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Tag: MSO

  • Meghbela Cable to seed 10 lakh STBs in West Bengal by December-end

    Meghbela Cable to seed 10 lakh STBs in West Bengal by December-end

    KOLKATA: Multi-system operator (MSO) Meghbela Cable & Broadband Services aims to seed 10 lakh set-top boxes in areas earmarked for digitisation in phase III and phase IV.

     

    The company has already installed around 1.26 lakh STBs in Kolkata city, where digitisation of cable TV services happened in phase I.

     

    Seeding of 10 lakh STBs will involve an expenditure of Rs 110 crore.

     

    While in areas which fall under DAS III and IV areas like Haldia, Bankura, Arambagh and Hooghly, the company has 10 lakh cable TV subscribers and the majority of them are on the analogue network.

     

    When asked about the source of funding for the 10 lakh STBs, Meghbela Cable Chairman, Indranil Bhattacharya, said 80 per cent of the cost of the STBs would come from the local cable operators (LCOs) who would be collecting the amount from their subscribers. The remaining 20 per cent would be arranged by Meghbela through loans from banks.

     

    “In DAS III and DAS IV areas, we have already started the digitisation process,” said Bhattacharya.

     

    “Our digital customer base is around two lakh now,” said Bhattacharya.

     

    “In phase III and IV, the company is looking at a market share of 8-10 per cent, which is achievable,” industry experts said.

     

    The company has four digital head-ends in different parts of West Bengal with more than 7,500 km of optic fiber and coaxial networks providing cable TV services. “With a plan to expand operations at Durgapur and Purulia, we are looking at two interconnected digital head ends in Kolkata,” he said.

     

    The company’s chairman further said the company apart from providing channel packages to the customers in Kolkata, did sign the revenue sharing agreements with LCOs and has raised the bill as per the packages chosen by subscribers from the month of August.

     

    Talking about the prospects in DAS III and DAS IV areas in the state, he said there is an opportunity to seed 1 crore STBs in the state by December 2014.

     

    Meghbela Digital TV Services currently offers 500 channels. It plans to expand its capacity to 781 channels going ahead.

     

    Meghbela Digital has been equipped with technical capability for providing services in digital form along with features like music on demand (MoD), video on demand (VoD), pay per view (PPV), STB supported gaming and electronic programming guide (EPG), he added.

     

    Talking about the company’s ISP business, he said the company offers services such as broadband, leased line, VPN etc.

     

    Industry experts said since Meghbela Digital has interconnected head-ends, it can easily make its affiliated LCOs serve customers well.

  • Once we move to gross billing, revenue will increase three-fold: V D Wadhwa

    Once we move to gross billing, revenue will increase three-fold: V D Wadhwa

    These are changing times for the Indian cable TV industry, what with gross (consumer) billing starting in phase I cities and 27 January being the last date for submission of duly-filled Consumer Application Forms (CAF), following which, multi system operators (MSOs) will need to start major switch-off of signals.

     

    In all of this, Essel Group-owned SitiCable Network, earlier known as Wire and Wireless (India) Ltd, has proved to be a game changer of sorts. Under the leadership of chief executive officer V D Wadhwa, the company has been at the forefront of change; whether it is giving access to the Subscriber Management System (SMS) to local cable operators (LCOs), launching local cable TV channels or the latest plan to launch a service on iOS and Android for consumers to view TV content on their Apple devices and smart phones.

     

    An alumnus of Harvard Business School and a fellow member of the Institute of Company Secretaries of India, Wadhwa served as managing director and CEO for business operations in India and SAARC countries with the Timex Group before taking charge as the CEO of SitiCable Network in May 2013.

     

    An avid squash player who dabbles in adventure sports, travelling and driving, Wadhwa took some time out from his busy schedule to speak to Seema Singh of indiantelevision.com on gross billing, setting up of cooperatives and the road ahead for SitiCable.

     

    How has phase I and II of digitisation been for SitiCable? How much has been invested and what have been the returns?

     

    We have approximately 10 million subscribers in the analogue universe. Of these, we have seeded 3.6 million Set Top Boxes (STB) in phase I and II of digitisation. The total investment so far has been to the tune of more than Rs 500 crore.

