Tag: MSO

  • Trai issues additional QoS instructions

    Trai issues additional QoS instructions

    NEW DELHI: Indian broadcast regulator today came out with more details on quality of service (QoS) to be observed by MSOs and local cable operators in CAS-notified areas.

    The Telecom Regulatory Authority of India (Trai) has said the reporting (in the prescribed format) of QoS by approved MSOs and local cable ops shall be done on or before the expiry of 15 days from the end of the quarters and shall pertain to the quarters ending with 31 March, 30 June, 30 September and 31 December of each calendar year.

    Further, in the case of Chennai, the first reporting shall be for the quarter ending December 2006 and in case of notified areas of Mumbai, Delhi and Kolkata, it shall be for the quarter ending 31 March, 2007.

    Trai had issued Regulation specifying standards of Quality of Service to be observed by the MSOs and cable operators in CAS notified areas of Chennai, Mumbai, Delhi and Kolkata on 23 August 2006.

    This regulation provided that Trai, for the purpose of monitoring, can prescribe formats and demand reports from service providers on observance of QoS standards.

    Further, in MSOs who are permitted to provide cable service in CAS notified areas under the Cable Amendment Rules of 2006 would be obliged to maintain quality of standards as may be determined by the regulator.

    A full text of the general directive is available on the regulator’s website.

  • MSOs get CAS authorisation letters

    MSOs get CAS authorisation letters

    MUMBAI: The government’s CAS rollout plan continues apace. All the major MSOs today received “CAS authorisations” from the sector regulator, which clears the way for the public awareness campaigns to kick on the stipulated date of 15 October.

    According to IndusInd Media & Communications executive director Ashok Mansukhani, the letters issued by the Telecom Regulatory Authority of India (Trai) are dated 30 September and authorise an MSO to operate in the cities of Mumbai, Delhi, Kolkata and Chennai “in the areas notified under Section 4(a) of the Cable Act 1995 as per 11(2) of the cable rules 1992 as amended in 2006.”

    Says Mansukhani, “These letters clear the way for MSOs to seek authorisation from broadcasters to enter into revenue share agreements with broadcasters and operators in terms of the August 24 interconnect regulation and the August 31 tariff order issued by Trai. It also clears the way for us kick off the CAS awareness campaign by the mandated date of 15 October.”

    Executives in the Zee Group promoted WWIL (earlier Siticable) also confirmed receiving the CAS authorisation letters. 

    It was on 18 September that Trai issued a directive that the date for starting public awareness campaign by permitted MSOs in CAS notified areas will be not later than 15 October. This directive was further to its earlier order specifying standards of quality of service to be observed by the MSOs / cable operators in CAS notified areas.

    The CAS awareness campaign will last for a period of 30 days. The general directive also provides for filing of a compliance report immediately after the start as well as the end of the campaign.

    Trai had issued a regulation on 23 August specifying standards of quality of service to be observed by the MSOs/ Cable Operators in CAS notified areas of Chennai, Mumbai, Delhi and Kolkata. This regulation had stated that multi system operators permitted to provide cable services in CAS notified areas would be required to conduct a public awareness campaign from a date to be specified by Trai.

  • TDSAT declines stay as SET, ESPN and ESS move against CAS pricing

    TDSAT declines stay as SET, ESPN and ESS move against CAS pricing

    MUMBAI: Acting on expected lines, broadcasters have finally taken legal recourse against the Rs 5 tariff that the sector regulator had set as the price for accessing pay channels in a CAS regime.

    Three separate petitions filed against the order of the Telecom Regulatory Authority of India (Trai) by Set Discovery Ltd, ESPN Star Sports (ESS) and ESPN Software India came up for hearing this morning before the apeals tribunal.
    However, the Telecom Disputes Settlement & Appellate Tribunal (TDSAT), which heard the case today, issued no directive to stay Trai’s order.

    A point of note is that of the three petitions that came up for hearing today, two of them were moved commonly by ESS and ESPN Software.

