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Tag: Rahul Khullar

  • TRAI recommendation on media and ownership including cross-media issues expected next month

    TRAI recommendation on media and ownership including cross-media issues expected next month

    NEW DELHI: More than 15 months after its second consultation paper on media ownership, the Telecom Regulatory Authority of India (TRAI) is expected to come out with its recommendations on media control and ownership including the tricky issue of cross-media ownership next month.

     

    TRAI chairman Rahul Khullar has said that he hopes the final recommendation will be out in early August but says that at the latest it would be available before the end of the month.

     

    TRAI had in 2008 and in its consultation paper in February 2013 given its view on the matter in which it ruled out state and government ownership leading to a furore since states like Tamil Nadu and West Bengal have applied for state ownership of either television channels or TV signal distribution. After issuing the paper, TRAI had also organised several Open House meets with stakeholders in different parts of the country. Open Houses were in Ahmadabad, Hyderabad, Delhi, Bhubaneswar and Indore.

    It has gained urgency with Tamil Nadu once again raising the issue of Arasu licensing for Digital Access Systems.

    While bodies like the Delhi Union of Journalists have suggested dismantling of existing monopolies and cross media empires, Times Television Network wants a ban on entry of lobbyists having association with public relations or political parties, religious bodies, urban and local administrative bodies, central government ministries and departments, and central government owned companies undertakings.

     

    However, the Indian Newspaper Society feels TRAI should stay out of this as this will mean placing restrictions on the print media with which TRAI is not authorised to deal.

     
    Besides media companies, industry bodies including Cable Operators Association of India, CII, CASBAA, FICCI and IAMAI also participated in consultation process.

     

    In its paper issued in February last year, TRAI had sought comments on devising ownership rules for vertical integration between broadcasting and distribution entities.

     
    The paper was expected to devise rules/restrictions in case of mergers and acquisitions in the media sector, and media ownership rules within and across media segments.

     

    Methodology to measure ownership or control of an entity over a media outlet, identification of genres to be considered while framing media ownership rules and prescribing norms for mandatory disclosures by media entities are some other issues.

     
    TRAI also discussed in its paper issues relating to identification of media segments wherein media ownership rules are to be prescribed, and identification of relevant markets for evaluating various parameters to be used for devising ownership rules and the methodology for measuring these parameters.

     
    At the outset, TRAI said the paper had been issued at the request of the Information and Broadcasting Ministry earlier last year following a report of the Administrative Staff College of India, in Hyderabad.

     

    TRAI said that it was felt that reasonable restrictions may need to be put in place on ownership in the media sector, to ensure media pluralism and to counter the ills of monopolies. It pointed out that such restrictions do exist in many international markets.

     

    In the Open Houses, a majority of the participants in the fifth Open House on Media Ownership in Indore today alleged that the media in the country was in the hands of just a handful of large corporate houses.

  • A wrong to correct a wrong

    A wrong to correct a wrong

    MUMBAI: If you look back a few years it was the MSOs who were arm twisting the Broadcasters and carriage subsidies shot up to an estimate of about 1800-2000 crores so it was but obvious that the broadcasters had to resort to some countervailing power and adopted the age old saying of ‘in unity there is strength’ to fight back. Hence, the mergers and partnerships to create the Aggregator now termed the Aggressor!

     

    But the battle here is not between the MSO and the Broadcaster. Unfortunately, both have been caught in a situation and a created one at that. Both are responsible for this situation. The Broadcaster wanted distribution beyond available bandwidth, the MSO but naturally driven by common supply – demand market dynamics fleeced exorbitant carriage fees. To demand higher shares of which he started grabbing more territory. For doing so he gave significant concessions towards the subscription collections. Soon it reached a stage that they began to subsist on this easy money and forgot about the upward flow of subscriptions. So, the broadcasters were giving and getting back their own monies and plus or minus a little depending on the so called legacy of the channels rather than any rationale of popularity. That is where the business model started floundering. It’s not that the subscriber was getting a free view. Sure 20,000 + crore was getting collected and of course most of it in cash.

