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Tag: tariff order

  • Delhi MSO urges TRAI to draw up comprehensive DAS tariff order pronto

    Delhi MSO urges TRAI to draw up comprehensive DAS tariff order pronto

    NEW DELHI: The Delhi based multi system operator (MSO) Home Cable Network has urged the Telecom Regulatory Authority of India (TRAI) to fix the digital addressable system (DAS) tariff as early as possible in consonance with the directive of the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) order of 28 April. 

     

    This had become all the more imperative in the light of the Supreme Court dismissing the appeal by Indian Broadcasting Foundation (IBF) and others challenging the TDSAT directive, it said. 

     

    Home Cable Network had filed the appeal in TDSAT against the TRAI tariff orders, and IBF had appealed when the Tribunal upheld the appeal.

     

    In a letter to TRAI chairman R S Sharma, Home Cable Network managing director Vikki Choudhary said the exercise needs to be conducted keeping in view the interest of the consumers at large and to ensure a level playing field, on non-discriminatory terms with parity in conducting this business. 

     

    “In view of this, we request the Industry Regulator TRAI to re-notify its letter to Pay Broadcasters dated 23 July, 2015 requesting the rates for their respective Pay TV channels with prescribed MRP as well, along with the duration of Advertisements shown on their respective Pay TV Channels,” Choudhary said. 

     

    He said these issues had been adversely affecting the industry for the past three years and therefore the exercise needed to be completed in a time-bound manner, so the innovations continue with doing business.

     

    In its order upheld by the apex court, TDSAT had said TRAI “will be well advised to have a fresh look at the various tariff orders in a holistic manner and come out with a comprehensive tariff order in supersession of all the earlier tariff orders.” 

     

    “While doing so, it may consider all the agreements and relevant data available with it. It may consider differentiating between content which is of a monopolistic nature as against that which is shown by other channels also. It may also consider classifying the content into premium and basic tiers,” the Tribunal had added.

  • Subscription is biggest contributor to TV industry revenues: TRAI

    Subscription is biggest contributor to TV industry revenues: TRAI

    MUMBAI: India is one of the most profitable and growing markets when it comes to the television ecosystem. In terms of the broadcasting sector consisting of television and radio, India has the world’s third largest TV market after China and USA.

     

    The annual report of Telecom Regulatory Authority of India (TRAI) for the year 2013-14 has detailed out activities of the Authority, which was presented in the Lok Sabha and the Rajya Sabha in March this year.

     

    According to the annual report, as on March 2014, of the 270 million households, around 169 million have been projected to have television sets catered to by cable TV systems, DTH services, IPTV services and the terrestrial TV network of Doordarshan, put together.

     

    While DTH has 64.5 million registered subscribers (37.2 million active subscribers), IPTV caters to around half a million subscribers. On the other hand, cable TV is estimated to have around 99 million subscribers, whereas the terrestrial TV network of Doordarshan covers about 92 per cent of population of the country through a vast network of terrestrial transmitters. The broadcasting and cable television services sector consists of 55 pay broadcasters, an estimated 60,000 cable operators, 6000 multi system operators (MSOs) (including 144 MSOs registered in DAS), six pay DTH operators, apart from pubcaster – Doordarshan, having free-to-air DTH service.

     

    There were 793 TV channels registered with the Ministry of Information and Broadcasting at the end of financial year 2013-14 out of which 187 were SD pay TV channels and 34 HD Pay TV channels. India’s TV industry grew from Rs 37,010 crore in the year 2012 to Rs 41,720 crore in the year 2013, thereby registering a growth of around 12.7 per cent.

     

    “The subscription revenue accounts for the major share of the overall revenue of the TV industry. The subscription revenue grew from Rs 24,500 crore in the year 2012 to Rs 28,100 crore in the year 2013. The advertisement revenue in the TV sector in India grew up from Rs 12,500 crore in the year 2012 to Rs 13,600 crore in the year 2013,” states the report.

     

    The last decade has significantly changed the dynamics of the Cable and Satellite (C&S) TV market. One of the most significant developments has been the digitisation of the cable TV sector in India. The process of digitisation is underway, in a phased manner. By the March 2014, more than 22 million Set Top Boxes were deployed. While implementation of digitization with addressability is going to be a game changer and would drive the growth of the broadcasting and cable TV services in the country, the DTH sector is registering a growth of around one million subscribers per month. This clearly indicates the growing popularity and acceptability of digital addressable platforms, which have a lot more to offer to all the stakeholders.

     

    Stakeholders in cable and satellite TV service sector

     

    As of March 2014, the total number of TV channels registered with the Ministry of Information and Broadcasting was 793, which include 187 SD pay channels, 34 HD pay channels and four advertisement free pay channels. These channels are owned by around 350 broadcasters (content owners), out of which 55 are the pay TV broadcasters.