    TDSAT has set the matter for further argument and a possible order on 13 November. The pay broadcasters have challenged the two Trai notifications dated 24 August (on carriage fee) and 31 August (channel pricing).

    The channels have also challenged the revenue sharing model designed for industry stakeholders by Trai. The sector regulator had specified in the notification that the revenue generated from pay channels leaves the broadcaster with 45 per cent, while the multi system operators (MSOs) stays on with 30 per cent and the cable operators get 25 per cent.

    Interestingly, the two major MSOs; Hathway and Hinduja-owned IndusInd Media and Communications have intervened in the appeal in support of Trai’s decision on the CAS pricing.

    For the record, the 24 August notification had mentioned that the carriage fee is to be retained fully by MSOs and can operate throughout a CAS area without any restriction on area of operation.

    Subsequently, SitiCable Networks Ltd (now renamed WWIL) has also filed a petition at the tribunal appealing that the MSO must have a share in the basic tier services fee, which according to Trai notification must be retained fully by local cable operators.

    Earlier this year, a division bench of the Delhi High Court had passed an order directing the implementation of CAS with effect from 31 December in the south zones of the three metros; Mumbai, Delhi and Kolkata.

  • Trai launches ad campaign for CAS

    Trai launches ad campaign for CAS

    MUMBAI: The Telecom Regulatory Authority of India (Trai) has set the ball rolling for CAS (conditional access system).

    Not resting just on fixing the maximum rate of individual channels at Rs 5 per subscriber, the regulator has come out with an ad campaign to inform that pay broadcasters would have to provide their pricing within the ceiling by 12 October.

    “The reporting to Trai of prices of pay channels within the ceiling by broadcasters should be by 12 October,” the statement said.

    Trai has set a similar deadline for multi-system operators (MSOs) to inform the regulator about the tariff packages on their set-top boxes (STBs). The conclusion of commercial agreements by service providers should be reported to Trai by 15 Octoiber, the campaign said.

    The regulator has marked 31 December as the date for implementation of Cas.

  • ‘Trai has come up with the correct CAS economics’ : K Jayaraman – Hathway Cable & Datacom MD & CEO

    ‘Trai has come up with the correct CAS economics’ : K Jayaraman – Hathway Cable & Datacom MD & CEO

    The Telecom Regulatory Authority of India (Trai) has laid out a fertile ground for digital cable TV take off. The formula is simple: price everything low and large volumes will create a viable market dynamics.

    India has seen it in mobile phones. The lessons will repeat itself in the television industry. Despite the initial blip, the industry will correct itself and grow as at the centre of this pull of gravity rests the consumers.

    Broadcasters are not in tune with this logic. Their programming costs are rising. So why not let them have the freedom of pricing their products?

    The cable operators, along with the consumers, are in love with the a la carte pricing of pay chanels at a maximum of Rs 5. The multi-system operators (MSOs) feel that a new business model is being set.

    In an interview with indiantelevision.com‘s Sibabrata Das, Hathway Cable & Datacom managing director and CEO K Jayaraman argues how every stakeholder will eventually stand to gain. The a la carte pricing will make digital cable popular while the revenue share across the value chain has been “very accommodative.”

    Excerpts:

    Do you agree with what the Telecom Regulatory Authority of India (Trai) has fixed as the price and revenue share under conditional access system (Cas)?
    The regulator has come up with the correct economics. Consumers will have choice and at a real affordable cost. The a la carte pricing of channels at a maximum of Rs 5 in Cas areas will increase the penetration of set-top boxes (STBs) and drive in volumes. The revenue share allocation across the value chain is also very accommodative. Broadcasters will get 45 per cent share and have access to advertising revenues as well. While multi-system operators (MSOs) will have 30 per cent and carriage fee, local cable operators are also given a fair share with full revenue on the free-to-air (FTA) package and a 25 per cent share on pay channel revenues. Also, the government will get more tax revenues.

