Tag: TDSAT

The puzzling case of TRAI’s ad cap

MUMBAI: The Telecom Regulatory Authority of India (TRAI) found some unlikely supporters on the ad cap issue last week. On the one hand, Zee Entertainment, Star India and Viacom18 approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) saying that they were in favour of a limit to how much advertising should be allowed per hour and that they would like to become respondents to the cases filed by other broadcasters. Among these figure the News Broadcasters Association (NBA), regional and music channels all of whom have been opposing the regulation and have sought relief from the tribunal. The other supporter of the ad cap is an NGO called MediaWatch which said the ad cap should be extended to cable TV also and that TRAI should also ensure that broadcasters don’t cross the line on audio levels of commercials and also specialised ad formats on the TV screen.

Though the intervention filed by Zee, Star India and Viacom18 was rejected in the hearing that took place on 31 October, the tribunal has asked the networks to file a separate application, which would be heard only after the main case filed by NBA, music and regional channels, the next court hearing for which is 11 November.

“Well! We had filed for an intervention which was postponed,” is what Star India president and general counsel – legal and regulatory affairs Deepak Jacob said when Indiantelevision.com contacted him to enquire more about the case. However, he refused to divulge any more on the matter.

The three mainline Hindi GECs have been following the 10+2 ad cap regulation since 1 October, which was the deadline set by TRAI.

Industry watchers are asking what is it that made the three networks come out so blatantly in support of the ad cap when fourth network Sony Entertainment has not been following the TRAI diktat at all?

“They are in a position of strength as they have a tremendous share of viewer eyeballs,” says a media observer. “Hence, they can afford to take a hard stance in favour of the ad cap. Their belief is that advertisers have no alternative but to advertise on their channels. Their following the ad cap allowed them to jack up air time rates which more than made up for the drop in inventory. They would ideally like the status quo of lower advertising time to continue as it has benefited them and will continue to benefit them because paucity will result in better yields and rates.”

Another media observer believes that the approaches that the leading GECs have taken will add to the chaos and confusion. “The TV broadcast industry seems to have learnt very well how to stall any disruptive regulatory changes,” says a media planner laughingly. “You have several opposing and pro-voices speaking up at the same time which tends to lead to policy paralysis.”

She elaborates: “On the one side, the advertisers, agencies, news broadcasters, music channels and niche channels are against the TRAI ad cap. One of the major networks are also opposing it; while the other three are showing that they want it. It will be tough for anyone to decide which direction should things move. If the ad cap is on – in an election year – the news channels will take umbrage and the government cannot afford to have a negative fallout in an election year. If the ad cap is stalled for a while, that is good for everyone: the leading GECs have already got rate hikes of some sort; Sony can join in and hike rates and finally the news channels will not be faced with shriveling air time revenues. So they will be happy.”

“We are also taking a leadership position by complying with the TRAI regulations,” says an executive with one of the three networks. “We believe the time for change on TV advertising is now and hence are supporting it.”

What move will the telecom industry’s conscience – the TDSAT – and the regulator – TRAI- make next? Our guess is as good as any, but the ad cap game play is surely beginning to resemble a very complicated game of chess.

November 5, 2013

The TRAI, TDSAT and the ad cap story: Waiting for Godot?

So everyone has bought themselves some more time. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) decided to postpone till 11 November the date of hearing for the 10+2 ad cap case filed by the News Broadcasters Association (NBA), music channels as well as the regional channels on grounds of lack of information. The extra fortnight gave it more days to ruminate over what has clearly proved to be a major thorn in almost everyone’s side whether it is the government or broadcasters or agencies or advertisers.

The Telecom Regulatory Authority of India (TRAI) started it all when under the quality of services rules it decided to force broadcasters to limit commercial air time to 12 minutes per hour a year or so ago. The decision was postponed and rolled over until mid-2013 when it decided enough is enough and passed an order which would see general entertainment channels first reduce advertising airtime to 16 minutes per hour, while the news channels were to cut it down to 20 minutes per hour from 1 July till 30 September. Following this, the GECs from 1 October had to reduce the advertising airtime to 12 minutes per hour and the news channels to 16 minutes per hour.

