ITV

Tag: RIO

  • Dish TV, IndiaCast continue to battle it out

    Dish TV, IndiaCast continue to battle it out

    MUMBAI: The fight between India’s oldest DTH player Dish TV and newbie aggregator IndiaCast seems to be becoming uglier. Both the parties are fighting it out ferociously, however, on the same playground – the Telecom Disputes Settlement Appellate Tribunal (TDSAT).

    It was just last week that the TDSAT dismissed Dish TV’s petition against IndiaCast asking them to come to an agreement that would allow the aggregator to give channels on Reference Interconnect Offer (RIO) basis. However, IndiaCast didn’t seem to be happy with the verdict and thus with the help of newspaper ads informed people about Dish’s ‘on request channels’ scheme.

    The issue took an ugly turn, when Dish reacted to it with a legal notice.

    Now, IndiaCast has gone a step ahead and has filed a petition with the TDSAT seeking clarification on the terms of the RIO, specifically on the ‘on request channel’ scheme and the scrolls running on the channels from Dish TV.

    The IndiaCast contention is that as per RIO agreements, channels can only be given in either as a-la-carte or in the packages. The concept of requesting channels is new and not prescribed as per terms of RIO.

    “Dish TV isn’t telling people exactly what this scheme is. Also, how can the number of SMSs that it receives from ‘so-called unsubscribing’ customers be monitored and verified?” asks a source close to IndiaCast. The fear is that the operator might tweak the feedback from customers and say subscribers don’t want IndiaCast channels, and hence charge carriage fees from it. 

    Dish TV, on its part, isn’t taking things too lightly. While earlier it issued a legal notice to the aggregator for spreading ‘false and malafide information’ through its advertisements on TV and in newspapers, now it has threatened severe action. Now it has also moved to the TDSAT against IndiaCast for the same.

    Both the cases will be heard on Thursday.

    According to the ‘on request channels’ scheme, viewers will have to individually message each channel that they want to watch to Dish TV. The subscriber also can earn rewards in the form of 100 points worth Rs 100 which can be redeemed to watch ‘movies on demand’ that the DTH operator offers. 

    As the fight between the two gets fierce, it’s to be seen who bows down? Or, will the Telecom Regulatory Authority of India (TRAI) have to step in to resolve the issue?

  • TRAI attempts to rein in TV channel aggregators in new consultation paper

    TRAI attempts to rein in TV channel aggregators in new consultation paper

    NEW DELHI: It has been saying it will bring some order to the TV channel aggregation and distribution business. And the Telecom Regulatory Authority of India (TRAI) is now showing that it means what it has been saying.

    It today issued a consultation paper attempting to regulate the distribution of television channels from broadcaster to platform operators and discipline the distributors (aggregators). The paper involves amendments to the Tariff and Interconnection orders, and Register of Interconnect Regulations, and so TRAI has given stakeholders time till 27 August to send in their comments.

    The essence of these is that it wants to clip the immense clout that the four main aggregators MediaPro Enterprises (distributes 75 channels), IndiaCast UTV Media Distribution (distributes 35 channels), Sun Distribution Services and MSM Discovery (distributeing 30 channels each) have on the TV ecosystem in India.

    The main points of the consultation paper are that:

    * Broadcasters and not the authorised distribution agency shall publish the reference interconnect offers (RIO) and enter into interconnection agreements with the distribution platform operators.

    * If a broadcaster appoints a person as its distribution agent, it shall ensure that –

    a) The authorised distribution agent does not change the composition of the bouquet formed by the broadcaster while providing it to the distributors of TV channels.

    b) The authorised distribution agent does not bundle bouquet or channels of the broadcasters with the bouquet or channels of other broadcasters. In other words, in case the authorised distribution agency represents more than one broadcaster, they shall not link offerings of broadcasters they represent.

    c) While acting as an authorised distribution agent, such person acts for, on behalf and in the name of the broadcaster.