    Broadcasters complain that the maximum price of Rs 5 per channel is too low and doesn‘t take into account their high programming costs.
    When subscription becomes transparent, the rate has to be low. For digital technology to take off, we need such a price regulation. Let us face the reality: these are the consequences of a new environment and a change in business model. Besides, the price regulation is only for one year. Free market will prevail and price will be discovered eventually.

    With a la carte pricing, cable bills are expected to drop. How will falling ARPUs (average revenue per user) affect the cable companies?
    Nothing can be worse than the current model. But under Cas, we will, at least, have a legally sanctioned revenue, albeit lower. No doubt we will get a Hindu rate of return. But we will not have under-reporting of subscribers. We are happy that a proper business model is being set. Revenues Will grow once the business model settles. Everybody will be on the move. As consumers have choice, broadcasters will have to worry about pricing their channels correctly within a maximum of Rs 5. If they do that, then MSOs can also make money. We will have to focus on providing quality cable TV service. If we don‘t do that, we have competition from direct-to-home (DTH) service and will face threat of being wiped out.

    Cable companies will also have to subsidise the boxes. Do they have the resources to absorb subsidy costs and still scale up?
    All of us will have to be in investment mode because the business model is changing. The initial subsidy on each box will work out to Rs 1,500. This is the price we have to pay for a change in the business model. But this can be squared off once it settles down. The price of STBs will fall by 15-20 per cent with a surge in volumes. Cable companies will have to raise resources, either through debt or equity. For those who can‘t, survival will be tough. The telcos like Reliance Infocomm are waiting to step in. We should be prepared for a high volume, low margin game. Distribution, initially, is a volume business.

    Won‘t your traditional business from non CAS areas be a support?
    Yes, we will have other businesses to run: internet, non CAS placement fee, ad revenues from local cable channels. We will also have carriage fee from FTA channels in a CAS system. For cable companies to cover up their overhead and variable costs (STBs), they will have to do other related businesses.

    A la carte pricing will drive down our ARPUs. But we are happy that a proper business model is being set

    Like having a well-rounded revenue stream?
    If you are a composite cable company, you will survive. We will have to provide video, voice and data through a common pipe. Standalone players will have a tough time. We, for instance, are preparing to launch voice over internet protocol (VoIP) services by the last quarter of this year. Test runs are currently on. We are also be aggressively pushing digital cable TV in non CAS markets. We recently launched in Jalandhar, having rolled out our digital services earlier in New Delhi, Mumbai, Pune, Bangalore, and Hyderabad.

    Do you see DTH having a perceptional advantage over cable?
    DTH platform providers are well capitalised and have a more long term vision. Their ARPUs can also settle higher as they better their products. But they have a huge variable cost in occupying transponder space. Cable companies, in contrast, have already made the investments and have low operating costs. Of course, now they will have a variable cost towards procurement of boxes. But they have an existing relationship with customers and cable is two-way enabled. Digital cable can also offer more channels. Composite cable companies with focus on multiple revenue streams can effectively fight DTH.

    How are you planning to infuse capital to fund digitisation?
    We will raise Rs 1 billion as debt to fund the first phase of CAS The bulk of the investments will be towards subsidising the STBs. Funding will also be required in setting up VoIP and expanding broadband infrastructure.

    Is it a good time to acquire last mile operators?
    If cable companies have the resources, acquisition of last mile will make sense. In the CAS areas where you have an administered price regime for one year, the payback period will be longer. But once the price is market-based, then recovery will be faster as more channels come under the pay system and people start subscribing to them. Even in non CAS areas, acquisition will provide size upon which a digital platform can be built later. But in case of Hathway where we have limited resources, we would rather put the money in placing more STBs.

    Will Valuations of cable companies go up under CAS?
    CAS will bring some semblance of order into the business. But it is a long term roll out and needs cash flow. What is more important is that cable companies will attract capital, whether in the form of equity, debt or convertible bonds.

