ITV

Tag: MSO

  • Gujarat HC adjourns TRAI DAS order till 13 December

    Gujarat HC adjourns TRAI DAS order till 13 December

    MUMBAI: The Telecom Regulatory Authority of India (TRAI), the central government and the Gujarat state government has time until 13 December to submit their responses to the Gujarat High Court. The three parties were dragged to court by the Gujarat Cable Operators Association (GCOA) on issues associated to the digitisation process.

     

    The court hearing which took place on 6 December was adjourned till 13 December as the lawyers representing the multi-system operators (MSOs) were not present at the court hearing. “It was TRAI that made MSOs a party in the case. The Court adjourned the case since the lawyers representing the MSOs did not turn up for the hearing,” said Gujarat Cable Operators Association president Pramod Pandya.

     

    Earlier, GCOA had filed a petition to the HC, challenging the legality of Telecommunication (Broadcasting and Cable) Services Tariff and the Telecommunication (Broadcasting and Cable Services) Interconnection Regulations. After this, in its hearing on 13 November, the Court had asked the TRAI and government to declare the reasons for formulating the existing laws pertaining to tariff and interconnection.

     

    Pandya had earlier told Indiantelevision.com that the TRAI aims to remove the local cable operators. “We have challenged all the notifications passed by TRAI. This includes revenue share, consumer application forms (CAFs) and billing,” he said. 

     

    The parties were given 15 days to submit their responses; however, it’s almost a month now since the first Court hearing took place. “We are hopeful that the HC will come out with its judgment on 13 December hearing,” he concluded.

  • Unbundling channel rates a danger to TV ecosystem?

    Unbundling channel rates a danger to TV ecosystem?

    MUMBAI: In the midst of the digitisation process in India, several issues continue to be left unanswered. One such being the matter of unbundling of channels for which the Telecom Regulatory Authority of India (TRAI) issued a consultation paper asking suggestions from stakeholders regarding the same but no decision was reached after that. There is however a rift between MSOs and aggregators on the issue with the MSOs favouring it and aggregators being against it.

    The real question is whether or not it will benefit everyone including the broadcasters, MSOs, aggregators and finally the consumer. 

    A report on the situation in the US by investment banking and asset management firm Needham and Co’s entertainment analyst and MD Laura Martin says, unbundling of cable TV rates could well be a recipe for disaster for all concerned. In the report, Martin has taken a look at the issue from the consumer’s perspective and its consequences for them and for the ecosystem. 

    Martin’s report reveals that US households pay about $720 per year for 180 channels out of which they watch just 18. Consumers would like to pay $30 per month to watch these 16-20 channels. As compared to this, in India, annual rates are a paltry $30-$60 per annum for anywhere between 120 channels to 200 plus channels. 

    Martin argues that if consumers wanted to have all 180 channels as a la carte, their annual spending would increase to $1260, i.e, 75 per cent higher than the current price. 

    Here’s how it goes: cable TV channels in the US generate $56 billion from advertising and $45 billion from subscribers, while pay TV distributors pocket $30 billion, if one goes by last year’s figures. She estimates that if there was unbundling about 124 channels out of these 180 would be wiped out as they would not be in a position to have an average of the 165,000 viewers which Martin estimates are needed to break even on each cable TV channel’s $280 million per annum investment. Her view is that niche channels would simply disappear.

    The decrease in channel choices, points out Martin, would also mean that approximately $80 to $113 billion would be lost in consumer value and the government would lose $20 billion in taxes. It will also put the US, which is already dealing with a high unemployment rate of 7.3 per cent in October 2013, at a risk of losing 1.4 million additional jobs.

    She also warns that if these 180 channels do not create content that is engaging young Americans in the 18-34 year age group, there might be no traditional linear television left in 10 years. Viewers are resorting to cord-cutting and migrating increasingly to online for their entertainment to services such as Hulu, Netflix, Big Frame, Defy Media, Fullscreen, Machinima, Maker Studios,etc. According to a statistics portal Statistica, 43 per cent of Americans between the ages of 18 and 34 preferred Netflix as compared to 46 per cent of paid subscribers who chose cable.

  • Close Kolkata LCOs appeal to MIB for 10 year license

    Close Kolkata LCOs appeal to MIB for 10 year license

    KOLKATA: Since the time the process of cable TV digitisation started, if any faction has been really troubled, it’s the local cable operators (LCOs). To make their future secure, they have raised their voice time and again.