    The regulator has also proposed that it will give broadcasters three months to rework the RIOs and to enter into fresh interconnect agreements and filing the same with it.

    Based on the above, it has issued several orders under which it has chosen to amend earlier orders issued by it.

    These include:

    * The Telecommunication (Broadcasting & Cable) Services (Fourth) (Addressable Systems) Tariff (Third Amendment) Order 2013 to amend The Telecommunication (Broadcasting & Cable) Services (Fourth) (Addressable Systems) Tariff Order 2010 (1 of 2010)

    * The Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Tenth Amendment) Order 2013 to amend The Telecommunication (Broadcasting & Cable) Services (Second) Tariff Order 2004 (6 of 2004)

    * The Telecommunication (Broadcasting & Cable Services) Interconnection (Seventh Amendment) Regulations 2013 to amend The Telecommunication (Broadcasting & Cable Services) Interconnection Regulation 2004 (13 of 2004).

    * The Telecommunication (Broadcasting & Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Second Amendment) Regulations 2013 to amend The Telecommunication (Broadcasting & Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations 2012 (9 of 2012).

    * The Register of Interconnect Agreements (Broadcasting & Cable Services) (Fifth Amendment) Regulations 2013 to amend The Register of Interconnect Agreements (Broadcasting & Cable Services) Regulation 2004 (15 of 2004)

    Background to TRAI’s attempt to regulate Aggregators

    In the paper, the TRAI says that broadcasters, MSOs, cable operators, DTH, HITS and IPTV operators are recognised as entities in the policy guidelines and regulatory framework of the Ministry and TRAI respectively. Aggregators have not been specifically defined anywhere; neither in the law or the statutory rules, nor in the regulatory framework for the broadcasting and cable TV services sector.

    As on date there are around 233 pay channels (including HD and advertisement-free channels) offered by 59 pay broadcasters. These channels are distributed by 30 broadcasters/aggregators/ agents of broadcasters.

    In the broadcasting and cable TV sector, TV channels are distributed by the broadcasters themselves or through their authorised distribution agencies to the distribution platforms viz cable TV, DTH, IPTV, HITS etc. Many such agencies operate as authorised agents (aggregators) for more than one broadcaster. After obtaining the distribution rights from one or more broadcasters, such distribution agencies form bouquets, many of which also consist of channels of one or more broadcasters. They publish Reference Interconnect Offers (RIOs), negotiate the rates for these bouquets/channels with operators of various distribution platforms and enter into interconnection agreement(s) with them.

    As on date, the distribution business of around 73 per cent of the total pay TV market, including high definition (HD) TV channels, is controlled by a few authorised distribution agencies. These channels include almost all the popular pay TV channels. These authorised distribution agencies wield substantial negotiating power which can be, and is, often misused leading to several market distortions.

    Explaining its move, TRAI said the business of distribution of TV channels from the broadcaster to the consumer has two levels:

    i) Bulk or wholesale level – wherein the distribution platform operator obtains the TV channels from the broadcasters, and ii) Retail level – where the distribution platform operator offers these channels to the consumers, either directly or through the last mile operator.

    Even as TRAI was in the process of reviewing the regulatory framework for broadcasters and their authorised agencies, the Information and Broadcasting Ministry said there have been several complaints from Multi system operators (MSOs) about the modus operandi of such entities, e.g. it has been highlighted that MSOs are forced to subscribe to certain packages. Concerns have been vehemently voiced by various MSOs and LCOs regarding the monopolistic practices of such major authorised distribution agencies of broadcasters, in view of their control over a large number of popular channels.

    The MSOs have complained that the aggregators have abused their market power by forcing them to accept all the channels of the aggregator, fixed fee deals, charging based on the entire subscriber base and not as per actual uptake of channels, insisting on minimum guarantee and other unreasonable terms and conditions.