    Will there be a consolidation in the industry?
    Consolidation will happen wherever digitisation is required because of new technology and service requirements.

    Zee network‘s Wire & Wireless India Ltd (WWIL) is planning to launch a headend-in-the-sky (Hits) platform and has expressed intent to make inroads into south and western suburbs of Mumbai. Do you see territorial warfare among MSOs returning?
    Hits is right now viewed more as a fashion statement. We are delivering digital without having Hits. If it is necessary, then everybody will do it. As far as poaching of operators go, it is an open ground. Cable companies who focus on good service and have capital to create capacity will turn out winners. Competition is not a one-way street.

  • Zee Sports-MSO tussle to deny cricket to Mumbaikars

    Zee Sports-MSO tussle to deny cricket to Mumbaikars

    MUMBAI: Looks like cricket fans in Mumbai will be unable to watch the India-Australia match on Saturday with Zee Sports and the major Mumbai multi-system operators (MSOs) continuing to take a hard stance.

    Even Incablenet’s plea filed in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) for restoration of signals was rejected today.

    “Since Incablenet was unwilling to sign the subscription agreement, TDSAT rejected the operator’s plea for interim relief. The next hearing of the case is scheduled for 19 September by which time if an agreement has not been reached between the two parties, then the court will take a decision,” Zee Turner said in a release.

    Incablenet’s argument was that Zee Sports had not served a 21-day notice before blacking out the signals, as required by a regulation prescribed by the Telecom regulatory Authority of India (Trai). The MSO also wanted restoration of the signals as the disconnection was patently illegal.

    “Zee Turner also offered a bulk discount to Incablenet but this was also rejected by the MSO,” the company said.

    The TDSAT has asked Zee Turner to file its reply on Monday following which the next hearing of the case would be on Tuesday.

    “We cannot allow our signals on any of the networks that have not signed the subscription agreement with us, especially since a majority of the country has already signed and is watching the tri-series. Zee Sports has been a pay channel since June 2005 and we have spent a substantial amount of money in acquiring the rights of the DLF Cup tri-series. We have the right to demand subscription fees,” says Zee Turner CEO Arun Poddar.

    “The operators that have already signed the agreement will continue to get the signals for Zee Sports,” Poddar adds. The sports channel, for instance, is on Seven Star, which operates in the western suburbs of Mumbai.

    Zee Sports was made available to viewers in Mumbai for the India-West Indies cricket match yesterday but was once again blacked out from the major cable networks in the evening.

    Sources say the cable operators were willing to sign up for a 10 per cent declaration of Zee Turner’s first bouquet. But this was not acceptable to Zee Turner, the company which distributes a bouquet of channels including Zee Sports.

    Zee Sports has the exclusive telecast rights for the DLF Cup between India, Australia and West Indies. The tri-series will last till 24 September.

  • Zee Sports yet to sign up with Mumbai’s major MSOs

    Zee Sports yet to sign up with Mumbai’s major MSOs

    MUMBAI: Zee Sports, which was available to viewers in Mumbai for the India-West Indies cricket match, is once again blacked out from the major cable networks in Mumbai today evening.

    “Major operators in Mumbai have still not reached an agreement for continuation of signals for the sports channel. Since the operators are being stubborn and are not agreeing to sign the agreement, we are being compelled to switch off the channel on defaulting networks,” says Zee Turner CEO Arun Poddar.

    Counters Cable Operators and Distributors Association (CODA) vice-president Ravi Singh, “If we have not signed the agreement, how can we be turned as defaulters? Zee Sports is asking us to pay for an unreasonable subscriber base.”

    Zee Turner had restored the signals of Zee Sports channel early in the day on assurance from MSOs like Hathway Cable & Datacom and Incablenet that they would be signing the pay channel agreement in Mumbai.