    In an attempt to form a united front and take up the common issues troubling them, around 8,000 Kolkata LCOs, who claim that mandatory digitisation has adversely affected their livelihood, are requesting the Parliamentary Standing Committee of Information Technology for 10-year license from the Ministry of Information and Broadcasting (MIB).

    One of the reasons that worry the LCOs the most is that they are registered with the post office and get only a year’s license at a time.

    “But the Multi System Operators (MSOs) get a 10-year license from the MIB,” says Cable & Broadband Operators Welfare Association (CBOWA) general secretary Swapan Chowdhury, who thinks that the present condition of licensing is unfair and is making LCOs uncertain about their future.

    “We have requested the authority to recommend the licensing provisions made in the ‘Recommendations on Restructuring of Cable TV Services’ dated 25 July, 2008 to be implemented for LCOs and MSOs,” he adds.

    The body has also appealed to Member of Parliament and Member of Parliamentary Standing Committee of IT, Tapas Paul to review the arbitrary rule and act of Digital Addressable System (DAS) in order to protect the cable operator’s fundamental rights of livelihood.

    Chowdhury thinks that the current revenue sharing model between the MSOs and LCOs is not viable for the cable operators and in due course of time it may even compel the LCOs to quit the business. In the current scenario, as defined by the regulator, the ratio of revenue sharing between MSOs and LCOs is 55:45 for free-to-air (FTA) channels and 65:35 for the pay channels. “The business model should be reconsidered to protect the livelihood of lakhs of people,” says Chowdhury and adds that CBOWA believes that the model is discriminatory and thus they have put in a request for that as well.

    Another thing that is bothering the LCOs is that the MSOs are not executing the terms in the agreement even though DAS has been implemented since February this year. CBOWA has also put in a request about this so that these issues can be addressed in the winter session.

    A cable TV analyst, Namit Dave thinks that the digitisation process is a massive exercise and requires all stakeholders – broadcasters, MSO and LCOs to work in collaboration. “It would be difficult to execute the herculean task if any of these parties don’t cooperate,” he concludes.

  • MSOs feel the heat in Kolkata

    MSOs feel the heat in Kolkata

    KOLKATA: It seems to be a really difficult time for the multi system operators (MSOs) in Kolkata. We have learnt that Kolkata Cable & Broadband Pariseva Ltd has been asked to pay a hefty amount to the government authorities as it has been avoiding the tax payment for quite some time.

    In another case, former CEO and managing director of Digicable Comm and now the head of the Kolkata operations of Hathway, Amit Nag, who was recently denied anticipatory bail by the Supreme Court, is allegedly untraceable. Sources indicate that the investigation may reach some other senior officials in the national MSO if he does not show up.

     
    Last week indiantelevision.com reported that two officials from Kolkata Cable & Broadband Pariseva Ltd – managing director Bijoy Kumar Agarwal and director Prasun Kumar Das – were arrested as the firm had not paid service tax to the tune of Rs 5.52 crore to the government exchequer.

    According to sources, the company has not paid the tax even after regularly collecting it from consumers and thus it has now been asked to pay around Rs 11-13 crore including the fine in the next 20-25 days.

    In the case of Nag, we have learnt that the national multi service operator Digicable had lodged an FIR against Nag alleging misuse of position and sharing of confidential data and digital materials like set top boxes and fibre optic wires.

    Siticable Kolkata director Suresh Sethia disclosed that Nag had allegedly deleted some sensitive data even when he was with Indian Cable Network Co (a Siticable affiliate in Kolkata) and now he has done the same with Digicable.

    Apparently, Nag had applied for a bail plea which was also rejected by division bench of Calcutta High Court.

    Sethia says: “We had filed a case against him on 1 January 2010 for deleting sensitive data like line diagrams and sharing of confidential data with competitors. Digicable has also complained of the same offence. In our case, the charge sheet was already filed in April 2013. In case of Digi, his bail request is cancelled and now he is absconding.”

    All this seems to be turning against the MSOs as the business community has even got a warning from the finance minister P Chidambaram that the government may arrest and prosecute the ‘chronic’ service tax evaders.

  • LCOs may decrease in number in the next three years

    LCOs may decrease in number in the next three years

    KOLKATA: Lately,  indiantelevision.com  has done a series of reports about local cable operators (LCOs) being unhappy with the process of digitisation. A critical area of concern being the Telecom Regulatory Authority of India’s (TRAI) ruling on consumer application forms (CAFs) and billing, which according to LCOs, makes multi system operators (MSOs) the owners of their hard-won subscribers.