     

    As far as the returns are concerned, the investment has been done with a payback period of four years. Expecting anything in the short term is not a realistic scenario. No one gets returns on investments immediately.

     

    How many set top boxes will be needed for completing phase III and IV? What is the proposed investment for these phases? How are you looking at generating investment in the company?

     

    Phases III and IV of digitisation has a total universe of about 90 million. Of these, we are targeting 6-7 million homes. At a gross level, we will require an investment of Rs 1200 crore. On a net basis, we are expecting an investment to the tune of Rs 600 crore.

     

    The funding of Phase III will be largely done through warrants’ funding of Rs 243 crore, which is likely to be invested by promoters before March 2014. Balance funding requirement will be met through internal accruals and raising of further equity, as may be required.

     

    By when do you think you will be able to reap the benefits of digitisation? By what percentage do you see the revenue going up?

     

    The benefits of digitisation have already started trickling in and the full benefits will be visible from FY16.

     

    Once we move to gross billing, the revenue will increase over threefold of what it is currently. Right now, whatever revenue is booked in the books of accounts is on net and not gross basis. Last year for the year ended March 2013, our top line was Rs 483 crore. In the last two quarters, we have achieved revenue of over Rs 300 crore and this growth trend in the current quarter continues. Once gross billing starts, the revenue will increase to over three-fold. 

     

    Have you come to any consensus on revenue share and billing with Last Mile Owners (LMOs) in Maharashtra? Are you going to allow LMOs to bill in Mumbai? By when do you see billing starting in Mumbai?

     

    We have a 33 per cent revenue share with all our local cable operators (LCOs) and we do share 25 per cent of the carriage revenue with them, which is not the case with other Multi System Operators (MSOs). So, we are not facing any problem anywhere in the country. We have also given access to the Subscriber Management System to LCOs. Our approach is to consider the LCO as an integral part of the business and both the MSO and LCO have to co-exist. We, therefore, believe in empowering the LCOs by training them and providing them the backend support to enable them provide better customer services. This is the biggest advantage for SitiCable and this is helping us to significantly improve our subscription revenues as compared to other MSOs.

     

    Now that billing has started in Phase I cities, how has the response been? Do you think billing has succeeded in bringing in greater transparency? How is it helping the MSOs?

     

    It is too early to comment. The LCOs are not habituated to the system of gross billing. According to me, it will take at least two to three months for billing and collection to stabilise as per package. But there is gradual acceptance among the LCOs for the gross billing regime. .

     

    Also, I would like to add that in Delhi, between Hathway Cable & Datacom, DEN Networks and SitiCable, we have engaged Mckinsey to help us stabilise the gross billing and gross collection. They will ensure that all MSOs follow the common policy of billing, collection and dunning. Since gross billing started in December, it is expected to stabilise in the current quarter.

     

    The Telecom Regulatory Authority of India (TRAI) had given 27 January as the deadline to MSOs for collection of all Consumer Application Forms (CAFs) and feeding of details in the SMS for phase II cities. Are you switching off signals or is the process complete?

     

    We received 94-95 per cent CAFs in phase I cities and for the remaining, the signals have been switched off. So in that way, we have completed 100 per cent CAF in phase I and submitted the compliance report to the TRAI. For phase II, 91 per cent of CAF has been completed. The regulator for all these months has been patient in giving us extensions. And, I personally believe if the deadline goes on getting postponed, the work will never be completed. The ultimate solution for these problems is to switch off signals for those who have not filled the forms and that is what we are doing, which is in complete compliance with TRAI’s order. In fact, in the last one week, we have switched off 50,000 subscribers nationally. This is to ensure that compliance as per TRAI regulation is achieved.

     

    Where do you see entertainment tax headed? What led to taking the matter to court? Do you think the ruling will be passed in your favour? Do you believe that entertainment tax should be reduced?

