ITV

Tag: Space TV

  • Space TV: I&B readies note for Reddy’s approval

    MUMBAI: Finally in sight, it seems, at least for Space TV, the Tata Sons and Star group, 80:20 joint venture for a DTH service in India.

    According to sources close to the government and DTH developments, the information and broadcasting ministry has prepared a note for the approval of minister Jaipal Reddy.
     

    Reddy’s ok would pave the way for issuance of a letter of intent (LoI) to Space TV. The ministerial approval is expected to come through in 10 days or so, barring unforeseen hitches.

    However, even after the letter of intent is issued, it would be a while before the final letter of approval and an actual DTH license is handed to Space TV. The sources say that the last set of clarifications, sought by the government, came in from Space TV yesterday.
     
     
    This is likely to end a long wait for Space TV, and Star in particular, which has been in quest of a DTH licence since 2002. In between, the application of Space had to be made afresh in 2003 as the government felt that in the earlier version of Space TV, the Indian partnership was more of a dummy.

    The government had announced a set of DTH guidelines towards the end of 2001 by which time quite a few interested players had already got frustrated and abandoned their plans to make forays into the DTH segment.

    This included the Malaysia-based Measat, which had a memorandum of understanding with Doordarshan for a DTH venture in the mid-1990s.

    In January 2004, Tata Sons announced the formation of a joint venture with the Star Group for launching a DTH television platform in India.

    The announcement had stated that the Tata Group and Star Group looked forward to building India’s largest digital television platform and offering a range of channels including exclusive channels, with interactive features and services.

    The project cost is estimated to be Rs 16 billion ($1= Rs 43.75).

    Information collated by indiantelevision.com indicates that the I&B ministry had raised a series of objections on the Space TV application even after the Tatas joined hands with the Rupert Murdoch-controlled Star for a JV.

    One of the many issues raised by the I&B ministry was that in the Space TV project, cleared by other ministires, including finance and home, the shareholders’ agreement was in favour of Star, which amounted to foreign control.

    A government official told indiantelevision.com late this evening that Space TV has written to them saying that “changes have been made” in the company set-up in the line with the I&B ministry’s suggestions.

    “Before a final clearance is given, it needs to be seen whether Space TV has actually carried out those changes in letter and spirit of the guidelines,” the official added.

    The Space TV case became so controversial that 37-odd questions on the company has been asked to the present government by Members of Parliament on the floor of the House, while recently about nine MPs had written to the PMO on the issue.

  • FIPB clears Star proposal to take 26% stake in Balaji

    FIPB clears Star proposal to take 26% stake in Balaji

    MUMBAI: The Foreign Investment Promotion Board (FIPB) has finally cleared a proposal for Star Group’s acquisition of up to 26 per cent stake in Balaji Telefilms Ltd.

    Government sources confirmed that the board has cleared the proposal, which was listed as an additional item for FIPBs meeting earlier this month. As per government rules, Star had also obtained a “no objection” certificate from its Indian joint venture partner in the yet to take off Space TV direct-to-home venture for making this investment in Balaji.

    Star Group affiliate Asian Broadcasting FZLLC (ABF), the “foreign collaborator” according to government documents, could have a maximum shareholding of up to 41 per cent, subject to future shareholding alignments.

    As per an extant policy, 100 per cent foreign direct investment (FDI) is allowed in the production of television software under the automatic route.

    Balajis share on the Bombay Stock Exchange ended on Monday at Rs 99.05 after opening for the day at Rs 101.00.

    Now that the FIPB has cleared the proposal, a final green signal from the finance minister remains a matter of routine. However, before that happens, Star cannot make an open offer, which is a necessity as per regulatory guidelines.

    The open offer is directed to be made by ABF to the shareholders of the production major for acquiring a 20 per cent stake in India’s leading content provider at a price of Rs 90 share aggregating Rs 1173.8 million payable in cash.

    The open offer would be for 13,042,089 fully paid up equity shares of Rs 2 each; representing 20 per cent of the voting post issue equity capital of Balaji at a price of Rs 90 per share.

