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Tag: MSO

  • STB shortage, lack of awareness continue to plague DAS implementation, DD & AIR to help in publicity

    STB shortage, lack of awareness continue to plague DAS implementation, DD & AIR to help in publicity

    NEW DELHI: With the third phase of digital addressable system (DAS) expected to be implemented by 1 January 2016, the single biggest challenge facing the government and stakeholders is the dire shortage of set top boxes (STBs).

     

    A senior Information and Broadcasting Ministry source told Indiantelevision.com that the main hurdle was that very few manufacturers were coming forward with proposals despite the government support to the Make in India programme.

     

    This issue and the problem of adequate publicity about the benefits of DAS perplexed those who attended the tenth Task Force meeting on DAS held on 17 August under the chairmanship of Additional Secretary J S Mathur.

     

    Meanwhile, Joint Secretary (Broadcasting) R Jaya said Regional Units were being established at twelve places and these would start operating from September to monitor and report the progress of digitisation in each State/UT. 

     

    While Consumer Electronics and Appliances Manufacturers Association (CEAMA) complained that no major orders were being placed with it by multi system operators (MSOs). A representative of the CEAMA said, “This is the time to place orders if they want the STBs, which are required to be delivered before the cut-off date.”

     

    A Telecom Regulatory Authority of India (TRAI) representative said under the regulations, MSOs and LCOs have to offer STBs to consumers on rent, installment, outright purchase or any other scheme according to the standard tariff package prescribed by it. Any complaint on this issue should be addressed to TRAI. 

     

    A representative of the Uttarakhand Government said adequate number of STBs are not provided by MSOs in the State, resulting in slow progress of digitisation. 

     

    A representative of Maharashtra Cable Operators’ Federation (MCOF) said there are 5000 head-end owners, which are MSOs or LMOs. But many of them had not applied for registration. He apprehended that it may result in some dark areas once the deadline is over. 

     

    Jaya said MSO registrations were still on and any one can apply. She said 349 MSO registrations had been granted till mid-August including 126 provisional ones. Referring to apprehension of dark areas, she said these will be identified through State nodal officers and broadcasters. 

    Meanwhile, there was a lengthy discussion about publicity about DAS. ASSOCHAM with some broadcasters had planned a Chetna Yatra from next month covering 450 cities/towns/villages in the country. 

    Representatives of direct-to-home (DTH) platforms said they were ready to give free publicity regarding cable TV digitisation if asked. 

     

    A representative of the News Broadcasters Association (NBA) said there are financial constraints facing broadcasters. However, they will carry advertisement spots and would be preparing these.

     

    The TRAI representative said it had placed an advertisement on mandatory digitisation on its website. It had also planned to come out with a quarter-page print advertisement in newspapers very soon. 

     

    TRAI is holding five consumer outreach programmes per quarter in each region. From its perspective, awareness about digitisation is happening. The TRAI representative said the advertisement could be shared with MSOs for publicity by them. 

     

    All India Radio (AIR) and Doordarshan (DD) have been carrying advertisements on mandatory digitisation for several months. It was suggested that Doordarshan may also give video advertisements on cable digitisation in local languages on their popular regional channels in prime time. The Doordarshan representative agreed to get this done. 

     

    A representative of the Gujarat MSO GTPL said they have been carrying out a publicity campaign through scrolls on their local channels and public gatherings. 

     

    A representative of Indusind-Media said a team of about 300 persons had been deployed on this job to carry the campaign.

     

    On the other hand, a representative of an LCO association from West Bengal said they were unaware of the consumer outreach programme arranged by TRAI. It was suggested that members should regularly check the websites of MIB and TRAI for all such information regarding cable digitisation. 

     

    According to Jaya, four regional workshops were held by the Ministry with the State nodal officers of some of the States/UTs to sensitise them about their role and responsibilities in implementing cable TV digitisation in their States. Registered MSOs permitted to operate in these States were also invited in these workshops. 