     

    As per the law, the MSO is responsible for entertainment tax. We approached the Delhi High Court, since we have always been collecting and depositing entertainment tax, and we did not want to face any coercive action being taken by the tax authorities. As per our information and inputs received from the market, other MSOs are also collecting tax from LCOs regularly. While the H’ble high court has asked SitiCable to keep submitting the entertainment tax, the high court has given the stay against any coercive action being taken by the Tax Department against other MSOs since they have taken the plea that they are not invoicing and collecting tax so far. No decision has been taken on who will be responsible for collecting and paying the entertainment tax as yet.

     

    In SitiCable, we firmly believe that the payment of entertainment tax should be with the MSOs. Since the invoice is being raised by the MSO and the LCO is collecting the subscriber fee, I feel the power of collecting and depositing entertainment tax should be with the MSOs.

     

    I have a very different view on entertainment tax. I do not understand why a consumer needs to pay both service tax and entertainment tax. When we provide them with cable TV, what is it? Is it a service or entertainment? Even for movies, consumers pay only entertainment tax, then why is it that the consumer has to pay entertainment tax and service tax for cable TV. We have raised this issue on several occasions to both the Information and Broadcasting Ministry and the TRAI, but without any heed.

     

    The tax rate has to rationalise across the country. In UP, the monthly entertainment tax is 25 per cent of the subscription fee, while in Maharashtra, it is Rs 45; Delhi – Rs 20; Bengaluru – 6 per cent of the total subscription fee; and Kolkata, it is Rs 10. This differential tax structure will not allow the industry and gross billing to stabilise in these respective states.

     

    I am hopeful that the tax will come down once the process of digitisation is complete. Currently, the tax department is unable to gain significantly due to digitisation. With complete digitisation, there will be transparency and hence, more tax collection. Then there will be rationalisation of tax.

     

    By when do you think the process of digitisation will be complete?

     

    There is no reason why digitisation will get delayed. The I&B Ministry is dedicated and so is the TRAI. Even the MSOs are gearing up for funding, getting STBs and seeding them. So I don’t see any delay in completion of digitisation.

     

    Is the cable TV industry prepared to offer consumer service as available internationally?

     

    I think there is a long way to go for that. We are taking one thing at a time. Currently, the Indian consumer is not even habituated to gross billing and taxation. The Indian cable TV market has not matured enough to be able to offer services like those internationally. Once gross billing is stabilised and every one becomes habituated with the system, only then we can move forward.

     

    However, from the Value Added Services (VAS) point of view, we have started broadband service in the east and soon, we will be starting in the north. Also, we will be providing content on multiple screens to our subscribers.

     

    Is broadband a key play in your revenues going forward? How will it be delivered?

     

    Of course, broadband will play a key role. We will also soon introduce Docsis 3.0, which is the future. Besides broadband, by the end of this quarter, the content available on TV will also be available on iOS and Android platforms. The technical team is working on it and if there are no glitches, we will be launching the service on both the platforms together. We are the first cable TV operator to have thought of this service.

     

    Do you believe building local cable TV channels is the way forward? How much will you invest in this? And what is the monetisation opportunity?

     

    Local cable TV channels help in connecting with the consumers. We plan to launch four to five channels in each geography. While we have seven channels in central India, seven in Jaipur and four in Delhi, we plan to continue with this in other parts as well.

     

    Launching local cable TV channels does not cost much since we already have a studio facility in areas where we have a presence. Such endeavours give a competitive edge over the Direct-to-home operator, since they cannot operate a local channel with local content and the MSO, as they do not have the facility for launching a local channel or have a rather small presence.

     

    A local channel helps in giving out local news in local languages and most people prefer this. Then, advertisements help in generating revenue. So commercially launching such channels makes sense for the MSO.

     

    How do we see the national landscape panning out: will there be a few key national MSOs? Who will these be?

     

    Like in phase I and II of digitisation, the market will be dominated by four national MSOs: Hathway, DEN, SitiCable and InCable. It is only after complete digitisation that the country can expect foreign players to enter the market. These foreign players will bring better technology, transparency and competition. This will prove beneficial for the national players as well.

     

    How do you see the MSOs coping with phase III and phase IV? Will DTH benefit? Or will we see new local players emerging?