    The TRAI further adds, in the consultation paper, that in the absence of any regulatory framework for the aggregators (including possible restrictions on the authorised agencies), they started to bundle channels of more than one broadcaster and form bouquets. These bouquets, having popular channels of a number of broadcasters, provided a better marketing proposition. These bouquets grew larger and larger with time, as the aggregator started to piggy back more and more channels, especially those having lesser standalone market values.

  • ‘Rolling out of Cas has been the most significant development’

    ‘Rolling out of Cas has been the most significant development’

    Lots of consumer centric stipulations have been made in the said Regulations which, among other things, include establishment of call centres by DTH operators, redressal of consumer complaints within stipulated timeframes and the concept of Nodal Officers to be appointed by DTH operators.

    Trai has also issued Interconnect Regulations for DTH services mandating the Broadcasters to come out with Reference Interconnect Offer (RIO) for DTH operators and provision of channels on a la-carte basis by broadcasters to DTH operators under the said RIO.

    Trai has also come out with a Tariff Order for non-Cas areas whereby not only the price freeze, which was already in operation, has been continued, but now even the ceiling in respect of cable rates have also been provided at the retail level.

    In addition, Trai has also stipulated the provision of a la carte channels to MSO/Broadcasters in non-Cas areas. The order has created a lot of hulchul in the industry.

    Cross media ownership issue and restriction in holding shares within electronic media and distribution sector may act as an impediment to the overall growth of the sector
    _____****_____

    No previous order/Regulation of Trai had generated as much heat and controversy as the present Tariff order for non-Cas areas. While the MSO and cable operators have welcomed it, the broadcasters on the other hand have severely criticised it, as in their view their commercial interest have not been adequately taken care of by Trai. The broadcasters are arguing that the present tariff order would benefit only one segment – the MSOs as no a la-carte choice can be provided to consumers in non-addressable analog environment because of technological impediments. Their grievance is that the Regulator has not addressed the problem of “under-declaration”. The matter is currently sub judice in the TDSAT.

    The Trai is in the process of issuing its recommendation to the government on IPTV and Mobile TV which would give further impetus to the proposed digitisation.

    The Cable and Satellite Television sector is the only sector where both Service Tax and Entertainment Tax are levied at present which amounts to double taxation. It may be mentioned that levy of both service tax and entertainment tax ultimately make the services costlier for the consumers. It is pertinent to point out that when a movie/ film is shown in a cinema, only entertainment tax is levied and no service tax is charged for screening the movie in a cinema theatre.

    Both DTH services and cable services are at present reeling under the heavy burden of multiple taxation and levies (such as license fee, service tax, entertainment tax, VAT on customer premises equipment which cumulatively add up to as high as 56 per cent) which are acting as an impediment to the growth and development of these services. Such a high multiple taxation and other levies vis-?-vis other sectors has resulted in these services becoming costlier and unaffordable for the masses.

    Accordingly, to ensure proper growth and development of this sector, the multiple levies/ taxation structure needs to be rationalised.

    Similarly, the customs duty structure on STBs and other equipments which are quite crucial for digitization also needs rationalisation in line with IT and Telecom sectors.

    It is imperative that to promote the growth of digital platforms, duty structure/concession applicable to IT and Telecom sector be extended to the broadcasting industry to provide a level playing field
    _____****_____

    All in all, year 2007 has been excellent for the Broadcast, DTH and Cable sector, and would be remembered as the year in which the solid foundations have been laid for digitisation and to create an environment enabling the broadcasting and distribution sector to takeoff and move towards the path of growth and development at an accelerated pace.

    In the present era of convergence the distinction between Broadcasting, Telecommunication and Information Technology is disappearing very fast. It is therefore imperative that in order to promote the growth of digital platforms, duty structure/concession applicable to IT and Telecom sector be extended to the broadcasting industry and it is treated as part of telecom infrastructure to provide a level playing field.