     

    So, where did all this money go? And why are both the Broadcasters and MSOs bleeding. One has to examine the value chain and leakages in the upward flow. The interface to the customer is the LCO/LMO the one who is making the collections. A reasonable share of this will need to flow upward to the broadcasters. Content too with all the competition is only getting more expensive especially with international formats and Bollywood hosts.

     

    How much should be a fair share is secondary. First, one needs to ensure that there actually is a streamlined reverse flow. The bottlenecks and leakages lie in the value chain and systems created by both the MSO and the broadcasters. In addition to the MSO in the middle between the LCO/LMO at one end and the Broadcaster at the other end, there are at least three more middlemen in the current system that prevails. The agent aggregator, their dealers and the distributor/JV partner of the MSOs. The money the consumer pays goes through five hands before what’s left will eventually reach the broadcaster. Obviously there are not one but two too many middlemen and this is where the ecosystem needs change.

     

    Now in all of this, how’s the consumer or subscriber faring? We are the cheapest cable market in the world and honestly without an iota of debate our consumers have been spoilt. For three to five dollars a month subscription, we get the most premium of content. (Given the way our rupee is depreciating we’ll soon be down to $2 subscriptions!) And for that an abundance of choice with half a dozen channels per genre. Live sports of pretty much every event around the world and movies within two months of theatrical release.

     

    Wow! Even if the Govt. is floundering in providing Roti, Kapda aur Makaan nobody is complaining about the 4th essential – Entertainment. Sure everyone’s complaining about the cost of electricity and fuel and multiple taxes but no one’s saying cut off my cable!

     

    Fortunately, we are also the 2nd largest cable and satellite market in the world and so can provide affordable entertainment and the best there is to offer. There’s enough to go around for legitimate stake holders we just need to get the business model right. Imbalances will correct themselves over time.

     

    As to the regulator and regulation, digital addressable system (DAS) is great, but for now let’s just focus on getting the boxes. Let it just be an exercise in technological evolution. Enjoy the digital experience and abundance of choice. We are a privileged lot. Trying to introduce addressability and ‘pay for what you want’ is only going to increase the consumer’s monthly outflow or severely restrict choice. When DAS gets to that stage of choosing and billing, it is not going to be a populist regulation.

     

    So Mr Khullar Sir, the aggregator has been disarmed (agent regulation), the MSO reigned in (max 50 per cent of state control) and the broadcaster chastised (12-minute ad cap). The LCO is still trying to figure out how by merely putting a box, the MSO claims the home whereas he’s the guy who has been upgrading the cables and amplifiers for over two decades. Let’s not add a confused customer to this. He’s happy leave him alone for now. Let the market dynamics come into play and let it all settle for a while. Average Revenue Per User (ARPUs) will increase but not at the cost of denying the consumer what he is already used to. Niche content, value added services and TV on the go are new revenue streams and customers will be willing to pay more for these. Affordable internet access is the key to this next phase of growth wherein traditional media and what we call new media need to converge. What will certainly be interesting is to see who will be the players here to emerge.

     

    (The author is a media observor and consultant, and the views expressed are his own.)

  • We have done a terrible job in broadband penetration: Rahul Khullar

    We have done a terrible job in broadband penetration: Rahul Khullar

    MUMBAI: The chairman of the Telecom Regulatory Authority of India (TRAI) Rahul Khullar is known for being vocal. While earlier he has voiced his opinion on various things including bringing transparency in the way telcos function, delivering his keynote address at the India Digital Summit of the Internet and Mobile Association of India (IAMAI) in the capital, he candidly admitted that the rollout of National Optic Fibre Network (NOFN) was not-so successful. He said, “We have done a terrible job in broadband. We are nowhere near to meeting target of NOFN and unless it is done, internet penetration cannot happen at the desired pace.”

     

    Referring to the fact that 80 per cent of new internet users are coming through 2G network, Khullar said, “Access and speed will determine penetration of smart-phones and internet. Unless there is reasonable pricing of spectrum and making spectrum available, we will not succeed.” He opined that the next government has to take immediate action on spectrum availability to have successful internet penetration in India.

