Tag: MSO

TRAI issues consultation paper discussing target market, placement issues between broadcasters, DPOs

MUMBAI: The Telecom Regulatory authority of India (TRAI) released a consultation paper on ‘Issues related to Interconnection Regulation 2017'. The objective of the move is to consult all the stakeholders on issues related to target market, placement and other agreements between broadcasters and distributors.

The authority has received representations from quite a few regional broadcasters highlighting their concerns regarding the declaration of the target market by distributors of television channels (DPOs). As the existing regulations provide freedom to DPOs to declare their target market for the purpose of ascertaining the carriage fee, some of the DPOs have declared multiple states (or entire country in some cases) as their target market.

In this context, regional broadcasters are compelled to pay very high carriage fee. This has created a negative economic barrier for regional channels thereby limiting their presence on smaller distribution platforms as proposition to pay carriage fee for national market makes it unviable for such channels.

Not only does this put undesired financial burden on regional broadcasters, it makes them prone to undue arm twisting by the distributors, as their subscription continues to remain lower than the minimum prescribed threshold of five percent (5 per cent ), which is the limit under which a DPO is not mandated to carry any channel.

"Further, the placement agreement, marketing agreements or any other technical or commercial arrangements between broadcasters and distributors (apart from RIO-based agreements) are in forbearance. But now, quite a few complaints have been received from various broadcasters whereby it is being alleged that some DPOs are resorting to pushing for marketing/placement/promotion agreement, by exploiting the available forbearance,” TRAI said in a press release.

Recently, Telecom Disputes Settlement and Appellate Tribunal (TDSAT) also recommended the authority to examine the issue. According to a TDSAT order dated 29 July, the main challenge appears to be the wisdom of the regulator in giving liberty to DTH operators to declare their target areas.

Adhering to the orders, the authority had several meetings with each group of stakeholders in the industry including news broadcasters, broadcasters, DTH operators, MSOs and regional broadcasters to discuss their viewpoints and come forward with a balanced solution that is in the interest of both the concerned parties (DPOs and regional broadcasters).

According to some of the broadcasters, the decision of declaration of target market should be left upon them as it is their channel and they should have the freedom to decide that which sector of the population will opt for their channels. Almost all the regional broadcasters want that the target market should only be their respective state or city or territory and they should not be asked to pay carriage fee for the entire universe (PAN India).

However, DPOs have a different opinion. According to some of the distributors, the cost of infrastructure associated with running a channel is significant. In case the provision related to target market is altered to states, it will alter their revenue structure. According to them, any reduction in the revenue stream from carriage fee will result in additional subscription cost for the consumers. Moreover, any smaller target market will mean more and more broadcasters will achieve subscription threshold of 20 per cent. As soon as the subscription crosses the threshold, their carriage fee revenue will reduce to zero. As per extent provisions, a broadcaster is exempted from payment of any carriage fee if the monthly subscription of his channel in the target market exceeds 20 per cent.

As per TRAI, MSOs declaring its target market as the area covered under a head end or any smaller area within the total area covered by a head end can be an alternative. Another option which has been highlighted as a possible altenative is linking carriage fee to cost of carrying a channel. In this option the cost of carrying a channel may be worked out and the amount of carriage fee that a broadcaster may be required to pay the distributor may be capped at that level.

The highlighted questions are primary issues for consultation:

1. Do you think that the flexibility of defining the target market is being misused by the distribution platform operators for determining carriage fee? Provide requisite details and facts supported by documents/ data. If yes, please provide your comments on possible solution to address this issue?

2. Should there be a cap on the amount of carriage fee that a broadcaster may be required to pay to a DPO? If yes, what should be the amount of this cap and the basis of arriving at the same?

3. How should cost of carrying a channel may be determined both for DTH platform and MSO platform? Please provide detailed justification and facts supported by documents/ data.

4. Do you think that the right granted to the DPO to decline to carry a channel having a subscriber base less than 5 per cent in the, immediately preceding six months is likely to be misused? If yes, what can be done to prevent such misuse?

September 26, 2019
TRAI releases register of interconnect regulations

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has issued the Telecommunication (Broadcasting and Cable) Services Register of Interconnection Agreements and all such other matters Regulations, 2019 to formulate the contours of a reporting system for the service providers.

“The primary objective of register of interconnect regulations is to formulate the contours of a reporting system for the service providers so that they can report details of interconnection agreements including commercial details to the Authority. It would enable the authority to maintain register of interconnect as per provisions of TRAI Act,” a release from the authority read.

