ITV

Tag: MSO

  • Hathway can bundle Star channels: TDSAT

    Hathway can bundle Star channels: TDSAT

    MUMBAI: The Star India and Hathway Cable & Datacom case regarding the former’s various channels has got an interim relief from the Telecom Disputes Settlement Appellate Tribunal (TDSAT). 

     

    As per the order passed on 28 July, TDSAT has asked both Hathway and Star India to enter into cost per subscriber (CPS) deals, starting August. According to this deal, the multi system operator (MSO) will pay Rs 27 per subscriber to the broadcaster for its entire bouquet, which includes entertainment and sports.

     

    It can be noted that earlier Hathway had two separate deals with the broadcaster- one for its sports channels handled separately and the other for the entertainment channels, which was handled by the now dissolved joint venture MediaPro.

     

    The Rs 27 CPS deal is a mid way arrangement proposed by TDSAT as against Hathway’s demand for Rs 22 per subscriber deal and Star’s Rs 31 per subscriber deal.  This means that the MSO has to pay an additional amount for the sports channels now, on a set top box deal, as compared to the RIO deal earlier.

     

    In its interim order, TDSAT has also clarified that Hathway has all the right to bundle the channels the way it feels right. However, the MSO will have to include at least one channel in one/any bouquets that it offers to its subscribers. 

     

    The issue had gained magnitude when Hathway decided to remove Star Sports channels from its base pack to create a separate sports pack and also provide them a-la-carte. The broadcaster objected to this move and took the MSO to the court.

     

    Meanwhile, the court has asked Hathway to clear its dues from April to July this year. This can be calculated at Rs 23 per subscriber for its entertainment channels and RIO for its sports channels together. While Star claims that this amounts to a total of Rs 27 crore, according to Hathway officials, the price is still being worked out. The total amount has to be paid by 30 August. A Hathway official says, “We are disappointed with this particular point as we believe that Rs 23 is much higher than the amount we would have actually paid to Star India as per the agreement between Star and Zee for price sharing after the split of MediaPro.”

     

    A source from Star India says, “Hathway was not paying us because of lack of clarity in the payment deals of sports and entertainment together. With this order, the integrated CPS has been recognised.”

     

    However, both parties agree that this case cannot be taken as a basis for future deals with others. According to officials from both Hathway and Star, the Rs 27 CPS deal cannot be applied to other distribution platform operators.

     

    The case will next be heard on 11 August.

  • ACT reveals new brand identity, claims largest non-telecom ISP in India with 5 lakh subscribers

    ACT reveals new brand identity, claims largest non-telecom ISP in India with 5 lakh subscribers

    BENGALURU: ACT (Atria Convergent Technologies) Broadband claims that it is now the largest non-telecom ISP and the fourth largest ISP in the wired broadband category in India with its subscriber base of five lakh that it crossed last month.  Only public sector telecom companies BSNL and MTNL and the private sector communications giant Airtel are ahead of ACT, the company claims.

     

    ACT is a triple play service provider which claims a subscriber base of 10 lakh of Fibernet (Internet over fiber optics), digital TV and IPTV consumers. The company is headquartered in Bengaluru and its services are spread over towns and cities of Karnataka, Andhra Pradesh and Tamil Nadu.

     

    The company also announced a strategic move in the industry – the launch of its new broadband brand ACT Fibernet.  ACT says that its new brand underscores its continued commitment to offer fastest, most consistent and unparalleled internet experience through the scalable technology of fiber optics. The company announced the fastest speed currently provided by any service provider to the retail segment of 60 mbps.

     

    What is remarkable about ACT’s achievement is that, while the top three players and most of the other ISPs in the country have a pan-India presence, ACT has  achieved its milestones in Karnataka and Andhra Pradesh, with Chennai coming under its footprint only last year.

     

    “Over the next two years, we are confident of doubling the broadband subscriber base to 10 lakh,” said ACT managing director Sunder Raju.

     

    “We have been setting benchmarks in the industry since we began six years ago – when the industry in India considered 256 kpbs as broadband, our benchmark was 512 mbps, our new bench mark is going to be 5 mbps to the industry’s 1 mbps,” says ACT Group CEO Bala Malladi. “Right from the beginning, we have been laying fiber optic wires up to the last mile and hence scaling up to 1 gbps with small changes to the existing infrastructure should not be a problem for us in the future,” added Malladi.

     

    “There is ample scope for us to double our subscriber base within our current catchment area, but we will definitely look at bringing other towns and cities under our footprint,” said Malladi.