     

    Satellite TV channels

     

    The number of satellite channels permitted by MIB has grown from 449 in 2009 to 793 in 2014. The number of pay SD channels has grown from 130 in 2009 to 187 in 2014. The report states that there are total 33 operational HD channels in India till 2013.

     

    DTH Services

     

    Since its inception in 2003, DTH operators have been adding new subscribers at a rate of around one million per month, attaining a registered subscriber base of around 64.82 million subscribers of pay DTH services catered by the six DTH operators by March 2014. This is besides the viewership of the free DTH services of Doordarshan. In March 2009, there were a total of 13.09 million DTH subscribers. This number grew to 21.30 million, 35.56 million, 46.25 million, 56.48 million to 64.82 million subscribers for the years 2010, 2011, 2012, 2013 and 2014 respectively.

     

    Cable TV Services

     

    Cable TV service is the largest television service sector with an estimated subscriber base of around 99 million subscribers. From 52 million subscribers in March 2004 it has risen by 58 million, 66 million, 72.5 million, 80 million, 84 million, 88 million, 92 million, 94 million and 99 million cable TV subscribers from 2005 – 2013 respectively.

     

    Digital addressable Cable TV systems

     

    As per data provided by various MSOs, there were around 85 lakh STBs deployed in the first phase areas of DAS implementation covering four metros namely Delhi, Mumbai, Kolkata and Chennai. In the second phase of DAS implementation, covering 38 cities, approximately 142 lakhs STBs were deployed as on March 2014.

     

    Trends in the tariff in the Broadcasting sector

     

    In order to provide cost effective broadcasting services to the consumer, TRAI has laid down regulatory framework, from time to time, in the form of tariff orders. The tariffs for areas served through non-addressable systems, notified DAS areas, and that for the addressable systems such as DTH, HITS and IPTV etc are governed by respective tariff orders issued by TRAI.

     

    Further, the wholesale pricing has been prescribed with a certain cap, linked to non-addressable platforms tariff ceilings. With these provisions at the wholesale and retail levels, a trend is likely to emerge where the subscription pattern is consumer specific rather than defined by the service providers.

  • TDSAT sets aside amendments for commercial & ordinary subscribers

    TDSAT sets aside amendments for commercial & ordinary subscribers

    NEW DELHI: Two amendments made by the Telecom Regulatory Authority of India (TRAI) to its tariff orders that aimed at preventing broadcasters from giving their channels directly to the subscribers and putting commercial subscriber at par with ordinary subscribers were today struck down by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT).

     

    TDSAT chairman Aftab Alam and member Kuldip Singh said the two amendments were ‘quite unsustainable and we are thus constrained to set aside the impugned amendment orders.’

     

    The amendments referred to are the Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Twelfth Amendment) Order 2014 dated 16 July, 2014 and the Telecommunications (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Fourth Amendment) Order 2014 dated 18 July, 2014 by which similar amendments were made in the Telecommunication (Broadcasting and Cable) Services(Second) Tariff Order 2004 dated 1 October, 2004 (relating to non-addressable or analogue systems) and the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff Order 2010 dated 21 July, 2010 (relating to addressable systems) respectively.

     

    The Indian Broadcasting Foundation (IBF) and the Federation of Hotels and Restaurant Association of India (FHRAI) had challenged the amendments as the commercial subscriber is put at par with the ordinary subscriber and the tariff orders treat as equal groups of subscribers that are inherently unequal and are also so recognised in their different definitions in the tariff orders.

     

    The impugned amendments introduce mainly three changes: firstly, the broadcaster is no longer allowed to provide its channels directly to a subscriber, be it an “ordinary subscriber” or a “commercial subscriber;” secondly, the terms “commercial establishment” and “commercial subscriber” are defined elaborately and classified separately from “ordinary subscriber” and thirdly, though defined and classified separately from “ordinary subscriber,” for the purpose of charges for receiving supply of channels, the very large and highly heterogeneous body of “commercial subscriber” is en-block put completely at par with the “ordinary subscriber.”

     

    The appellants are aggrieved by the amendments in so far as the commercial subscriber is put at par with the ordinary subscriber and contend that as a result of the impugned amendments, the tariff orders treat as equal groups of subscribers that are inherently unequal and are also so recognized in their different definitions in the tariff orders.

     

    The Tribunal said even while the hearing of the present appeal before the Tribunal was underway, TRAI issued the Telecommunication (Broadcasting & Cable) Services (Second) Tariff (Fourteenth Amendment) Order 2015 on 6 January, 2015 that inter alia restates the impugned amendments in the Second and Fourth tariff order. Consequently the appellants have filed an application for amending the appeal with a view to challenge the restatement of the impugned amendments in the fourteenth amendment of the Second tariff order.

     

    Allowing the petition, TDSAT said proviso 6 and 7 to clause 3 of the fourteenth amendment along with the explanation appended to proviso 7 are also set aside.