TRAI issued a consultation paper on the issue back in 2016 to simplify the process, avoid duplication of reports, and formulate its view on various issues such as accessibility of information of register. Draft Telecommunication (Broadcasting and Cable) Services Register of Interconnection Agreements Regulations, 2019 was issued by the authority in April 2019 on the back of the comments on the consultation paper and then an open house discussion was followed by that.

As per the release, the objective of this regulation is to promote transparency and non discrimination in the broadcasting sector. As per the new regulation, all Reference Interconnect Offers (RIO) are required to be filed by every broadcaster and the distributor of television channels. Initially, the distributor having average active subscriber base below one lakh have been exempted from the obligation of reporting details of interconnection agreements to promote ease of business and reducing regulatory burden on such MSOs with limited resources.

“The new regulation envisages online filing in electronic mode. The authority has specified that the new regulations will come in force in 120 days, except as regards submission of information related to compliance officer. The intervening period will enable the service provider to prepare for easy compliance,” TRAI added in the release.

September 5, 2019
SITI Networks elevates Anil Kumar Malhotra to CEO

MUMBAI: SITI Networks has elevated Anil Kumar Malhotra as the new CEO of the company. Malhotra’s appointment will be effective from 1 September. He joined SITI Networks as chief operating officer in 2011.

Malhotra holds over 34 years of rich experience across the cable television industry with deep expertise across various facets of media distribution like technology, content, regulatory compliances and sales operations.

He also played a critical role in the successful implementation of new tariff order framework at SITI Networks and was instrumental in the transformation of SITI Networks from an analog player to a digital multiple system operator.

Malhotra had various successful entrepreneurial stints, including serving as president (North India) for In-Cable. He realised the potential of cable TV & distribution, long before the emergence of MSOs, and ventured into hardware manufacturing for the industry and later setup his multiple Master Control Rooms & Head-ends.

He has been an active member of various government & industry bodies including MIB task forces for implementation of DAS regulations, new tariff order, etc.

August 30, 2019
TRAI sends directive to 5 major MSOs for non-compliance of NTO provisions

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has directed five major multi system operators to comply with all provisions of its the new tariff order (NTO). After receiving scrutiny of the reply of earlier notice from the MSOs, TRAI found violation of rules of NTO.

Following issues were found by the regulator for Induslnd Media and Communications Ltd :

· LCOs are not providing the itemised invoices to the consumers. Some LCOs are providing their own Cash memo bills.

· Consumer portal provided by IMCL is not working

· IVRS facility of IMCL does not have any provision for complaint registration.

· LCOs without GST Registration are collecting tax amount from the subscribers but not depositing it.

Following issues were found by the regulator for Hathway Digital:

• Facility of Bill generation is available in LCO portal, but the customers are not able to get itemised billing in most cases even after the request of the subscriber,

•LCOs without GST Registration are collecting tax amount from the subscribers but not depositing it.

Following issues were found by the regulator for GTPL Hathway:

•IVRS facility of M/s GTPL Hathway Ltd. does not have provision for complaint registration

•The consumer portal of GTPL KCBPL has very limited facilities. The facility ofupgradation and modifications in subscription is not available on consumer portal.

•LCOs without GST Registration are collecting tax amount from the subscribers but not depositing it.

Following issues were found by the regulator for SITI Networks:

•LCOs can provide itemized invoices to consumers but most of the LCOs are not providing the same. Some LCOs are providing their own cash memo bills;

•IVRS facility of Siti Networks Ltd. does not have any provision for complaint registration.

Following issues were found by the regulator for DEN networks:

• LCO are providing their own cash memo bills using card system for payment receipts, while the subscribers are not able to get itemized bills

• Facility of upgradation and modification in subscription is not available on consumer portal.

•LCOs without GST registration are collecting tax amount from the subscribers but not depositing it.

All the MSOs have been directed to report compliance as per the new regulatory framework within seven days from the date of issue of this direction.

August 30, 2019
TDSAT directs Meghbela Cable to supply details to ZEEL for auditing

MUMBAI: Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed multi-system operator (MSO) Meghbela Cable And Broadband Services Pvt Ltd to file an affidavit in the audit dispute with Zee Entertainment Enterprise Ltd (ZEEL). Earlier, ZEEL was allowed to hold a comprehensive audit of respondent’s head-end, SMS and CAS systems without any delay.

TDSAT has noted that the audit is not making progress because historical data for the relevant period, or what the parties understand as baseline data, is not being supplied by the MSO. The tribunal directed the MSO to make adequate arrangements and preparations and extend full cooperation for the required audit.