     

    IAMAI chairman and Google India managing director Rajan Anandan, talking at the inaugural ceremony said: “India is adding four million active internet users every month. At this rate we will overtake the United States by end of this year to become the second largest internet market.”

     

    According to Anandan, India’s e-Commerce industry will be around US $100 billion in the next decade. However, investments of upward of US $3 billion will be required to reach that stage. “And that can only happen if FDI in e-Commerce is allowed,” said Anandan.

     

    “Given the dire strait of our finances, e-Commerce industry should embrace itself for taxation,” remarked Khullar, who also raised the issue of data protection, privacy and internet governance and said that industry members should come forward along-with civil society in creation of internet governance laws.

  • TRAI asks DTH operators to provide interoperability of STBs

    TRAI asks DTH operators to provide interoperability of STBs

    MUMBAI: In September this year, the licence of India’s oldest DTH provider Dish TV was to expire after a period of 10 years and then there was no provision for an extension. On 1 October the regulator came out with a consultation paper and on 14 November it issued a supplementary paper. 
    With the last date to provide feedback approaching, TRAI had an open house discussion (OHD) on 9 December with the leading DTH providers give suggestions on the consultation and supplementary papers released by TRAI.

    During the OHD, TRAI chairman Rahul Khullar said that set top boxes (STBs) should be inter-operable for the end consumer, either commercially or technically. He also told operators that the viewers should have the option to use the same STBs if they wished to change their service provider. But if operators found it to be a challenging prospect then they should be given an option of returning the STBs to their provider in exchange for money that could help them buy a new one.

    The Information and Broadcasting (I & B) Ministry had directed TRAI to set up new guidelines for obtaining DTH licenses in India. The OHD between TRAI and DTH players was to frame new recommendations regarding the same.

    During the OHD, DTH operators were asked to give views on issues such as entry fee and quantum thereof, licence fee, conditions governing cross holdings and period of extension. 

    Representatives from the industry said that new licences should be given for a reasonably long duration and the government should have the power to cancel these if operators violate rules.

    Khullar conveyed to operators that once the new licence rules come into effect, they will have two options: one, to either continue under their earlier terms and conditions till their licence expires or two, to change to the new system.

    Khullar has told DTH operators that they can submit any additional points till Friday.

  • TRAI Open House: Aggregators given another week to respond

    TRAI Open House: Aggregators given another week to respond

    NEW DELHI: Television aggregators were today given a period of one week to give any recommendations they may have on the regulations relating to them issued earlier by the Telecom Regulatory Authority of India (TRAI).

    At an Open House that was well-attended, TRAI Chairman Rahul Khullar said any stakeholder wanting to give views in writing may do so within a week.

    Around 200 persons representing all stakeholders were present at the meeting, and put forth their views. While a majority said there was need for regulations, many felt that TRAI needed to fine-tune the regulations. MediaPro CEO Arun Kapoor, Dish TV’s Jawahar Goel, legal representatives of Airtel, Reliance, IndiaCast, apart from cable operators such as Vicki Choudhary, Roop Sharma, Money Oberoi were present at the open house.

    Khullar had TRAI Advisers N Parameswaran and Wasim Ahmed and other senior officials also present in the house.

    According to TRAI spokespersons, the discussions were frank and free and a final view would be taken after written representations are received.

    An aggregator attendee at the open house said that it was apparent from Khullar’s body language that he was not too happy with the state of affairs in the aggregation business today.

    Says he: “Khullar made three or four very important observations. The first is that aggregated bouquets of channels owned by rival bouquets creates a monopoly situation which is not a healthy one and needs to be addressed. Second: he recognised that the networks like Star, Zee, Sun, Network18 own channels across several corporate entities as licence holders and this needs to be considered. Third: smaller broadcasters and networks could face problems in distribution across the vast Indian cable TV landscape and this also should be borne in mind. Finally, he acknowledged that aggregation can help keep prices in check on account of bulk discounting”

    Adds another attendee: “Change is something that Khullar wants to bring in. We expect some change; the clout that aggregators enjoy is not something that the regulator wants to see continuing. He clearly wants aggregators to be brought under control. We are reading the writing on the wall, and we are readying for the change. How we manage this change is something we have to deal with.”

