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Tag: MSO

  • I&B sets up monitoring system to keep tab on digitisation by MSOs

    I&B sets up monitoring system to keep tab on digitisation by MSOs

    NEW DELHI: The Information and Broadcasting Ministry has set up a Centralised Monitoring System to monitor the progress of digitisation and to ensure the mandatory adherence of transmitting digital encrypted signals by multi-system operators (MSOs).

    The Centralised Monitoring System will be able to detect those MSOs who do not carry the mandated encrypted signals. MSOs are required to carry encrypted signals of TV channels in areas where digitisation has been implemented as mandated by Section 4A of Cable Television Networks (Regulation) Act, 1995. Transmission / Re-transmission of unencrypted signals would amount to violation of terms and conditions of MSOs.

    A web based pilot project for the Digital Addressable System (DAS) monitoring system installed at Bangalore is undergoing field trials for this purpose. Once implemented, it will enable the Ministry to keep a watch on the implementation of DAS by all the MSO licensees through this system. To start with, this system will help the users to centrally acquire, log, analyse and prepare report on the status of DAS parameters like total number/name of channels, encryption status etc of cable TV signals of head end of each registered MSO across the country in real time.

    This system can be augmented in future for content monitoring of the cable TV channels at local levels. It is expected that the system will also evolve as an alternative indicator of television viewing by consumers.

  • LCOs say taxes have to be paid by MSOs under DAS

    LCOs say taxes have to be paid by MSOs under DAS

    NEW DELHI: Organisations of cable operators in Delhi have expressed surprise at reports that the Delhi Government is attempting to charge some local cable operators with evading taxes.

    The local cable operators (LCOs) say that all the set top boxes are being imported by the multi-system operators (MSOs) and the exact number is also available with these MSOs who file their records with the Telecom Regulatory Authority of India (Trai). The action of Delhi Government is therefore misplaced, the LCOs say.

    Cable Operators Federation of India president Roop Sharma said it was for the importer of the MSO to pay VAT or other taxes and this did not fall in the realm of the LCO.

    Under the Digital Addressable System (DAS), even the entertainment tax has to be paid by the MSO who generates the bill, and the LCO does not come into the picture. Prior to digitisation, the LCOs generated the billing for the consumers, Sharma added.

    She stressed that the LCOs had supported digitisation as they were consistently being accused of under-reporting, and wanted to ensure transparency.

    Earlier reports had said that the Delhi government had alleged that LCOs had been evading taxes by concealing the number of connections.

    The Department of Excise and Entertainment Tax had issued notices to nearly 1,000 of 2,200 operators in the city warning them of cancellation of licences.

    The process is likely to take two to three months, according to officials. According to 2011 census, Delhi has 3.341 million households with 88 per cent TV penetration, which implies that about 2.9 million households have TV connections.

    It is understood that the government has collected nearly Rs 1.21 billion against a target of Rs 670 million, of which Rs 300 million has been collected from cable operators. This collection last year was nearly Rs 330 million.

  • Around 6.6 mn STBs still to be installed in 38 cities of Phase II of DAS

    Around 6.6 mn STBs still to be installed in 38 cities of Phase II of DAS

    NEW DELHI: A total of 6.59 million cable television homes in the 38 cities which are to be covered in Phase II of digitisation have still to receive set-top boxes, just three weeks ahead of the deadline of 31 March.

    The level of digitisation in the cities had reached 58.84 per cent including 25.85 per cent of direct-to-home homes as on 8 March.

    Information and Broadcasting Ministry sources claimed a total of 5.28 million cable homes had received set top boxes as on 8 March, apart from 4.14 homes on DTH.

    The sources said a total of 16.01 million total TV sets had to be digitised by making provision of 20 per cent for multiple TVs in houses and TVs in offices/shops. The total number of TV Households according to Ministry statistics is 13.34 million.

    Of the 38 cities, Bangalore leads with 7,50,181 STBs installed, followed by Hyderabad with 7,33,729, while Coimbatore, Visakhapatnam, and Srinagar were at the bottom of the list with no STB installation as on 8 March.