The decision was postponed and rolled over until mid-2013 when it decided enough is enough and passed an order which would see general entertainment channels first reduce advertising airtime to 16 minutes per hour, while the news channels were to cut it down to 20 minutes per hour from 1 July till 30 September.
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Broadcasters – especially the news one – saw red instantly and screamed as if their life was being squeezed out of them. They obviously did not think about the viewer who was at times being inundated with almost 30 minutes or more of ads on TV to watch news. They went ahead and appealed to the TDSAT that what was being called for was draconian and unacceptable. Their claim that news could not have fixed time duration such as TV shows and hence such a restrictive law would sound the death knell for them. However, syncing it with the completion of digitisation was that found favour with them.

The GECs seemed unperturbed and said that they were all right with the TRAI diktat and announced that they would compensate the inventory reduction by raising per 10 second rates by 20-30 per cent. They seemed a very united bunch until one day the management at Multi Screen Media (Sony) woke up and said it would walk its own path and not reduce air time. The music channels too followed and filed an appeal with TDSAT.

In the meanwhile, the Information and Broadcasting Ministry too got into the act with minister Manish Tewari stating categorically that the reduction of air time should happen as digitisation gets completed by December 2014, giving the broadcasters some much needed support. The mandarins at Shastri Bhawan were asked to evaluate how the reduction of air time would impact the TV channels.

Advertisers and agencies sucked in their collective breaths and protested as loudly as they could that the broadcast industry was unilaterally trying to raise rates without any rationale despite having contracts in place and that they would not allow that.

The noise continued for weeks until the hearing date came up on 31 October morning. Everyone was expecting that the TDSAT would be supportive and would rule in favour of the broadcasters. Hence, the postponement of the hearing was quite anti-climactic, though many expected it to follow that course..

The argument that the NBA needs more time seems a little specious, but it worked with the TDSAT. They were anyway slated to be heard on 11 November itself but their case got advanced as the number of cases went up, so for them it is back to base one.

The networks – Star India, Zee TV, and Viacom18 (who had earlier stated that they would toe the TRAI line) now filed an intervention with the tribunal but have been asked to come back with a separate case.

Now what after 11 November? What are the various scenarios that could play out? One, the TDSAT will turn down the appeal and tell everyone to obey the TRAI. Right now and pronto!. Two, it could postpone the hearing further, thus giving everyone more time. Third, it could decide that the reduction of air time is a good move but needs more time to be implemented. Fourth, broadcasters, advertisers and agencies could file further cases and a decision could well be put in abeyance until all the cases get sorted. The TDSAT on its part could give a ruling in one case and say that it is applicable to others, but that does not look feasible because each television channel genre has its own set of challenges.

The question on everyone’s minds is whether it would give rope till 2014 December. This is something that can be debated and be seen as wishful thinking. But who knows the TDSAT may well end up playing the fairy godmother.

Now, let’s say the TDSAT rules against the broadcasters, it is quite likely that they will head to the higher courts. And knowing Indian courts, it won’t be easy to reach a quick decision. Industry experts expect the air time cap to take its own course and time. That it will happen is a given, but predicting how soon is like attempting to play Russian roulette. Welcome to the world of television which has become more of a gamble in recent times.

November 1, 2013

TRAI issued notice on appeal by consumer body seeking proper regulation of ads on channels

NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has issued a notice to the Telecom Regulatory Authority of India (TRAI) on a petition by a consumers body demanding the proper regulation of advertisements on cable and satellite television channels.

TDSAT said yesterday that it will hear the appeal after other related matters such as the appeal by the News Broadcasters Association have been heard.

Consumer group MediawatchIndia had approached TDSAT with an appeal that had sought to ‘remind TRAI of its statutory responsibility to check the illegal and unfair practices of television broadcasters who had been indulging in ‘part-screen’ and ‘high-decibel’ ads.’

The consumer group has complained that commercials played during programmes have a higher decibel level than the programme they are interrupting. Commercials as well as promotions of other shows keep appearing on the screen in the middle of the programmes thus distracting the viewer.