     

    She said it was heartening to know from these workshops that State Governments are also gearing up to meet the challenge of cable digitisation in their States. The MSOs participating in these workshops said they were carrying publicity awareness campaign on digitisation on their local channels and through pamphlets being distributed by them. 

     

    She added that seven more regional workshops have been planned by the Ministry in 45 days at different places. Another workshop has since been held with the nodal officers from the states in the North East and the registered MSOs operating there on 21 August at Shillong.

     

    A representative of an LCO association from Assam said broadcasters were not providing content to them and they were being forced to come to Delhi for filing cases in TDSAT. The TRAI representative said this was a matter of dispute and TDSAT was the only appropriate forum. But for issues related to regulations, the TRAI regional office in Kolkata could be approached. 

     

    On signing of interconnect agreements, the IMCL representative said it was working on delivery through headend in the sky (HITS) platform besides cable. It was now in the final stage of negotiations with broadcasters. The TRAI representative said all MSOs who had not received any response to their requests for interconnect agreements from broadcasters had been asked to inform TRAI by 24 August and a meeting had been slated with broadcasters on 28 August. 

     

    A representative of the Indian Broadcasting Foundation (IBF) said deals are happening and parallel negotiations are taking place.

  • Arasu reports Rs 181.91 crore revenue in 2014-15

    Arasu reports Rs 181.91 crore revenue in 2014-15

    MUMBAI: J. Jayalalithaa owned Tamil Nadu Arasu Cable TV Corporation’s (TACTV) revenues have seen an upward trend after it was revived by the present AIADMK regime. The multi system operator (MSO) has reported revenue of Rs 181.91 crore in 2014-15 from Rs 2 crore it had reported in 2010-2011.

     

    As per the Information Technology Department policy note tabled in the State Assembly, Arasu’s revenue rose by 64.3 per cent between 2011-2012 and 2014-15, in view of growing subscriber base, a PTI report said. The MSO had reported revenue of Rs 64.8 crore in 2011-12. 

     

    The increase in revenue, as per the report, was due to increasing subscriber base and tapping revenues from private local channels.

    While the MSO has so far not been granted the licence to operate in the DAS areas, its cable subscribers have grown manifold. Arasu, which in September 2011 had 4.94 lakh subscribers in Tamil Nadu, currently serves 70.52 lakh subscribers through 26,246 local cable operators (LCOs). 

     

    Additionally, realizing the need for having a broadband base in order to grow the average revenue per user (ARPU), Arasu entered into a memorandum of understanding (MoU) with RailTel Corporation for providing broadband and internet services through LCOs. 

     

    As per the PTI report, the Department of Telecommunications under the Ministry of Communication and Information Technology has granted the Unified License—ISP Category ‘B’ authorisation for offering the broadband and internet services.

     

    As a pilot project, around 1000 internet connections, through 35 LCOs have been provided and the service quality is being closely monitored. The government is taking steps to popularise internet service through LCOs in order to increase connections in the state.

  • Security clearance axed, provisional MSOs to get 10-year licences in due course

    Security clearance axed, provisional MSOs to get 10-year licences in due course

    NEW DELHI: The Home Ministry has officially informed the Information and Broadcasting (I&B) Ministry that it will not insist on security clearance for multi system operators (MSOs) for digital addressable television for cable television.

     

    Confirming the same to Indiantelevision.com, a senior I&B Ministry source also informed that the practice of giving provisional licences to some MSOs will continue.

     

    A new list on 20 August said that a total of 372 MSOs had been issued licences, of which 146 were provisional licences. The rest 226 had ten-year licences.

     

    Explaining the rationale behind this, the source said that the aim was to check the veracity of MSOs, which had been given provisional licence.

     

    The source added that every one of these MSOs would get ten-year licences like the others if nothing adverse was found against them.