“For that purpose, the MSO has to file an affidavit disclosing the required details before this tribunal within a week. Affidavit should disclose the number of locations and also other relevant particulars,” the latest order read.

In an earlier hearing, TDSAT directed that the audit should be held by an independent auditor such as KPMG, Ernst and Young where the representatives of both the parties will be entitled to remain present and auditors shall be at liberty to ask for reports from the vendors of the MSO’s systems including SMS and CAS systems. It was also said that the cost of the audit shall be borne by ZEEL.

TDSAT also directed to post the matter for reviewing the further progress of audit on 9 August. It also mentioned that the latest order shall also bind the vendors of the MSO.

July 30, 2019

MIB says pending applications for MSO registration under consideration

MUMBAI: The Ministry of Information and Broadcasting (MIB) has informed that the issue of pending applications for MSO registration is under consideration.

MIB informed that that the 50th Open House Meeting for the month of July 2019 was held on 22 July with the representatives of the MSO applicants. Representatives of the five MSO applicants participated in the meeting to ascertain the status of their application for grant of registration.

The list of the applicants present in the meeting:

S.No.	Applicant Name	Cable Network Name
1.	Sh. Shiv Prakash Timmarpur	Mls Hira Cable Network
2.	Sh. Aman Rastogi	M Is Sri Sarvana Cable Vision
3.	Sh. Narender Bagri	M Is ALCOA Digital Pvt. Ltd.
4.	Sh. Diwaker Thareja	President Cable Operator Association
5.	Sh. Ramchander	Mls Shiv Cable Network

July 27, 2019

TRAI extends deadline for feedback on review of interconnection framework

MUMBAI: Telecom Regulatory Authority of India (TRAI) on Tuesday extended the last date for receipt of written feedback on its consultation paper titled "Review of the Regulatory framework for Interconnection".

According to a notification from the regulator, the last date for receipt of written comments has been modified to 4 July and counter-comments, if any to 18 July.

The regulator’s decision came after a request from some of the stakeholders. However, it has been decided that no request for any further extension of time will be entertained.

TRAI had floated the consultation paper in May to asses means of removing entry barriers for new companies and reduce the operational cost of existing operators by handing them greater flexibility.

June 26, 2019
Cable subscribers switching to DTH platforms amid new tariff order implementation

KOLKATA: While the Telecom Regulatory Authority of India (TRAI) continues to reiterate that its new tariff order will benefit all stakeholders of the cable and broadcasting industry, implementation of the new norms has witnessed a mixed response on the ground. As the ecosystem adapts to this radical change, local cable operators (LCOs) in Kolkata have started bleeding as cable subscribers are migrating to DTH platforms.

Many consumers in the city have complained that they are experiencing channel blackouts despite shifting to new packages ahead of the deadline. In addition to that, they also contended that the operators are forcing them to opt for packages and not providing any options of a-la-carte channels. As a result, several consumers have switched over to DTH platforms in order to avoid this hassle.

One of the major local cable operators in south Kolkata said they have experienced 10-15 per cent churn rate post the new tariff order implementation. On the other hand, another operator in north Kolkata has claimed that his company experienced a 20-25 per cent churn rate. Both of them have opined that the churned out subscribers are not choosing other cable operator but DTH operators only.

Both the local cable operators blamed MSOs for not having a proper system in place to make the migration smoother. According to them, the websites of MSOs are crashing due to the traffic spikes. In turn, this is hampering the process of new package selection, with the a-la-carte channel activation getting delayed.

They also pointed out that web portals of some national MSOs are malfunctioning for last two months. They added that subscribers, being unaware of the problems, are pinning the blame squarely on LCOs.

Last week the West Bengal government held a meeting with some of the stakeholders of the Indian broadcast and cable industry to understand the tariff issue and challenges in its implementation.

State government sources told Indiantelevision.com that the meeting, attended by a minister too, was called to explore what the stakeholders could do for local LCOs who have been having a trying time to convince and educate consumers, especially in rural areas of the state.

It is learnt that those who attended the meeting included senior representatives from Star India, MSO Hathway and Zee group. One of the requests made by the state government, according to official sources, was whether companies like Star and Hathway could also fund educational TVCs relating to the TRAI tariff order in the Bengali language that could be aired by the LCOs on their networks to make consumers better understand the issues relating to channel selection and their prices. Industry stakeholders, it is learnt, remained mostly non-committal on this particular matter of TVCs in Bengali.

