ITV

Tag: STB

  • Cas paves way for consolidation

    Cas paves way for consolidation

    MUMBAI: The complexion of the cable TV industry is fast changing. Cas (conditional access system) is paving the way for consolidation as cable operators need to find money to subsidise set-top boxes (STBs), set up a digital system, and build a proper service network.

    The might of the three big multi-system operators (MSOs) is prevailing with the weaker players tumbling down under in the markets opened for Cas barely a month ago. Delhi has already gone that way with Home Cable Network, Spectranet, Satellite Channels, Sanjay Cable Network and Star Broadband Services aligning with Hinduja-owned Incablenet, Hathway Cable & Datacom or Zee Group’s Wire & Wireless India Ltd (WWIL).

    Soon Mumbai’s Cas subscribers will also get shared between these three MSOs. Raja Nadar, an independent cable operator, says his JPR Network will surrender its independent status and partner with an MSO by the end of this month. Though he has seeded 5,000 STBs, he is struggling to fund new arrivals and is losing subscribers to WWIL. “There is no business model left for us. We can’t raise debt and even if we somehow do, we can’t recover revenues large enough from our digital subscribers to work out a repayment schedule,” he says.

    Cas in Delhi and Mumbai is becoming a three-MSO battle. “That’s the record for everybody to see. That’s the reality. There were 14 independent headends in Delhi who had shown interest to operate but not one could launch. In Mumbai, it is the same story,” says the head of a leading MSO on request of anonymity.

    Making the ground tough is the fact that digitalisation is coming cheap in India. Cable operators are offering a subsidy of Rs 1000-1500 per STB while average revenue per user (ARPU) is set to fall with the Telecom Regulatory Authority of India (Trai) capping a la carte pay channels at Rs 5. The revenue share is also regulated with broadcasters taking away 45 per cent while 30 per cent stays with the MSOs and 25 per cent with the local cable operators.

    “Digital cable is a game for those who have deep pockets. Cable operators will not only have to subsidise the boxes but the service as well,” says WWIL managing director Jagjit Singh Kohli.

    If Kolkata has not seen enough of bulldozing, it is because there is not much of demand for STBs. But Sristi has crumbled down with WWIL and Manthan sharing the spoils. Cablecom is tottering but has survived.

    As STBs pick up in Kolkata, Incablenet and Hathway will look at entering the market. This will pave the way for further consolidation as penetration will mean financing more boxes. Manthan has already raised a debt of Rs 100 million from individuals and is looking at another Rs 200 million as way of bank financing.

    The need for pumping in big money will be larger as Cas spreads. In the initial phase, Hathway is arranging for a Rs 1 billion debt while WWIL wants to pump in Rs 7.14 billion over two years with a plan also to acquire last mile of cable operators.

    What can be disturbing is that after the initial euphoria, the demand for boxes seems to be already slowing when we have just crossed 400000 in a Cas market which has over 1.5 million cable and satellite homes. “If this trend is true, it should be a matter of concern for all the stakeholders except the local cable operators,” says Zee Turner CEO Arun Poddar. In the Cas areas, local cable operators are allowed to pocket the entire Rs 77 they collect from subscribers for the free-to-air (FTA) channels.

    With not as many boxes moving, broadcasters are particularly worried as they were forced to drop the rates of their pay channels. The sector regulator has chalked out a policy that makes business sense only on high volumes. “We will need higher volumes to make up for the pricing policy prescribed by Trai. Besides, the boxes are not yet entirely synchronised with the subscriber management system that would register what channels are subscribed by the consumers. The whole project will depend on how fast and effective SMS gets activised,” says Poddar.

    A surge in demand for the boxes is expected before the ICC World Cup starts in March. Besides, marketing campaigns will have to be launched promoting digitalisation. “MSOs will have to start marketing the boxes more aggressively. Broadcasters can also launch joint campaigns with them,” says SET Discovery president Anuj Gandhi.

    Nobody knows how the market will finally emerge. But the trend is clear: smaller MSOs in the Cas areas will find it difficult to subsidise the boxes and will need to take support of the bigger ones.

    “Consolidation can start with Cas and spread out in other areas. In many non Cas places, we are also seeing consolidation because of fear of losing subscribers to direct-to-home operators,” says the head of a MSO.

