ITV

Tag: MSOs

  • MIB urges MSOs not to be misled by fraud agents for registration

    MIB urges MSOs not to be misled by fraud agents for registration

    NEW DELHI: The Information and Broadcasting Ministry has once again asked applicant multi-system operators (MSOs) not to be misled by individuals making false claims of helping to get the MSO licences in lieu of illegal gratification.

     
    The Ministry, which has earlier alerted MSOs and TV broadcasters several times in this regard, had last posted a similar notice on its website on 5 August last year.

     
    However, it has come to the notice of the I&B Ministry that ‘certain individuals are approaching MSO applicants with false claims of providing MSO registrations and demanding illegal gratifications/bribe to get the work done.’

     
    The Ministry reiterated that it had adopted a very transparent way of dealing with issuance of MSO registrations. In order to maintain transparency in processing of MSO registration applications, the Ministry organizes monthly Open House Meeting on the 20th of every month in the chamber of Deputy Secretary (Digitization).

    A notice in this regard had also been put on the website on 9 April this year. 
     

    This mechanism enables the applicants to know the status of their applications, provide/submit documents as required by the MIB as also to represent their grievances to the Ministry.
     

    For any doubt or enquiry about status of their applications, the applicant MSOs may participate in the Open House Meeting by sending an e-mail at sectionofficerdas@email.com with a copy at das.miK@gmail.com by the 10th of every month.

  • “India will be a huge broadband market over the next 3 years:” Rajiv Kapur

    “India will be a huge broadband market over the next 3 years:” Rajiv Kapur

    MUMBAI: The Indian Cable TV sector has a gargantuan task at hand. Not only does it have to work towards converting analogue cable TV homes to digital, but it also needs to work towards connecting India with high-speed broadband pipes.

     

    Multi system operators (MSOs) are now working towards strengthening their broadband services. While Hathway Cable & Datacom was the first to launch a 50 mbps broadband service on its Docsis 3.0 ultra high speed network in 2013, Siti Cable and Den Networks were quick to follow suit in 2014. Not only this, several cooperatives that mushroomed post the digitization announcement, are also looking at offering more broadband services. And all this, to improve business as well as their average revenue per user (ARPU).

     

    So are MSOs in India taking the right approach to build a broadband base in the country? Broadcom India managing director Rajiv Kapur tells Indiantelevision.com, “I applaud the MSOs in the country for what they are doing. They are taking the right approach. If anything, they should do more of it.”

     

    The satellite versus cable versus IPTV is probably the biggest war in the broadcast universe, where three different ways of delivering live TV compete with each other. “India is at a very nascent stage for IPTV, and that brings us to the satellite versus cable TV war. Like in any other market, both will co-exist with their own unique offerings. Both have existed with a large enough pie of their own and both bring something unique to the table,” opines Kapur.

     

    Kapur believes that a reason why cable benefits over satellite is because it can provide a two way service. “While one way service is very limited, two way services are way more powerful in customizing things to make them more entertaining, or in gaming context more interactive. Taking a cue from what has happened in the rest of the world, I foresee that the sheer desire to remain competitive against satellite will again lead cable to bring broadband more aggressively in Indian cable market. The market itself isn’t exactly demanding it, so there has to be a little bit of a push to create the demand,” he adds.

     

    Since Indian subscribers are currently not aware of the advantages of a two way pipe, cable operators will need to start making creative use of the pipe that gives two way cable services, which enhances one’s TV watching experience and not just leave it as a pipe. “Even if it is left as a pipe, there are still some benefits for cable operators because the ARPU will still be way higher,” Kapur informs.

     

    Broadband will not only benefit cable operators, but also subscribers as there will be less capital expenditures (CAPEX) and a lower total bill, if they get the services from one operator. “So everyone benefits and this will happen whether it’s a sheer data pipe or there are services in the data pipe, which embellishes TV watching experience,” says Kapur.