  • Hathway gets RBI approval for upping FDI limit to 74%

    Hathway gets RBI approval for upping FDI limit to 74%

    MUMBAI: After receiving approval from the Foreign Investment Promotion Board (FIPB) for increasing the foreign investment limit from the current 49 per cent to 74 per cent, multi system operator (MSO) Hathway Cable and Datacom has received a nod from the Reserve Bank of India (RBI) as well.  

     

    The RBI granted its approval to the MSO for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, through primary market and stock exchanges up to 74 per cent of the paid up capital of the company under Portfolio Investment Scheme post approval of the same by FIPB.

     

    “This would be subject to the Regulation 5(2) of FEMA Notification No.20/2000 RB dated May 03, 2000 (as amended from time to time) issued under FEMA, 1999,” the notice said.

     

    RBI has also advised all custodian banks that since the foreign share holding by FIIs/RFPIs in Hathway have gone below the revised threshold limit stipulated under the extant FDI policy, the restrictions placed on the purchase of shares vide its letter dated 20 February, 2015 are withdrawn with immediate effect and hence equity shares of Hathway can now be purchased through primary market and stock exchanges.

  • MSOs facing problems in signing interconnect deals with b’casters to inform TRAI by 24 August

    MSOs facing problems in signing interconnect deals with b’casters to inform TRAI by 24 August

    NEW DELHI: With just over four months left for implementation of Phase III of the Digital Addressable System (DAS) for cable operators, the Telecom Regulatory Authority of India (TRAI) has asked multi-system operators and broadcasters to expedite signing of inter-connect agreements.

     

    Apart from pointing out that it had placed on its website a standardized form for this, TRAI stressed that the rules provide that an agreement has to be signed by registered MSOs with broadcasters within 60 days of receiving a request.  

     

    TRAI said it had notified a comprehensive regulatory framework encompassing interconnection, quality of service, consumer complaint redressal regulation and tariff orders for implementation of   DAS.

     

    The MSOs 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 subscribers.

     

    The Regulatory framework for DAS provides that every broadcaster shall provide the signals of TV channels to an 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.

     

    The Authority said that in case the request for providing signals of TV channels is not agreed to, the reasons for such refusal to provide signals will be conveyed to the person making a request within 60 days from the date of request. 

     

    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 agreements even after the passage of 60 days from the date of making request and also not received the reasons for not entering into interconnection agreement from the broadcaster may write to TRAI by 24 August through e-mail at das@trai.gov.in for initiating action in such cases according to the TRAI Act.

     

    As the cutoff date for Phase-III areas – 31 December – is fast approaching, the registered MSOs were advised by TRAI 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 Authority said it had taken a number of initiatives to facilitate timely signing of interconnection agreements between broadcasters and MSOs. The Authority and broadcasters have uploaded standardised application form and contact details on their respective websites. For the convenience of the stakeholders, the details have also been uploaded on TRAI website.

  • TDSAT directs Hathway to pay Rs 14.56 crore to MSM Media Distribution

    TDSAT directs Hathway to pay Rs 14.56 crore to MSM Media Distribution

    MUMBAI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed multi system operator (MSO) Hathway Cable and Datacom to pay Rs 14.56 crore towards subscription dues to MSM Media Distribution (MSMMD) till the expiry of the agreement i.e. 31 October, 2015 in three installments.

     

    It can be noted that both Hathway and MSM have two separate deals for phase I and phase II cities. While the agreement for the phase I cities is valid till 31 October 2015, the agreement for phase II ended on 31 March, 2015. 

     

    “Hathway hasn’t paid us for the past six-seven months in phase I areas and has not renewed the deals in phase II cities. So while we have stopped signals to the platform in phase II cities, we approached the Tribunal to recover the money for phase I, where the MSO had signed a fixed fee contract with us and is now trying to come out of it,” said MSMMD executive vice president sales and marketing Makarand Palekar.