    The Ministry has set up a Task Force exclusively for Phase II cities to oversee and monitor the digitisation process. A public awareness Committee has also been constituted in the Ministry for spearheading awareness campaign and all TV channels have started to run a scroll informing consumers about the deadline for cable TV digitisation, as also an animated commercial.

    All India Radio has also started broadcasting of the radio jingles on its National and regional networks for creating public awareness. Several other initiatives like SMS campaign, video spots and print advertisements etc. are on the anvil. The State Governments/UTs have already nominated nodal officers in 38 cities of Phase II. The Ministry had recently conducted a workshop for them.

    It is planned to organise a second workshop shortly to take stock of preparedness in Phase II cities. A regional workshop was also held recently at Bangalore to sensitise local MSOs, cable operators and other stakeholders.

    The Ministry had set up a Control Room during Phase I, which has continued to function to address the queries of consumers, cable operators and others. The Control Room which also has a toll free number has been receiving a number of calls from consumers of Phase II cities.

    In order to facilitate cable TV digitisation in 38 cities of Phase II, the Ministry has already issued provisional registration to 30 Independent MSOs to operate in Phase II cities. This would enable these MSOs to operate in their respective cities to provide digital cable TV services.

    For the second phase, the 38 specific cities and areas which have been listed in the notification are Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Jaipur, Lucknow, Nagpur, Patna, Indore, Bhopal, Thane, Ludhiana, Agra, Pimpri-Chinchwad, Nashik, Vadodara, Faridabad, Ghaziabad, Rajkot, Meerut, Kalyan-Dombivali, Varanasi, Amritsar, Navi Mumbai, Aurangabad, Solapur, Allahabad, Jabalpur, Srinagar, Visakhapatnam, Ranchi, Howrah, Chandigarh, Coimbatore, Mysore and Jodhpur.

  • Higher import duty on STBs will help local manufacturers: Manish Tewari

    Higher import duty on STBs will help local manufacturers: Manish Tewari

    NEW DELHI: Information and Broadcasting Minister Manish Tewari feels the higher import duty levied on set top boxes (STBs) announced in the Union Budget will give an opportunity for domestic manufacturers to benefit and not set back the digitisation process.

    “It is important that when such a huge exercise is undertaken, which involves a revenue of about $4 to $5 billion, essentially paid by the people of India and the multi-system operators, there should be certain tangible benefits which must accrue to Indian manufacturers.” he added while addressing the delegates of Ficci Frames in Mumbai via video-link from New Delhi.
     
    He has said digitisation is a major project that will ensure transparency and bring benefits to all in the long run. While the digitisation process has been set in motion following a legal remit, “there is also a social contract which calls upon all stakeholders in this, whether they are broadcasters, MSOs or cable operators to sort out the issues inter-se, because eventually, it needs to be a win-win situation for the broadcasters and the consumers.”

    He added that “If any section within this large family feels short changed, then obviously there‘s a cause of concern.”
     
    Tewari reiterated the firm backing of the government for the growth of the media and entertainment industry and said “this industry is not only a huge economic multiplier, but it also has the potential of absorbing creative intellect of young people. It is therefore incumbent upon government to put in place appropriate mechanisms which try and play the role of a facilitator and an enabler.”

    Digitisation was a dominant topic of discussion at the media and entertainment industry‘s mega event Ficci Frames 2013 held in Mumbai from 12 to 14 March, with policy makers, industry leaders and experts deliberating on various aspects of the process.

  • Industry needs to come together to put all systems in place for Phase 2: Parameswaran

    Industry needs to come together to put all systems in place for Phase 2: Parameswaran

    MUMBAI: The multi system operators (MSOs) might have successfully installed set top boxes (STBs) in majority of homes in phase 1 of digitisation but the government feels that is just one aspect of the drive and other aspects like subscriber management system (SMS) and billing system need to be put in place if the real benefits of digitisation have to be realised.

    The Telecom Regulatory Authority of India (Trai) wants the industry to set things right for Phase 2 of cable TV digitisation. Trai consultant N Parameswaran said Tuesday that the stakeholders need to work towards having all the systems in place in order to implement digitisation in letter and spirit.