     

    The company has announced a high decibel marketing campaign with the tagline ‘Incredibly fast’ across print, outdoor, digital, newspaper inserts, handbills, bus shelters, metro pillars, kites, parking boards etc., over the next three months within their catchment areas. Minimum spend is on Television advertising. Company sources revealed that the campaign costs would be in the range of Rs 10 crore. RK Swamy BBDO is the creative agency and RK Swamy Hansa group handles the media buying duties and Madison PR handles public relations.

     

    The company has received funding from India Value Fund Advisers (IVFA) which would be used for doubling the subscriber base, an industry source reveals to www.indiantelevision.com that ACT had invested around Rs 600 crore in the current phase, of which IVFA funding was between Rs 350 crore to Rs 400 crore.  Last year, the company had raised privately placed non-convertible debenture (NCD) funding of Rs 180 crore.

     

    “ACT would need funding to the extent of around Rs 500 crore for further expansion. This should not be a problem, considering the fact that ACT has crossed Rs 500 crore in revenue a couple of years ago and has seen operating profits in recent years as compared to many other companies that have been bleeding. The company should be reporting profits in the next two or three years,” says an industry source who works for an MSO and who did not want to be named.

     

    Keeping its current consumers in mind, the brand has upgraded its entire subscriber base in Bengaluru to new fast plans at no extra cost starting 24 July. An ACT broadband consumer confirmed that his fair usage policy has been upgraded to 50 GB from the 40 GB that he enjoyed earlier.

  • Cable TV veteran Nagesh Chhabria announces new national MSO; $200 million investment

    Cable TV veteran Nagesh Chhabria announces new national MSO; $200 million investment

    MUMBAI: The Indian cable TV market is about to witness the emergence of a major multisystem operator: one which is backed by industry veteran Nagesh Chhabria. The former Indusind Media CEO and promoter of Bhima Riddhi Digital Services, runs cable TV networks in several towns in Karnataka, Maharashtra,  and some regions of the Goa and Gujarat border, and has been a powerful force in the cable TV distribution space.

     

    Now Chhabria has signed an agreement with Atlas Consolidated LLC – a joint venture between Greenwich Equity Partners and Jagran Infra-Projects led by Sanjiv Mohan Gupta – to create a national MSO with about $200 million being pumped into it..
     

    The Agreement was signed sometime back and the formalities for formation of the new MSO are in process.  “The name of the MSO and its brand will be announced shortly,” informs Chhabria.

     

    Not disclosing the equity share Chhabria will hold in the JV, he says, “We may in the future, based on the decision of the new members of the board, plan to list the company.”

     

    The new entity plans to have a pan India network with a target base of six million subscribers in the next 18 months. And in order to achieve the target, it will take both: the organic and inorganic route. “When I say organic it will be through a fibre rollout and converting a large analog base into a digitised set up with a fixed revenue share in place,” informs Chhabria.

     

    On the inorganic route, the company may apply two models: one, buy out the last mile, so it has complete control and two, look to have a majority stake in an existing network with a ready base. “We have numerous tie-ups in place which will enable us to reach to our targets in the required timelines,” opines Chhabria.

     

    In late May Chhabria acquired a 50 per cent stake in Mumbai-based Bhawani Rajesh Cable & Digitech Services, with the option to take it up to 74 per cent.

     

    The JV will also grow its business through the acquisition route. “The networks we are acquiring will be announced shortly. Ground level assessments are taking place as we speak,” he adds.

     

    The new entity has chalked out a foolproof plan for its successful launch. “We have a 45 cities rollout plan which will be announced shortly,” says he.   

     

    According to a recent Deloitte report, currently there are 80 million non-TV households and Chhabria will at the appropriate time look at tapping  those households as well. “Eventually most of the non TV households in the future will have screens to consume entertainment and data.”

     

    To start operations, initially 25 digital headends across the length and breadth of the country will be set up. “It’s likely that in eight to 12 weeks from now the new company will be in place. There will be a simultaneous rollout in all parts of the country,” he informs.

     

    Greenwich Equity is an emerging markets fund, based in the United States with a focus primarily on infrastructure and media. Jagran has a storied pedigree in the production and entertainment space. Atlas was created as a joint venture between Greenwich Equity and Jagran Infra and is the holding company for all of Greenwich and Jagran’s investments in the cable and media space.

     

    Atlas Consolidated LLC managing director Sanjiv Mohan Gupta says, “We plan to be one of the significant players in the cable TV industry similar to what we did in the other media business.”