    In a meeting with major operators held in Mumbai, the operators had to discuss and sign the pay channel subscription agreement and had requested Zee Turner to allow the signals for today’s India-West Indies match. Considering the request from cable operators, Zee Turner had allowed the signals of Zee Sports to these networks in Mumbai, says Poddar. “The operators that have already signed the agreement will continue to get the signals for rest of the matches on Zee Sports,” he adds.

    CODA had an internal meeting in the afternoon but could not agree to Zee Sports demand. “The channel does not have telecast rights to any major event after this. If we can withstand the pressure over the next few days, we needn’t yield to their demands,” says a CODA member. The DLF tri-series will last till 24 September.

    Zee Sports, which has bought the telecast rights from BCCI (Board of Control for Cricket in India) for cricket matches to be played by India in non cricket playing countries over the next five years, will be showing the India-Australia match on Saturday.

    The channel, however, is back on cable networks in Pune after the Pune District Consumer Disputes Redressal Forum directed Zee Sports to restore the signals till further hearings on 21 September. “We have restored the signals in Pune following the order. The next hearing comes up on 21 September,” a Zee Turner spokesperson confirms.

    Zee Sports is also available in Chennai as SCV signed a commercial agreement with the channel for the conditional access system (CAS) market. The channel, however, is blacked out in other parts of Tamil Nadu where SCV has not signed up.

  • IMG calls for review of key provisions in the Broadcast Bill

    IMG calls for review of key provisions in the Broadcast Bill

    MUMBAI: Indian Media Group (IMG), the organisation representing Indian media companies in television broadcasting, radio and print media sector, has submitted its recommendations on the proposed Broadcast Services Regulation Bill, 2006. In its proposal, the organisation has asked the government to review certain provisions in the Bill, which it thought needed a “thorough review.”

    “The proposed legislation contains various provisions, which are not only in the public interest but also in the interest of the broadcasting sector as a whole and would definitely trigger off the process of growth and development in the sector in an organised manner. However, there are certain other provisions, which need a thorough review before they are introduced in the form of Bill,” IMG said.

    Pointing out that the interest of various stakeholders is going to be directly affected by these provisions, IMG suggested that after the receipt of inputs /comments from the stakeholders, a detailed consultative process be carried out by the government with various stakeholders by way of meetings and open house discussions before finalisation of formal view in this regard.
    These are the key issues IMG has raised and its comments on the respective provisions:
    LEGISLATIVE VALIDATION:

    IMG asked for effective legislative backing that has been acting as an impediment to the effective implementation of various guidelines and policies. “Accordingly, it would be mandatory for the Broadcasting Organisations and all other stakeholders to discharge their prescribed obligations in such policies / guidelines in public interest. This would not only bring order in the sector but also provide an opportunity to the Broadcasting Sector to grow and develop in a focused manner,” it said.

    Expressing its concern on the post-Bill validity of the various regulations and tariff orders for regulating the broadcasting and cable sector Trai has issued till now, IMG suggested that a suitable provision in this regard should be incorporated in the proposed Broadcasting Bill so that these regulations and tariff orders continue to operate and apply even after the promulgation of this Bill.

    IMG has also said that, the proviso in the Bill which provides exemption to the pubcaster (Doordarshan) or such category of broadcasters from all or any provisions of this Act is inequitable and unfair and needs to be reviewed. “All the provisions of the proposed Broadcasting Bill including content code needs to be applied to Prasar Bharti/Doordarshan as well. Doordarshan is competing with other channels like any other commercial broadcasting organisation,” it said.

    PERIOD OF LICENSE:

    On the validity period of various broadcast-related licenses the government issued such as DTH, teleport and uplinking licenses for 10 years, IMG suggested that the Broadcasting Services license should also be granted at least for a period of five years. ” It is submitted that for the violation of the terms and conditions of the license the necessary powers have already been conferred on BRAI (the proposed Broadcast Regulatory Authority of India) / Licensing Authority to suspend, cancel, revoke the license by following prescribed procedure under the Act. It is therefore, suggested that the validity period of license may please be prescribed as five years instead of one year,” IMG said in its proposal.