    “Digitisation has not happened in a manner that we wanted to. It’s not a regulatory issue. The industry has to come together and ensure that that all the systems are in place from day one for phase 2,” he said.

    According to Parameswaran, the real benefits of digitisation have not reached people. "The subscriber management system is not in place. What has happened is only set top boxes have been installed,” Parameswaran said, while taking part in a panel discussion on digitisation at Ficci Frames 2013.

    Parameswaran said that the Trai had recently issued notices to MSOs and LCOs (Local Cable Operators) to make their SMS operational in DAS areas to ensure things fall in place.

    While commending the industry for achieving digitisation in a short span of time, Den Networks CMD Sameer Manchanda assured that the SMS and billing system will fall in place in 60 days.

    “We should have all things in place in 60 days. Putting eight million STBs was a herculean task. Digitisation has taken years in other countries,” Manchanda said.

    IndiaCast Group CEO Anuj Gandhi said the ARPUs (Average Revenue Per User) will increase gradually. The key is to segment existing channels and create packages accordingly. A case in point, Gandhi said, was having a South Indian channel package for Mumbai.

    Gandhi urged the industry to take one step at a time. The immediate priority, he said, was to get back-end systems in place. “For broadcasters, it’s a scary thought that the customers are getting more channels for the same price,” averred Gandhi.

    According to Multi Screen Media (MSM) CEO Man Jit Singh, government should continue to play the facilitators role like it did in the first phase. He also said that STBs have installed, subscribers are getting digital signals but little has changed apart from that.

    “What we have shown in first phase is that we came together as an industry to implement digitisation. The government also has a critical role to play. It should continue to play the facilitators role to bring together different stakeholders in the industry,” Singh said.

    He added, “Tiering and ARPU is incremental to drive the market together by understanding the consumer needs and expectations. The burden of expansion has to be shared by the Local Cable Operator (LCO), Multi System Operator (MSO), broadcaster and the consumer.”

    IBM Global Business Services India/SA Director & Partner, Industry Leader – Media & Entertainment Raman Kalra said that it is important for the industry to keep parallel strategy in place as the business model is evolving continuously.

    “Consumer is willing to pay but the industry should know how to extract it. The key is to know your customers to facilitate micro-segmentation and then work on the content strategy accordingly,” Kalra said.

    Reliance Broadcast Network Limited (RBNL) CEO Tarun Katial said the advent of digitisation has made things easier for new channels as the carriage and placement is not a big problem anymore.

    He also said that the availability of more channels has meant that consumers are sampling more channels which is good for niche channels. He also felt that dynamics will change as advertisers will now have to shell out more for advertising on television as subscription revenues go up and advertising duration is cut down.

    Times Television Network (TTN) MD & CEO Sunil Lulla said, “The current economics are not adequate for the success of Phase 2 of digitisation. There is an urgent need for industry transformation and an effective change in consumer experience. We are sitting at the cusp of change where widespread and deep digitisation will happen on the back of consumers, regulators and government working together.”

  • MSOs have over 2 mn STBs in stock: Govt

    MSOs have over 2 mn STBs in stock: Govt

    NEW DELHI: The government has brushed aside claims that the second phase of digitisation in 38 cities by 31 March could hit a rough patch due to shortage of set-top boxes (STBs) in the marketplace. Providing fresh update, the government has said that multi-system operators (MSOs) have around 2.23 million STBs in stock while another 2.02 million are under procurement.

    A few days back, the government had claimed that the 38 cities had already gone through 55 per cent digitisation. Coupled with the new set of data, the government apparently feels that the second phase of digitisation should face no problems so far as availability of boxes go.

    Information and Broadcasting Ministry says while it is not responsible for seeding of the digital STBs, it had been constantly monitoring the preparedness for the implementation of digital addressable cable TV system (DAS) in the 38 cities of Phase II which comprise around 16 million television households.