     

    While in phase III, the existing MSOs will play a major role and benefit, phase IV will witness DTH playing a major role. In phase IV, with towns having 5,000-10,000 households, it will not be commercially viable for cable TV operators unlike DTH players.

     

    Local players may emerge in some markets, but as seen in phase I and II, the industry has been going through consolidation since digitisation requires huge Capex. The local players emerge since they can manage initial investments. But, they are not technology ready to serve consumers. Also, this is a highly regulated industry, which will be difficult for them to cope with. Considering they do not get placement fee from broadcasters, they can operate for a maximum of one to two years. 

     

    What challenges do you anticipate in Phase III and Phase IV?

     

    Content is the biggest challenge. Currently, the ARPUs for phase I and II cities is not more than Rs 150. If it remains the same for phase III and IV, it will be difficult for us to operate in these towns. Broadcasters need to have differential pricing for these markets.

  • TRAI awaits call from Madras High Court for Arasu hearing

    TRAI awaits call from Madras High Court for Arasu hearing

    MUMBAI: More than four weeks have passed since the Madras High Court gave the interim order restraining the Telecom Regulatory Authority of India (TRAI) from taking any coercive steps against the Tamil Nadu state government-owned MSO Arasu Cable TV Corp for giving analogue signals in Chennai.

     

    However, there has been no follow up by the Madras HC on what it intends to do following the stay. 

     

    Anticipating a date soon, TRAI lawyers are already up on their toes and are compiling their response so that it can be submitted to the court. “We are still waiting for a date of the hearing. We haven’t heard anything from the court,” says a senior TRAI official.

     

    The case filed against two parties – the Ministry of Information and Broadcasting (MIB) and the TRAI will hopefully be  heard soon where the respondents from both the parties will get a chance to present their individual viewpoints. 

     

    The entire issue cropped up because Arasu has not been granted a digital addressable system (DAS) licence to run its business in the state even after continuous efforts to secure it. The MSO is still giving out analogue signals, thus keeping Chennai as the only city from Phase I to not go the whole hog on digitisation. 

     

    In its order which it passed late December 2013, the court states that the Inter-ministerial Committee (IMC) formed to decide the fate of Arasu has to move quickly on it. The order also mentions that Arasu abided by the rules and applied for a licence even after the Cable TV Networks (Regulation) Act, 1995 was amended in 2012.

     

    “It is not known to this Court as to why the first respondent (MIB) has not taken any decision so far on the application of the petitioner,” states the order. 

     

    The TRAI view on this is quite clear. Says a senior official at the regulator: “The decision on granting the licence lies with the MIB. In our recommendation we said that state governments should not be given the licence. The IMC is working on it but we haven’t yet got any response from them.” 

     

    The HC also states that since Arasu had followed the rules for applying for a licence, the MIB is not justified in keeping the matter pending and not arriving at a conclusion. It has also directed the Ministry to come out with a decision at the earliest.

     

    If MIB follows the TRAI’s cue and bars Arasu from securing a licence, the regulator  can take action against the MSO, according to the official. “If the MIB disqualifies Arasu from getting a licence, it cannot operate and if they do, they will be in violation of the law,” he says.

     

    As of now, nothing can be done against Arasu due to the interim order given by the Madras HC. But which direction this case moves is extremely crucial as the country is soon entering phase III and IV of digitisation. And it will decide whether the city of Chennai remains an analogue island in a sea of digitised India. 

  • MSOs ask LCOs to collect CAFs from remaining cable homes in Kolkata

    MSOs ask LCOs to collect CAFs from remaining cable homes in Kolkata

    KOLKATA: That the Telecom Regulatory Authority of India (TRAI) has asked MSOs in Kolkata to start gross (consumer) billing from 15 December, 2013, indiantelevision.com had already reported. Word just in is that MSOs in the Kolkata Municipal Area (KMA) have requested local cable operators (LCOs) to expedite the process of collecting Consumer Application Forms (CAF) and channel package details from the remaining five per cent of nearly 30 lakh cable TV homes in the city.

     

    “We are asking the LCOs to cooperate and collect the remaining five per cent CAF so that we can start generating accurate bills against their names,” said SitiCable Network director Suresh Sethia, adding that the region had already collected 95-97 per cent CAF. 