     

    According to him, one needs to be a little more patient with broadband as India is going through the basic steps of digitization. “As a country, barely have we been able to figure out how to get such a large footprint of analogue converted to digital. It is a very large market and that makes it that much more difficult. One needs to keep in mind that business relations between broadcasters, MSOs and LCOs are still settling down,” points out Kapur.

     

    The country definitely needs a broadband push and now. Talking about how it will happen, Kapur suggests two types of push mechanism. “The first push is much easier and has already started, which is offering a higher bandwidth speed at aggressive pricing. This kind of push takes a progressive operator to initiate it and we have seen it happening. The second level of push is TV embellishing two way service. If you fast forward into 2016, there will be at least one progressive like-minded large cable operator who will begin showcasing interactive services that others will either be forced to follow or would want to follow,” he suggests.

     

    Talking about the right pricing for broadband, Kapur says that the sweet spot of bandwidth and price is between Rs 800 – 1000. “There is always a package, which is above it and there is a package below it. What will happen with time is that higher speeds will come at the same price. This is the beauty of a competitive market. In a year from now, at least a few operators will start aggressive broadband packages in the market. The side effects of this on other operators starting the same, will take another year or two. So in the next two-three years, India will be a much larger broadband market than it is today,” feels Kapur.

     

    Delay in Digitization

     

    Kapur believes that even if the country sees a large percentage of digitized homes and not 100 per cent, is still a big step forward. “The only benefit of 100 per cent digitization is that one can do an analogue shut off,” he says.

     

    Citing the positives of the delay of digitization, Kapur says, “The sheer magnitude of what needs to be done is very large. The delay gives time and opportunity to MSOs, LCOs and broadcasters to sort out their complex relations and their businesses.”

     

    The pressure to complete seeding of set top boxes (STBs) on time in phase I and II saw many MSOs compromising with the STB quality. “If we have to deploy 50-100 million boxes, it will be a shame to do it without keeping quality in mind. This country shouldn’t waste money in replacing boxes. So there is a big positive in the delay as now the quality matrix of what needs to be looked in hardware procurement will be left uncompromised,” he adds.

     

    Pay TV channel revenues post digitization

     

    Currently there is fear in the masses that prices of pay TV channels post digitization will go up. Kapur feels that while there is an element of truth in that, it is only because in the analogue regime, people were not paying for what they were viewing. “The second television was not being paid for and people were slicing the cable and taking feeds. So in the bigger picture, prices will go up just because of that.”

     

    Citing examples from the telecom sector, where high competition and usage led to reduction of prices, Kapur suggests that hyper competition will force price control even in the cable TV sector. “More services will come, which if taken by subscribers, will increase the ARPU for operators,” he opines.

     

    In satellite, DTH players have existed since over 10 years, however the country witnessed hyper competition amongst players only in 2008-2009. As the DTH market enters its early stage of maturity, more services are being considered and offered to consumers. “All this took a decade. Cable will not take that long because the market is established due to DTH, but it still needs to go through it,” informs Kapur.

  • TRAI asks MSOs to devise rational channel rates for phase III

    TRAI asks MSOs to devise rational channel rates for phase III

    MUMBAI: Close to 61 multi system operators (MSOs) have approached the broadcaster for signing of interconnect agreements. The statistics were revealed at the eighth task force meeting by the Telecom Regulatory Authority of India (TRAI) advisor Sunil Kumar Singhal.

     

    Of these, according to the report received by Singhal, while the broadcasters have given their replies to the MSOs, the memorandum of understanding (MoU) is yet to be signed. The TRAI through its meetings with the MSOs and broadcasters, has identified four core issues relating to interconnect agreements. These are:

     

    1. While the MSOs are expressing interest for getting signals from broadcasters, they are being asked for more information, which is taking time. “Now with the intervention of TRAI, broadcasters have formalized their formats and have placed them on their websites so that all MSOs can submit requests at one go and the agreement signed,” informed Singhal.

     

    2. The distributors of several broadcasters in a state are also MSOs and that has led to conflict of interest with the MSOs. “We have been able to address this by seeking the details of the core team of the broadcasters to be approached for getting the signals and the broadcasters have provided such details also on their websites,” he said.