    According to data received by the Ministry from the DTH operators and MSOs, a total of 8.77 million STBs have already been installed in Phase II cities as on 22 February. Out of the total of 8.77 million, DTH connections accounted for 4.07 million while cable STBs accounted for 4.7 million.

    The Ministry has set up a Task Force exclusively for Phase II cities to oversee and monitor the digitisation process. A public awareness Committee has also been constituted in the Ministry for spearheading awareness campaign and all TV channels have started to run a scroll informing consumers about the deadline for cable TV digitisation.

    Ministry sources said the STBs are being procured mostly from China and Korea, but some are also being obtained indigenously.

    The Consumer Electronics and Appliance Manufacturers Association (CEAMA) is also a member of the Task Force and is pushing the production of indigenous STBs.

    The Government announced a customs duty of ten per cent on imported STBs in the Union Budget in an attempt to encourage indigenous production.

  • Govt claims 55% digitisation achieved in Phase II

    Govt claims 55% digitisation achieved in Phase II

    NEW DELHI: Just two days after stakeholders expressed fears that imported digital set top boxes would become more expensive with the doubling of customs duty, the Information and Broadcasting Ministry claimed that over 55 per cent digitisation target has been achieved in the 38 cities set for switching off analogue by 31 March.

    According to data received by the Ministry from the direct-to-home (DTH) service providers and multi-system operators (MSOs), a total of 8.77 million set-top boxes (STBs) have already been installed in Phase II cities against the target of 16 million, registering an achievement of 55 per cent digitisation as on 22 February. Out of the total of 8.77 million, DTH connections accounted for 4.07 million while cable STBs accounted for 4.7 million.

    The Ministry said it had been constantly monitoring the preparedness for the implementation of digital addressable cable TV system in the 38 cities of Phase II.

    The Ministry has set up a Task Force exclusively for Phase II cities to oversee and monitor the digitisation process. A public awareness Committee has also been constituted in the Ministry for spearheading awareness campaign and all TV channels have started to run a scroll informing consumers about the deadline for cable TV digitisation.

    All India Radio (AIR) has also started broadcasting of the radio jingles on its national and regional networks for creating public awareness. Several other initiatives like SMS campaign, video spots and print advertisements etc. are on the anvil. The State Governments/UTs have already nominated nodal officers in 38 cities of Phase II. The Ministry had recently conducted a workshop for them.

    It is planned to organise a second workshop shortly to take stock of preparedness in Phase II cities. A regional workshop was also held recently at Bangalore to sensitize local MSOs, cable operators and other stakeholders.

    The Ministry had set up a Control Room during Phase I, which has continued to function to address the queries of consumers, cable operators and others. The Control Room which also has a toll free number has been receiving a number of calls from consumers of Phase II cities.

    In order to facilitate cable TV digitisation in 38 cities of Phase II, the Ministry has already issued provisional registration to 30 Independent MSOs to operate in Phase II cities. This would enable these MSOs to operate in their respective cities to provide digital cable TV services.

    For the second phase, the 38 specific cities and areas which have been listed in the notification are – Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Jaipur, Lucknow, Nagpur, Patna, Indore, Bhopal, Thane, Ludhiana, Agra, Pimpri-Chinchwad, Nashik, Vadodara, Faridabad, Ghaziabad, Rajkot, Meerut, Kalyan-Dombivali, Varanasi, Amritsar, Navi Mumbai, Aurangabad, Solapur, Allahabad, Jabalpur, Srinagar, Visakhapatnam, Ranchi, Howrah, Chandigarh, Coimbatore, Mysore and Jodhpur.

    MSOs, however, believe that there will be a 3-6 months delay in Phase II digitisation. The STB shortage in the market is apparent, they point out.

    Even though digital STBs have been deployed in three of the four metros that came under Phase I digitisation, MSOs have been struggling to get billing implemented which would enable subscribers to pay according to the channel packages they select. The other issues like payment to broadcasters and collecting subscription money from the local cable operators have yet to be sorted out.