  • Trai happy with Cas rollout, needs to look into customer choice

    Trai happy with Cas rollout, needs to look into customer choice

    NEW DELHI: With 178,000 STBs seeded in the South Delhi Cas area, and an overall of just a little under 450,000 STBs seeded in the three metros as of date (Mumbai 210,000 and Kolkata 48,000-plus), the Telecom Regulatory Authority of India is happy with the physical roll out of Cas, Trai Advisor Rakesh Kacker tells indiantelevision.com.

    However, there still remains the issue of implementation of the consumer choices, which has not been done so far, he informed.
    Explaining the surprisingly small number of STBs that south-Kolkatans have opted for, Kacker said: “I am told that the area chosen is the problem. That (Behala and other places) is not typically the area where people would opt for the boxes.”

    He explained that though people there could afford the boxes, since the initial deposit is as little as Rs 250, “I believe that people in these areas have a monthly billing of as low as Rs 70 or 80 at the most, so they feel that the FTAs is good enough for them.”

    But why has the “pay-for-watching” system not been implemented so far?

    “The main problem, of course, is human resources available with the cable operators to give the connections as per choice expressed by the customer. That being limited, it is taking time because of bunching of applications,” he explained.

    In fact, it is a complex problem, he admitted.

    “In some cases, the operators tell us that the customers have yet not filled up the form because they cannot decide. In other cases, there is the lack of manpower.”

    Interestingly, one of the practices that MSOs resorted to during the transition period has further caused delay in the implementation of customer choice, or what is usually termed as “watch what you pay for”.

    In the beginning, whoever paid for either renting or buying an STB had been given access by MSOs to all the available channels, and the latter had said that once the customers filed their choices – a la carte or bouquets – the bill for the first month would reflect that alone and not the entire package being shown initially.

    “But customers may have started feeling that they are getting everything for the same amount of money, so why should they fill forms for specific choice? So they too are not submitting their forms,” Kacker explained.

    Wasn’t there a cut off date for implementation. Some of the MSOs had told indiantelevision.com that the system of receiving all the channels would stop from January 20. Kacker, however, differed: “I am not aware of any such order by us at Trai.”

    “Actually, seeding the boxes was the first priority, so now that has stabilised and now we have to implement the customer choice. I am more than happy with the number of boxes seeded, which goes a little beyond my original calculations. There was a shortage in the beginning of January because of the sudden spurt in demand, but the situation has stabilised,” Kacker added.

    But what about the problem of frequent signal loss? And the fact that when there is signal box, there are no helpline numbers available on the TV screen, where it should be? Isn’t that an issue of ‘quality of service’?

    Kacker dismissed the issue of signal loss and pixelisation of images, saying that the number of complaints are insignificant, and they could occur for a variety of reasons. And in any case, the helpline is always available with the customer. “Don’t tell me the customers do not know the telephone numbers of their cable operators!” he said.

    Is there a decision to extend Cas to other areas in the three metros? It is too premature to say, he opined. Instead, he wants the system to stabilise.

    There is no way of knowing the actual number of sets seeded by the DTH operators. But as far as controlling tariff for DTH is concerned, Kacker said Trai’s position has been expressed in an affidavit placed with TDSAT and he could not further comment on that.

    Earlier last month, during a hearing of TDSAT, it was read out in the court by a lawyer for a DTH player that Trai had said it has been considering the issue of DTH tariff fixation and a consultation paper would be distributed. Trai counsels present at the hearing, but had not objected to the lawyer’s statement.

    A news agency had reported that Tra has said it is too premature to consider tariff fixation for DTH, but Kacker dismissed the issue: “The agency can say what it wants to, how does it make a difference to me. We have told TDSAT what we had to.”

    However, today Kacker still refused to comment, saying that the matter was in the court.

    And would Trai – futuristically speaking – have any role to play in regulating Mobile TV?

    “It is not clear. People speak of mobile TV as if it is one system, but this can happen through telecom through Internet, through terrestrial lines and so forth. Maybe there could be issues of quality of service or tariff fixing, but it all depends on who is providing the service and through which platform,” Kacker concluded.

