ITV

Tag: Siticable

  • Murdoch dips into fibre-optic network: Alliances on the card

    Murdoch dips into fibre-optic network: Alliances on the card

    Murdoch mania still is hot in town as speculation about what he really intends to do in the Indian market rising to a fever pitch. He had a rash of meetings on 14 March with top brass industrialists and other prominent political personalities.

    Maharashtra Chief Minister Vilasrao Deshmukh and he discussed the possibilities of investment in the Infotech and telecom area. Ministerial sources disclosed his intentions to set up a state-of-the-art fibre optic telecom carrier network in Mumbai. A possible partner for this project is InCable which has been laying a fibre optic network in the city. Star TV does not have any investments in cable TV distribution, having sold out its holdings in Siticable to Zee TV. The fibre optic project will l cater to Murdoch’s Infotech dreams in India and facilitate e-commerce and e-education and create tremendous job opportunities, ministerial sources said.

    Murdoch also met up with MTNL and VSNL executives at the Ministerial meeting. MTNL, the state telecom provider MTNL which has a strong optic-fibre backbone and Hughes Ispat which also is rolling out its network over the city.

    The Chief Minister, wanting investments in the state, also assured Murdoch that News Corp’s proposal to set up an entertainment programming studio will be cleared within a month’s time. News Corp plans to invest around $100 million in this area alone. The commercial capital of India seems to have impressed Murdoch as he identified the tremendous potential in this city.

    It is now the time of Delhi for big announcements where Murdoch will hold high-profile meetings.

  • Cable war erupts in Mumbai

    Cable war erupts in Mumbai

    Mumbai is facing a round of cable rivalry and war. Reportedly, underworld kingpin Chhota Rajan has reportedly being threatening the former minister of state Ramdas Kadam and his brother Sadanand Kadam who run a cable network, Sai Cable Network, affiliated with the InCable breakaway, Win Cable, in the Dahisar-Borivali-Kandivli area in northern Mumbai, which almost has a monopoly in the locality. They have reportedly been asked to forego their stake in Sai Cable Network and merge it with Seven Star Cable network which is said to be run by Rajan front man Kashi-Pashi.

    Another incident was reported from the Sion-King Circle area in north Mumbai. The Hinduja run cable network, InCableNet,set up a head-end in the area and roped in a Chhota Rajan frontman to operate from there. This apparently has ruffled the feathers of sub operators affiliated with InCableNet in the locality who have switched over to InCable arch rival Siticable. These operators – about 32 of them – used to take a signal feed from another Hinduja headend located in the suburb of Mahim.

    A Hinduja spokesperson agreed that InCable had set up a new headend but it was done to improve the signal available to suboperators and also to be in a position to offer them southern Indian language channels on the prime band which cable TV subscribers had been demanding. Siticable officials, however, dismissed the report of any shifting loyalties saying that everything was normal in the locality.

    The lucrative cable trade which commands a lot of revenues and huge profits has always been plagued by disputes and wars. It has since the beginning of cable TV in India been influenced by politicians and the underworld. It however had appeared united when all the cable TV networks in Mumbai blacked out ESPN-Star Sports a couple of months ago. The unity has since fractured and the bickering amongst the cable TV operators is once again become public.

    The trade will become more lucrative with the introduction of broadband internet access. Everyone wants to grab their share of the pie which is worth around Rs 45 billion as of now.

  • IN CableNet says it is no bully

    IN CableNet says it is no bully

    The Hinduja-run cable TV service IN CableNet today denied allegations about the pressure tactics used by them in the Sion-Matunga-King Circle area in Mumbai that made 32 of its operators shift loyalties to the rival SitiCable. Mr Hingorani, CEO of IndusInd Media and Communications said “The allegation is baseless and malicious. We don’t use any force or pressure tactics and would never do so.”

    Company officials said that IN CableNet had set up a state-of-the-art control room in King’s Circle in Mumbai and six small time cable ops who were unable to match the level of service decided to part ways.The company claimed that the allegations of browbeating and bullying and were made by a couple of ops who had defrauded the company of Rs 5 million and that police cases had been filed against them.