  • How the industry looks at the customs duty hike on STBs

    How the industry looks at the customs duty hike on STBs

    MUMBAI: With the country moving towards digitisation, the last thing that multi-system operators (MSOs) and direct-to-home (DTH) companies would have wanted is doubling of import duty on foreign manufactured set-top boxes (STB).

    However, finance minister Palaniappan Chidambaram did just that when he stood to present the Budget by increasing the customs duty on STBs to 10 per cent from 5 per cent to provide fillip to domestic manufacturers.

    The minister’s intention, though novel, will have repercussions for the industry in the short term, reckon industry experts. It will drive up the price of STBs and, with intense competition in the marketplace, it is highly unlikely that the MSOs and DTH service providers would be able to pass it on to the consumers.

    An overwhelming majority of the STBs are imported while the indigenous ones are negligible and inadequate to meet the industry’s demand which has only gone up with the roll out of cable television digitisation.

    That aside, the decision augurs well for the industry in the long run provided the Indian STB manufacturers rise to the occasion by matching to the growing demand of DTH and MSO companies.

    MSOs rue the duty hike

    Coinciding with the second phase of digitisation across 38 cities, the MSOs have found the government‘s decision to hike the customs duty on STBs as “utterly nasty”. They are already financially stretched in the short term with the need to subsidise the boxes to their cable TV subscribers while content costs have been on the rise and there is a growing demand among their local cable operators (LCOs) to lift their revenue share above the Telecom Regulatory of India‘s (Trai) prescription for DAS (Digital Addressable Systems) markets.

    “We are jacked because we need the STBs for Phase II digitisation and can‘t wait for the local manufacturers to gear into action. While there is a mandate for digitisation, there is not a single thing done by the government to incentivise us. We had asked for tax holiday and we are not even given industry status. On the contrary, the customs duty has been hiked,” says Digicable managing director and chief executive office Jagjit Kohli.

    Tagged along with the countervailing duty, the net impact of the hike in STB prices would be close to six per cent. For Phase II, industry estimates put the STB requirement to be around 15-16 million.

    Den Networks CEO SN Sharma feels that the government’s decision is futuristic, although it will have an impact in the short-term on the price of STBs. “In the long run, the move will encourage local manufacturers to scale up their business which would also help us to save on costs like freight, insurance and transportation etc. However, in the short term it will lead to an increase of Rs 50-60 per STB,” he says.

    DTH operators also feel the pinch

    Bogged down by heavy taxation and high subscriber acquisition costs, the DTH companies wanted relief on the customs duty side.

    Tata Sky MD & CEO and DTH Operators Association of India (DOAI) president Harit Nagpal feels that the government’s decision is ill-timed and will rob the DTH operators of $20 million annually that they have to shell out due to rise in customs duty.

    “We (DTH operators) hope that the government will roll back the hike in customs duty. The timing of the decision is not right as there is huge demand for STBs and there are no proven manufacturers of quality STB in the country,” says Nagpal.

    He also bemoans the fact that DTH operators who are already paying two-three times the normal tax will be further burdened by this hike.

    “We would love to buy indigenous STBs as it would save us from foreign exchange fluctuation, transportation, and import duty. However, the STB manufacturing industry is too small at this stage and we import majority of our STBs,” he adds.

    The DOAI had through a memorandum requested the Finance Minister for a duty waiver. However, the government granted the wish of local STB manufacturers who had demanded a hike in customs duty to give a fillip to the local industry.

    Airtel digital TV CEO Shashi Arora feels that the government’s decision has dampened the spirits of the DTH operators who are already reeling under three layers of taxation.

    “I don’t know what the government is thinking, but this is a cost which we could have done away with. The industry imports 95 per cent of STBs as there are hardly any Indian manufacturers. The industry imports one million STBs every month,” Arora states.

    Will the price hike be passed on to the consumers? “Too soon to say anything,” says Arora.

    However, not everyone is grieving. Videocon d2h, which manufactures its own boxes, is one of them. “We won’t be impacted by the government’s decision as we manufacture STBs locally,” says Videocon d2h CEO Anil Khera.