     

    3. The third point was related to pending dispute between MSOs in DAS areas which are both old as well as new. “These disputes need to be resolved mutually as TRAI would not intervene in such disputes,” he opined.

     

    4. There are differences between MSOs and broadcasters on the rate of channels.   “The larger MSOs are in negotiations with broadcasters to finalise the prices and it is indicated that they will be in a position to finalise them by mid June,” he said.

     

    Meanwhile, TRAI has asked the MSOs to devise means to have rational rates for phase III areas, as the rates for phase I and II cannot be workable in the remaining phases.

     

    The TRAI advisor also informed the task force meeting that there was confusion between both MSOs and broadcasters which related to the modus operandi for entering into agreements during the transition period.  The TRAI advisor said that the MSOs and broadcasters were business entities who should know how to communicate with each other in order to expedite and facilitate their business interests. The TRAI has asked the stakeholders to not repeat the mistakes of phase I and II by deploying pre-activated STBs.

     

    The representative of the MSOs, during the meeting said that whatever be the rate declared by broadcasters, TRAI should come out with a non-discriminative clause which should not push packages but allow the channels to be on a-la-carte basis. “We have been insisting on a-la-carte and not bundling of channels and any delay in the implementation of DAS will result in losses to both MSOs and broadcasters,” informed the TRAI advisor.

     

    According to a MSO representative, the packaging of channels should be monitored by TRAI. “The LCOs should be trained to spread DAS amongst the consumers as they are close to the consumers and can speedup this process,” opined the MSO representative.

     

    Information and Broadcasting Ministry (I&B) additional secretary JS Mathur, who was also chairing the meeting said that the publicity campaign for the cutoff date for phase III should start now.

     

    According to Siti Cable Network’s Anil Malhotra, while the target rate of seeding set top boxes (STBs) requires to be around 2 to 3 lakh per day, the present rate of seeding is about 20-30 thousand boxes which is way short and logistic support has to be planned out in order to step-up the pace of seeding.

     

    During the meeting, a representative from BIS raised the issue of hacking of STBs and said that a request has been received from some broadcasters to strengthen the BIS Standard of STBs.

  • TRAI issues dos & don’ts for MSOs and LCOs

    TRAI issues dos & don’ts for MSOs and LCOs

    MUMBAI: With industry not yet bearing the full fruits of digital addressable systems (DAS) rollout in phase I and phase II areas, the Telecom Regulatory Authority of India (TRAI) today issued a few dos and don’ts, which it believes will help give a broad operational framework to local cable operators (LCOs) and multisystem operators (MSO).

     

    The dos and don’ts have been issued on three levels: first, in respect of subscribers and customers of digital addressable cable TV; second, for LCOs providing cable TV services through DAS and thirdly for MSOs providing cable TV services through DAS.

     

    A brief overview of the same follows:

     

    (A) Dos & Don’ts for MSOs & LCOs in respect of Subscribers/Customers of DAS:

     

    DOs

     

    1. Representatives should carry a valid ID when visiting customers/subscribers premises.

     

    2. Ensure that the customer seeking cable TV connection through DAS is given a Customer Application Form (CAF)

     

    3. Handover a copy of the completed CAF along with the Manual of Practice (MOP) to the subscriber.

     

    4. Share a surrender application form with customer on request.

     

    5. Explain the T&C for providing STB to the customer along with tariff options.

    6. Ensure that all details are explained to the customers in detail.

     

    7. Provide with a bill and payment receipt to every subscriber.

     

    8. Send acknowledgement of receipt of payment electronically to the subscriber.

     

    9. Ensure that the subscriber is informed about his current status of his account.

     

    10. Reduce subscription charges if any channel is subscribed to be a subscriber becomes unavailable on the network of the MSO.

     

    11. Publish & prominently display the toll-free consumer care number and contact number of the Nodal Officer for redressal of consumer grievances.