    The cable war will spread in the country and such incidents will be frequent. Every MSO claims to be non-political and non-goon based. If that was the scenario why do the skirmishes keep popping up every now and then?

  • Three big MSOs work towards common pricing

    Three big MSOs work towards common pricing

    MUMBAI: The three big multi-system operators (MSOs) – Siticable, Hathway Cable & Datacom and Incablenet – are working on a common pricing on their digital cable TV service to make their offerings consumer friendly.

    On the digital set-top boxes (STBs), they are planning to offer a rental scheme of Re 1 a day at a refundable security deposit of Rs 999 once conditional access system (CAS) comes into place. Even without buying STBs, consumers can, thus, shift to digital cable by paying a nominal monthly rent.

    “The understanding among the three MSOs is to offer a common pricing to our subscribers so that there is no confusion in the market. We will be offering a rental plan of Re 1 a day. We also plan to extend this to our service packages as well,” says IndusInd Media & Communications Ltd (IMCL) director Ravi Mansukhani.

    Admits Hathway Cable & Datacom CEO K Jayaraman, “We have decided to work together. Unless we cooperate, the roll out of CAS won’t be smooth as there are forces working against it.”

    The three MSOs will focus on servicing their respective customers rather than be engaged in competition amongst themselves. Though Hathway and Siticable operators are in fight over certain territories in Delhi, these issues are expected to be sorted out.

    The MSOs will also try to unite their distributors and last mile operators (LMOs), but margins across the value chain will be decided only after broadcasters work out commercial agreements with them. They have already written to broadcasters and are awaiting their responses.

    The MSOs are making concerted efforts to clear out certain common perceptions on CAS like it not being consumer friendly. “The Bill was not enacted for the MSOs but for the consumers. The boxes will be available on rental schemes and the monthly subscription fees will fall as consumers can select the channels they want to pay for. Under the current system, the prices are artificially controlled and the consumer is subsidised,” Siticable CEO Jagjit Kohli said, while addressing a press conference today in Mumbai.

    Commenting on the competition from direct-to-home (DTH), Kohli said cable had the advantage of packaging channels according to local demand. “DTH has the constraint of transponder space while cable can offer more channels,” he said.

    Meanwhile, the Telecom Regulatory Authority of India (Trai) has called for a meeting at Delhi on Monday with the MSOs and the distributors to discuss on issues over CAS.

  • Maharashtra government doubles cable TV tax rate

    Maharashtra government doubles cable TV tax rate

    The government in the western Indian state of Maharashtra has doubled the entertainment taxes that cable TV operators have to fork out to its coffers. Taxes were levied at the rate of Rs 5,10, and 15 per subscriber, depending on the subscriber’s location. These have been doubled. The purpose to enhance the state’s revenues. The government made these announcements in the state budget for 2000-2001 announced yesterday.

    Maharashtra is amongst the leading cable TV viewing states in India. And there is alarm that other state governments may also make similar moves in their budgets.

    Fears have also risen that the imposition will actually lead to a rise in subscriber fees because cable TV operators will not be interested in forking out the higher duty from their pockets. Currently, cable TV subscriber rates in Maharashtra range between Rs 75 and Rs 125 a month. These are expected to go up by about 25 per cent at least with the average cable TV fees rising to Rs 125, unlike Rs 100 that is the average currently.

    Says Siticable western region head D.K. Pandey: “We do not have to pay entertainment tax, it’s the cable TV operator who has to do so. We are not really impacted by the hike.”

    The other MSO in Maharashtra InCableNet is expected to voice a protest against the government’s impost later today. It has been lobbying with the government on this issue. But will the higher entertainment tax result in substantially higher revenues to the exchequer?

    Marginally, probably. Normally, cable TV operators tend to under-declare their subscriber base to the tune of 70 per cent to subscription channels and to government as they want to stem the outflow of money from their end. Since there are no audits or subscriber declaration compulsions to a cable TV authority, they fudge their numbers to reduce their burden. That will likely continue here too. If the tax authorities insist on tax payments based on last year’s entertainment tax disclosures, the cable operator can easily turn around and say that he has lost subscribers to rival or smaller operators or they have not renewed their subscription.