     

    Manthan Broadband Services director Sudip Ghosh informed that apart from taking details from consumers in the prescribed handwritten format, “MSOs have also created a system in their servers, where LCOs could send CAF details to further advance the process of DAS.”

     

    Meanwhile, an official from GTPL-KCBPL said the company had got CAF and SAF details of only over five lakh customers out of the seven lakh active set top boxes (STBs). “Unless we get the CAF and SAF details, we cannot generate bills in the names of the customers,” he remarked. “But we will try to complete the process for the remaining 2 lakh customers and give bills to them in the next one or two months,” he added after a pause.

     

    According to few industry sources, while players like SitiCable and Manthan have said they have achieved 100 per cent CAF rate, it is possible they haven’t accounted for situations where certain households have two set top boxes and the consumers haven’t gone through the CAF process or homes that have been closed after the residents left the city and so on. Still, other sources questioned how MSOs can start the billing process when they haven’t yet started the package.

  • Kolkata MSOs won’t change package price till June 2014

    Kolkata MSOs won’t change package price till June 2014

    KOLKATA: On 6 December last year, the Telecom Regulatory Authority of India (TRAI) met the multi-system operators (MSOs) in Kolkata to extend the deadline for initiating gross (consumer) billing from 10 December to 15 December.

     

    Now, the MSOs have assured cable TV subscribers that they will try and keep the package price unchanged till June this year, although they are contemplating a price rise post June.

     

    The MSOs have also requested subscribers to collect bills from local cable operators (LCOs) before dishing out the subscription fee for January. This is to bring in transparency in the billing process for the Kolkata Municipal Area (KMA).   

     

    It is further learnt that the MSOs are meeting regularly to discuss smooth rollout of gross billing in the KMA area, especially after having been asked by the West Bengal as well as central government authorities to expedite the billing process.

     

    Said Manthan Broadband Services director Sudip Ghosh: “We will continue with the package and we all are trying to keep the price of package untouched till June. The MSOs will try to absorb the cost themselves.

     

    According to Siticable Kolkata director Suresh Sethia, the entire process would take some time. “Customers are happy. Operators too want the billing to be in place. Also, we have put up advertisements in newspapers for consumer awareness regarding billing apart from local channels,” he said.

     

    As per TRAI regulations, subscribers get a period of 15 days from the date of the bill to make the payment.

     

    “In case the subscriber fails to make the payment after the expiry of the due date of payment, we will charge interest on the outstanding amount,” Sethia informed.

     

    Director of Den, Sanjoy Basu, opined that the new facility introduced as per the TRAI regulations would usher greater transparency in billing.

     

    With nearly 30 lakh cable homes, gross billing is definitely expected to regularise the hitherto ad-hoc system of billing.

  • MIB orders WB to stop transmission for one day

    MIB orders WB to stop transmission for one day

    NEW DELHI: It seems the Ministry of Information & Broadcasting (MIB) keeps a close watch on channels that don’t follow the guidelines set for them. That is what is evident from a recent incident where the Ministry has cracked its whip on the international movie channel, WB (Warner Brothers). The Ministry has prohibited the transmission or retransmission of the of WB TV channel for one day throughout India later this month as a penalty for telecasting a V/UA certified film It’s a Boy Girl Thing on 7 January, 2013 at 11.51 am.

     

    The prohibition on any platform throughout India will be with effect from 00.01 am on 24 January till 00.01 am on 25 January.

     

    The action has been taken under in exercise of the powers conferred by sub-section (2) & (3) of Section 20 of the Cable Television Networks (Regulation) Act 1995 and under paras 6.1 and 6.2 of the Guidelines for Downlinking from India.

     

    The Ministry had issued a notice to the channel on 20 August last year as the telecast appeared to violate late Rule 6(l) (a), 6 (tXd), 6(l) (k) 6(l)(o) & 6 (5) of the Cable Television Networks Rules 1994 under the Cable Television Networks (Regulation) Act 1995 and the channel was asked to show cause within fifteen days.