     

    Adds Greenwich Equity Group managing director Suhas Kundapoor, “We are excited to be in this space at this time and find that there is tremendous potential in this industry.”

     

    What is interesting to note is that the announcement for the JV has come at a time when the general sentiment towards cable TV industry is negative. Chhabria is quick to respond, “Sentiments are like seasons.  Sometimes sunny, sometimes gloomy. But investments are made on fundamentals. The fundamentals of cable TV industry are in place and have tremendous potential that will be unlocked in the coming future.”  

     

    For him, digitisation has thrown open huge opportunities and set top boxes with the right middleware give opportunities for advertisers and content marketers. “Beside subscriptions, we are geared to deploy numerous Video and Non – Video VAS along with Broadband services,” he adds.

     

    Chhabria and his company currently have a subscriber base of one million which will be brought into the new entity initially. “Cable TV industry in India still requires 140 million boxes to completely digitise the universe. We firmly believe there is tremendous potential in aggregating direct subscribers in phase III and phase IV. We are in talks with numerous players in the market to acquire their networks,” feels Chhabria.

     

     The MSO will not stop at the $200 million investment or at the six million subscriber base. “This is just the beginning. Future plans will be shared at the appropriate juncture,” concludes Chhabria.  

     

  • Arasu Cable to run subscriber awareness campaigns

    Arasu Cable to run subscriber awareness campaigns

    MUMBAI: The state owned multi system operator (MSO) from Tamil Nadu (TN), Arasu Cable, is looking at running awareness campaign for its subscribers. The campaign will urge them to demand printed receipts from their local cable operators (LCOs).

     

    The MSO is doing this in order to ensure that no one is charged more than the monthly fee of Rs 70. The campaign will begin with a poster campaign from Kancheepuram and will be displayed at government buildings, ration shops, government hospitals and schools, regional transport offices and civic body offices.

     

    Subscribers can lodge complaints over the phone on 044 28221233 if the LCO doesn’t provide a receipt or demands for more money. There are more than 65 lakh Arasu cable subscribers in TN. Printing books have already been handed to LCOs for the same.

     

    Arasu has been awaiting its DAS licence from the ministry for quite some time now. The MSO owned by the Chief Minister J Jayalalithaa’s AIADMK has been writing several letters to the central government to allow its licence go to go through so that it could switch over from analogue to digital.

  • Mumbai cops raid 7 Star Dot Com for “illegal” channel distribution

    Mumbai cops raid 7 Star Dot Com for “illegal” channel distribution

    MUMBAI: The heavy hand of the law is coming down on those involved in the distribution of TV signals. Last month, the cops swooped down on OTT services provider Jadoo TV’s offices in Hyderabad for allegedly pirating TV signals and streaming them over the internet illegally, following a complaint by Maa TV. Equipment was confiscated, staff arrested. 

     

    Yesterday, it was the turn of the Mumbai based independent multi system operator (MSO) 7 Star Dot Com. It was raided by a group of close to 15 police officials. Reason: illegal transmission of 10 international channels.

     

    The channels include HBO, HBO Family, BBC America, Sky Movie and Show Beyond among others. “We had got the information about the illegal transmission of channels. We monitored the platform from 3:30 pm onwards on 14 July and then conducted the raid, late in the night,” informs DCP Mahesh Patil.

     

    The raid was conducted by the Social Service Branch located in Crawford Market of south Mumbai. The decoders, transmitters and adaptors of the MSO have been confiscated. “We will now file a complaint with the Metropolitan Magistrate under the Cable Television Networks (Regulation) Act, 1995. The platform was telecasting the channels without having the licence for the same,” adds Patil.

     

    As per the procedure, a report will also be filed with the Information and Broadcasting Ministry. “We will file the case and the report in a couple of days,” he says. After studying the report, a show cause notice will be issued against 7 Star.

     

    One of the MSOs operating in Mumbai comments, “It is a good step which has been taken by the authorities. There should be a level playing field for all the platforms.”

     

    None of the 7 Star executives were available for comment.

  • TRAI extends time on consultation paper on VAS by cable and DTH ops

    TRAI extends time on consultation paper on VAS by cable and DTH ops

    NEW DELHI: The Telecom Regulatory Authority of India today decided to give more time to stakeholders to respond to its consultation paper on regulatory framework for platform services.

     

    Stakeholders can now respond by 29 July with counter-comments by 5 August following request by stakeholders.