     

    It said TRAI must now undertake a fresh exercise ‘on a completely clean slate. It must put aside the earlier debates on the basis of which it has been making amendments in the three principal tariff orders none of which has so far passed judicial scrutiny. It must consider afresh the question whether commercial subscribers should be treated equally as home viewers for the purpose of broadcasting services tariff or there needs to be a different and separate tariff system for commercial subscribers or some parts of that larger body. It is hoped and expected that TRAI will issue fresh tariff orders within six months from to-day.’

     

    TDSAT said that now that the impugned tariff orders are quashed, the question that arises is the rates that commercial establishments are to be charged, especially those that were excluded from the tariff protection by the seventh amendment of the Second tariff order until TRAI comes out with the fresh tariff order.

     

    The seventh amendment to the Second tariff order and the first amendment to the Third (CAS Area) tariff order were quashed by the judgment of the Tribunal dated 28 May, 2010 but those were kept alive by the Supreme Court for a period of three months from 16 April, 2014, the date of the order by which the Court confirmed the Tribunal’s judgment.

     

    As that period is long over, TDSAT said it would not be proper to revive the tariff amendment orders dated 21 November, 2006. As a consequence, the un-amended Second, Third and Fourth tariff orders will come into play and commercial subscriber would, by default, get bracketed with ordinary subscriber.

     

    In other words though the impugned amendments in the tariff orders are quashed by this judgment, TDSAT said for practical purposes the situation will continue to remain the same. This is because despite two orders by the Supreme Court to consider the question of tariff in respect of commercial subscribers within specified times periods, TRAI has not been able to produce the tariff that would satisfy judicial scrutiny.

     

    “This is evidently a highly anomalous situation and to remedy it TRAI must consider whether to issue an interim tariff order dealing with the matter until it takes a final call on the subject. TRAI should take a decision in regard to any interim arrangement within one month from today.”

     

    The Tribunal said, “We are fully mindful that TRAI has been painstakingly grappling with this matter for a long time. We also recognise that the issue is highly complex and no easy answers are available. We feel that a good deal of confusion and misunderstanding has resulted from the fact that the seventh amendment of the Second tariff order came to be issued just three days before the pronouncement of the judgment by the Supreme Court in the first round of litigation. TRAI can hardly be blamed for this as it had acted in pursuance of the direction of the Supreme Court by which the Court had modified the status quo order passed at the time of the admission of the appeal. But the result was that in framing the seventh amendment to the Second tariff order, TRAI did not have the benefit of the pronouncement of the Supreme Court in the matter. At the same time the Supreme Court could not get to know how the First and the Second tariff orders were perceived by their maker, the regulator and to what object and purpose those tariff orders were made according to the regulator.”

     

    The seventh amendment to the Second tariff order and the amendment to the Third CAS areas tariff order were eventually quashed by the Tribunal and in the judgment TRAI came in for some strong criticism.

     

    TDSAT said it appeared that as a result of this, TRAI went to the other extreme in coming up with the impugned tariff orders. All the different kinds of commercial subscribers being put en block at par with the ordinary subscriber appears to be as arbitrary and unreasonable as the carving out of a very small segment of hotels [namely, (i) hotels with rating of three stars and above, (ii) heritage hotels and (iii) any other hotel/motel, inn and such other commercial establishment providing board and lodging having 50 or more rooms] for exclusion from the tariff protection.

     

    “We are strongly of the view that what is required in the matter is a far more nuanced approach. We rather feel it is high time that TRAI should stop making any further amendments in the different tariff orders and take a completely fresh and holistic view on the question of tariff in broadcasting services. As a result of repeated amendments, the Second, Third and Fourth tariff orders have become so complicated that it has become difficult even to follow the exact import of a provision without examining all the amendments made earlier in the Principal tariff order. How much the tariff orders have become clumsy and unwieldy is evident from their very names as is sought be demonstrated in the opening lines of this judgment. We, accordingly, expect that as the whole country is now to come under the DAS regime, TRAI will undertake a fresh exercise and come out with a single consolidated instrument covering broadcasting services,” the Tribunal said.