     

    12. Set up a web-based complaint handling/monitoring system.

     

    13. Conduct periodic consumer awareness programmes about Quality of Service (QoS) Regulation provisions for subscribers.

     

    DON’Ts

     

    1. Activate STB before entering the details of customer and his choice of channels.

     

    2. Discontinue any channel to a subscriber, if the subscriber paid subscription amount for that channel in advance and that channel is available on your platform.

     

    (B) Dos & Don’ts for LCOs providing cable TV services through DAS

     

    DOs

     

    1. Register with Head Post Office before offering cable TV services.

     

    2. Renew registration with Head Post Office every year.

     

    3. Enter into an agreement with the MSO whose signal you will carry.

     

    4. Keep a copy of agreement with you.

     

    5. Give the completed CAF to the MSO for processing and retain one with yourself.

     

    6. Provide complete details of payment made by each subscriber to your MSO within the agreed time frame.

     

    7. Give the respected surrender application form to the MSO for processing.

     

    DON’Ts

     

    1. Transmit cable TV service without valid registration as this is illegal.

     

    2. Transmit cable TV signals to subscribers without proper written interconnection agreement with the MSO.

     

    3. Discontinue the transmission of cable signal without giving 21 days notice to the MSO, clearly specifying the reasons for the proposed discontinuation.

     

    4. Change the MSO of the subscriber, till the subscriber request so by filling a surrender application form for the existing MSO’s connection and a new CAF for the new MSO’s connection. The new STB should be activated only after entry of the details, as provided in new CAF, into the SMS of the new MSO.

     

     

    (C) Dos & Don’ts for MSOs providing cable TV services through DAS

     

    DOs

     

    1. Register with the Ministry of Information & Broadcasting (MIB) as an MSO.

     

    2. Enter into an agreement with LCO, if you are providing the cable TV service to subscribers through one or more LCOs.

     

    3. Ensure a copy of the agreement is handed to the LCO within 15 days from date of signing and receipt is duly acknowledged.

     

    4. Ensure that the T&C of the agreement conform to the TRAI regulations.

     

    5. Ensure that the agreement explicitly mentions the date of coming into force and the date of expiry.

     

    6. Ensure the agreement mentions the list of responsibilities of the MSO and the LCO, respectively, the revenue share agreed, and the procedure for uploading the consumer complaints, received by your linked LCOs, in the complaint handling/ monitoring system.

     

    7. Ensure that the interconnection agreement contains explicit provisions for settlement of disputes.

     

    8. Provide access to the relevant data in the Subscriber Management System (SMS) to all of your linked LCOs for the purposes of settlement of revenue shares in accordance with the agreement.

     

    9. Educate your linked LCOs about the various schemes you are offering for procuring a set-top-box (STB) by a subscriber and also the channel(s)/ bouquet(s) available on your network.

     

    10. Provide adequate number of spare STBs to all of your linked LCOs to meet the timelines set in the Quality of Service Regulations of TRAI, to avoid long disruptions in service to any subscriber due to malfunctioning STB.

     

    11. Ensure that prior notice of 15 days is provided through local newspapers and through scrolls on TV Screen to inform subscribers who are likely to be affected due to the disconnection. Such notice should be published in two leading local newspapers of the State in which affected LCOs are providing the services, out of which one notice should be published in a newspaper in the local language.

     

    12. Ensure that sufficient number of Customer Application Forms (CAFs) and Manual of Practice is available with your linked LCOs for distribution to the customers at the time of providing connection.

     

    DON’Ts

     

    1)Provide cable TV services without valid registration as MSO as this is illegal.

     

    2)Provide cable TV signals to LCOs without a written interconnection agreement as this is illegal.

     

    3)Give pre-activated STB to any LCO or to any customer.

     

    4)Disconnect the signals of TV channels of your linked LCO(s) without giving 21 days notice to such LCO(s) and clearly specifying the reasons for disconnection.