  • ‘TOI’ ties up with Tata Sky for marketing in Delhi

    ‘TOI’ ties up with Tata Sky for marketing in Delhi

    NEW DELHI: While the long awaited JV between Hindustan Times and Times of India may not have surprised anyone, another marketing exercise by TOI could: it is a so-far unannounced tie-up between TOI and Tata Sky for the marketing of its DTH service in Delhi-NCR.

    The deal is that Tata Sky is going to sell and collect the monthly subscription fees from their customers through the circulation department of TOI, now termed as Report and Market Development, or RMD department.

    Sources in TOI refused to comment. But while it is being said that a deal was signed earlier this month, Tata Sky CEO Vikram Kaushik told indiantelevision.com: “There is a lot of discussion with not just TOI but beyond that also, but nothing has been finalised as yet.”

    Tata Sky has been running a business module so far that involves selling its dishes and STBs through shops selling mobile phones and electronics equipment, especially TV sets. But that does not seem enough.

    They receive a large volume of orders and requests over the telephones which operate through BPOs. “If they have to land their own sellers to service all the new demands, it will be hugely costly and eat into their slender margins of selling boxes, especially due to the competition,” a source told indiantelevision.com, adding that each box is a one-time sale only.

    Which is why, Tata Sky, these sources reveal, has said that TOI’s newspaper vendors can be used to get feedback from those who called. The plan is that since TOI has a massive network of newspaper sellers, they could be coordinated through the paper’s RMD people. “The callers’ addresses are going to be passed on to the vendors who would make actual contact with the interested persons, thus saving Tata Sky the effort, time and cost.

    Similarly, Tata Sky has reportedly told the paper’s bosses that it alone has 200,000 DTH homes in the entire Delhi-NCR region, a lot of them being in the group housing societies in outlying areas of the NCR, like Gurgaon, Rohini, Ghaziabad and so forth.

    Tata Sky has proposed that the vendors also be used to collect the monthly charges for the card, which is a prepaid one.

    “They wanted to avoid the ‘cablewallah’ experience, where the cable operator’s grounds-man comes for the monthly rental and is sent back to come on another day. In any case, just as in the case of first-contact before a person buys a Tata Sky set, for collecting the monthly charges as well, the same inexpensive network of unskilled newspaper vending staff could be used.

    In fact, Tata Sky has convinced TOI that even if a fraction of the total monthly charge for each card is retained by TOI as collection fee, that is a substantial amount per month with Tata Sky having 200,000 users and the number growing. The system would be smooth and make business sense to both the paper and the DTH operator.

    It is not clear that this system would be tried in the other cities where TOI is read. It is believed that even in places where there is no TOI edition, but the company has bought other local papers, this system could be tried later.

  • Time Broadband to manufacture Amino IPTV boxes in India, plans to raise $70 million

    Time Broadband to manufacture Amino IPTV boxes in India, plans to raise $70 million

    MUMBAI: Time Broadband Services Pvt. Ltd. (TBSPL) plans to raise $70 million for manufacture of IPTV set-top boxes (STBs) and expansion of its content delivery network (CDN).

    The company has exclusively tied up with UK-based Amino Communications Ltd. to manufacture AmiNET125 H.264 AVC (MPEG-4, Part 10) compliant STBs in India. TBSPL will have the rights to sell these STBs in India, Middle East and parts of East Africa. The benefit of manufacturing these STBs in India will be to bring the cost below $100.

    “This is a significant development for us as India is a potentially big market for IPTV. We have manufacturing arrangements also in China and Taiwan,” says Amino Communications Ltd. vice president/general manager Roy Kirsopp.

    TBSPL, which has already raised $10 million and got a further $5 million from Dimensions Group, will raise a further $35 million in its second round of funding. This will be towards expanding the CDN for IPTV.

    “We are in talks for second round of investment and have got term sheets. We hope to tie up the funds by February-March,” says TBSPL managing director and CEO Sujata Dev.

    Another $35 million will be raised through sister company Broadband Tech Pvt. Ltd. for manufacture of STBs. The company is in talks with three consumer electronics companies for this. “We are negotiating with three state governments for getting subsidy. We are in talks with consumer electronics companies for the financing and manufacture of the STBs,” says Dev. The company is looking at Kolkata, Chennai or another city to set up the manufacturing facility.

