI annual survey of manufacturing shows that there has actually been a decline in the manufacture of electronic goods, despite the Make in India impetus. The manufacture of electronics – presuming these include broadcast equipment and STBs – and electrical came down from 75 per cent in the last quarter of 2013-14 to 70 per cent in the same period of 2014-15.

    LACK OF AWARENESS

    Clearly, this is a grey area, since many people in the country are not aware of the advantages of DAS. The last Task Force meeting stressed on the need to push up awareness through advertisements, workshops, and interactive sessions. There was even mention of a Chetna Yatra.  

    There is lack of communication even between the regulator TRAI and the stakeholders. A Task Force member from Assam said, “The regulatory bodies need to speed up their action. TRAI is supposed to launch its regional operations. There is no clear idea when that will happen. The system here in Assam is not aware of various rules and regulations and the operators do not have the affording power to take the legal battle to Delhi so they often succumb to injustice.”   

    INTER-CONNECT AGREEMENTS

    TRAI had recently asked all broadcasters and MSOs to make the Authority aware of any problems they were facing. However! there were very few complaints, because in most cases the matters are pending before TDSAT or courts of law.

    The interconnect agreement between the stakeholders of the ecosystem is pending even in DAS phase I and phase II areas. “People are not ready to spend in head-ends as there is no clear revenue model. There are distributors who have their favorite MSOs and there is a discrimination of revenue flow on the basis of that favouritism,” said an LCO. He further added “We want a transparent revenue model, which will only come after signing of the interconnect agreement.”

    DAS TARIFF

    In an order on 28 April subsequently upheld by the Supreme Court, TDSAT told TRAI that it “will be well advised to have a fresh look at the various tariff orders in a holistic manner and come out with a comprehensive tariff order in supersession of all the earlier tariff orders.”

    It had also said, “While doing so, it may consider all the agreements and relevant data available with it. It may consider differentiating between content, which is of a monopolistic nature as against that which is shown by other channels also. It may also consider classifying the content into premium and basic tiers.”  The Tribunal had struck down TRAI’s tariff orders.

    COMMERCIAL TARIFF

    TRAI has already begun a fresh exercise in the light of court orders in trying to determine the difference between commercial and private tariff. Following directions by TDSAT earlier this year that there was need for a fresh look at tariff orders, TRAI had issued a new paper on “Tariff issues related to Commercial Subscribers”. In the paper, TRAI asked commercial subscribers whether there is need to define and differentiate between domestic subscribers and commercial subscribers for provision of TV signals and the basis for such classification.

    PROBLEMS BETWEEN MSO AND DISTRIBUTORS

    There is no clear communication between the two very important stakeholders of the DAS ecosystem – the MSOs and distributors. Recently all Multi Screen Media MD channels were taken off Hathway due to internal issues between the two stakeholders. Additionally, Indusind Media and Communication Limited (IMCL) and India Cast are now going through disruption. IMCL informed its subscribers through a message: “Indiacast group is demanding steep increase in monthly subscription, which is commercially unviable, they are pressurizing us by running OSD on colors. IMCL is planning to take the legal recourse. Regret inconvenience caused to you and appreciate your support. Thanks IMCL team”

    MSO – LMO TUSSLES

    The lack of understanding is more prominent when it comes to the MSO and the last mile operators (LMO). The LMOs claim that they are never given their due. The differences are often taken to the regulatory bodies. In one such case, the Bombay High Court issued directions to TRAI to settle the Interconnect Agreement (ICA) issue between LMOs and MSOs within two weeks even as the MSOs believe that there is not enough transparency when it comes to the revenue models.     

    Progress, it is said, cannot be stopped. Similarly, DAS is bound to come in the country. What remains to be seen is whether in its race to catch up with the developed world, it will succeed in a smooth transition or lead to a mess that probably will linger on in courts of law, corridors of bureaucracy, or the one-upmanship of political parties. 

    digitisation

     

  • TDSAT asks Siticable not to disconnect signals of 119 Bhopal LCOs

    TDSAT asks Siticable not to disconnect signals of 119 Bhopal LCOs

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) has directed Siticable Network to not disconnect the supply of signals to 119 cable operators represented by the Bhopal Cable Operator Association.

     

    TDSAT chairman Aftab Alam along with members Kuldip Singh and B B Srivastava gave the order in view of a statement made by the LCO association’s counsel Nittin Bhatia that all due payment had been made.

     

    Bhatia had said the LCOs have made up-to-date payments as per the invoices issued by Siticable and continue to make payment at the rate at which invoices of June 2015 were issued.

     

    Bhatia told the Tribunal that he had the authorisation from 67 cable operators but would get authorisation from the remaining 52 operators within a week.

     

    The Tribunal said the status of any cable operator who is in dues will be determined on the basis of reconciliation of accounts and dues if any would be cleared within two weeks from the ascertainment of the said amount.

     

    The Tribunal also said that the parties would be well advised to resolve their disputes through the process of mediation and directed both sides to appear before the Mediation Centre on 7 September.

     

    The primary grievance of the Association is that the respondent is unilaterally and steadily increasing the monthly subscription fees payable by them. According to Bhatia, the cable operators paid the monthly subscription at the rate of Rs 30 per STB up to March 2013 and thereafter at Rs 60 per STB and now the invoices being raised by the respondent are at the rate of Rs 83.11 paise (excluding taxes) for the package of channels supplied by it.

     

    Siticable counsel Tejveer Singh Bhatia did not have full instructions in the matter but stated