  • Initial licence should be for 10 years as VNO is new concept: TRAI

    Initial licence should be for 10 years as VNO is new concept: TRAI

    NEW DELHI: Virtual Network Operators (VNO) in the telecom sector should be permitted for all segments of voice, data and video as well as for all services notified in the unified license (UL) for a period of ten years, extendable by ten years at a time. 

     

    The Telecom Regulatory Authority of India (TRAI) in its recommendations has said VNO should be introduced through proper “licensing framework” in the Indian telecom sector.

     

    For introduction of VNO in the sector, there should be a separate category of license namely UL (VNO). Like UL authorization, only pan-India or service area-wise authorizations may be granted under a UL (VNO) license.

     

    The recommendations were given after the Department of Telecommunications (DoT) through its reference of 7 July last year had sought recommendations of TRAI on the subject.

     

    TRAI said that VNOs are service delivery operators, who do not own the underlying core network but rely on the network and support of the infrastructure providers for providing telecom services to end users and customers. 

     

    VNOs can provide any or all telecom services, which are being provided by the existing telecom service providers.

     

    VNO should be introduced in the network based on the basis of mutually accepted  terms and conditions between NSO and the VNO. The terms and conditions of sharing the infrastructure between the NSO and VNO are left to the market to determine.

     

    VNOs should be permitted to set up their own   network equipment where there is no requirement of interconnection with other NSO.  However, they should not be allowed to own/install equipment where interconnection is required with another NSO.

     

    Local Cable Operators (LCOs) and Multi Service Operators (MSOs) can become VNO and are permitted to share infrastructure with VNOs.

     

    There should not be a restriction on the number of VNO licensees per service area and there should be no restriction on the number of VNOs parented by an NSO.

     

    Customer verification and number activation shall be the responsibility of a VNO for its own customers.

     

    VNOs that enter the network would do so based on arriving at a mutual agreement between an NSO and a VNO.

     

    The Authority recommended that VNOs should be permitted for all services notified in the UL.                                            

     

    TRAI recommended that the terms and conditions of sharing of infrastructure between the NSO and VNO should be left to the market i.e. on the basis of mutually accepted terms and conditions between the NSO and the VNO.       

     

    The Authority recommended VNOs be permitted to set up their own network equipment viz. BTS, BSC, MSC, RSU, DSLAMs, LAN switches, where there is no requirement of interconnection with other NSO(s). Therefore, they should not be allowed to own/install equipment viz. GMSCs, Soft-switches and TAX.

     

    Equipment permitted to be owned/installed by VNOs should conform to the technical standards prescribed by standardization bodies like TEC and ITU.

     

    VNOs may also be allowed to create their own service delivery platforms in respect of customer service, billing and VAS. MSOs and LCOs who want to provide broadband services through their cable network may do so by obtaining a VNO license. MSOs/LCOs may also share their cable infrastructure with VNOs, after the MSO/LCO register themselves as an IP-I service provider.

     

    There should be a separate category of license namely UL (VNO). This UL (VNO) will contain similar authorizations for services and service areas as provided in the existing UL.

     

    An operator who wishes to provide telecom services to its customers utilizing the underlying network and/or access spectrum of an existing NSO will have to obtain UL (VNO) license. 

     

    The Authority recommended that resale of IPLC presently under the UL shall be shifted from the existing UL to UL (VNO) licensing in order to make a clear distinction among the class of operators.

     

    A VNO should be a company registered under the Indian Companies Act 1956 (as amended). The entry fee for UL (VNO) with a given authorisation will be 50 per cent of the entry fee prescribed for the UL. Financial Bank Guarantee will be equal to the amount of two quarter license fee. Minimum equity and minimum networth may be kept at 40 per cent of the amount prescribed under UL. 

     

    The Authority recommended that under UL(VNO) the provision for restriction of 10 per cent or more equity cross holding to be applicable between (i) a VNO and another NSO (other than VNO’s parent NSO) and (ii) between a VNO and another VNO authorized to provide access services using the access  spectrum of different NSO in the same service area.                                                                         

    A VNO shall be liable to pay LF as a percentage of AGR at the same rate as that of the parent NSO.