Mediawatch in its appeal sought to “challenge the abrupt, unilateral and mala fide act of TRAI in omitting sub-regulations 3(5) & 3(6) Standards of Quality of Service (Duration of Advertisements in Television Channels) Regulations 2012 that deals with “distracting formats of advertisements (part-screen and drop down ads, scrolls etc. interfering the main programme)” and “loud commercials (high audio levels of advertisements vis-?-vis that of programme).”
Mediawatch, earlier in June, made a representation before the Information and Broadcasting Ministry requesting action on the issue.

October 30, 2013
Ad cap petitions adjourned till 11 November

NEW DELHI: The case challenging the adcap regulations sought to be implemented on television channels was today adjourned to 11 November by the Telecom Disputes Settlement and Appellate Tribunal.

TDSAT Chairman Justice Aftab Alam and member Kuldip Singh also rejected the interventions filed by Zee, Star and Viacom18, with the Tribunal asking them to file separate applications.

The News Broadcasters Association had moved TDSAT challenging the constitutional validity of the regulations of Telecom Regulatory Authority of India enforcing the ad cap.

Several other broadcasters – mostly general entertainment channels – had later moved TDSAT, but the Tribunal had in 30 August accepted the argument by NBA that the cases of the general entertainment channels could not be clubbed with the petition of NBA.

The news channels are seeking relief from the 10+2 ad cap regulation prescribed by TRAI.

Senior Counsel Abhishek Manu Singhvi on behalf of the NBA sought time as the pleadings were not ready.

Some regional channels from Kerala also wanted to intervene as petitioners, but TDSAT said their matter would be heard after the main hearing.

Channels that sought to move to the court today included 9X, B4U, TV Vision and Pioneer Channel Factory of Mumbai, Sun TV Network of Chennai, E24 Glamour, Polimer Media, Reliance Big Network, Eenadu TV, Sarthak Entertainment and Raj TV.

Later, some general entertainment channels including music channels had also approached TDSAT in various petitions and the Tribunal had decided to hear these matters after the NBA matter.

Counsel for TRAI said that an anomalous situation had been created with some channels having accepted the adcap with effect from 1 October. It was therefore requested that the matter be resolved once for all.

Meanwhile, TRAI had been forbidden on 30 August from taking any ‘coercive action’ against news channels who are not abiding by the agreement relating to advertisement time on news channels.

The Tribunal also said that while the news channels will maintain weekly records of the advertising time per hour on a weekly basis, they will not be required to submit this to the regulator as being done at present and will only submit these to TDSAT at the hearing of the case.

Counsel for the NBA A J Bhambani had said on 30 August that a delegation of the Indian Broadcasting Foundation had submitted a formula to the regulator but that did not preclude the broadcasters from challenging the validity of the Regulations. He also said that this was only a compromise reached between the broadcasters and the regulator and could not form the basis of penal action since it was not a regulation or legal provision. He had added that there were many members who were common to both the IBF and the NBA, and therefore the IBF had submitted a ‘proposal’ on 29 May this year, which the TRAI accepted. But this could not be construed as a regulation.

Even otherwise, he argued that TRAI was only empowered by its own Act to make ‘recommendations’ on issues like advertisements and not bring about or enforce regulations and resort to prosecution.

When the law was invoked by the Authority in May 2012, it was disputed by television broadcasters which had also challenged the jurisdiction of TRAI in this regard before the Tribunal.

October 30, 2013
Ad Cap: The Story continues.

MUMBAI: That both music channels and news channels had approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the 12 minute ad cap ruling by the Telecom Regulatory Authority of India (TRAI) is known.

We had also reported that while the TDSAT hearing for music channels was scheduled for 21 October, that for news channels had been brought ahead to 31 October from 11 November.

ut there’s one more twist in this tale for music channels too will now have to wait, much like their news counterparts, till 31 October to hear the TDSAT ruling on the matter.

And it doesn’t end there. Industry sources reveal there is still confusion regarding the ad cap with nearly 50 per cent of television channels not implementing it, a few of which are following the earlier mandate of 16 and 20 minutes advertising, and still others ‘flouting the rule completely.’

In fact, a source states the number of antacid pills being consumed by planners and buyers in agencies and by ad sales executives in TV channels has gone up thanks to the constant bickering between the two of them.