  • I&B officials: Digitisation drive will accelerate further

    I&B officials: Digitisation drive will accelerate further

    NEW DELHI: For all those who think that there’s going to be a slowdown in cable TV digitisation. It is time to think again. All thanks to the focus of the Information and Broadcasting Ministry on the preparations for the upcoming elections next year.

    In fact, the teams at I&B and TRAI, which have been spearheading the drive along with TRAI representatives, has been informed by  new secretary Bimal Jhulka and TRAI chairman Rahul Khullar, to keep the foot on the accelerator pedal and if possible rev the digitisation drive even more.

    Last week, I&B sources told Indiantelevision.com that MSOs and other television ecosystem players are being told to start planning for phase III and phase IV of digitisation from now itself. Phase III and phase IV have been compressed into a single deadline which will end in December 2014.

    “The learnings from phase I and phase II are being put into place,” says an I&B source. “We will be setting up deadlines for import of set top boxes and for rollout of the boxes. There will also be a clear game plan about which channels will be switched off to force the pace of digitisation and CAF forms in the smaller towns and rural areas. We want the transition from analogue to digital to be smoother in the next phase.”

  • TRAI seeks to define TV ratings guidelines

    TRAI seeks to define TV ratings guidelines

     NEW DELHI: Even as the government-mandated Broadcast Audience Research Council (BARC) has been working on getting its act together, the Telecom Regulatory Authority of India (TRAI) today expressed the need for urgency in finalising its regulations for TV ratings agency accreditation. In an Open House today on its consultation paper on “Guidelines/Accreditation Mechanism for Television Rating Agencies in India,” TRAI officials indicated that the system of rating agencies could be streamlined only through proper guidelines mandated by it.

     

    TRAI chairman Rahul Khullar, Principal Advisor (Broadcasting and Media), and other officials were present at the open house attended by about 30 stakeholders, including News Broadcasters’ Association head K.V.L, Narayan Rao, BARC CEO Partho Dasgupta, Paritosh Joshi, Indian Broadcasting Foundation (IBF) secretary general Shailesh Shah, among others.

     

    The stakeholders were generally in favour of a self-regulated mechanism through BARC which has committed to roll out TV ratings by Q2 2014.

     

    Most of the attendees agreed that TAM had failed in its task and any agency that takes over this work should be able to give a more rational coverage of viewership.

     

    Khullar at the meeting candidly said that even if BARC is progressing, he had been mandated by the ministry of information & broadcasting to start the consultative process on TV ratings which he was doing. He also said it was not clear who would be the regulating agency for the TV rating process in India: TRAI, I&B minsitry, or industry itself.

     

    Some participants of the Open House however expressed their fears that it is quite likely that TRAI will end up being the regulatory agency for the same.

     

    In an effort to put an end to controversies generated by TRPs, TRAI had on 17 April issued a paper to deal with issues such as establishing an accreditation mechanism for TV rating agencies and methodology of audience measurement to ensure transparency and accountability in the rating system.

     

    The consultation paper on “Guidelines/Accreditation Mechanism for Television Rating Agencies in India” also seeks to get the views of stakeholders on sample size; secrecy of sample homes; cross holding between rating agencies and their users; complaint redressal; sale and use of ratings; disclosure and reporting requirement; competition in rating services; and audit.

     

    The consultation paper has been issued at the behest of the I&B ministry, which had earlier received a report from the Amit Mitra Committee on the subject. IBF has since been working to set up BARC as an alternative to TAM.

     

    TRAI officials said incorrect ratings will lead to production of content which may not be really popular while good content and programmes may be left out. Therefore, there is a need to have an accurate measurement and representative television ratings for programmes.