     

    VNO shall also be liable to pay the SUC for the wireless service(s) it offers to the customers. The SUC rate will be same as that of the parent NSO.

     

    Since Quality of Service is in the exclusive domain of TRAI, the Authority will put in place comprehensive regulations on QoS parameters to be complied separately by NSOs and VNOs.

  • TRAI imposes financial disincentives and penalties on MSOs

    TRAI imposes financial disincentives and penalties on MSOs

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has notified an amendment to the existing Quality of Service Regulations (QoS) for Digital Addressable System (DAS) by imposing financial disincentives on multi-system operators, who are not complying with the provisions regarding billing and issue of receipts for payment made by the subscribers.

     

    A provision for financial disincentive for an amount not exceeding Rs 20 per subscriber has been made in the amended regulation. The Authority is of the view that enabling the imposition of financial disincentives will be an effective deterrent and will incentivise MSOs to issue bills and receipts to subscribers for payments made.

     

    The QoS Regulations also prescribes that the cable TV services shall be offered to the subscribers both on pre-paid and post-paid payment models with the options being given to subscribers.

     

    In the amendment regulation, an explanation clarifies that the pre-paid option offered by MSO shall be implemented through electronic pre-paid mechanisms. In order to ensure that the MSOs honour the pre-paid or post-paid option given by the subscriber in a timely manner, a financial disincentive of not exceeding Rs 100 per subscriber has been made on the MSO for each contravention.

     

    The Standards of Quality of Service (Digital Addressable Cable TV Systems) (Amendment) Regulations 2015 provides MSOs a time of 60 days to align their business processes for compliance with the provisions of the regulations.

     

    TRAI is of the view that the imposition of financial disincentives would effectively curb the non-compliance of the provisions of the regulations and would benefit consumers and the Cable TV sector.

     

    The QoS Regulation for DAS lays down the norms for the issue of bills to subscribers, and the issue of receipts for every payment made by subscribers.

     

    It was observed that the prescribed norms for billing and issue of receipts for every payment made by subscribers were not being complied with by the MSOs. Such non-compliance has resulted in numerous legitimate consumer grievances. In the absence of a bill, a subscriber cannot ascertain whether the amount demanded by the MSO for the cable TV services is correct or not. Similarly, in the absence of a receipt for the payment made, there is no means to get a grievance redressed in case of any billing related dispute with the operators.

     

    For consumers, such bills and receipts are essential; when it is available to consumers in other commercial markets, why not in the cable TV market?

     

    Because of the non delivery of such bills and receipts by the MSOs, information of actual subscription vis-?-vis billing and payment details are not being entered into the Subscriber Management System (SMS). Consequently, commercial deals and financial transactions amongst operators are not being carried in a transparent manner. It is adversely affecting smooth implementation of DAS as mandated by law.

     

    In absence of proper billing and accounting of receipts, there is a very real possibility of a loss of revenues accruable to the Government. It is essential that the Government gets its due tax revenues arising out of the business of the cable TV services sector.

  • Star’s RIO approach should form template for other broadcasters: MPA

    Star’s RIO approach should form template for other broadcasters: MPA

    MUMBAI: Leading broadcaster Star India’s move towards a more transparent and uniform template for distribution deals with cable multi-system operators (MSOs) should form a template for other major broadcast groups (i.e. Zee, Network 18 / IndiaCast, Discovery) to follow over 2015.

    According to a report released by Media Partners Asia (MPA), over the next few months, all eyes will be on the MSO’s readiness to rollout channel packages and related consumer acceptance of price increases as well as potential churn to DTH.
    Also critical will be the rollout of prepaid services for legitimate pass through of subscription revenues to MSOs and broadcasters. “If executed successfully, these new mechanisms will help bring in long-awaited addressability across the cable industry, reduce dependence on carriage fees while also drive ARPU growth to improve economics for all industry stakeholders,” the MPA reports says.

    Star’s decision of providing channels on Reference Interconnect Offer (RIO) came after the Telecom Regulatory Authority of India (TRAI) came up with its regulation to unbundle channel aggregators, which further raised the prospect of a level playing field between broadcasters and distributors.