Indeed, Sony Entertainment Television took everyone by surprise when the network unanimously decided not to follow the 10+2 mandate. Network CEO and Indian Broadcasting Foundation president Man Jit Singh had then said: “There should be status quo and there should be one law for all channels from all genres.”

Till date, Sony stands by its CEO’s statement. “We will wait for the verdict from TDSAT, which comes out at the end of this month. We want status quo, no matter which way the verdict goes,” says MSM president network sales, licensing and telephony Rohit Gupta.

We will continue with the 10+2 ad cap no matter what the TDSAT decides, says Ashish Sehgal

On the other hand, representatives of Star Network and Viacom 18, which have been happily following the ad cap, maintain that their respective managements will take a call after the TDSAT ruling. “We will follow the law,” they say.

Meanwhile, Zee has an entirely different take on the issue. “We will continue with the 10+2 ad cap no matter what the TDSAT decides,” says Zeel chief sales officer Ashish Sehgal.

He justifies this stance saying: “Not that we are too happy with the scenario, but we need to bring in discipline. We are now going to the international norm of 12 minutes of advertising per hour. The network has already created its business plan around the new rule. A lot of planning has gone into this. We have increased our content and decreased the inventory and revising this again is not on our agenda.”

On their part, advertisers are unhappy with the few networks that are implementing the mandate voluntarily and charging high rates. The big question facing them is what if TDSAT overrules TRAI’s diktat. “Will the channels revert to their earlier air time allocation as everyone else is doing or will they further hike the rates?” one of the advertisers questioned voicing his apprehensions on condition of anonymity.

As far as the industry is concerned, an IBF member says: “Let’s say the TDSAT quashes the TRAI order. The ruling will be valid for everyone and every broadcaster (even those who are complying with the 12 minute ad cap) can go back to the old system. Or news and music channels lose the case in TDSAT. They can approach the Supreme Court for succour. Then let’s say the Supreme Court puts a stay on the ad cap, it will then be back to the way the world was operating before this ad cap announcement by TRAI.”

News broadcasters say that if the verdict is in support of the ad cap, it will be implemented by end-November, if not earlier. “With Diwali round the corner, we are unsure how many days the court will take to come up with the verdict. Though if it is implemented, it is bad news for news channels,” says a member of NBA (News Broadcasters’ Association). Asked if the NBA will then appeal to the Supreme Court, the member dismisses it as a hypothetical question.

Some advertisers believe that the new ad cap regime could take longer to roll out completely. Some expect it to spill over to mid-2014. Or it could be even later, if things go back and forth in court as they are wont to do.

For the industry, however, what could be the best outcome is that Union I&B Minister Manish Tewari’s suggestion (that ad cap be implemented post completion of digitization in December 2014) is taken seriously and becomes a reality.

But then there are the cynical observers. Says one of them: “Don’t get into the politics. Ministers say something and do something else. After all, where did the request for the ad cap come from…”

October 17, 2013
More regional TV channels join the petition in TDSAT against the TRAI adcap

NEW DELHI: Some more channels today joined the large number of news and general entertainment channels whose matters challenging the issues relating to the adcap sought to be implemented by the Telecom Regulatory Authority of India (TRAI) will be heard by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on 31 October.

Member Kuldeep Singh of TDSAT tagged along with the other cases those by Eenadu group of Andhra Pradesh and the Sarthak Entertainment group of Odisha.

While TDSAT had on 1 October listed all matters to come up on 21 October, it had deferred this date to 31 October following a mention by News Broadcasters Association (NBA) who had earlier been given the date of 11 November for hearing the petition challenging the constitutional mandate of TRAI in the matter of adcap.

TDSAT had earlier accepted an assurance by TRAI not to take any coercive action against the channels.

Counsel for TRAI Saket Singh had told TDSAT in an earlier hearing that an anomalous situation had been created with some channels having accepted the adcap with effect from today, 1 October. It was therefore requested that the matter be resolved once for all.

The Tribunal had earlier said that while the channels will maintain weekly records of the advertising time per hour on a weekly basis, they will not be required to submit this to the regulator. Unlike the current practice, the records will only be submitted to TDSAT at the time of the hearing of the case.