  • TRAI issues new tariff order to balance consumer rate and broadcaster demands

    TRAI issues new tariff order to balance consumer rate and broadcaster demands

    NEW DELHI: In a major initiative aimed at simplifying tariffs and meeting demands of consumers, the Telecom Regulatory Authority of India (TRAI) today issued a new tariff order which apart from fixing tariffs also amended the definition of addressable systems (DAS) as understood at present.
    The Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Fourteenth Amendment) Order, 2015 said “addressable system” means an electronic device (which includes hardware and  its  associated  software)  or  more  than  one  electronic  device  put  in  an integrated system through which signals of digital addressable system can be sent in encrypted form, which can be decoded by the device or devices, having an activated Conditional Access System at the premises of the subscriber within the limits of authorisation made, through the Conditional Access System and the subscriber management system, on the explicit choice and request of such subscriber, by multi-system operator or DTH operator or IPTV operator or HITS operator  to the subscriber; and the expression “non-addressable system” shall be construed accordingly.
    The Order shall come into force on the date of its publication in the Official Gazette.
    The order also specifies that it will apply to specified states, cities, towns and areas notified from time to time and not the entire country.  
    The order has specified that if any new pay channel is launched or any free-to-air channel is converted to pay channel after the first day of January 2015, then the ceiling shall not apply if the new pay channel or pay channel converted from free-to-air to pay channel is provided on a standalone basis, either individually or as part of new, separate bouquet.The broadcaster shall declare the genre of its channels and such genre shall be either News and Current Affairs or Infotainment or Sports or Kids or Music or Lifestyle or Movies or Religious or Devotional or General Entertainment (Hindi) or General Entertainment (English) or General Entertainment (regional language).
    The rates of channels, referred to in the first proviso shall be similar to the rates of similar channels existing as on the date of such launch of new channel or such conversion of free-to-air channel into a pay channel and the ceiling of charges, specified under sub-clauses (a), (b) and (c) shall not, in any case, exceed by the rates of channels referred to in the third proviso.
    In case a multi system operator or a cable operator reduces the number of pay channels that were being shown on the date of coming into force of the Telecommunication(Broadcasting and Cable) Services (Second) Tariff (Fourteenth  Amendment) Order 2015, the ceiling shall be reduced taking into account the rate(s) of the channel(s) so removed. In the case of the commercial subscriber, for each television connection, the charges payable by the Ordinary cable subscriber under sub-clause (a), shall be the ceiling.

    If a commercial subscriber charges his customer or any person for a programme of a broadcaster shown within his premises, he shall, before he starts providing such service, enter into agreement with the broadcaster and the broadcaster may charge the commercial subscriber, for such programme, as may be agreed upon between them.
    The charges referred to in sub-clause (a) shall in no case exceed the maximum amount of charges specified in the Part I or Part II, as the case may be, of the Schedule annexed with this Order.”
    In determining the similarity of rates of similar channels referred to in the provisos below clause 3 above the following factors shall be taken into account:
    (i)  the genre and language of the new  pay or converted Free to Air  to pay channel; and
    (ii) the range of prices ascribed to the existing channels of similar genre and
    language in the price of a bouquet(s) and prices of bouquet(s) that exist.”
    Every broadcaster shall offer or cause to offer on non-discriminatory basis all its channels on a-la- carte basis to the multi system operator or the cable operator, as the case may be, and specify an a-la-carte rate, subject to provisions of sub-clause (2) of this  clause and clauses 3 and 3B, for each  pay channel offered by him.
    In case a broadcaster, in addition to offering all its channels on a-la-carte basis, provides, without prejudice to the provisions of sub-clause (1), to a multi system operator or to a cable operator, pay channels as part of a bouquet consisting only of pay channels or both pay and free to air channels, the rate for such bouquet and a-la-carte rates for such pay channels forming part of that bouquet shall be subject to the following conditions, namely:-
    (a) the sum of the a-la-carte rates of the pay channels forming part of such a bouquet shall in no case exceed one and half  times of the rate of that bouquet of which such pay channels are a part; and
    (b) the a-la-carte rates of each pay channel, forming part of such a bouquet, shall in no case   exceed three times the average   rate of a pay channel   of that bouquet of which such pay channel is  a part and the average rate of a pay channel of the bouquet be calculated in the following manner, namely:
    If the bouquet rate is Rs. ‘X’ per month per subscriber and the number of pay channels is ‘Y’ in a bouquet, then  the average pay channel rate of the bouquet shall be Rs. ‘X’ divided by number of pay channels ‘Y’:
    Provided that the composition of a bouquet existing as on the 1 day of December 2007, in so far as pay channels are concerned in that bouquet, shall not be changed: and nothing contained in the first proviso shall apply to those bouquets of channels existing on the first day of December 2007, which are required to be modified pursuant to the commencement of the Telecommunication (Broadcasting and Cable Services) Interconnection (Seventh Amendment) Regulation, 2014.
     
    If there is a bouquet, comprising of 10 channels of 3 broadcasters as per the following details.

    After  the  reconfiguration  the  bouquets  to  be  offered  by  the  individual broadcasters shall be as under:
    Broadcaster B shall offer the bouquet as per the following details

    Broadcaster C shall offer the bouquet as per the following details:

    While the Broadcaster A can offer channel 1 at a-la-carte rate of Rs. 2.”
    TRAI has aslo appended an Explanatory Memorandum which traces the history of discussions and orders over the last 11 years on its website trai.gov.in.

  • TRAI managed to give broadcasting as much importance as telecom in 2014

    TRAI managed to give broadcasting as much importance as telecom in 2014

    NEW DELHI: A decade after broadcasting was handed over to it, the Telecom Regulatory Authority of India (TRAI) appears to have given equal if not more time to the broadcasting sector, thanks largely to convergence of technology.