     

    While asking for a personal opportunity to explain their position, M/s Turner International India, the parent company of WB channel, in their reply of 2 September said it was not aware about the Central Board of Film Certification (CBFC) suggesting 15 voluntary cuts and l6 compulsory cuts in the film until the Ministry issued the notice. It further said all content telecast on the channel was reviewed by its Standards and Practice Department which had very strict mechanism to ensure that only appropriate material was played out in accordance with Indian requirements.

     

    Turner further said that immediately upon receipt of the notice, the channel withdrew and stopped all further telecast of the film and indicated that the channel was willing to re-apply to the CBFC for re-certification of the film and would not telecast the same until a certificate was obtained by the CBFC. Furthermore, it said the CBFC Certificate available with it contained only the compulsory cuts without any reference to the voluntary cuts and that it had not questioned the completeness of the Censor Certificate and had made the edition and cuts based on the belief that the Censor Certificate available with them was the only, valid and complete Censor Certificate issued by the CBFC.

     

    In the personal hearing given by the Inter-Ministerial Committee, the Turner representative issued an unconditional apology for airing the film with offensive content on television and admitted that it was a mistake on the part of their programme team. The Committee previewed the CD containing the film, considered the reply of the channel and the personal submissions made by the representative of the channel.

     

    The Committee held that the channel had clearly violated the provisions of the Programme Code and observed that this kind of violation of the provisions of the 1995 Act and Rules framed there under was not acceptable. Though the channel had accepted their fault and apologised for their mistake, ‘they cannot escape the responsibility of ensuring that the content on their channel is in conformity with the Programme Code at all times. Moreover, before telecasting any film due diligence has to be done by the channel to assure that only certified version fully compliant with all necessary and voluntary deletions/editions is aired.

     

    The Ministry said the film telecast by the channel shows ‘highly objectionable visuals which denigrate Women’.

     

    ‘The Visuals shown are very offensive and obscene as the private parts of male and female are focused upon. The portrayal of the sex change is in bad taste and is indecent. The visuals are not fit to be viewed by children and also not suitable for unrestricted public exhibition. These visuals also denigrate women,’ remarks the notice.

     

    Rule 6 (1) (a) of the Programme Code contained in the Cable Television Networks Rules, 1994 provides that no programme should be carried in the Cable Service which offends good taste or decency. Rule 6 (l) (d) provides that no programme should be carried in the Cable Service which contains anything obscene, defamatory, deliberate, false and suggestive innuendos and half truth. Rule 6 (l) (K) provides that no programme should be carried in the Cable Service which denigrates women through the depiction in any manner of the figure of a women, her form or body or any part thereof in such a way as to have the effect of being indecent or derogatory to women. Rule 6 (l) (o) & 6 (5) provides that no programme should be carried in the Cable Service which is not suitable for unrestricted public exhibition and children viewing’.

     

    In view of the apology by the channel and its reply, the Committee recommended the prohibition of the transmission/re-transmission of the channel throughout India for one day.

  • Now, MSOs to collect entertainment tax in Maharashtra

    Now, MSOs to collect entertainment tax in Maharashtra

    MUMBAI: Cable operators in Maharashtra have been fighting tooth and nail to reduce the Rs 45 entertainment tax (ET) levied on them by the state government but nothing seems to be working. Now, in a fresh move, the state cabinet has approved an amendment which makes the multi-system operators (MSOs) responsible for the collection of ET from the Last Mile Owners (LMOs).

     

    Earlier, the onus was on the LMOs, who were supposed to collect the ET along with the service tax and give it to the state. In December, the Maharashtra Cable Operators Federation (MCOF) moved the Court challenging the Maharashtra state government’s amended gazette resolution (GR) regarding entertainment tax. According to the amended GR, it was mandatory for the LMOs to file a joint affidavit with the MSOs while paying entertainment tax. However, last month the Bombay High Court ordered an interim stay on the amended gazette resolution (GR) of ET.

     

    MSOs and LMOs are all wondering whether this amendment will come into effect or  will it be regarded as as contempt of court, since the High Court’s stay order is in place. As of now, no notification or communication has been issued to the parties involved. “We can only comment after the notification is passed. But we wonder what will happen since the matter is sub judice and the LMOs are stating that it is their business to deposit the tax,” says Hathway president Milind Karnik.
     