    The need of the hour is to create the same kind of conducive environment by the government by creating level playing field and granting fiscal incentives and concessions to the sector as has been done for the telecom sector and this sector would also register phenomenal growth in coming years.

  • ‘Welcome To The Click Society: The 2008 Mega Trends’

    ‘Welcome To The Click Society: The 2008 Mega Trends’

    Outbound Noise & Inbound Specificity

    These zillions of day-to-day, small online interactions add up, collectively developing your consumption profiles. The system can easily determine when you and how many of your friends are planning a trip to Rio, with what budget, and what airline. This information is a goldmine to some in the travel business, while the same goes to hundreds of other various sectors. This highly qualified specificity has created a meltdown in the traditional world of advertising, which was historically based on creating wild outbound noise with bottomless budgets. A great thing century ago, but the online era is founded upon the specific pulse of inward consuming traffic.

    The total change of old-media-structure is upon us. The last century gave us print society, where the printed word was power, and when only the literate could benefit from information, the ad industry started with a bang. The selling of goods and branding for mass consumerism become the bridge to most of the global economies and the concepts to produce and sell, earn and spend created the modern civilization. The conveyor belts of the process were managed by the ad industry and the herds of consumers were managed by the creative dangling of carrots by ads…today and each and every single day, the global ad industry easily spends over a billion dollars creating various types of branding and selling messages.

    But now, most current online and cyber advertising techniques are meticulously precise, measurable and predictable. They have trimmed all the non essential extra creative AD luggage and mega budgets that allowed for the arrival of the MAD Men TV series produced by the same team behind The Sopranos, correctly portraying the ad-machine that once created public hysteria and great consumer demands, but now lingers upon extinction like a dinosaur. This global rejection of the traditional ad-game is all over us, affecting newspapers, TV and all other ad based mediums while a new trace-able, track-able, predictable, ROI model of one-to-one advertising sell-first-bill-later is getting a stronger hold.

    The challenges are on two fronts. Firstly, a continuously modified mass scale selling of goods and services using traditional models which have fared well in the past. The secondly, the urgent need of highly exuberant structures of specialized global service agencies, connecting customers on a one-to-one, per-need basis, using hyper-connected, cyber-marketing-processes. Both fronts are very serious and work towards creating a major shift. Ad shops have always excelled at the creativity component which separated them from the other related service sectors. They are once again required to come up with better ideas and solutions, as on the net, it now takes only seconds to copy, cut and paste the same recycled campaigns and their value being erased at cyber speed. The winners and losers will be determined based on speed to market response.

    The 2008 Meltdowns

    IBM’s current study ‘The END of advertising as we know it’ is a forceful document downloadable from their website. It clearly points how the old advertising models, crazy creativity that is now being replaced by highly organized pay-per-click formats, creating direct sales for clients on a sell-first, invoice-later basis. This creates a two fold meltdown, one in which those agencies which remain still locked down in old models and other is the traditional free media worldwide which so far heavily relied on the Ad revenue.

    The 2008 Boom

    Clicks and more clicks. Anything that generates a click and results in a cascade of events will boom. There will be special gadgets to special services, from special click-based programs to special offerings. A kind of new click-sound to the click-economy, supporting search engine-based marketing, where the emphasis will be placed on finding a match between a customers and immediate consumption issues is where advertising and marketing will park themselves. The middlemen or the layer of services will offer clear, ROI-based campaigns and will, at times, have a huge surprise windfall for their highly productive campaigns as extra bonuses. Though, at the same time the big drawback will be privacy, as there will be extraordinary amounts of information made available to target customers.

    The New Trends

    A new emergence of a global desire to aim and create a Five Star Standard businesses is almost upon us, just like a five star hotel, with services, quality and style, this desire to operate a business and offer services just like a five star standard hotel will reflect not only on the corporate brand and the product and services as goodwill ambassadors, but mainly in its hospitable services and 24-hour availability of staff to address those issues. The difference between a luxury home and a five star hotel is the hotel keeps an on-call staff, open switchboard, open kitchen the entire facility and the room service. This is how the corporations of the new era will have to function in order to earn the respect in a click based round the clock society.