    The Balaji proposal, cleared on 10 December by the FIPB, was earlier deferred twice. One of the reasons being the nodal ministry for media-related investments, information and broadcasting ministry, had not got back to the FIPB with its comments.

    Interestingly, the Rupert Murdoch-controlled Star Group is the only foreign broadcaster that has sought government approval up till now to invest sizably in Indian production houses. Earlier, Star’s parent News Corp had picked up about 14 per cent stake in UTV, which bought back the holding some time back. Sony Entertainment TVs intent to buy into SAB TV, the Sri Adhikari Brothers controlled production house, still remains an intent, at least officially.

  • More clarifications sought from Tata-Star

    More clarifications sought from Tata-Star

    NEW DELHI: It seems that the Tata-Star combine may have to wait for some more time before it can lay its hands on a letter of intent from the government, relating to a direct-to-home (DTH) television service that it proposes to start.

    “Some gaps were found in the application and the government has sought more clarifications from them (Tata-Star), last week on those issues. The response is still awaited,” a senior information and broadcasting ministry official told indiantelevision.com today.

    Asked about the nature of clarifications sought, the official indicated that they pertained to the ‘eligibility criterion’ for a DTH license, including ‘some more clarity’ on the equity pattern in the joint venture company.

    In January this year, Tata Sons had announced formation of a joint venture with the Rupert Murdoch-controlled Star Group for launching a DTH platform in India. The Tata Group holds 80 per cent in the JV, which is envisaging building India’s largest digital television platform (estimated project cost: Rs 1.6 billion) and offering a range of channels with interactive features and services.

    If cleared, Tata-Star’s Space TV would be the third KU-band DTH service provider in the country after Dish TV, 20 per cent owned by Zee, and Indian pubcaster Doordarshan’s DD Direct Plus that is yet to be formally launched.

    Hong Kong-based research and analysis firm Media Partners Asia estimates that the Indian DTH market could grow at the rate of 15 per cent annually.

    About a month back, I&B ministry had said that the Tata-Star application could be cleared by year-end, raising hopes in Star that the service could be started by March 2005, if not earlier.

    The Space TV application has been cleared by most related Indian government agencies, including the home ministry, which looks into various security aspects of such ventures.

  • Zee, govt may sign DTH licence agreement by next week

    Zee, govt may sign DTH licence agreement by next week

    NEW DELHI: The Subhash Chandra-promoted ASC Enterprises, which has sought a licence from the Indian government to operate a KU-band direct-to-home (DTH) television service in India, is expected to sign a licence agreement with them some time next week.

    According to a senior executive of Siti Cable, which is implementing the DTH project under the brand name Dish TV, “We have submitted the bank guarantee a few days ago and expect to sign the formal licence next week. Presently, the information and broadcasting ministry is understood to be preparing the necessary papers.”

    The executive clarified that contrary to what has been reported in a section of the media, the formal agreement has not been signed yet.

    Siti Cable is the cable arm of another Subash Chandra-promoted company, ZeeTelefilms Ltd.

    Apart from ASC, other companies that have applied for a DTH licence include Space TV, a company promoted by Star India employees.

    India’s pubcaster Doordarshan, which has got a government permission, expects its DTH operations to begin from April 2004. It will consisting mainly of DD channels and South Indian regional channels, though talks would be initiated with other private satellite channels – like Star and Sony – to join the platform on a revenue sharing basis.

    The Siti Cable executive also said that DTH venture is likely to go on air by early October. “We are targeting to formally launch the service in the first week of October. Marketing activities are on at the moment.” The likely launch date is 2 October, which coincides with the anniversary of Zee TV.

    The ASC-Siti Cable combine is also looking at making available the DTH service to consumers at a comparatively low cost — much lower than what has been touted by the industry. The industry, however, has cited global trends where DTH is a costly affair with niche and super-premium fare being aired through the service.

    According to the Siti Cable executive, “The monthly subscription rates are still being worked out, but they will be competitive and comparable to cable service.”

    The subscription fee for cable service in India, on an average, ranges between Rs 150 to Rs 450 (approximately between $ 3.50 to $9.60) per month.

    It is also expected that to woo customers to the DTH service, Dish TV would keep the rates of the hardware needed for the service, including the dish and the box, to around Rs 5,000 (approximately $106). That would also include the one-time installation fee.