    Thus, issues like spectrum, marketing and even FM radio have got equal space during the Regulator’s work as telecom, apart from the digital addressable system (DAS) introduced in 2011.

    TRAI also mastered the art of marketing during the year 2014. It developed radio jingles in Hindi, English and 10 regional languages on VAS/UCC which were aired on various FM channels in 84 cities across the country for one week in the months of June, July, August and October 2014.

     Admitting in its annual report that it had failed to carry out periodic reviews to make inflation- linked adjustments, TRAI said it had finally done so in concurrence with the Supreme Court. Thereafter it issued two tariff orders on 31 March and 31 December as far as broadcasting was concerned.

    Based on the rise in the wholesale price index (WPI) over the last five years and considering other relevant factors, the Authority came to a conclusion that an overall 27.5 per cent inflation hike is to be allowed, both at the wholesale and retail levels. Taking into account the consumer’s interest, the Authority prescribed that this hike be implemented in two installments. The first installment of 15 per cent was made effective from 1 April 2014. This was notified vide the Telecommunications (Broadcasting & Cable) Services (Second) Tariff (Eleventh Amendment) Order 2014 dated 31 March 2014. The second installment for the remaining inflation-linked increase has been made effective from 1 January 2015. This is expected to give adequate and reasonable time to all stakeholders to adjust to these hikes. To take care of the second installment of the inflation linked hike, the Authority notified the Telecommunications (Broadcasting & Cable) Services (Second) Tariff (Thirteenth Amendment) Order 2014 dated 31 December 2014.

    In a matter relating to a tariff order prescribing tariffs for commercial subscribers, the Supreme Court in April 2014, asked TRAI to come out with a new tariff dispensation for such subscribers. Accordingly, on 16 July and 18 July 2014, TRAI notified amendments to tariff orders / regulations pertaining to commercial subscribers of broadcasting and cable TV services. These amendments bring in clarity regarding the manner of distribution of TV signals to commercial subscribers, prescribe tariffs based on intended use of the TV signals, and aim to enhance transparency in tariff regulation.

    During phase I and phase II of digitisation of cable TV sector, it was noticed that the authorised agents/aggregators of the broadcasters were forming large bouquets, combining channels of different broadcasters and forcing it on the DPOs viz. cable, DTH, HITS and IP TV operators. This was resulting in distortions in the market. Incidentally, the Ministry of Information and Broadcasting (MIB) had also sent a reference to TRAI requesting for a review of the regulatory framework with regard to aggregators. The amendments aim at contributing to the orderly growth and overall development of the sector by streamlining the distribution of TV channels from broadcasters to DPOs. The salient provisions in these amendments are:

     A broadcaster is now defined as an entity having the necessary government permissions in its name. Only the broadcaster shall publish the Reference Interconnect Offers (RIOs) and enter into interconnection agreements with DPOs. However, in case a broadcaster, in discharge of its regulatory obligations, is using the services of an agent, such authorised agent can only act in the name of and on behalf of the broadcaster.

    As far as FM radio is concerned, TRAI on the request of MIB made recommendations on the amount of migration fee to be charged from existing FM operators on their migration from Phase-II to Phase-III of FM Radio Broadcasting. The permissions for operating FM Radio as per Phase-II policy were granted by MIB during the period 2005 to 2009 in 86 cities. As per the Phase-II policy, the permissions were granted for a period of 10 years to each FM Radio operator and there is no provision for extension of permission in the Phase-II policy.

    Therefore, Phase-II permissions will start expiring from 31 March 2015 onwards. There was no great incentive for an existing operator to pay a migration fee and operate as per the Phase-III policy only for the balance period of Phase-II permissions. Accordingly, the Authority in its recommendations on ‘Migration of FM Radio Broadcasters from Phase-II to Phase-III’ dated 20 February 2014 recommended a period of permission of 15 years after migration from Phase-II to Phase-III. The salient features of the recommendations are:
    TRAI reiterated early implementation of its recommendations on minimum channel spacing of 400 KHz for FM radio broadcast issued on 19 April 2012, which will in effect increase the number FM channels in each city for auction. The period of permission to operate the existing FM channels on migration from Phase-II to Phase-III will be 15 years.

    In the DTH Guidelines, under which licenses are issued to DTH operators, there is no explicit provision for an extension or a renewal of the licenses on completion of the license period. In this regard, the MIB sought recommendations of TRAI. After examination, the Authority concluded that to allow the DTH operators to continue their business after the expiry of the stipulated 10 year license period, the government will have to issue a new license. Accordingly, the Authority looked at the issues concerning the DTH sector holistically and, after following the due consultation process, sent its recommendations to the MIB on “Issues related to New DTH Licenses” on 23 July, 2014.

