Tag: Tata-Star DTH

  • I&B ministry seeks clarifications on financing & management control from Space TV

    I&B ministry seeks clarifications on financing & management control from Space TV

    NEW DELHI: The government today refused to be cowed down by strident questions relating to the Tata-Star DTH joint venture and hinted that procedures were followed in the case of Dish TV, 20 per cent owned by Zee Telefilms, too.

    Replying to a written question on whether the government is still examining Space TV’s (the JV’s proposed brand name for a DTH service) application even after accepting Rs. 100 million as a precursor to the licence, information and broadcasting minister Jaipal Reddy said that certain clarifications had been sought from the joint venture.

    “Space TV has been asked to provide certain clarifications about project financing and nature of management control to ensure conformity to DTH guidelines,” Reddy said in a written reply in lower house on the last day of the winter session of Parliament today.

    However, the minister clarified to another part of the same question, asked by Congress MP Avtar Singh Bhadana, that licence was granted to the Subhash Chandra-controlled ASC Enterprise “after detailed examinations” of its application.

    “The ministry granted licence to ASC Enterprise Ltd also after detailed examination of their application, in accordance with DTH guidelines, including sources of funding, foreign investments, shareholders agreements, etc,” Reddy informed parliamentarians, trying to make it clear Space TV was not being handed step-motherly treatment.

  • Guthrie urges speedy clearance of Tata-Star DTH project

    Guthrie urges speedy clearance of Tata-Star DTH project

    NEW DELHI: Star Group, 20 per cent partner in a KU-band DTH venture with the Tatas of India, today made a detailed presentation to the Indian government detailing some of the problem areas, including whether it’s possible to review the foreign investment cap.

    According to a senior government official, the Star team had a detailed discussion in the early afternoon with information and broadcasting minister Jaipal Reddy and later in the day another round of meeting with the ministry secretary Navin Chawla.

    One of the issues brought up by the Star team during its meeting with Reddy related to a delay in the I&B ministry clearing the DTH joint venture’s quest for a licence. “They did request for a faster clearance (of the DTH project),” the government official admitted, when asked about the issues brought up by Star.

    Though Star Group CEO Michelle Guthrie refused to make any comments to journalists on the two meetings she had with government representatives today, officials said that Star is pushing for ironing out objections/clarifications related to the proposed DTH venture.

    Another point that was referred to by the Star team during its meeting with the I&B minister related to a foreign investment cap of 20 per cent in DTH ventures as per sector guidelines.

    “The point whether the foreign investment cap could be increased so as to give foreign players slightly more say in DTH ventures was made by Star during the meeting with Reddy,” a senior government official said, pointing out that Reddy gave them nothing more than “just a patient hearing.”

    The Star team included Star India CEO Peter Mukerjea, apart from others.

    However, when asked whether the I&B ministry still finds the Tate-Star DTH venture licence application inadequate in some ways, the official said, “The government has no prejudice against anybody. More so, the majority partner is an established Indian business house.”

    “The I&B minister is understood to have conveyed to the Star Team that the DTH application would be “dealt according to the law of the land.” The Tata-Star Rs. 1.6 billion (Rs. 1,600 crore) DTH television service, as per announcements, has been scheduled for a year-end launch. But various clearances have taken up lot of time even after a previous application for a DTH licence was re-worked after roping in the Tatas. The present status of the application is that it’s awaiting a clearance from the I&B ministry for a letter of intent. Ministries of finance and home have already cleared the project.

    In January 2004 , Tata Sons had announced the formation of a joint venture with the Star Group for launching a DTH platform in India. According to the announcement, the Tata Group would hold 80 pr cent in the JV entity, which is aiming to build India’s largest digital television platform, offering a range of channels, including exclusive ones, with interactive features and services.

    However, the government official denied that the controversial issue of Radio City was brought up during talks with Reddy. The present government’s allies have criticized several times the Radio City venture where the licence holder is Music Broadcast Pvt Ltd, while Star provides and marketing, content and other infrastructure support.

    Star’s business partner-turned-rival in India, Subhash Chandra, has already launched the country’s first DTH service in October last and offers a variety 50 channels at the moment for a monthly subscription of Rs 220.

  • Star looking to launch Hindi entertainment, kids channel

    Star looking to launch Hindi entertainment, kids channel

    NEW DELHI: Hong Kong-based Star Group Ltd., controlled by Rupert Murdoch’s News Corp, plans to launch two more entertainment channels outside the direct-to-home (DTH) package of channels to be offered by the Tata-Star joint venture.

    One of the channels would be in Hindi and would be made of kids’ programmes like Shakalaka Boom Boom and Son Pari.

    The reason behind launching these channels is that over the years Star Plus has emerged as a very popular channel where not all programmes could be accommodated.

    In the light of such developments, Star group CEO Michelle Guthrie, during an informal meeting with information and broadcasting minister Ravi Shankar Prasad, mentioned that the company is looking at launching two more entertainment channels in India to tap the entertainment sector more effectively, government sources said.

    According to the sources, there are plans by Star India to create a kids channel with local content wherein all kids-related programmes from Star Plus would be aired, apart from some content from Fox Kids. Another channel that Guthrie, probably, was indicating towards was a “Desi” version of Fox Entertainment.

    It may be recalled that these were the very questions that indiantelevision.com put to Star India COO Sameer Nair in a recent interview.

    Guthrie is also understood to have appreciated the development happening in India’s media and entertainment sector.

    Guthrie, along with Star India CEO Peter Mukerjea and two other company executives made the rounds of government offices, including dropping in to discuss the status of the industry with broadcast, cable and telecom regulator, Telecom Regulatory Authority of India (Trai), chief Pradip Baijal.

    Interestingly, Guthrie, who is here in the capital since yesterday, met Baijal twice — once as part of the Casbaa delegation and the second time with the Star team.

    EARLY CLEARANCE TO DTH PROJECT REQUESTED

    After a presentation on DTH was made to I&B ministry officials at a Tata group company office here, Guthrie, according to government sources, also petitioned for an early clearance of the proposed DTH venture, saying the service could be provided for as little as Rs 180 per month from around Diwali this year.

    As reported by indiantelevision.com earlier, the total DTH hardware would cost a subscriber under Rs 5,000 — Rs 4,999 to be exact, according to the presentation. The joint venture company would also subsidise the set-top boxes, depending on the customs duty levied by the government on the boxes.

    Apart from exploring the possibilities of having a financing scheme for the boxes – to make it easier for subscribers – sources indicated that during the presentation it was mentioned there would be several tiers in the DTH package, which would start off with 65-odd channels initially.

    The Star-Tata combine is also targeting about a million DTH subscribers in the first year.

    Whether the government gave any assurance on expediting the DTH clearances early is not known, but it seems that pricing strategy of Star-Tata DTH venture is very similar to that of Dish TV, a DTH service started by Subhash Chandra’s companies, ASC and Zee Telefilms.

    Meanwhile, the Tata-Star DTH proposal was listed as part of applications that were to be examined at the Foreign Investment Promotion Board (FIPB) meeting today. It was number 22 on the list so whether it came up for discussion or not was not clear at the time of posting this report.

    At present, the Tata-Star combine, had paid the Rs 10 million entry fee, but is still to furnish a Rs 400 million bank guarantee before the venture can get a letter of intent from the government to begin DTH.

    Another player in the DTH sector, India’s pubcaster Doordarshan has said that its proposed service, scheduled to be launched in April, may get delayed to June.