    Earlier, ASC had petitioned the government to give it some relaxation on the the bank guarantee of Rs 400 million that had to be furnished before the licence was signed for a period of 10 years, as mandated in the guidelines.

    ASC had said since no Indian bank gives a bank guarantee for such a long period, like in the telecom sector, it should be allowed to furnish a bank guarantee renewable every two years or so. The government had agreed to this request.

    Dish TV is expected to be launched with 48 TV channels and this is expected to go up to over 100 in a year. Additionally, the first phase will have several radio channels in the first phase, apart from other value-added services like electronic programming guide and parental lock to keep the kids from watching unpalatable fare, if any. The number of channels on Dish TV is expected to go up to over 100 within a year of launch.

  • Space TV inches closer to climax?

    Space TV inches closer to climax?

    MUMBAI: Ministry of company affairs has rejected most of the contentions of the information and broadcasting ministry relating to Space TV application, while upholding a clause on affirmative rights (to say `yes’ or `no’ to a board decision) of the minority shareholder.

    In its comment sent to the I&B ministry (reference: File 3/20/2005/CL-IInd), the company affairs ministry has said that except section 2, dealing with affirmative right of the minority shareholder, other issues raised by I&B don’t cut much ice.

    With this, government sources pointed out, the ministry of consumer affairs has submitted its comments on one of the DTH applications, while it grapples with that of Sun TV’s, which too has come under government scanner.

    Interestingly, various issues raised by the I&B ministry relating to Space TV and Sun ‘s DTH applications were not brought up when pubcaster Doordarshan started its DTH service.

    Technically speaking, some of the DTH guidelines clauses should have brought DD Direct Plus too under a cloud.

    Meanwhile, the ministry of company affairs does agree that the clause relating to the affirmative rights of Star Group — having almost a veto power regarding board decisions of Space TV — could be questioned.

    According to Indian laws, a shareholder needs to have at least 26 per cent holding in a joint venture to have veto rights on board decisions. The affirmative rights clause in the Space TV shareholders’ agreement is similar to this clause wherein the minority shareholder has the right to accept or refuse board
    decision with 20 per cent stake only.

    Space TV, envisaging putting up a Rs. 16 billion DTH project in India, is a 80:20 joint venture between the Tatas and the Rupert Murdoch-controlled Star Group.

  • Zee looking at July launch for DTH services?

    Zee looking at July launch for DTH services?

    NEW DELHI: Subhash Chandra companies Zee Telefilms and ASC Enterprises (which is implementing the Agrani satellite project), are preparing to launch a KU-band direct-to-home television service in India. A tentative timeframe that is being talked about for this within the group is July.

    According to broadcasting industry sources, the Zee-Agrani combo has started talking about a DTH service for India. At a seminar held last week in the Capital, a senior Zee executive is also reported to have referred to the DTH service and that the group is looking at putting together a platform by “July or thereabouts”.

    However, indiantelevision.com’s attempt to elicit an official response from Zee-Agrani was met with silence.

    But, we also learn from government sources that the files relating to the two applicant companies for a DTH licence were in the information and broadcasting minister Ravi Shankar Prasad’s office yesterday and the minister is said to have studied them also.

    That Zee-Agrani has started talking about a DTH service may also be because of the movements in the ministry and expect an initial go-ahead from the I&B ministry for this soon.

    As the first step towards okaying a DTH venture the I&B ministry would need to issue a letter of intent (LoI) to the applicant, subsequent to which other parameters would have to be fulfilled.

    But close on Chandra’s heel for a DTH venture will also be Star, which has applied for a DTH licence through Space TV. It would also expect a LoI soon after ASC Enterprises that has applied for the licence, if not along with it.

    There have been numerous clarifications sought by the ministry on various aspects of Space TV, including its shareholding pattern. At last count, a particular missive from the ministry had sought clarification on whether some directors of Space TV were employees of Star India.

    Still, the big question to ask here could be: do the two prospective DTH players have the financial muscle to make investments in a DTH venture? A typical DTH venture would need investments worth between $ 400-500 million.