     Apart from removing the ambiguity over renewal of licenses, these recommendations suggest that the government came out with a new licensing regime for DTH sector which, amongst others, allows for longer license period, rationalised license fee, rationalised and regulated cross-holding and vertical integration between broadcasters and distribution platform operators including DTH operators. The recommendations also suggest a mechanism for migration of operators from the existing regime to the new regime. A new licensing regime, incorporating the provisions in the said recommendations, is expected to bring in, amongst others, certainty in DTH business, ease taxation pressures, attract better investments in the sector etc. and, thereby, promoting the overall efficiency in DTH operations.

     Ensuring plurality of voices in the media, that is, availability of fair, balanced and unbiased representation of a wide range of opinions and views, is critical for any democratic polity. Ensuring both external plurality, namely multiple voices in the national media market, and internal plurality, that is presentation of a range of facts and news in an unbiased manner by a media outlet, are fundamental in the working of a democracy.

    Regulatory restrictions on cross-media holdings seek to ensure external plurality in the media market, while restrictions in vertical holding by any entity of a broadcaster and a distribution entity are important to ensure that the distribution channels remain open to all desirous of presenting an opinion or view to the public. Finally, content regulation is critical in a time when news is increasingly seen as an asset belonging to a media entity’s owners to be monetized for political/ business/ or pecuniary gain.

    Recommendations on “Issues related to Media Ownership” were issued on 12 August

    The key issues addressed and the concerned recommendations included defining who owns a media entity and controls it – in brief, an entity that possess not less than 50 per cent of voting rights in the media entity or can appoint more than 50 per cent of the members of its board of directors will be deemed to control it. The Recommendations also take into consideration control through debt, and has recommended the loan threshold that will deem the lender to be in control of a media entity.

    The restrictions recommended on cross-media ownership apply on the media entities that cover news and current affairs genres in the television and print segments only, as impact of radio and internet in India on opinion formation is marginal. In the print segment, only daily newspapers, including business and financial newspapers, should be considered.
    The MIB had sent a reference to TRAI seeking recommendations of the Authority on extension of permission granted to Community Radio Stations (CRS) in India. According to the 2006 Policy Guidelines for CRSs, the period of validity of Grant of Permission Agreements (GOPA) is five years and the guidelines contain no provisions for the renewal/ extension of permissions. The validity of the GOPAs issued under these Guidelines for some of the CRSs, had expired on completion of five years, requiring them to stop operating. The Authority, therefore, in an interim reply suggested continuation of the GOPAs on the same terms and conditions.

    CRS are an important medium for empowerment and social development of the local communities. Therefore, going beyond the terms of reference from MIB, the Authority in a pre- consultation process sought inputs from CRS permission holders on the issues relevant for the growth of CRS in the country based on their experiences over the past decade. Several responses were received; these inter alia included comments on procedural matters; technical issues; content; aid and assistance.

    In addition to the issues highlighted, the Authority also noted the important role, the CRS play in serving the local communities by providing relevant information/alerts during natural calamities and emergency situations. The Authority, after analysing all issues comprehensively, sent ‘Recommendations on Issues related Community Radio Stations’ to MIB on 29 August, 2014. The salient features of the recommendations included initial permission for operating a CRS to be five years; extension of permission for five years at a time, to be allowed following performance evaluation; and CRS to be allowed to broadcast locally relevant news and current affairs content sourced exclusively from AIR, in its original form or translated into the local language/ dialect.

    MIB sent references to the Authority to provide its recommendations on issues relating to ground based channels being operated by cable TV operators and programming services being offered by DTH service providers to their subscribers. Collectively these kinds of programming services provided by the Distribution Platform Operators (DPOs) are referred to as Platform Services (PS).

    At present, the PS offered by DPOs are not subject to any specific regulations or guidelines. Similarly, there are several ground-based broadcasters who provided local TV channels to cable operators for distribution which are also not covered by any specific regulations. Since, all of these platform services and local channels are being operated and distributed without even a simple registration system in place; the possible impact of the content carried on these channels on the law and order/ security situation is a cause for concern. In addition, the differentiated treatment under the different policy guidelines applicable to the different types of DPOs has to be addressed, to provide for similar regulatory frameworks for what after all are inter-changeable services. Therefore, there is an urgent need to establish a simple, robust and fair regulatory system that addresses all concerns regarding the PS being distributed on cable TV networks.

    After an extensive consultation process in which open houses discussions were held with stakeholders in all four regions in India, the Authority forwarded its recommendations on ‘Regulatory framework for Platform services’ to the government on 19 November 2014.

     

  • TRAI rationalises tariff for non-DAS areas, providing for inflation

    TRAI rationalises tariff for non-DAS areas, providing for inflation

    NEW DELHI: Meeting a long-felt demand, the Telecom Regulatory Authority of India (TRAI) has decided to allow the balance inflation linked hike both at the retail and wholesale levels, from 1 January 2015.