     

    The TDSAT, in its order, has said that Hathway has to honour the commitment under the memorandum of understanding (MOU) for the entire term for DAS phase I areas till its expiry i.e. up to 31 October, 2015. Accordingly, Hathway has to pay the subscription fees in accordance with the MOU. 

     

    “We will have to keep the service on in the phase I cities, considering the agreement is till 31 October, but we could not have been more patient in terms of recovering the money, which the MSO hasn’t paid for the past six-seven months,” added Palekar. 

     

    According to Palekar, close to five million homes across the country will not be able to watch MSM channels with the network being pulled off from Hathway. “There are close to 3000 MSOs and we have a cordial relation with all. The subscribers will suffer because of the MSO not signing the agreement,” concluded Palekar. 

  • Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    BENGALURU: Subhash Chandra led Essel Group’s Siti Cable Network Limited (Siti Cable) reported operating revenue (total income from operations, or TIO) of Rs 228.09 crore in the quarter ended 30 June, 2015 (Q1-2016), which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

    (2) All numbers in this report are consolidated unless stated otherwise.

     

    Both television and broadband subscription revenue registered YoY growth, broadband reported 63.6 per cent growth at Rs 9 crore in Q1-2016 as compared to the Rs 5.5 crore in the corresponding year ago quarter and was 13.9 per cent more than the Rs 7.9 crore in the immediate trailing quarter.

     

    Subscription revenue in Q1-2016 at Rs 129 crore was 9.1 per cent higher than the Rs 118.2 crore in Q1-2015, but declined 9.4 per cent as compared to the Rs 142.4 crore in Q4-2015. Activation revenue at Rs 10.9 crore in the current quarter was 25.3 per cent lower than the Rs 14.6 crore in Q1-2015 and was 48.3 per cent lower than the Rs 21.1 crore in Q4-2015. Siti Cable says that effective realisation per subscriber remained flat during the current period.

     

    Siti Cable’s cable universe increased by 200,000 digital subscribers to 107 lakh in Q1-2016 from 105 lakh in Q4-2015. Digital subscriber base increased in the current quarter to 55.8 lakh from 53.8 lakh in Q4-2015. Net broadband additions in the current quarter were 4400 – the count went up to 74,500 from 70,100 in the previous quarter (Q4-2015).

     

    Let us look at the other numbers reported by Siti Cable

     

    Siti Cable reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore in Q1-2015 and a loss of Rs 34.13 crore in Q4-2015.

     

    EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

     

    Total Expenditure in Q1-2016 increased 12 per cent to Rs 228.21 crore (100.1 per cent of TIO) as compared to the Rs 203.76 crore (97.5 per cent of TIO) in Q1-2015, but was 18.6 per cent lower than the Rs 280.49 crore (109.6 per cent of TIO) in the previous quarter.

     

    Pay channel costs in the current quarter increased 8.1 per cent to Rs 135.70 crore as compared to the Rs 125.55 crore in Q1-2015 but was 13.6 per cent lower than the Rs 156.98 crore in Q4-2015.

     

    Siti Cable’s Finance costs in Q1-2016 increased 11.6 per cent to Rs 33.90 crore as compared to the Rs 30.37 crore in Q1-2015 and were 9.2 per cent more than the Rs 31.05 crore in Q4-2015.

     

    Other expenses increased 13.9 per cent in the current quarter to Rs 43.32 crore as compared to the Rs 38.05 crore in Q1-2015 but were 40.3 per cent lower than the Rs 72.53 crore in Q4-2015.

     

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and Margin expansion by 501 bps QoQ,” said Siti Cable executive director and CEO VD Wadhwa.

     

    “We managed to grow our Broadband revenues by 13.4 per cent QoQ and are on track to expand our Broadband operations in new cities. Delays in content availability held back STB seeding, however we are well poised to expand aggressively this quarter. During the quarter we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” added Wadhwa.