    Unless Space TV is being backed up by the Rupert Murdoch-controlled Star, the little known company with an acknowledged paid up capital of Rs 100 million would find it difficult to cobble together the massive investment that a DTH venture would require.

    Chandra’s case may be a bit different as the DTH platform is being sought to be put together by ASC Enterprises, where one of the subsidiaries has managed to attract foreign investment from Alcatel and Arianespace.

  • BIS task-force on STB specifications for DTH

    BIS task-force on STB specifications for DTH

    NEW DELHI: The Bureau of Indian Standards (BIS) has decided to form a task force to come up with recommendations on the specifications of set-top boxes (STBs) for KU-band direct-to-home television service, even as Star felt that interoperability, as suggested in the government guidelines, is not a workable model.
     

    The task force would include representatives from the BIS, the two DTH applicant companies (the Subhash Chandra promoted ASC Enterprises and a Star affiliate, Space TV), Doordarshan (DD) , All India Radio (AIR) and a consumer activist.

    The task force has to come up with its recommendations for the main committee of the BIS. What can make the work of task force difficult is the fact that BIS’ viewpoint is that it has to operate within the broad framework of the policy guidelines which states that for KU-band DTH service an open architecture has to be followed.

    At a meeting held here yesterday, a Star India representative, according to BIS sources, opined that inter-operability or an open architecture would make starting a DTH service in India difficult as it is “not a workable model” to follow.

    The reasons given, according to the sources, was that if an open architecture STB is insisted upon by the government, then it would make the STB expensive and difficult for a would-be service provider to subsidise the STB as exclusivity and captive consumers would not be assured.

    Thomson India and CETMA, the apex body of consumer electronics goods manufacturers in India, supported the stand of Star, said to be represented by the Mumbai-based head of the company’s DTH operations in India. The information and broadcasting ministry had referred to the BIS the issue of specifications for STBs for DTH last year.

    What does the government mean by an open architecture? In layman’s language it means that if a consumer buys a STB for a KU-band DTH service in India, then the STB should be capable of working if the smart card of another DTH service provider is inserted in it. This theory is based on the presumption that there would be several DTH service providers in India, though globally, this sector works best with monopoly or at best a duopoly.

    Though BIS today made it clear it has to work within the DTH policy framework, announced by the government late 2000, some time back officials of the BIS had admitted to indiantelevision.com in private that an open architecture, as being insisted by the government, is a very difficult modele to adhere to as its prevalence is rare worldwide and would make the whole operation costlier for the consumer.

    Still, there are people in the broadcasting and cable industry who feel that open architecture is a possibility and the interest of the consumer would be protected.

    A debate, it seems, that will take some more time before a working consensus emerges.

  • BIS yet to provide tech specs for DTH

    BIS yet to provide tech specs for DTH

    NEW DELHI: It’s a classic case of so near, yet so far.

    The debate over open architecture set top boxes continues even as broadcasters twiddle their thumbs. KU-band direct-to-home (DTH) television service in India is likely take some more time before taking off. The Bureau of Indian Standards (BIS), which has been mandated to come up with technical specifications for the set-top-boxes (STBs) for DTH, may complete its work only by the end of February 2003.

    A senior official of India’s information and broadcasting ministry told indiantelevision.com today that BIS generally takes about 60 days for such issues under a procedure and the final process is yet to start.
    “The BIS was asked by the government earlier this year to look into the various technical aspects of STBs for DTH, including the fact whether an open architecture is possible or not. We think that BIS will take 60 days to finalise the issue and the specifications may be conveyed to the government only towards the end of February,” the official pointed out.

    Though government officials in the ministry are of the opinion that open architecture STBs is a possibility, some people in the BIS feel to the contrary. A senior BIS official told indiantelevision.com reluctantly, quite content to be vague, that the issue of open architecture is a contentious one and needs to be looked into thoroughly.

    Certain circles feel that the BIS probably wants to say that for DTH there cannot be an open architecture, but still is unable to articulate it properly.

    From the time the DTH guidelines were announced by the government in November 2000, policymakers and broadcasters, interested in starting a DTH service in India, have been at loggerheads over the open architecture issue. Government’s stand has been that such a thing is possible; whereas broadcasters’ have held the view that nowhere in the world does open architecture prevail for DTH.