    Indusind Media (InCable) managing director  Ravi Mansukhani is puzzled about  the government’s move.  “”How can they pass this?,” he asks. “The case is pending in several courts.” But he adds that he is  “absolutely fine if the LMOs want to do it. It will be difficult for us to reach out to subscribers the way they do. The reason why the government has taken this step is  because it is easier to collect it from a few MSOs rather than so many LMOs”

     

    MCOF is looking at approaching either the High Court or the Supreme Court depending on the circumstances. “We will definitely not comply and will continue giving the tax to the High Court only,” says MCOF task manager Bobby Shah.

     

    The Maharashtra government expects MSOs in the state to give their customers bills that will include an additional Rs 45 as entertainment tax besides the service tax of 12.36 per cent following the notification. “Majority of people will have to shed more money for the cable TV service while a few will have to give marginally more than what they are currently paying,” says Shah.

     

    However, the operators are still protesting against the high ET rate and want it to be reduced. “The amendment is not bothering us much, but what is important is the high rate of entertainment tax that needs to be brought down,” says Cable Operators and Distributors Association (CODA) president Anil Parab.

     

    MOS ABS Seven Star CMD Atul Saraf says that he is fine with collecting ET from the LMOs. “But the amount needs to be reduced to just Rs 10 to Rs 15 so that the customer isn’t burdened with the extra cost,” he opines.

     

    Now, it’s a wait and watch situation if the Maharashtra cabinet’s decision is regarded  as contempt of court, or if it will come into effect from the date of notification! Whatever happens, it’s surely going to bring clarity on the revenue that the government earns. 

  • The Times Now, India News blackout in Uttar Pradesh

    The Times Now, India News blackout in Uttar Pradesh

    MUMBAI: Two major news channels – Times Now and India News – were blacked out over the weekend in Uttar Pradesh, following their criticism of  the lavish Saifai Mahotsav ceremony by the Akhilesh Yadav-run government in the state. The black out of the two channels was done following unofficial orders from government officials, local cable TV operators have confessed to the media.  However, both Times Now and India News were back on most cable TV networks in the state, though the latter was was still not available in Lucknow and Faizabad, at the time of writing.

     

    The black out  has disturbed both the government and the news broadcast industry. Information and broadcasting minister Manish Tewari candidly remarked yesterday that his ministry would fast track TRAI’s recommendations on cable TV monopolies in various states to prevent operators from misusing their dominance. 

     

    Times Television Network CEO Sunil Lulla spoke to indiantelevision.com, saying that the issue was a matter of fundamental rights. “We completely echo the thoughts of the minister on monopolisation. There cannot be any arbitrariness,” he says. 

     

    India News which is a Hindi channel says that nearly 25 per cent of its viewership comes from UP. And, it lost a large part of that in the past two days.  “Our channel has been switched off since 10 January and although no one is coming out in the open we have heard that they have been ordered to do so. Our channel is still missing in Lucknow and Faizabad which are important strongholds. So, we are still discussing with the local cable TV ops to get it back on as soon as possible,” says ITV Network (India News and News X) CEO R K Arora. 

     

    Some fingers have been pointed toward MSO DEN Networks which has a large share of cable TV subscribers in Uttar Pradesh for giving into government pressure and switching off the two channels. However, DEN COO M. Azhar disagrees that there was any pressure from any quarter. Pooh-poohing claims that there was a large scale blackout from his network, he says that it was restricted to only a few local cable TV operators. 

     

    “All channels are now running on our network and it was only a few people who had done it for sometime but now everything is restored,” he says. 

     

    Lulla, while agreeing that his channel has been restored, states that “a standard process needs to be followed by both the broadcaster as well as the MSO and no disconnection can be done without notice. It was probably some state officials who had jumped the gun.” 

  • MSOs to meet in Kolkata on gross billing

    MSOs to meet in Kolkata on gross billing

    KOLKATA: Kolkata based multi-system operators (MSOs) mean business and how? Well! The fact that they have not been able to start gross billing in the city on the time as directed by the Telecom Regulatory Authority of India (TRAI, they have decided to meet on 3 January and discuss the smooth rollout of gross billing in the KMA area.