    The unbundling of aggregators, according to MPA, exposed platforms favoured by vertically aligned broadcasters, thereby bringing to the fore the disparity of content costs amongst operators.

    In the midst of the dissolution of top channel aggregator MediaPro in April 2014, major MSO Hathway levied a charge of disparate pricing by MediaPro in DAS (Digital Addressable System) markets, offering favourable channel rates to Den, which had an effective 25 per cent stake in MediaPro, as well as Siti Cable, a sister concern of the Zee group. “Hathway, despite having more digital subscribers in DAS markets than both Den and Siti Cable was asked to pay a ~15 per cent higher cost per sub or CPS (at Rs 35 per sub per month) for MediaPro channels,” the report reveals.

    Hathway referred the matter to Telecom Disputes Settlement and Appellate Tribunal (TDSAT), claiming a refund of Rs 700 million from MediaPro.

    It was In November that Hathway, which had been receiving channels from Zee on a RIO basis, settled with Zee and signed a CPS-based agreement.

    Star, however, to bridge the divide on disparate pricing for operators, subsequently filed an affidavit making all its channels (including sports channels) available only at RIO rates. And since 10 November, all Star channels have been available, on a RIO basis, for cable operators.

    Implications of Star’s distribution strategy for DAS markets

    According to MPA, Star’s filed RIO rates are steep and are not reflective of the actual fees collected from subscribers. As a result of this Star rolled out an incentive scheme (based on number of channels carried, logical channel number and channel penetration) for MSOs. “The existing DAS markets remain characterised by an absence of tiers and limited addressability to monetise on subscription income; therefore, MSO dependence on carriage in these markets remains high,” says the report.

    As per MPA, Star’s “RIO-only but incentivised distribution approach” is a bold step as it deprives cable operators of carriage fees. “In addition, we expect Star’s content cost for all MSOs to increase by at least 15-20 per cent, at a minimum. Therefore, in order to absorb the increase in net content costs and benefit from available price incentives, MSOs have been forced to introduce tiering and implement rate hikes in DAS markets,” highlights the report.

     

  • Chrome Data: A reality check for Star’s RIO?

    Chrome Data: A reality check for Star’s RIO?

    MUMBAI: In a move that was bound to give birth to a whole new module of distribution, Star India, after deciding to enter only into Reference Interconnect Offer (RIO) deals, in late October this year, decided to give incentives to the multi system operators (MSOs) for carrying its channels.

    With a promise to empower the viewer and platforms, usher in a new era of transparency, and boost the entire digitisation eco-system, the broadcaster decided to incentivise platform operators, if they meet the three criteria: firstly, provide more Star channels on its platform; secondly, give it to as many subscribers as it can; and thirdly, give easy access by placing the channels in the top LCN on its platform.

    However, the shift didn’t go down well with the multi system operators (MSOs). Voices were raised; only to go down with a pinch of salt as slowly they agreed to put all Star channels on a la carte. With IndusInd Media and Communications Limited (IMCL) being the first one to agree to the demands of Maharashtra Cable Operators Federation (MCOF), the others including Den Networks, Digicable and Siti Cable also agreed to give the Star network channels only on viewer’s choice.

    Hathway Cable & Datacom joined the bandwagon after almost a month, by coming out with its new pricing and packaging system.

    And now with everyone toeing the same lines, one would expect things getting in place, if not perfect. However, a look at the opportunity to see (OTS) collated week-on-week by Chrome Data Media & Analytics tells another story.
    If numbers are to be believed, the OTS of channels from the network have seen a setback after the announcement of RIO. There has been a certain percentage difference between the pre and the post RIO era. And suffering the most are the niche and sports channels from the network’s stable.

    Sports channel s across India saw a drop of 9.5 per cent OTS. Channels impacted by this drop are Star Sports 1, 2, 3 & 4. Similarly, English entertainment and movie channels too have felt the heat. With 27.7 per cent OTS drop and 11.7 per cent OTS loss, channels like Star Movies and Star Movies Action and Star World and Fox Crime are losing out in their respective genres.