    IMG brings it into notice that the Act’s illustrative list of broadcasting services definitions does not contain two already established mode of Broadcasting Network Service as well as content Broadcasting Service viz. IPTV & HITS (Headend in the Sky).

    “In IPTV the content is delivered through cables / optical fibres and as such the channel delivery is akin to the delivery through traditional cable service. The attention is particularly invited to Section 2 (i) of the Bill which defines “Cable Television Network”. The IPTV squarely falls within the said definition. Accordingly, the IPTV services warrant inclusion under Broadcasting Network Service and IPTV service providers are also obliged to comply with the applicable provisions of the Broadcasting Bill including prescribed Content Code. HITS is an internationally recognised and most widely used digital mode of delivery of channels. In the Indian context, HITS is the most cost effective way of implementing digitalisation throughout the country at one stroke. It is therefore, suggested that both IPTV & HITS be included in section 2 (f) as well as section 2 (p),” IMG said.

    On the mention on the definition of Multi System Operators (MSO) in the proposed Bill, IMG said that the definition had been confined to any person who provides cable television service to multiple subscribers. “In section 2 (ss) a subscriber has been defined to mean a person who receives the services at a place indicated by him without further transmitting it to any other person. It may be pointed out that a Multi System Operator (MSO) also provides services to cable operators. It is therefore suggested that in the said definition suitable amendment be carried out so as to include the provision of service to cable operators also.” IMG also suggested that a suitable amendment may be carried out so as to include categories such as hotels/hospitals/guest houses and other similar institutions who obtain the signals for the benefit of their customers, members etc. in the definition of ‘Subscriber’.

    PUBLIC SERVICE BROADCASTING OBLIGATIONS:
    IMG has suggested that the obligation to carry socially relevant programme, for up to 10 per cent of the commercial time, may be left at the discretion of the channels with the additional choice to the channels to fulfil this requirement of 10 per cent time for socially relevant programmes, either as part of its commercial time or as part of its programming content.

    “This would give required flexibility to the broadcasters to adjust their available advertisement time as well as programming interse without compromising the overall obligation of devoting 10 per cent of the telecast time every week towards social messaging and public service programme. IMG is of the view that in this competitive business environment parting with 10% of commercial airtime every week shall have adverse financial impact on the revenues of all the channels, especially free-to-air channels whose main source of revenue is advertisement only,” IMG said

    COMPULSORY TRANSMISSION OF PUBLIC BROADCASTERS’ CHANNELS:

    “It is submitted that in view of severe capacity constraint in the analogue cable distribution, it is inequitable to allow the Prasar Bharti to have the privilege of prime band frequencies and other frequencies on cable network to the detriment of other Indian broadcasters. We are of the view that a level playing field must be created in the broadcasting sector and the privileges and benefits conferred upon Prasar Bharti needs to be reviewed. More so, when cable is a means available to satellite broadcasters for airing, unlike Doordarshan which in addition has the monopoly of terrestrial broadcasting. It is submitted that there are about 250-300 channels available over Indian sky. All the private channels being barred for terrestrial transmission are carried by the satellite, unlike Prasar Bharati. Nowhere in the world the terrestrial transmission is the monopoly of State Broadcaster. Even BBC has sold its terrestrial transmission rights some 10 years ago,” opines IMG on the issue of the compulsory transmisison of public broadcasters’ channels.

    IMG states that a blanket authorisation given to Prasar Bharti under Sub-section 3 of Section 7 to prescribe/notify the additional number and name of Doordarshan channels to be carried on prime and other bands by cable operators in the cable services is unfair and inequitable and is also quite contrary to the accepted principles of propriety. “The very broadcaster whose channels are required to be compulsorily carried has been given the power to notify such channels for re-transmission, which is totally unacceptable. These provisions need to be deleted. Either Brai or any other authority may be empowered to specify the channel (s) of national importance which are required to be compulsorily carried by cable operators and also their respective bands and frequencies. Such stipulation be made on after consulting all the stakeholders in a transparent manner”.