    Amino has been paid an upfront amount of $1 million. “We have guaranteed Amino $10-12 million over 18 months. Dimensions Broadband UK has committed a $7 million exposure for this,” says Dev. The contract involves a fixed license fee and a royalty to Amino on the STBs sold.

    The AmiNET125 STB is designed on the DaVinci SoC chip from Texas Instruments and is integrated with Kasenna middleware and Verimatrix content protection.

    “The deal will enable TBSPL to execute mass deployments of our “MY TIME” IPTV package. STBs play the most critical role in the IPTV business.

    This relationship with a leading industry partner like Amino would further strengthen TBSPL in establishing the business matrix in the Indian market, capable of providing a total end-to-end CDN solution to telecom operator partners intending to launch IPTV,” says Dev.

    Adds Kirsopp: “We see opportunity in India, China and South America. This deal validates our licensing model where we tie up with local partners for local manufacturing.”

  • Metros to be fully ‘Cas’ed: Das Munshi

    Metros to be fully ‘Cas’ed: Das Munshi

    NEW DELHI/MUMBAI: Looks like conditional access system (Cas) will spread to fully cover the metros of Delhi, Mumbai and Kolkata.

    “The introduction of Cas in some parts of the metros has proved successful and it would be extended to other areas in these cities soon,” the information and broadcasting minister Priya Ranjan Das Munshi said today at a press conference in Delhi.

    The set-top boxes (STBs) seeded in these three cities, according to the Telecom Regulatory Authority of India (Trai) chairman Nripendra Misra, has already touched 382,000.

    Of the 1.2 million subscribers in the Cas areas, Trai’s estimate is that digital conversion would be at 50 per cent by February-end. “The indication that we are getting is that there would be 600,000 digital subscribers including direct-to-home (DTH) in the Cas notified areas of Delhi, Mumbai and Kolkata,” said Misra.

    In a meeting with the broadcasters today, Trai said it was aware that in some areas there was relay of pay channels without encryption. The regulator assured that the enforcement machinery would be energised to sort out such related issues.

  • LG earns Cablelabs certification for two-way interactive digital cable HDTV

    LG earns Cablelabs certification for two-way interactive digital cable HDTV

    MUMBAI: Paving the way to integrated digital cable-ready HDTVs with two-way interactive capability, LG Electronics recently showcased a TV platform in the US.

    The LG plasma HDTV has achieved certification status as Ocap-enabled interactive digital television set, including the multi-stream CableCard (M-Card) system, from a recently concluded certification by Cablelabs.

    LG’s 42-inch OpenCable plasma HDTV set (42PC1DN) was honoured with a 2007 CES Innovations Award — features built-in Ocap technology, M-Card capabilities and interactive capabilities, as well as high-definition content and interactive services like Video-on-Demand and Pay-Per-View. The LG 42PC1DN has been honoured as a 2007 CES Innovations Award recipient.

    This retail device can connect directly to a local cable TV system, and receive current advanced interactive cable TV services, as well as be ready for future interactive applications –without the need for a separate digital set-top box (STB). Ultimately, a common US platform for delivering interactive cable applications would be enabled by implementing the OpenCable specification, a process in which LG is an active contributor.

    The company adds that it is committed to commercialising retail interactive digital cable-ready TVs and STBs to accelerate the rollout of OpenCable and Ocap across the North American Cable industry. LG says that it has now have advanced devices capable of receiving and displaying advanced cable services such as program guides and video-on-demand (Vod) without requiring separate cable STBs.

    In parallel with ongoing inter-industry standardisation efforts, it will continue working with the cable industry to commercialise this platform.

    LG’s close collaboration with Cablelabs and cable TV operators has enabled the company to develop products that run cable services including an interactive programme guide, Vod and other interactive applications and services. “At the same time, LG is continuing to explore additional new features to maintain product leadership and be a market differentiator.

  • International Datacasting Corporation wins contract from Shin Broadband for New Asia IPTV service

    International Datacasting Corporation wins contract from Shin Broadband for New Asia IPTV service

    MUMBAI: Shin Broadband Internet in Thailand has awarded a contract for a next generation Internet Protocol TV (IPTV) push video on demand service in Asia to International Datacasting Corporation to provide IDC’s Datacast XD Content Management and Distribution software.