  • MSOs say that cable TV customer response positive for CAFs

    MSOs say that cable TV customer response positive for CAFs

    MUMBAI: Tomorrow is an important day for TRAI chief Rahul Khullar. Reason: the deadline for cable TV subscribers to send in their customer application forms (CFAs) ends then. And like in the past, it is quite likely that he will summon the heads of the major cable TV MSOs to his office and ask them for their latest update on the situation.

    But before that many a cable TV subscriber who has been lax about submitting his CAF to the LCO or the MSO will find his or her analogue connection cut off. Because under cable TV DAS regulations that is the only way TV distribution will function in phase I metros (read Delhi and Mumbai), going forward.

    Delhi, especially has been a worry for those in the digitisation value chain as LCOs and customers there (less than 50 per cent had sent in their CAFs as recently as two weeks ago) were taking the requests for CAFs lightly.

    TRAI then cracked the whip on MSOs hoping to speed up customer response. Broadcasters – even GECs – were roped in to carry interesting promotional ads informing customers about the imperative for submitting CAFs. In fact, even as recently as four days ago, TRAI warned customers that there would be no change of date, so their CAFs would have to come in.

    Indiantelevision.com spoke to some MSO heads to get its own update on how things have been progressing on this front. And most said things were looking up.

    Says DEN Networks COO MG Azhar: “The process has been positive as we have already collected 75 per cent of applications.” Azhar supports the move by TRAI to disconnect customers. “At some point, pressure is good,” he points out. “We are positive that once we undertake all the activities including disconnection of non-complying customers, we will receive 100 per cent applications within a week.”

    Hathway Cable MD & CEO Jagdish Kumar G. PiIlai reveals that the company has received around 80-90 per cent CAFs for subscribers in Mumbai and Delhi. “Tomorrow we have a meeting with TRAI and let’s see how it goes. We are really happy that the response from both LCOs and consumers has been so positive. We hope that by 1 July. we can bring in retail billing.”

    Says InCablenet CEO Nagesh Chhabria: “The collections are still under process, we have managed to collect around 80 per cent in Mumbai and just about 65-70 per cent in Delhi.” Naresh did add that the connections of the non-complying customers will be cut from tomorrow. “The ads currently running across TV sets is spreading awareness about the CAFs and we are confident that the customers will soon comply with the submissions of the forms.”

  • MSOs to crack the whip on LCOs on customer forms issue

    MSOs to crack the whip on LCOs on customer forms issue

    MUMBAI: India‘s multisystem operators (MSOs) got a dressing down yesterday from TRAI boss Rahul Khullar about the lack of KYC or CRF forms giving details about their subscribers. Khullar ordered them to get their acts together, giving a deadline of 30 June 2013 for the forms to come in, failing which they would be prosecuted.

    With the proverbial Damoclean sword hanging over their heads, they have decided to fall in line.

    Says DEN Networks CEO S.N. Sharma: “We are all working together, to follow the directions given by TRAI. We are already in the process of collecting customer data and are positive that we will be able to meet the 30 June deadline.”

    According to sources, the four MSOs got together post the TRAI meeting and have agreed to act in coordination with each other. The idea is to switch off all the set top boxes for which the MSOs don‘t have the customer details. The switch-off will be done area wise and hopefully this will force local cable operators to share the forms with MSOs. The latter have also agreed to not allow cable TV operators to switch MSOs or play one MSO against the other.

    “Subscribers are bound to suffer during this exercise as they may have given the details to their operator but would have not been forwarded to the MSO. They should contact the MSOs directly to ensure that their details are registered or they can face a switch off,” emphasises InCablenet MD Ravi Mansukhani.

  • Netflix dominating the subscription video-on-demand (SVOD) subscribers market

    Netflix dominating the subscription video-on-demand (SVOD) subscribers market

    NEW DELHI:The Telecom Regulatory Authority of India (TRAI) seems to be getting hyperactive. Just like its head the ever so aggressive Rahul Khullar.

    In the past month or so it has been releasing consultation papers and regulations like it is in a hurry. Today, it released another two draft regulations. Both relate to the interconnection agreements that broadcasters sign with distributors such as Cable TV, DTH and IPTV operators.