    The Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Thirteenth Amendment) Order 2014 applicable for non-addressable (analogue cable TV) systems prescribes ceiling retail tariff on pan-India basis depending upon the number of pay and free-to-air (FTA) channels.

    The ceilings are Rs 117 per month for minimum of 30 FTA channels; Rs 234 per month for minimum 30 FTA channels and up to 20 pay channels; and Rs 292 per month for minimum 30 FTA channels and more than 20 pay channels.

     At the wholesale level, price ceilings will continue, subject to inflationary adjustments allowed from time to time.

    TRAI said the order was aimed at rationalising retail tariff and simplifying implementation. The Authority had undertaken a similar exercise in April 2014. 

  • Commercial and non-commercial subscribers should have different tariff under DAS: IBF

    Commercial and non-commercial subscribers should have different tariff under DAS: IBF

    NEW DELHI: The Indian Broadcasting Foundation (IBF) has said that the Digital Addressable System (DAS) tariff order was violative of Article 14 of the Constitution as it equated ‘equals with unequals.’

     
    Abhishek Malhotra told the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that the stand taken by the Telecom Regulatory Authority of India (TRAI) was also contrary to the stand taken by it over the last 10 years.
    He said that commercial subscribers could not be charged at the same rate as other subscribers who received television signals in their homes.

     
    The bench was hearing the petition by IBF challenging the DAS tariff order issued in July by TRAI relating to commercial subscribers.

     
    In the tariff order, TRAI had said that commercial establishments who do not specifically charge its clients/guests on account of providing/showing television programmes and offer such services as part of amenities are to be treated like ordinary subscribers wherein the charges would be on per television basis.

     
    In cases where commercial subscribers specifically charge its clients/guests on account of providing/showing television programmes the tariff would be as mutually agreed between the broadcaster and the commercial subscriber.

     
    TRAI had also said that the commercial subscriber was to obtain television service only from a distribution platform operator (MSO/DTH Operator/IPTV operator/HITS operator).

     
    The tariff order amendment has been brought out as per the directions of the Supreme Court. It is expected that with the coming into force of these changes in the regulatory framework, the distribution of TV services to the commercial subscribers would be streamlined and the services would be available to them at competitive rates.

     

  • TRAI issues draft tariff order for non addressable cable TV systems

    TRAI issues draft tariff order for non addressable cable TV systems

     

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has come out with its draft tariff order for non addressable cable TV system and is asking for comments on the same from stakeholders.

     

    This comes after the Supreme Court’s order in September wherein it had asked stakeholders to submit views by 30 September, which the TRAI has now extended by 15 December, which it says will be final.

     

    To be called Telecommunication (Broadcasting and cable) services (seventh) (non-addressable systems) Tariff Order, 2014 (draft) it will come into effect from 1 January 2015 and will be applicable to broadcasting and cable services provided to cable subscribers throughout India through non addressable systems. The Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff Order, 2010 (1 of 2010) shall apply to only DAS areas.

     

    For wholesale tariff, broadcasters have to specify their channels rates both a-la-carte as well as bouquets provided that the a-la-carte and bouquet rates for  pay and free to air (FTA) channels shall not firstly exceed its current rate before the order comes into force.

     

    In a bouquet the sum of the a-la-carte rates of all channels shall not exceed 1.5 the rate of the entire bouquet. The a-la-carte rate of one channel will not exceed thrice the average rate of a pay channel. The bouquet composition as on 1 December 2007 shall not change.

     

    If a bouquet is to be modified post this order coming into existence, this is how it will be calculated: The rate of the modified bouquet = [rate of the existing bouquet] x [sum of a-la-carte rate of pay channels comprising the modified bouquet/sum of a-la-carte rate of all the pay channels comprising the existing bouquet].

     

    Rates of channels or bouquets can only be increased by a TRAI order while it can be reduced without the same. For conversion of channels from pay to FTA or discontinuation, the bouquet prices need to be modified accordingly. New channel launches will be priced similar to other channels in its genre and language. For new launches or conversions, a-la-carte as well as bouquet rates shall be declared 30 days in advance.

     

    The charges that a local cable operator (LCO) shall pay to a multi system operator (MSO) will have to be mutually decided. The LCOs have been told to issue bills to subscribers with a breakup of the number of channels, the charges levied (excluding taxes), nature and rates of taxes levied and amount thereof and then issue a receipt for the same.

     

    The draft tariff order is proposed for the cable TV services offered through non addressable (analogue) cable TV systems. The operators who implement DAS before the notified cut off dates for phase III and IV will be governed by the DAS regulatory regime.

     

    The Telecommunication (Broadcasting and Cable) Services (Second) Tariff Order 2004 (6 of 2004) has been repealed with this new one that will be called the Telecommunication (Broadcasting and cable) services (seventh) (non-addressable systems) Tariff Order, 2014 (draft).