    The contract calls for the initial roll-out phase of the system with options for expansion as the service reaches full deployment.

    Shin Broadband Internet pushes High Definition (HD) movies over the Shin Satellite Ipstar system across Asia to low cost consumer Set-Top-Boxes (STBs) located in user’s homes. IDC’s Datacast XD software will be used to manage the delivery of this content on this network.

    IDC is also responsible for the project management and system integration of the project which also utilizes Irdeto encryption for content security inside the STBs which are manufactured by Homecast of Korea.

    Ipstar is a new satellite network that provides business and residential Internet service throughout the Asia-Pacific region. The total number of satellite user terminals provided by Shin Satellite is currently over 70,000 and growing.

    The new PUSH-VOD service uses excess Ipstar satellite bandwidth when available to push HDTV movies onto the local hard disk drive of the Homecast STB, storing digitized movies for later use. The new PUSH-VOD subscription service ensures that users receive new movies daily and operation of the STB is similar to the way a consumer plays back movies from a PVR/DVR at any time.

    The STB utilizes the most modern MPEG AVC/ H.264 video compression technology available to provide the highest quality video possible along with multi-channel sound. The STB inside of the customer’s house is connected to the TV and to the Shin’s Ipstar terminal.

    Ron Clifton the President and CEO of International Datacasting Corporation said “Shin Satellite is one of the most advanced service providers in Asia and we are delighted that they selected our technology and recognized our skills and experience in integrating IPTV systems of this type.

    Our Datacast XD technology was originally developed to meet the needs of satellite, cable and IPTV customers for a broad range of multimedia file transfer and streaming applications. The inclusion of Datacast XD in a consumer set-top-box has opened new doors for this product line in a rapidly growing market and hopefully this opportunity will be the first of many such consumer applications.”

    Teerayuth Boonchote, Vice President of Ipstar, said that “Shin Satellite and our sister company Shin Broadband Internet are excited by the potential of this new service offering to our Ipstar customers which we will initially roll-out in Thailand. A success in Thailand means we’ll expand the service throught our Asian footprint.

    IDC was chosen because they have demonstrated commitment and performance in terms of their proven Datacast XD content delivery technology which is easily integrated into set-top-boxes and because they have an excellent history of successful systems integration projects.”

  • MSOs on prowl, Incablenet to support Home Cable in Delhi

    MSOs on prowl, Incablenet to support Home Cable in Delhi

    MUMBAI: Conditional access system (Cas) is forcing multi-system operators (MSOs) to strike alliances as they take up the challenge of expanding their digital subscribers.

    The latest to join hands is Incablenet and Vikki Choudhry’s Home Cable Network. Incablenet will be supplying its feed and digital set-top boxes (STBs) to the subscribers of Home Cable Network in South Delhi.

    “We have entered into a strategic alliance with Incablenet. They will be providing STBs to our subscribers. For those consumers who want to take our advanced boxes which are priced at Rs 2150, we will be providing them our systems. Others will have an option to take the Incablenet STBs,” says Choudhry.

    Incablenet uses a different encryption system and its boxes will not support the feed from Home Cable Network. “We have agreed to share each others fibre and infrastructure as we go ahead,” says Choudhry.

    Incablenet offers subscribers digital STBs at Rs 1500 (plus taxes) while cable TV subscription is free for six months on three bouquet packages. Home Cable, on the other hand, has an outright purchase scheme with the STB priced at Rs 2150. It offers 10 pay channels on a monthly subscription fee of Rs 45 while the 60-channel package is available for Rs 225.

    “Smaller MSOs in the Cas areas will find it difficult to subsidise the boxes and will take support of the bigger ones. Besides, they do not have enough boxes and know that any delay will mean that their subscribers will go away to other available options,” says an analyst who tracks the cable industry.

    Earlier, Wire & Wireless India Ltd (WWIL) had expanded its footprint in Delhi by acquiring a 51 per cent stake in Satellite Channels and signing up with Spectranet and Sanjay Cable Network for supplying digital services.