     

    Some of the issues the paper issued on 23 June had raised include questions on whether services issued by TV channels should be defined as broadcast channels or value-added services. TRAI is also seeking the stakeholders’ opinion on issues such as the kind of content that platform services should be allowed to transmit. Issues, registration process, security clearances, limits on geographical reach of these channels, compliance with advertising and content code, and conditions of imposing penal provisions in case of violations have also been raised.

     

    All cable TV and DTH operators offer different kinds of programming services that are only shown on their platform but not obtained from broadcasters. These are called platform services. These include movies, music or local news channels offered by the cable operator as well as value-added services such as ‘movie on demand’ and ‘pay per view’ services offered by the DTH players.

     

    The Regulator’s move to regulate platform services comes after the Information and Broadcasting Ministry expressed concern about the transmission of these local channels over a wide geographical area, like any other national or regional channel, without obtaining any permission from the Ministry.

     

    The Ministry note said it believed that a proper regulatory framework is required to govern these channels and value-added services since programming is similar to the programmes transmitted by regular TV channels. 

  • Kolkata LMOs to set up another cooperative post 2014 FIFA WC

    Kolkata LMOs to set up another cooperative post 2014 FIFA WC

    KOLKATA: The last mile owners (LMOs) in Kolkata are yet again gearing for owning their subscribers. While earlier a group comprising 100 LMOs had announced their plan of setting up their own cooperative, news now is that another set of ‘unhappy LMOs’ in Kolkata has united to set up their own control room and headend.  

       

    According to cable TV sources operating in the region, LMOs will declare their plans only after the end of the ongoing 2014 FIFA World Cup. The delay is to ensure that the 33 lakh cable TV subscribers in the area do not see any disruption in their cable TV services, especially during the football World Cup.

     

    The trend of more and more LMOs joining hands to set up their own cooperative has come from the rising concern over MSOs becoming the owners of the subscribers, which according to the LMOs have been owned by them for years. Sources hint that the industry will soon see some major announcements.

     

    Indiantelevision.com was the first to report on how around 100 LMOs in the region had united a few months ago to form a cooperative called ‘Bengal Broadband’.  The aim of this was to provide independent cable TV services to customers like any other multi-system operator (MSO), namely SitiCable, Manthan and Incable among others.

     

    ‘Bengal Broadband’ aims to start operation in the current fiscal 2014-15 and has already invested around Rs 4.8 crore in setting up the headend equipment and office infrastructure at Salt Lake College More in the city. The cooperative is looking at a subscriber base of one million in the first year of its operations. Not only this, it also aims at providing cable TV connections at a cost which is 15-20 per cent lower than the other MSOs.

     

    While Cable & Broadband Operators Welfare Association convener Swapan Chowdhury refused to comment on any such development, Cable Operators Sangram Committee general secretary Apurba Bhattacharya confirmed the news of LMOs in Kolkata venturing into forming a cooperative. “The operators are happy to get into this space. We will run the business ourselves.”

     

    A LMO, who is a part of the new venture said, “We are setting up our own control room and it will involve a cost of around Rs 1 crore. We will be able to offer services to customers at a cheaper rate. It will be an operators’ driven MSO.”

     

    “During the analogue regime, the revenue share between the MSO and LMO used to be 20:80 but after DAS, it has come down to 65:35. The business model is not at all lucrative. If this continues, we will die and not be able to arrange our daily bread and butter,” added another LMO who is a member of the group that is setting up the control room.

     

    Small operators will become a part of a larger LMO network, said another, without divulging much details.

  • Axe the tax, say DTH ops & MSOs

    Axe the tax, say DTH ops & MSOs

    MUMBAI: In the run up to Budget 2014, the DTH Operators Association and the MSO Alliance have joined hands with broadcasters to embark on an aggressive campaign (in the shape of a television promo or commercials)  to fight the heavy entertainment taxes levied on them by the various state governments.

     

    The TV commercial which stars Roopal Tyagi (Sapne Suhane Ladakpan Ke) and Surbhi Jyoti (Qubool Hai) has been running across all channels.  It makes an appeal to TV viewers to log on to http://entertainmenttaxappeal.com to pledge against rising entertainment taxes. It says that on an average a viewer spends approximately Rs 3000 on cable TV and DTH recharges annually. Almost half of this goes directly into the government’s kitty by way of taxes. Therefore, there is a need to put an end to it.

     

    “We will present the appeals from the people to the government and hope that they take note of it,” says newly-appointed DTH Operators Association of India president RC Venkateish. He added that the advertisement was timed to coincide with the upcoming budget session. 

     

    Entertainment tax is a state subject and hence, varies from state to state. In some, it is a fixed amount while in others the state exchequer carves it out as a percentage of the bill. 