    MANDATORY SHARING OF CERTAIN SPORTS BROADCAST SIGNALS

    IMG pointed out that, there is no provision in the proposed Section regarding requirement of conclusion of commercial contract between the right holder and the Public Broadcaster. “It may be appreciated that broadcaster acquire rights of major sporting events by spending huge amount of money and therefore it is imperative that they should be given the freedom to secure their financial revenues in order to meet the cost of procuring such rights. It is open for the Public Broadcaster also to compete with the private broadcasters by way of participating in the bid process for acquisition of such sporting rights. Accordingly the conclusion of a commercial contract is a pre-requisite for sharing such signals with the Public Broadcaster.”

    IMG also expressed its concern over the stipulation that the right holders shall have to share live broadcast signals without its advertisement. “This is also clearly prejudicial to the event right holder who has invested huge amount of money to procure such rights. Accordingly it should be the prerogative of right holder, that in order to secure subscription and advertisement revenues, whether it shares the live feed or `slightly delayed feed’ with the Public Broadcaster. Similarly the issue of advertisement in the feed also needs to be sorted out through commercial arrangement to be arrived at between right holders and the Public Broadcaster.”

    IMG has suggested that suitable amendment be carried out in Section 6 of the Bill as the stipulation to provide rights to Public Broadcaster without any commercial arrangement, which have been acquired by a broadcaster for a valuable consideration, is clearly arbitrary, unfair and inequitable.

    ESTABLISHMENT OF BROADCASTING REGULATORY AUTHORITY:

    IMG has welcomed the institution of a Broadcast Regulator “in as much as an effective Regulator protects the consumer interest and also protects the industry in question from arbitrariness and interference of the Government of the day.” However it insisted that the Regulator must be autonomous, and independent of the executive.

    APPOINTMENT OF CHAIRPERSONS & MEMBERS:

    IMG has expressed its concern that the powers and functions enumerated in this section clearly imply that it is not the Brai but the Government, which will actually be controlling the industry. “The power to prescribe policy guidelines, power to refuse or revoke licenses, regulating the power to prescribe the norms to evaluate and certify the content code clearly indicate that the government will be the de-facto Authority since it would be able to control the entire industry through the officers appointed by it. This is quite contrary to the view expressed by Hon’ble Supreme Court in its judgement in the case of “Cricket Association of West Bengal vs. secretary, Ministry of Information & Broadcasting.” it points out.

    Listing various international examples in this context, . IMG suggested that it should be obligatory upon central government to consult Brai before formulating and prescribing any policy in the broadcasting sector. “This would ensure that the Regulator with inputs from all stakeholders, would also effectively contribute in the formulation of policies for the growth and development of broadcasting sector,” it said.

    NEWS & CURRENT AFFAIR CHANNELS:

    IMG has pointed out that, all the news and current affair channels qualify to be ‘Public Service Broadcaster” as per the definition in the Bill. “Thus, the Central Govt. is empowered to exempt news and current affair channels from all or any of the provisions of this Act. IMG would request the central government to clarify the above-mentioned intention of the proposed provisions. If it is so, the apprehension of the news and current affairs broadcasters would be allayed to a great extent,” it said.

    POWERS TO FIX TARIFFS:

    IMG also suggested that a suitable provision on the lines of section 11 sub section (2) of Trai Act may “please be incorporated in the proposed Bill” so as to enable the Authority to notify rates of Broadcasting Service / Broadcasting Network Service to effectively regulate the working of the sector.