     

    The Supreme Court in its order has disposed off the appeals, while leaving all the questions of law open. It also ordered that status quo will continue till 31 December 2014. The order further stated that TRAI will attempt to notify the fresh tariff order immediately after 31 December 2014. Since the last consultation paper had been given out in 2010, TRAI felt that stakeholders need to relook entirely.

     

    On 10 February 2014 five amendments, to the tariff orders and regulations were notified by TRAI. These amendments were made to bring in clarity in the roles and responsibilities of the broadcasters and their authorised agents. On 31 March 2014, eleventh amendment to the tariff order applicable for non-addressable cable TV systems was notified by TRAI to allow inflationary adjustment at, both, retail and wholesale levels.

     

     

    Click here to read the consultation on draft tariff order

     

    Click here to read the press release

     

    Click here to read the report submitted to Supreme Court

  • Smaller ISPs exempted from reporting requirement if subscribers number is less than 10,000

    Smaller ISPs exempted from reporting requirement if subscribers number is less than 10,000

     NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today decided to exempt internet service providers from the tariff reporting requirement during a financial year if the total number of its subscribers is less than ten thousand (<10,000) on the last day of the preceding financial year.

     
    It also said the existing exemption given to access service providers in respect of tariff schemes offered to bulk customer in response to a tender process or as a result of negotiations between the access provider and such bulk customer has been extended to the ISPs also.

     
    These directives came in the 59th Amendment to the Telecommunication Tariff Order (TTO) 1999.

     
    The amendment said exemption from tariff reporting requirement granted to the small ISPs did not mean that the regulatory principles, guidelines, etc. would not apply to them.

     
    However, keeping in view the small size of operations and resultant turnover of these small ISPs, the Authority feels that it is quite unlikely that these small-sized ISPs would violate the regulatory principles sought to be achieved by way of tariff reporting, especially in the competitive environment. Further, such exemption would help the small ISPs in reducing their compliance costs and once they achieve a subscriber base of 10,000 they will come under the ambit of tariff reporting requirement.

     
    In an explanatory memorandum to the Amendment, TRAI said clause 7 of the Telecommunication Tariff Order 1999 stipulated that all service providers shall comply with the reporting requirement in respect of tariffs specified for the first time and also all subsequent changes; provided that in respect of tariff plans offered by a telecom access provider to bulk customers, such as corporates, small and medium enterprises, institutions, etc. either in response to a tender process or as a result of negotiations between the access provider and such bulk customer, the reporting requirement shall not apply.

     
    The reporting requirement has been defined in clause 2 (l) of TTO 1999 as obligation of a service provider to report to the Authority, any new tariff for telecommunication  services    and/  or  any  changes  therein  within  seven working  days  from  the  date  of  implementation  of  the  said  tariff  for information and record of the Authority after conducting a self-check to ensure that the tariff plan(s) is/are consistent with the regulatory principles in all respects which inter-alia includes IUC compliance, non-discrimination and non-predation.

     
    The amendment followed comments received from ISPs to a draft amendment released by the Regulator in September.

     

    Click here to read the full amendment

    Click here to read the press release

     

  • JAINHITS welcomes TRAI’s new tariff order for commercial subscribers

    JAINHITS welcomes TRAI’s new tariff order for commercial subscribers

    MUMBAI:  Headend in the Sky (HITS) player JAINHITS has welcomed Telecom Regulatory Authority of India’s (TRAI) newly announced tariff order pertaining to commercial subscribers, subscribing to cable TV services in the country.

     

    As per the new order, commercial establishments who do not specifically charge its clients/ guests on account of providing TV programmes and offer them as part of amenities are to be treated like ordinary subscribers, wherein charges would be on per TV basis. In cases where commercial establishments specifically charge its clients/ guests on account of providing TV programmes, the tariff would be as mutually agreed between the broadcaster and the establishment. 

     

    “NSTPL during its response to TRAI Consultation Paper also supported that rates charged from hotels etc. should be on per TV basis. We at NSTPL fully support TRAI’s announcement, as this in a sense means that rates charged from commercial establishments/ hotels etc. for their lounges/ rooms shall be same as far as a normal subscriber till such time they offer it as basic amenities. It is aimed to streamline the distribution of TV services to commercial subscribers at competitive rates, and improve the availability of content for TV viewership in hotels etc,” said Noida Software Technology Park (NSTPL) head-regulatory and corporate affairs Devinder Singh.

     

    He added, “TRAI has clearly mentioned that in all the cases, commercial subscriber has to obtain television services only from a distribution platform operator (MSO/ DTH operator/ IPTV operator/ HITS operator/ Cable Operator). And JAINHITS is fully capable to meet the needs of the large establishments besides home consumers due to its ubiquitous reach across India. We have the ability to provide broadcast services to hotels and commercial establishments with a varied mix of content in regional, Hindi and English language across the country.”