    “Since the local cable operators affiliated with us are not ready to distribute the bills thinking that this might make them delivery boys, we have called up the meeting to discuss on the matter and come up with ways to ensure that gross billing begins in Kolkata,” said a MSO.

    Some last mile operators (LMOs) have decided to not allow gross billing in Kolkata DAS I area, said another MSO. “The billing system will bring transparency and organise the business but some operators are opposing it,” he said.

    “We were prepared for a long time with the bills slated to be put up on the system. Since some MSO’s were not ready we had to wait,” said Siticable Kolkata director Suresh Sethia.

    Sources on the condition of anonymity questioned that while a few MSOs like DEN Networks and Digicable among others have not yet started the package, how can they start the billing process?

    While another source questioned how MSOs who have achieved around 70-80 per cent CAF submit compliance report for gross billing?

    When the Cable Operators Digitalisation Committee of the Association of Cable Operators convener Swapan Chowdhury, was contacted, he said: “The government is putting pressure on the MSOs to start gross billing so that it can collect tax easily. No one is concerned about the operators.”

    “We will not allow gross billing to start till all the issues like licensing conditions, unworkable revenue share model and agreement with the MSOs are resolved,” concluded a LCO.

  • MSOs meet; decide to start gross billing in Mumbai soon

    MSOs meet; decide to start gross billing in Mumbai soon

    MUMBAI: The national multi-system operators (MSOs) don’t want any more delay in starting the gross billing in the phase I cities. While gross billing has already begun in Delhi and Kolkata, the MSOs who have been facing resistance from the last mile operators (LMOs) in Maharashtra, met today in Mumbai to decide on the means to implement billing in the city.

    The four MSOs: Hathway Cable & Datacom, DEN Networks, IMCL and SitiCable have unanimously decided to authorise the LMOs to bill their consumers. “The LMO wants ownership of their consumers, and we have decided to give them that,” informs a MSO present during the meeting.

    The MSOs during the meeting decided that they will generate the bill and hand it over to the LMOs, who can further give it to the subscribers. “We will start the process in the next couple of days. Consumers will receive the bill for the month of December,” he adds.

    While the decision on who collects the entertainment tax is still pending with the Bombay High Court, the MSOs have decided to go ahead and complete the process of gross billing in Mumbai and submit the compliance report to the Telecom Regulatory Authority of India (TRAI), the deadline for which was 31 December. “We will submit the compliance report, once the billing process starts,” says the MSO.

    But what happens if the consumer pays the bill through a cheque? “Well! It is up to the subscriber, they can either sign the cheque in the name of the MSO or the LMO. But considering that the entertainment tax needs to be paid by the LMOs, it will be preferable that the subscriber signs it in the name of the LMO. The LMO will pay us the collection after deducting his revenue share,” he informs.

    The decision has been taking to brings everything on track. “The decision on entertainment tax will come sooner or later. But, that cannot deter us from getting the process rolling,” says the operator.

    At the meeting, the revenue share for the pay and free channels was also discussed. “These are commercial discussions. We have almost reached on an agreement for that as well. And our plan of revenue share is better than the one suggested by the TRAI,” says the MSO.

    But, are the LMOs completely convinced as well? “We will be meeting Hathway and IMCL on 4 January to discuss the fine points. Our concern is that the ownership of consumer should be with the LMOs. We will discuss with them the billing format and also get clarity on whose name the bill is being generated. The heading of the bill should have the name of the LMO and not the MSO. We will not allow that,” says Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

    However, the MSOs have suggested that the bills generated from the MSO will have the name of the LMO, while that generated from the LMO to the subscriber will have the name of the subscriber. “This is a welcome move. But, we still need to discuss the finer points tomorrow,” adds Prabhoo.

    In the meeting to be held between MCOF and the MSOs on Saturday, finer points like additional cost of bill printing, distribution and collection will also be discussed. “These are additional liabilities of DAS in the absence of the interconnect agreement and also unfair revenue share and hence need to be discussed,” concludes Prabhoo.