  • Hathway plans Rs 1 billion debt for CAS; VoIP launch by year-end

    Hathway plans Rs 1 billion debt for CAS; VoIP launch by year-end

    MUMBAI: Rajan Raheja-promoted Hathway Cable & Datacom plans to raise Rs 1 billion as debt to fund the first phase of conditional access system (CAS). The multi-system operator (MSO) is also preparing to launch voice over internet protocol (VoIP) services by the last quarter of the year.

    “We will require an investment of Rs 1 billion for which we will be raising debt,” says Hathway Cable & Datacom CEO K Jayaraman.

    The bulk of the investments will be towards subsidising the digital set-top boxes (STBs). Funding will also be required in setting up VoIP and expanding broadband infrastructure. The company has tied up with telecom major Bharti for VoIP.

    “We are conducting test runs and expect to launch VoIP services by the year-end. MSOs will have to infuse capital in the changing business environment. On each STB, the subsidy works out to Rs 1,500,” says Jayaraman.

    The Telecom Regulatory Authority of India (Trai) has fixed the pricing of the boxes in the CAS areas. Cable TV service providers will have to offer digital STBs on a monthly rental scheme of Rs 30 and a refundable security deposit of Rs 999. There will be no payment for installation, activation charges, smart card/viewing card, repair and maintenance cost.

    The cost of the STBs including the smart card is around Rs 3,500. “Once we drive in volumes, the price of procuring these STBs should fall by 15-20 per cent,” says Jayaraman.

    Hathway will also be aggressively pushing digital cable TV in non CAS markets. The MSO launched its digital services in Jalandhar a few days back, having rolled it out earlier in New Delhi, Mumbai, Pune, Bangalore, and Hyderabad.

    “Starting with Jalandhar, we plan to roll out our digital services across Punjab over six months. In the first phase, 16 cities of Punjab will be connected by the end of this year,” Jayaraman says.

    The a la carte pricing of channels will increase the penetration of STBs in CAS areas, Jayaraman believes. “We expect a 80 per cent penetration if the broadcasters get the pricing right within a maximum of Rs 5 per channel,” he says.

  • Hathway plans Rs 1 billion debt for CAS; VoIP launch by year-end

    MUMBAI: Rajan Raheja-promoted Hathway Cable & Datacom plans to raise Rs 1 billion as debt to fund the first phase of conditional access system (CAS). The multi-system operator (MSO) is also preparing to launch voice over internet protocol (VoIP) services by the last quarter of the year.

    “We will require an investment of Rs 1 billion for which we will be raising debt,” says Hathway Cable & Datacom CEO K Jayaraman.

    The bulk of the investments will be towards subsidising the digital set-top boxes (STBs). Funding will also be required in setting up VoIP and expanding broadband infrastructure. The company has tied up with telecom major Bharti for VoIP.

    “We are conducting test runs and expect to launch VoIP services by the year-end. MSOs will have to infuse capital in the changing business environment. On each STB, the subsidy works out to Rs 1,500,” says Jayaraman.

    The Telecom Regulatory Authority of India (Trai) has fixed the pricing of the boxes in the CAS areas. Cable TV service providers will have to offer digital STBs on a monthly rental scheme of Rs 30 and a refundable security deposit of Rs 999. There will be no payment for installation, activation charges, smart card/viewing card, repair and maintenance cost.

    The cost of the STBs including the smart card is around Rs 3,500. “Once we drive in volumes, the price of procuring these STBs should fall by 15-20 per cent,” says Jayaraman.

    Hathway will also be aggressively pushing digital cable TV in non CAS markets. The MSO launched its digital services in Jalandhar a few days back, having rolled it out earlier in New Delhi, Mumbai, Pune, Bangalore, and Hyderabad.

    “Starting with Jalandhar, we plan to roll out our digital services across Punjab over six months. In the first phase, 16 cities of Punjab will be connected by the end of this year,” Jayaraman says.

    The a la carte pricing of channels will increase the penetration of STBs in CAS areas, Jayaraman believes. “We expect a 80 per cent penetration if the broadcasters get the pricing right within a maximum of Rs 5 per channel,” he says.