  • Siti Cable seeks shareholders’ nod for raising $100 million

    Siti Cable seeks shareholders’ nod for raising $100 million

    MUMBAI: Multi system operator (MSO) Siti Cable is looking at raising up to $100 million through equity shares via public issue, private placement or qualified institutional placement (QIPs) route. The MSO for the same has sought shareholders approval. 

     

    Siti Cable will utilise the funds to meet expenditure to expand its business in phase III and IV of digitisation, ongoing acquisition of MSOs, LCOs and primary points, value added services (VAS), working capital requirements as well as to reduce debts. 

     

    The company sought shareholders’ approval to raise funds through one or more placements of equity shares in domestic and/or one or more international markets whether by way of private placement or otherwise, in one or more tranches, so that the total amount raised shall not exceed rupee equivalent of $100 million.

     

    The members had approved raising of funds of up to $100 million by passing a special resolution through postal ballot in October 2014, against which the MSO has already raised Rs 221.11 crore.  

     

    “Since the validity of the shareholders’ approval as per Regulation 88(1) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (‘SEBI Regulations’), is 12 months, it is proposed to seek fresh approval of the shareholders in this regard,” the company said.

  • TDSAT bars Rajasthan MSOs from giving signals to 11 LCOs defaulting in Siti Cable payment

    TDSAT bars Rajasthan MSOs from giving signals to 11 LCOs defaulting in Siti Cable payment

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) has directed that no multi system operator (MSOs) besides Siti Cable Network will be permitted to give signals to eleven local cable operators (LCOs) who were earlier members of the Rajasthan Cable Operators Foundation.

     

    While these eleven LCOs owe a sum of Rs 17.49 lakh to Siti Cable Network, the Foundation says that the LCOs are no longer its members.

     

    Earlier on 5 August, the Foundation said that these LCOs were its members but had failed to make payments to Siti Cable Network.

     

    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava said the cable operators represented by the Foundation including the 11 allegedly in default had been receiving uninterrupted supply of signals from Siti Cable in terms of the interim order passed by the Tribunal under which each of the LCOs was obliged to pay Rs 75 per subscriber per month, excluding of taxes. 

     

    As it is alleged that the 11 cable operators did not make payments in terms of the order, the Tribunal said, “It would be fair and reasonable to direct that they may not migrate to any other MSO without clearing Siti Cable’s dues in terms of the Tribunal’s orders or satisfactorily refute the allegation that they are in default.”

     

    Listing the matter for 26 August, the Tribunal therefore made it clear that until further orders, no other MSO apart from Siti Cable Network will supply any signals to the concerned 11 LCOs.

  • Home Ministry plans to scrap security clearance norms for MSOs

    Home Ministry plans to scrap security clearance norms for MSOs

    NEW DELHI: The Home Ministry has recently streamlined and relaxed national security clearance norms for certain sensitive sectors including the media sector, the Lok Sabha was told today.

     

    The Minister of State for Home Haribhai Parathibhai Chaudhary said the new policy guidelines include doing away with national security clearance for multi system operators (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.

     

    It may be recalled that while several MSOs had been waiting endlessly for security clearances to ensure they get licences for digital addressable system (DAS) from the Government, the Home Ministry had, earlier this year, indicated requirement of fresh security clearance before renewal of permission can be considered.

     

    Then in June, the Ministry of Information and Broadcasting had asked MSO applicants to file their applications in an affidavit, wherein they would give assurance that they have no criminal cases pending against them, and that they would shut down if they were refused security clearance. However, it now seems that these steps would be done away with completely with the Home Ministry changing its stance on security clearance for MSOs.

     

    Meanwhile in the Rajya Sabha, Minister of State for Information and Broadcasting Rajyavardhan Rathore said security clearance is a pre-requisite for grant of permission to TV channels.

     

    Hence, the Ministry has not permitted any private satellite TV channel without security clearance by the Home Ministry. In cases where security clearance is denied or withdrawn, action is taken towards cancellation of permission under the Guidelines.