    On the back of these reports comes another disturbing finding: experts say LCOs in the city’s DAS area – currently pegged at 7,000 to 8,000 – will drastically decrease in numbers in the next three years.

    Says Mrinal Chatterjee, who runs Akash Sutra, a cable network in Bangur and its adjoining areas: “During analogue times, the share between the MSOs and us used to be 20:80 but after DAS, it has come down to 65:35. The business model is not at all lucrative enough. A major number of operators might look at other options for existence.” Many others are thinking of ways to ‘only exist’ in the cable TV business, wherein they have invested nearly 20 years of their life; he adds.

    Whereas, Suresh Sethia, Siticable Kolkata director says: “Small operators will become a part of larger networks but will still be in business.” Asked to define the term ‘small operators’ Sethia goes on to explain that LCOs with 100-150 subscribers are small while those with 2,000 and more customers are big. “There are groups of LCOs having more than 10,000 subscribers that are considered large,” he says.

    Sources however say that in Kolkata, most cable ops are yet to sign revenue-sharing agreements with their MSOs.

    An MSO says while the company has asked affiliated LCOs to educate subscribers about the different packages on offer, LCOs are not doing their work. “Secondly, the LCOs did not pay us for each connection in the analogue regime. But with installed set top boxes and the number of connections transparent, LCOs are not supporting us properly implement the new system,” he says.

    By contrast, an LCO who is part of the recently formed Bengal Broadband initiative (GIVE LINK TO OUR STORY) argues: “A multi system operator may provide cable TV services directly to subscribers. They don’t need our services and we are not mere collection agents. So, I will try to become a MSO.”

    Another cable op questions: “Filling up forms to gather information about viewers’ preferences coupled with sharing of network could result in monopoly of MSOs. Where are we in the system?”

     

    According to Swapan Chowdhury, convener of the Cable Operators Digitalisation Committee of the Association of Cable Operators, the authorities must do something in favour of operators. But he is quick to assure that people who have spent years in this industry will be here and ‘nothing will change’.

    Corpus Media consultant GK Viswanath corroborates Chowdhury’s view and says: “LCOs will not leave the industry. They’ve spent time and money here. LCOs will be the franchisees or payment collectors.” Going forward, he feels the small LCOs will merge with the MSOs and not with big LCOs.

  • Kolkata may bill cable TV consumers from 10 December

    Kolkata may bill cable TV consumers from 10 December

    KOLKATA: On 29 November,  indiantelevision.com  had reported that the Telecom Regulatory Authority of India (TRAI) pushed the deadline for MSOs to submit duly-filled CAFs (Consumer Application Forms) to 15 December, also asking them to implement gross/direct billing by December.

    The latest development is that Kolkata is likely to start the billing process from 10 December.
    Said Siticable Kolkata director Suresh Sethia: “We have been prepared for a long time but since some MSO’s were not ready, we had to wait.  Now, everyone has agreed to bill as per package from 10 November. We will put the bills on the system. The operators will distribute the same to subscribers. The bills will mention amusement tax and service tax components separately.”

    If all goes well, Kolkata will end up leading the pack as players in other metros are targeting January, in some cases even the last quarter of the current fiscal to start direct billing.
    Popular perception is that direct billing will bring transparency and order into an otherwise largely unorganised business.

    Director Manthan Broadband Sudip Ghosh said: “Billing is the first step to inform consumers of the changed ecosystem in a digitised environment.”

    However, several MSOs are opposing the process. Sources reveal that though Kolkata has some 30 lakh cable homes, MSOs like DEN and Digicable haven’t even started the package, let alone starting direct billing.

    Swapan Chowdhury, convener of the Cable Operators Digitalisation Committee of the Association of Cable Operators, too felt that with DAS not implemented properly in the city, packages not available and technical problems in the software and system used for direct billing, it could be said the government was simply putting pressure on the MSOs to collect taxes easily. “No one is concerned about the operators,” he said.

    Apurba Bhattacharya, general secretary, Cable Operators Sangram Committee too opined that everything was a hodge podge in DAS I.

    Cable TV analyst Mrinal Chatterjee pointed out that many customers weren’t paying the rentals. “Bill should be introduced. As the central and state government too is losing tax unless the bill is introduced. Some MSOs claim that they are ready with the bill and the backend system needed for it but they are not!” she said.