    The only channels which haven’t seen much impact from the RIO deal belong to the general entertainment category. It has seen a marginal drop of 0.5 per cent OTS from 81.76 per cent to 81.39 per cent, thanks to high demand of channels like Channel V, Star Utsav and Star Plus.

    To fix the damage done, the network will have to work hand-in-hand with the MSOs and advertise as much as possible to let consumers want to avail all its channels.

     

  • MSOs not ordering STBs, say manufacturers

    MSOs not ordering STBs, say manufacturers

    MUMBAI: The former Information & Broadcasting (I&B) Minister Prakash Javadekar had emphasised the need for bringing in indigenous Set Top Boxes (STBs) and the new administration is also keen to do the same. It was with this in mind that I&B secretary Bimal Julka held a meeting with indigenous STB manufacturers recently.

    Julka said that the issue of C-Form had already been addressed by the government to ensure level playing field for the domestic manufacturers as compared to imported STBs. The meeting was to assess the readiness of the manufacturers to meet the 11 million STB requirements since they had stated that sufficient capacity had been installed.

    A meeting had also been held with the Prime Minister regarding availability of conditional access system (CAS). The issue of interoperability of STBs was also being scrutinised and a task force meeting on the same had also been held.

    The STB manufacturers informed that they have been in touch with operators for their requirements but their response has not been encouraging. According to them the operators are anticipating change in timeline of digitisation and a change in policy, leading to their slow uptake.

    The manufacturers stated that they are prepared to go head on with the imported boxes as well as have a penal clause on penalty. Since no order was coming from operators, it was a difficult task to prepare production since time was needed to receive the components from suppliers.

    Therefore, they manufacturers have requested the Ministry to facilitate a process so that MSOs look at indigenous STBs for phases III and IV of digitisation. A joint meeting between the three could be held to resolve concerns.

    Julka clarified that 2015 and 2016 are the final dates for digitisation, so there needs to be no apprehension on that front. Monitoring of the digitisation programme would be scaled up in accordance with the implementation strategy being set in the Ministry.

     

  • MSOs to put Star’s popular channels in base pack, regional in a-la-carte

    MSOs to put Star’s popular channels in base pack, regional in a-la-carte

    MUMBAI: As the deadline for signing deals with Star India for its channels on reference interconnect offer (RIO) ended on 10 November, MSOs are preparing various options to deal with the altered business plans.

     

    While the network is providing all its channels only on RIO, MSOs are finding out different ways to package the channels. India’s leading MSO Hathway is currently creating new packages that it will roll out soon. Says a source, “We will be redefining our packs and giving revised rates soon. Marketing on the same will commence as well. It will be something new for the trade.”

     

    While the base pack could include the popular channels from its bouquet, the regional channels will only be on a-la-carte. English, sports and others will be categorised in different packs. The channel had initially disconnected signals in October, but now the channels are switched on again.

     

    IMCL’s InCable on the other hand has also followed a similar pattern. The base pack will consist of Star Plus, Life OK and Star Pravah, the latter due to its large presence in the state of Maharashtra. The regional channels such as Star Jalsha, Star Vijay, Asianet, Suvarna etc will be on a-la-carte.

     

    “We have decided to put the popular channels on the base pack for three months to avoid unnecessary system overload due to people calling for it. Slowly, they will also be moved out into a-la-carte once we educate consumers. Soon we will also have proper EPRS, CAS and also net billing,” says IMCL group MD and CEO Tony D’silva. The MSO has taken Star’s incentives for channel penetration by putting three in its base pack.

     

    According to an official from Den Networks, the MSO has not yet signed the deal and is yet negotiating. Advance Multisystem Broadband Communciation (AMBC) in Kolkata will ensure all 26 channels will be given to consumers while another Kolkata based MSO said that the agreement with Star has been signed but it is evaluating the incentive schemes.