Maharashtra Cable Operators Foundation (MCOF) committee member Asif Sayed, an LCO based out in Mumbai, too voiced a similar opinion, saying a-la-carte channel activations are getting delayed as MSO web portals aren’t equipped to manage the load.

According to him, the churn rate is actually 5-10 per cent and another 10-15 per cent may be switching off because of ongoing examinations. Hence, after one month, there would be clarity on the actual churn.

Since the beginning of tariff order rollout, many LCOs across the country have expressed their reservations about the new regulations. The 80-20 revenue share between broadcasters and DPOs has been a bone of contention, as they maintain there should be revenue cap separately for LCOs.

“NTO has come at a time industry had settled down after DAS. Obviously it's a major shift and hence causing confusion across the board. Negative propaganda does happen when any change takes place. For example when DAS was declared similar propaganda was there that MSOs are not equipped to provide channels, boxes, and that consumers are migrating to DTH. Some people strategically float these propaganda. DPOs offer packages that satisfy most consumers. If a particular MSO fails to implement that there could be migration to other DPOs which can be to DTH or to other MSOs,” KCCL CEO Shaji Mathews, a veteran in the industry, commented.

Mathews also added that the major MSOs are equipped to provide high-quality service to their consumers.

According to him, MSOs are in a better position to implement the order as cable operators are doing channel activations on ground. He added that in any case, there will be some amount of consumers who will keep jumping on both sides. He does not hold the view that there is any massive migration on either side, neither to cable nor to DTH.

“Whatever migration is taking place is driven by non-compliance of some stakeholders. While the SC has commented on the need to regulate bouquet rates in relation to a-la-carte rates, the broadcasters have taken liberty to overstep the basic objective of NTO and declare disproportionate rates. With the most important part of the NTO thrown to the wind it's as good as no NTO and is the fundamental cause of confusion. Secondly, I have come across a DTH operator in blatant violation of basic DAS itself and transmitting unencrypted channels including pay channels,” he further added.

Earlier TRAI said that in case of MSOs and LCOs, the biggest problem was discriminatory treatment by the broadcasters. As a result, it was almost impossible for smaller MSOs to get the content at an appropriate price from the broadcasters because the agreements were not transparent.

The new tariff order, however, was meant to change that and benefit both the MSOs and LCOs. While a part of cable industry continues to believe the same, a large number of LCOs, at least in Kolkata, are quite disappointed with what implementation of the new tariff order has resulted in.

March 6, 2019
Ortel CFO Satyanarayan Jena steps down

MUMBAI: Satyanarayan Jena, the chief financial officer of the MSO Ortel Communications has stepped down. The resignation of the executive was effective from yesterday.

“We hereby inform you that Satyanarayan Jena, has resigned from the post of chief financial officer of the company. The company has accepted his resignation and he will be relieved of his responsibilities effective from close of business hours on 28 February 2019,” the company said in a BSE filing. Jena was elevated as CFO back in 2017 when Manoj Kumar Patra resigned from his position. He was associated with the company since 12 November 2015.

Ortel Communications is undergoing corporate insolvency resolution process (CIRP) and as on 27 November 2018, the National Company Law Tribunal passed an order for comencement of CIRP in last November. Sony Pictures Networks India( SPNI), an operational creditor of Ortel filed the application.

March 1, 2019
TRAI: Almost 100% cable consumers have picked channels in new tariff regime

MUMBAI: The Telecom Regulatory Authority of India (TRAI) held a meeting on Friday with distribution platform operators (DPOs) where it was informed that almost all cable consumers have either made their channel preferences or moved to ‘best fit plan’ under the new tariff regime, according to a report by the Press Trust of India.

The meeting was attended by multi-system operators (MSO) and all major DTH players to review the progress of migration of TV viewers under the new framework.

TRAI secretary SK Gupta said, "According to inputs received by the regulator from players, in the case of DTH services, about 43 per cent customers have made their channel preferences known. When combined with statistics for ‘best fit plan’, this number rises to 57 per cent."

The DTH service providers have submitted to TRAI that all subscribers of this prepaid platform will be migrated to the new framework in the next 2-3 weeks. TRAI has also emphasised to players that customers should not face any inconvenience or service disruption during the migration process.

Earlier this month, the regulator had extended the timeline for consumers to make their channel preferences till 31 March 2019.

“TRAI is urging subscribers to exercise their options to select TV channels of their choice, immediately. DPOs have been instructed to execute the options of subscribers at the earliest,” he said.

February 24, 2019