    Media analyst Namit Dave posed a very real question: “At a time when some CAFs are not filled in and customers are unable to see their favourite channels even after opting for the preferred bouquet as offered in the channel package, is the city ready to take on direct billing?”

  • TRAI cracks the whip again on DAS phase I MSOs

    TRAI cracks the whip again on DAS phase I MSOs

    MUMBAI: Consumer billing has been a major irritant for all those involved in the process of India’s cable TV digitisation. The Telecom Regulatory Authority of India (TRAI) has been hauling up all and sundry amongst the multi-system operators (MSOs) to issue bills to cable TV subscribers, but has not managed to get the process in motion as yet even in the DAS phase I metros of Mumbai, Delhi and Kolkata.

    Now it’s time for another warning from the TRAI. It has written to 29 MSOs in the DAS phase I areas, telling them that they have to get their act together on consumer billing for the month of November 2013. Bills should be dispatched to cable TV subscribers by either the MSOs or local cable TV operators by 15 December; and a compliance report submitted by 31 December. Earlier on 6 November, the TRAI had intervened asking the MSOs to send a compliance report for Delhi, Mumbai and Kolkata by 15 November.

    The direction comes from the powers conferred on the authority under section 13, read with sub clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) and regulation 14, 15, 16 and 24 of the Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations, 2012 and to protect the interest of the consumer.

    As per the direction, the MSOs also need to ensure that a proper receipt is given by it or its linked LCO for every payment made by the subscriber. “The MSOs will have to offer cable TV services to its subscribers on both pre-paid and post-paid payment options and generate bills for subscriber. That apart, the MSO also has to provide to the pre-paid subscriber, at a reasonable cost, the information relating to the itemised usage charge showing actual usage of service,” states the TRAI direction.

    What is notable is that it is not mandatory for the MSOs or its linked LCO to provide to the subscriber the information for any period beyond six months, preceding the month in which the request is made by the subscriber. According to the direction, “Every MSO shall, on request from the subscriber, change his payment plan from pre-paid to post-paid or vice-versa, without any extra charge.”

    To make the billing process clearer, the regulator has, as per regulation 15 of the Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations, provided that every MSO should – either directly or through the LCO – “give to every subscriber the bill for charges due and payable by such subscriber for each month or for such other period as agreed between the parties, for which such charges become payable by the subscriber.”

    The subscriber will be billed, generally on a monthly basis, including the service tax registration number and the MSO’s entertainment tax registration number. “Every MSO or its linked LCO, shall give 15 days, from the date of the bill, to every subscriber for making payment of the bill and in case the subscriber fails to make payment after expiry of the due date of payment, the MSO or LCO may charge simple interest of 12 per cent per annum on the amount due for the delay in making payment,” states TRAI’s direction.

  • TRAI extends CAF deadline to 15 December

    TRAI extends CAF deadline to 15 December

    MUMBAI: The multi system operators (MSOs) have time till 15 December to submit Consumer Application Forms (CAFs). The Telecom Regulatory Authority of India (TRAI) principal advisor N Parameswaran has shown forbearance and given the MSOs another 15 days to submit 100 per cent CAFs. The earlier deadline to submit CAFs was today, 20 November.

     

    The extension comes after Parameswaran’s meeting with the national MSOs held today in New Delhi. Though the MSOs had their concerns to address, in the meeting that lasted for one and a half hours, TRAI concentrated on two key issues — one, meeting the deadline for submitting CAFs for phase II by 15 December, and another, implementing gross billing from December for phase I.

     

    The meeting was attended by Hathway Cable and Datacom, Siti Cable, InCable, DEN Network, Digicable and GTPL.

     

    “We spoke at length on the issues that each MSO faces in order to comply with the deadline,” says a MSO on request of anonymity. “With LCOs not cooperating with us for submitting duly filled CAFs, and also the ongoing court cases that LCOs have filed to ensure the consumer stays under them, achieving the deadline is difficult,” he says.

     

    “The regulator will show leniency in states like Hyderabad, Madhya Pradesh and Gujarat that face problems, but in others it will not act as a Santa Claus if the deadline is not met,” says IndusInd Media and Communications Limited MD Ravi Mansukhani.

    According to Mansukhani, the bills are being generated by the MSOs, but the LCOs are not delivering them to the subscribers. “The TRAI has asked us to ensure that the bills should reach the subscribers by December. The regulator has asked us to either convince the LCO to deliver the bills to subscribers or to send them directly to each subscriber,” says Mansukhani.