    In Kolkata, Sristi Broadband takes the feed from Manthan Cable Network. A group of operators of Sristi Cable TV are using the feed from Mathan and Zee’s Indian Cable Net as it could not make arrangements for STBs.

    “Sristi Broadband and a group of operators from Sristi Cable are taking feed from us,” says Manthan director Gurmeet Singh. Manthan has recently introduced a package for the second TV set where subscribers will have to pay Rs 90 a month for 50 pay channels. Manthan’s STB costs Rs 2599.

  • WWIL, Zee News begin trading; price range as per market expectations

    WWIL, Zee News begin trading; price range as per market expectations

    MUMBAI: The debut performance of Wire & Wireless India Ltd (WWIL) and Zee News Ltd (ZNL), Zee Group’s demerged entities, on the boursess was along market expectation lines.

    Though WWIL, the cable distribution company, opened at the BSE much lower at Rs 80, it inched up to touch a high of Rs 139.80 before closing the day at Rs 120.80. Putting their faith on digitalisation, analysts had predicted the scrip to trade in the region of Rs 120-140.

    ZNL, on the other hand, opened higher at Rs 50 even as the market had expected it to be valued at Rs 35. The scrip touched a high of Rs 58.85 before tapering off to a low of Rs 33.65 and closing Wednesday’s trading at Rs 34.40.

    Speaking to a business channel, Zee Group chairman Subhash Chandra said WWIL would touch a revenue of Rs 10 billion in 12 months but the company would still not be profitable as it is in an investment mode. The multi-system operator (MSO) has already seeded 155000 set-top boxes (STBs) in the Cas (conditional access system) areas, enjoying a 50 per cent market share.

    ZNL should end the current fiscal with a revenue of Rs 1.8-2 billion and the target in five years is to have a turnover of around Rs 10 billion, Chandra said. The company is planning to launch a Marathi news channel this month.

    Meanwhile, another media and entertainment company listed on the bourses today. Shree Ashtavinayak Cine Vision closed at a premium of Rs 228, or 42 per cent higher from its IPO price.

  • Trai warns some MSOs against analogue streaming in Cas areas

    Trai warns some MSOs against analogue streaming in Cas areas

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) has warned all the MSOs that strict action would be taken against anyone beaming analogue signals in Cas (conditional access system) areas.

    This was informed to the MSOs at a meeting at Trai office on Friday. Trai said that this would have to be stopped with immediate effect, as it went against the law. Trai advisor Rakesh Kakkar told indiantelevision.com that the the regulator would come down with a heavy hand on anyone beaming analogue signals, as has been happening in some cases.

    Trai took stock of the ground situation regarding the availability of set-top boxes (STBs) and was reportedly convinced that there is no real shortage, but there is some delay in actual deployment due to the last minute placement of orders by subscribers.

    The MSOs also stated their positions about how many STBs have been deployed and how many are being imported. Reportedly, most MSOs are going for airlifting of STBs next week.

    Kakkar said that there was no shortage of STBs, but because of bunching of applications by consumers, there is problem with deployment. He added that there are some technical problems due to lack of stabilisation because of a sudden rush of orders for boxes in a short period.

    There are reports that customers are not getting channels as per the rules, and though the streaming is digital, no bouquet or a ala carte choice is available at the moment. In fact, Kakkar asked: “You must be getting the same channels through the Cas boxes as you did without Cas isn’t it?” That is because of the rush and customers not filling their forms in time, and also because the boxes given out in the initial rush were all preset, he explained. This will change soon, he added.

    MSO sources said also that they assured that there are enough boxes. One representative said that his company’s seeding is already 9,000 boxes a day. Incablenet representative Ashok Mansukhai said: “We have told Trai that our deployment would reach 10,000 boxes per day. We will be airlifting boxes from next week.”

    Wire & Wireless Ltd is also getting in additional boxes. “We have deployed 1.5 lakh boxes across the three metros over the past five days. We are going for airlifting of new boxes. By next week we will have 50,000 more boxes brought in, and by 31 January, we shall have additional 1.5 lakh boxes in position for deployment. This is apart from the 34,000 boxes awaiting clearance at Mumbai airport and another 12,500 boxes at Kolkata airport,” said WWIL executive vice president Arvind Mohan.