    When confronted with this information, the ministry official, however, admitted that “BIS has also not indicated to us that open architecture is not possible.”

    The official further pointed out: “BIS may have some reservation on the issue, but during our talks it has indicated in a limited way that it may be made possible through technology.”

    As BIS finally gets down to grapple with the situation, a small hitch has cropped up in the meanwhile which, the ministry official said, may have also contributed to the delay. Until now BIS, which is again part of the Indian government, had been playing the advisory role in various technical aspects relating to broadcasting free of cost. But now the board of the BIS feels that such services should be paid for. “So, we have asked the BIS that it should go ahead with finalising the specifications regarding DTH boxes and the issue of payment for the advisory service can be settled also as part of an intra-governmental affair,” the official explained.

    In two years’ time since the DTH guidelines had been announced, only two companies have applied for a DTH licence. This includes Star’s affiliate Space TV and Subhash Chandra’s ASC Enterprises Ltd.

  • Sushma Swaraj unsure of when DTH would start

    Sushma Swaraj unsure of when DTH would start

    NEW DELHI: India’s information and broadcasting minister Sushma Swaraj told Parliament that it was not possible to indicate as to when KU-band direct-to-home (DTH) service will become operational in the country, even as two applications are pending with the government seeking permission to start it.

    In a written reply given in India’s Upper House of Parliament (Rajya Sabha), the Minister said that the decision to start DTH services was taken by the Government in November 2000 and detailed guidelines for it were issued in March last year.

    “Two applications have been received seeking permission start DTH service in the country…..It is not possible to indicate when the DTH service will become operational in the country,” Swaraj said. Asked if there was a proposal to review the guidelines originally mandated, the Minister replied in the negative.

    Various bodies, including India’s Planning Commission, have in the past have said that the present DTH guidelines, especially those relating to FDI, need to be previewed as the policy has failed to attract any investment till now.

    The two companies which, earlier this year, have sought DTH license are Space TV (a Star TV affiliate) and ASC Enterprises Ltd, a company which is promoted by Zee supremo Subhash Chandra and through a subsidiary is implementing India’s first private satellite project called Agrani. Agrani recently also moved an application seeking uplinking permission.

    In the month of October, Swaraj had told journalists that the government is studying the applications regarding DTH licence and the procedures are underway. To a question by a scribe as to why a DTH service hadn’ t started till now, Swaraj had said that even the companies looking at starting a DTH service in India “would need some time to firm up their business plans.”

  • Star hikes capital base in Space TV

    Star hikes capital base in Space TV

    NEW DELHI: Star TV affiliate Space TV has made some changes in its application for permission to start a KU-band DTH venture that involves increasing the company’s financial base, a senior government official has said.

    Pointing out that the clearance of a DTH application does not solely depend on the information and broadcasting ministry but other ministries as well, a senior I&B ministry official was quoted as saying that , “As far we understand, Space TV has made some changes in its application and expanded its financial base to qualify as a serious player.”

    Space TV is understood to have increased the paid-up capital of the company to about Rs 100 million from a low paid-up capital base of just Rs 500,000.

    “This move has been necessiated as the finance ministry had pointed out that permission to start a big ticket venture like DTH ought not to be given to a company which had a low paid-up capital. The official also said that no time frame can be provided for clearance of the two applications which have come for DTH (the other has come from Subhash Chandra’s Agrani).

    “However, our aim is to give the clearance as soon as possible and the moment we get all the necessary go-aheads from other places like the home ministry, we will proceed,” the official said.

    Meanwhile, he also pointed out that Star News broadcasting’s request for permission to start a news channel in India and also uplink to an Indian satellite is being “processed.”

    “Since they have applied as a foreign company, the necessary security and other checks have to be done before a permission is given. But it looks like a routine matter,” the official said.

    Faced with some opposition from within the government, Star reworked its application and sought permission to start a news channel (Star News) under the foreign news channel’s category. It has also emphasised that Virgin Island registered Star News Broadcasting Ltd will source news content from Star India.