    Asia is now beginning to offer 24-hour, fully-supported banking, buying and selling of properties, insurance, travel, and all kinds of hundreds of new services. Now, the customer demands and decides whenever, whatever and wherever the need is to be met. Only the players equipped to meet these spontaneous demands will have a chance. The creation of a fully supported, 24-7 operation that will never close and perform transactions instantly is the new future. You would like to own those special glasses to see that blanket of streaming data hugging you right now…wouldn’t you?

    (Naseem Javed, author Naming for Power and also Domain Wars, is recognised as a world authority on global name identities and domain issues. Javed founded ABC Namebank, a consultancy he established a quarter century ago, and conducts executive workshops on image and name identity issues. He can be contacted at njabc@njabc.com.)

    (The views expressed here are those of the author and indiantelevision.com need not necessarily subscribe to the same)

  • TRAI issues an amendment to the Interconnection Regulation for Broadcasting & Cable Services

    The TRAI today issued a Regulation to amend the Interconnection Regulation dated 10.12.2004. The Interconnection Regulation covers arrangements among service providers for interconnection and revenue share, for all broadcasting and cable services in India. With the experience of more than one and a half years after issue of the Interconnection Regulation a need was felt to clarify as well as expand the scope of the same so as to minimize the doubts and disputes/ litigation.

    The Authority followed its consultative approach for amendment of the interconnection regulation by issuing a Consultation Note on March 21, 2006, a Consultation Paper on May 11, 2006 and holding Open House Discussions in Mumbai on June 16, 2006 and in Delhi on June 19, 2006. After taking into consideration the comments received on the consultation paper as well as the comments made during the course of the Open House Discussions, the Regulation has been amended by the TRAI.

    The main amendments made in the Interconnection Regulation dated 10.12.2004 are:

    1. A notice period of three weeks has been prescribed for disconnection of TV channel signals by a broadcaster to any distributor of TV channels. The requirement of issue of a three week notice has also been extended to the distributors of TV channels prior to disconnection of the re-transmission o fany TV channel.

    2. Issue of public notice through newspapers has been made compulsory prior to disconnection of TV channel signals. Broadcaster/multi system operator/ distributor of TV channels are required to inform the consumers through scrolls on the concerned channel(s), but issue of notice in newspapers shall be compulsory.

    3. It has been mandated that the broadcaster/multi system operator or their agents/ intermediaries to whom a request for providing TV channel signals is made, should either provide the signals on mutually agreed terms, or specify the terms and conditions on which they are willing to provide TV channel signals, within sixty days from the date of the request.

    4. Methodology to arrive at the subscriber base of each distributor of TV channels at the time of first agreement, during the validity of agreement and at the time of renewal of agreement has also been laid down for agreements between the broadcasters and multi system operators and between multi system operators and cable operators.

    5. The Authority has prescribed that all broadcasters shall publish their Reference Interconnect Offers (RIO) describing, inter-alia, the technical and commercial conditions for interconnection for non-addressable systems and submit copies of the same to the Authority. The reference interconnect offer so published by the broadcaster will form the basis for all interconnection agreements to be executed thereafter.

    6. Broadcasters will be required to give one months notice for conversion of Free To Air Channels to Pay channels and vice versa.

    7. Parties to an interconnection agreement for supply of TV channel signals
    will be required to renew their interconnection agreements within three months of the expiry of the original agreement.

    8. Issue of invoices by broadcasters /multi system operators or their agents/ intermediaries has been made compulsory for payment received from any distributor of TV channels for providing TV channel signals. The monthly invoice shall clearly specify the arrears and current dues along with the due date for payment of the same.

    For more details, please visit “www.trai.gov.in”.