     

    About 30 to 90 per cent CAFs have been collected so far. “The regulator has taken an average of this figure, which is around 50 per cent, and has said it is not enough. We have been asked to comply with this final deadline,” he mentions.

     

    The MSOs spoke at length on improving their relations with LCOs. “We want each party to realise and reap the benefits of digitisation,” states a MSO.

     

    The MSOs also raised logistic issues they were facing for collecting CAFs. “Unlike phase I which involved the big five players, phase II has several small players involved as well. And this is creating hindrance,” opines Mansukhani.

     

    The MSOs only have a few days to convince the LCOs to get ahead with both CAFs and billing. “It is a tough task, but we will have to give our best,” concludes Mansukhani.

     

    Seems like a difficult Christmas for the MSOs if they fail to meet deadlines.

  • MSO MD, director behind bars for not paying service tax

    MSO MD, director behind bars for not paying service tax

    KOLKATA: Two officials of a Kolkata-based multi service operator (MSO) Kolkata Cable & Broadband Pariseva Ltd were arrested today, as the firm had not paid service tax to the tune of Rs 5.52 crore to the government exchequer.

    The arrest of the two officials of Kolkata Cable & Broadband Pariseva Ltd came close on the heels of Union Finance Minister P Chidambaram’s visit to the city two days ago.

    Talking tough, Chidambaram on Tuesday warned the business community here that the government would use provisions of arrests and prosecutions against ‘chronic’ service tax evaders.

    KK Jaiswal, service tax commissioner of Kolkata, on Thursday said two persons, namely Bijoy Kumar Agarwal, managing director, and Prasun Kumar Das, director of Kolkata Cable & Broadband Pariseva Ltd, were arrested.

    “The firm, engaged in providing service as an MSO, is collecting service charges regularly. Investigation revealed that they have collected service tax around Rs 5.52 crore, but have not deposited the same to the government. This is a cognizable offence and punishable upto seven years of imprisonment. Both the persons have been produced before the Alipore Court,” Jaiswal addressed at a media interaction.

    He said the amount of tax was due for the period of 2008-09 to 2012-13.

    “Steps are being taken to recover the amount,” Jaiswal added.

    Earlier, Chidambaram said the government had arrested 13 people across the country in connection of tax evasions.

  • GTPL says Star Sports is simply acting tough

    GTPL says Star Sports is simply acting tough

    MUMBAI: Indiantelevision.com earlier today reported on Star Sports Network filing eight FIRs against GTPL Hathway in Maharashtra, Gujarat, Bihar and Jharkhand for illegal transmission of its channels during the recently concluded India-West Indies test series.

     

    But there’s actually a battle royale brewing between the sportscaster and the MSO, if sources are to be believed, and that there’s more to it than meets the eye.

     

    On its part, GTPL Hathway says it is unaware of any FIRs, and a senior executive has issued a rejoinder to Star Sports allegations and the notices it has been publishing since October.

     

    Says the GTPL Hathway executive: “We started switching off Star Sports channels in the areas which fall under DAS phase III from 16 October. It was after this that the channel put out a notice telling consumers that it will deactivate signals due to non-payment. The notice also stated that the consumers will be unable to watch Sachin play for the last time due to non-compliance by GTPL. It was just a way to malign our image and take awayconsumers. The channel started switching off signals from GTPL in the digitised areas in retaliation of our move to switch off signals in areas running on analogue signals.”

     

    GTPL says it is one of the first MSOs to implement digitisation in DAS phase III areas. “We have a large area to cover under digitisation and so we have already started the work. And it was due to this that we had to switch off some analogue channels to get more space for digital channels. The first option was Star Sports because the money that the network is asking is very high. Also in analogue, sport channels are carried on the last frequency and it is the last frequency that is required to be digitised first,” he informs.

     

    The legal notice is nothing but a retaliation to this, feels the GTPL Hathway executive. GTPL has a valid agreement with the network till March 2014.

     

    “The issues they have raised are frivolous. They are asking for subscriber reports, which is not relevant in our case, since we pay them the fixed amount for any number of subscribers,” he explains. “As far as the outstanding fee is concerned, we have had outstanding amounts in the past as well, but then we have always cleared the dues. We have had payment plans with Star Sports, which were agreed upon, but now they are going against it.”

     

    “It is just a move to get their channel started in the non-digital areas as well,” concludes the GTPL Hathway official.

     

    Will GTPL Hathway give in to the alleged pressure tactics?