     

     “The state of Maharashtra charges Rs 45 as entrainment tax. This is ridiculously high,” says an industry professional and adds, “High entertainment tax is one of the reasons why local operators don’t declare the number of viewers they have.”

     

    The campaign is expected to run for a month in order to build a ground swell of public opinion against the entertainment tax levies.  It seems to have got the Information & Broadcasting Minister Prakash Javadekar’s attention already. Speaking to PTI recently he assured industry that “the government is looking into the demands of the DTH operators and that the issue is with the Ministry of Finance.”

     

    “Industry has high hopes in the new Modi-led government. For several years, it has been appealing to the previous government to reduce the burden but to no avail.  High and multiple taxes have been crippling. Hopefully, the government will find a solution to this problems,” says a media observer. 

     

    It’s now over to Mr Arun Jaitley. 

     

    Click here to watch the commercial

  • Jayalalitha again seeks DAS licence for state-run Arasu

    Jayalalitha again seeks DAS licence for state-run Arasu

    NEW DELHI: After she failed to convince him through a memorandum presented last month, Tamil Nadu Chief Minister J Jayalalithaa has now written to the Prime Minister Narendra Modi to intervene to secure Digital Addressable System (DAS) licence for the state run TV Cable Corporation.

     

    The application has been pending with the state for three years but has not been cleared in view of the opinion by the Telecom Regulatory Authority of India (TRAI) that political party, state and centre-run TV channels or TV distribution networks should not be permitted in the country.

     

    The Regulator had given this opinion in 2008 and then reiterated it earlier this year after the Information and Broadcasting Ministry referred the matter to it for a second time.

     

     In her letter to Modi, Jayalalithaa said the previous United Progressive Alliance regime sanctioned licenses to nine Multi System Operators in Tamil Nadu but did not respond to the state’s plea. She claimed that her government had revived the ‘defunct’ Tamil Nadu Arasu Cable TV Corporation (TACTV), a state run TV Cable Corporation, after coming to power in 2011 to adhere to its commitment to provide inexpensive and quality Cable TV services.

     

    TACTV, an initiative of the previous DMK government at the height of family feud in the party’s first family involving M Karunanidhi and his grandnephews, Maran brothers, was however later put in cold storage after they patched up.

     

    TACTV was providing 100 channels for Rs 70 as against the Rs 150-250 charged by some other MSOs, she said in the letter. After the Cable Television Networks (Regulation) Act, 1995 was amended, paving way for DAS, TACTV took steps to commence operations in the digital mode in Chennai and applied to the Ministry for DAS license.

     

    Orders were also placed for the supply of Set Top Boxes, Conditional Access System and Subscriber Management System and installing of a headend at a cost of about Rs 50 crore, she told Modi.

     

    Jayalalithaa in her letter has asserted that as per the provisions of the Cable TV Network (Regulations) Act, 1995, and Rules thereof, TACTV is qualified for such a licence. She also alleged that she strongly suspects that the non-issuance of license by the previous UPA government was only to facilitate particular private business interests. 

  • TRAI audits MSOs in Kolkata

    TRAI audits MSOs in Kolkata

    KOLKATA:  The Telecom Regulatory Authority of India (TRAI) will not allow any laxity in achieving complete digitisation in phase I markets. After issuing several directions to multi system operators (MSOs) operating in the region, the regulator has now decided to visit all the MSOs to inspect whether the DAS regulations have been maintained, technical issues have been resolved and CAS and SMS are in place.

     

    Industry sources reveal that the TRAI officials inspected the office of Kolkata based MSOs, 18 June onwards.  As part of this, the regulator checked if the details in the subscriber management system (SMS) were duly filled. It can be recalled that TRAI had, a few weeks ago, in a directive, asked the MSOs to keep their SMS updated and also start online pre-paid and post-paid billing facility.

     

    Sources indicate that while all the MSOs were prepared for this inspection, billing in the KM area with more than 32 lakh cable TV homes emerged as the biggest issue for some as customers were not paying as per the bill. “During the inspection, TRAI officials noted non-compliance of the provisions of the regulations by the service providers,” inform the sources.

     

    Siticable Kolkata director Suresh Sethia adds, “It is for the first time that TRAI officials came to our office for auditing. They checked our SMS, CAF, SAF and our agreement with the LCOs.”

     

    “The TRAI officials who visited the offices of the various MSOs in the region for two-three days, questioned them on the nitty-gritty’s of facts and information that were missing,” informs the source.