    Entitled the “Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Second Amendment) Regulations, 2013” and the draft “Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Second Amendment) Order 2013,” they seek to amend some regulations that TRAI had passed earlier in relation to tariffs and interconnect agreements in earlier years. (Earlier, TRAI had notified the Interconnection Regulations for DAS dated 30 April 2012 as amended on 14 May last year and the Tariff Order applicable for the Addressable Systems dated 21 July 2010 as amended on 30 April last year).

    The amendments it has proposed state:

    * Multi system operators (MSOs) cannot seeks signals of a particular TV channel from a broadcaster under ‘must provide‘ clause while at the same time demanding carriage fee for carrying that channel on its distribution platform.

    * No minimum channel carrying capacity has been prescribed for the MSOs. However, the MSOs are mandated to carry the channels of broadcasters on non-discriminatory basis under the ‘must carry‘ provision.

    * The service providers of the addressable systems are allowed to price and package their offering of channels, however, they are required to comply with the modified twin conditions, as proposed in the draft amendment to the tariff order. These twin conditions are (a) the a-la-carte rate of a pay channel forming part of a bouquet shall not exceed two times the a-la carte rate of the channel offered by the broadcaster at wholesale rates for addressable systems (b) the a-la-carte rate of a pay channel forming part of a bouquet shall not exceed three times the ascribed value of the pay channel in the bouquet. The TRAI says it is doing this to ensure that the a-la-carte rates offered to the subscribers are reasonable vis-? -vis the bouquet/package rates.

    *As in the case of pay channels, operators can specify a minimum subscription period, not exceeding three months, for Free-to-Air (FTA) channels subscribed on a-la-carte basis by the subscribers.

    *Subscribers are free to choose channels on a-la-carte basis or bouquet/package basis or any combination of a-la-carte and bouquet/package.

    *Channels, such as HD orMUMBAI: According to The NPD Group, a global information company, growth in watching television programming is driving subscription video-on-demand (SVOD) viewership, and Netflix continues to clearly dominate the category.

    According to NPD‘s VideoWatch VOD report, in the first quarter of the year the number of viewers watching television shows using SVOD services increased by 34 per cent, compared to the same quarter year-ago. NPD‘s VideoWatch Digital tracking shows Netflix dominating the sector, with a 90 per cent share of video-streaming units during the first quarter, which was four percentage points lower than last year.

    In the TV category alone, which accounts for 80 per cent of streams, Netflix holds an 89 per cent share. HuluPlus showed healthy growth in 2013, with 10 per cent of TV streams in Q1, while Amazon Prime accounts for just two per cent of the overall TV units streamed.

    NPD senior VP of industry analysis Russ Crupnick said, “There‘s no doubt that Netflix is driving the growth in SVOD, particularly with increased attention to television programming. We are also seeing good gains in the streaming numbers from Hulu Plus and Amazon Prime, and while neither pose an immediate threat to Netflix it is interesting to see which services later adopters will try.”

    In the first quarter of 2012, 76 per cent of SVOD subscribers streamed only from Netflix. This year that figure fell to 67 per cent, while 10 per cent of SVOD streamers used both Netflix and Amazon Prime, and eight per cent used both Netflix and Hulu.

    Crupnick said, “Since its launch, Netflix Watch Instantly has enjoyed a virtual monopoly on the SVOD market, and the company still has a quite comfortable market-share lead. While Hulu Plus and Amazon both still have a long way to go before they come close to catching Netflix, we are beginning to see increasing trial of these services, even among some Netflix users.” 3D, requiring special type of set top boxes are to be offered on a-la-carte basis and if such channels are also offered as a part of a bouquet(s), corresponding to each such bouquet, the operator would be required to offer bouquet(s) excluding the HD and 3D channels, at a reduced price, commensurate to the rates of these HD and 3D channels.

    Written comments on these draft amendments have been invited from the stakeholders by 18 June.

    You can download the two new proposed amendment drafts by clicking on the following links:

    Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Second Amendment) Regulations, 2013

    Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Second Amendment) Order 2013