    A media analyst believes that the industry is grieving more than what the grim reality is. “There is a negative impact in the short term but it is not as if it is casting doom on the industry. The financial impact of a 5 per cent rise on STBs won‘t be substantial to deter digitisation,” he says.

  • Budget: Customs duty on imported STBs doubled

    Budget: Customs duty on imported STBs doubled

    NEW DELHI: The government has decided to double the customs duty on imported set-top boxes (STBs) to ten per cent, a move set to encourage domestic manufacturers but to have immediate consequences on prices and possibly hurt multi-system operators (MSOs) and DTH companies.

    The government feels that domestic production of STBs would get a stimulus even as implementation of digitisation spreads across the country.

    Finance Minister P Chidambaram said in his Budget speech for 2013-14 that the aim was also at value addition in the sector.

    With the first phase of digitisation having commenced in the metros (barring Chennai where it is held up by a court case) on 1 November last year and the second phase of switch-off of analogue signals scheduled for 31 March, the country is facing acute shortage of standardised STBs and has to depend on imported boxes.

    The Information and Broadcasting Ministry had last month urged the Finance Ministry to remove the anomaly between imported and indigenous STBs.

    Countdown had commenced in late November for the second phase covering 38 cities in 15 states.

    The Ministry had issued a notification on 11 November 2011 notifying Phase-wise digitisation of Analogue Cable Television Networks in India.

    The aim is to digitize the cable sector in the country by 31 December 2014. The target date for completely digitising cable sector in cities with population of more than one million is 30 March 2013, all urban areas by 30 September 2014, and the whole country by 31 December 2014.

    For the second phase, the 38 specific cities and areas which have been listed in the notification are – Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Jaipur, Lucknow, Nagpur, Patna, Indore, Bhopal, Thane, Ludhiana, Agra, Pimpri-Chinchwad, Nashik, Vadodara, Faridabad, Ghaziabad, Rajkot, Meerut, Kalyan-Dombivali, Varanasi, amrtisar, Navi Mumbai, Aurangabad, Solapur, Allahabad, Jabalpur, Srinagar, Visakhapatnam, Ranchi, Howrah, Chandigarh, Coimbatore, Mysore and Jodhpur.

  • Digitisation: Trai directs MSOs and LCOs to comply with QoS in DAS areas

    Digitisation: Trai directs MSOs and LCOs to comply with QoS in DAS areas

    NEW DELHI: For the Telecom Regulatory Authority of India (Trai), it is time to take audit of the first phase of implementation of digital addressable system (DAS) by cable TV networks. Though satisfied with the deployment of set-top boxes (STBs), the broadcast sector regulator now seems to be wanting faster progress made on packaging of channels and billing so that cable TV subscribers can select their channels according to their budgets.

    In a toughening of stance, Trai has directed multi-system operators (MSOs) and the local cable operators (LCOs) to make their subscriber management system (SMS) fully operational in DAS areas. The systems are provided for under Regulation 20 of the Standards of Quality of Service (QoS) Regulations.

    Trai has asked the MSOs and the LCOs to file a compliance report of the QoS within seven days from the date of issue of this directive. The sector regulator had sent the directive on 22 February.

    “It has come to the notice of the Trai that this feature has not been implemented effectively by many MSOs. Also, in many of the cases the LCOs have not provided the completed subscriber application forms to their linked MSOs,” Trai said.
    The compliance report to be given to the Authority will contain total number of STBs received from the linked MSO, total number of STBs seeded and operationalised, total number of consumer application forms duly filled and complete in all respects (all the relevant consumer details and his choice of channels/ bouquets) and submitted to the linked MSO.

    An addressable system “enables the subscribers to exercise their choice of services and budget their bills accordingly”. It also “facilitates the MSOs to effectively manage their accounting and billing of the services rendered”.

    Though the process of SMS had started, senior executives of several MSOs said on condition of anonymity that the entire system would take some time. They also admitted that they faced resistance from some LCOs, following which there was delay in selling channel packages to their subscribers and implementing a proper billing system. Meanwhile, some LCOs have carried out protests to express their dissatisfaction over Trai‘s prescribed revenue share with the MSOs in DAS markets.