At that time, Counsel A J Bhambani for the NBA had said that a delegation of the Indian Broadcasting Foundation (IBF) had submitted a formula to the regulator but that did not preclude the broadcasters from challenging the validity of the regulations.

He also said that this was only a compromise reached between the broadcasters and the regulator and could not form the basis of penal action since it was not a regulation or legal provision.

October 7, 2013
News Broadcasters case on adcap to be heard by TDSAT on 31 October

NEW DELHI: The petition by the News Broadcasters Association (NBA) challenging the constitutional validity of the regulations of Telecom Regulatory Authority of India (TRAI) enforcing the ad cap is to come up for hearing on 31 October.

The fresh date was fixed on a mention by counsel A J Bhambani for the NBA to the effect that the cases relating to general entertainment channels could not be clubbed with news broadcasters who had challenged the authority of TRAI to take decisions in the matter.

Earlier on 30 August, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had listed the matter for 11 November.

However, when some general entertainment channels including music channels approached TDSAT in various petitions, the Tribunal decided to club all the cases together and hear them on 21 October after counsel for TRAI told TDSAT during a hearing earlier this month that an anomalous situation had been created with some channels having accepted the adcap with effect from 1 October. It was therefore requested that the matter be resolved once and for all.

It remains to be seen whether general entertainment channels will seek a change in date in view of the new date for the NBA case. However, counsel for some of the GECs told indiantelevision.com that TDSAT was expected to hear all matters together on 31 October.

Meanwhile, TRAI had been forbidden on 30 August from taking any ‘coercive action’ against news channels who are not abiding by the agreement relating to advertisement time on news channels.

The Tribunal also said that while the news channels will maintain weekly records of the advertising time per hour on a weekly basis, they will not be required to submit this to the regulator as being done at present and will only submit these to TDSAT at the hearing of the case.

Bhambani had said on 30 August that a delegation of the Indian Broadcasting Foundation (IBF) had submitted a formula to the regulator but that did not preclude the broadcasters from challenging the validity of the Regulations. He also said that this was only a compromise reached between the broadcasters and the regulator and could not form the basis of penal action since it was not a regulation or legal provision. He had added that there were many members who were common to both the IBF and the NBA, and therefore the IBF had submitted a ‘proposal’ on 29 May this year, which the TRAI accepted. But this could not be construed as a regulation.

Even otherwise, he argued that TRAI was only empowered by its own Act to make ‘recommendations’ on issues like advertisements and not bring about or enforce regulations and resort to prosecution.

When the law was invoked by the Authority in May 2012, it was disputed by television broadcasters which had also challenged the jurisdiction of TRAI in this regard before the Tribunal.

October 3, 2013
Reliance joins the horde of TV channels challenging the 12 minute ad cap in TDSAT

NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today said a petition by Reliance Big Broadcasting, Mumbai, relating to their television channels will be heard along with other matters challenging issues relating to the ad cap sought to be implemented by the Telecom Regulatory Authority of India (TRAI).

The matters will be heard by the TDSAT on 21 October along with other channels such as Music Xpress, Mastiii, B4U Music, M Tunes and 9XM.

Earlier, TDSAT had accepted an assurance by TRAI not to take any coercive action against television channels from 1 October, when the ad cap of 12 minutes per hour was to have come into force.

In a hearing earlier this week in a similar matter, counsel for TRAI had told TDSAT that an anomalous situation had been created with some channels having accepted the ad cap with effect from 1 October. It was therefore requested that the matter be resolved once for all.

TRAI has so far admitted a large number of matters including one by the News Broadcasters Association (NBA) which seeks to challenge the status quo of TRAI in the matter. That petition had been listed for hearing on 11 November but will now be heard along with the others.

The Tribunal had earlier said that while the channels will maintain weekly records of the advertising time per hour on a weekly basis, they will not be required to submit this to the regulator. Unlike the current practice, the records will only be submitted to TDSAT at the time of the hearing of the case.

At that time, Counsel A J Bhambani for the NBA had said that a delegation of the Indian Broadcasting Foundation (IBF) had submitted a formula to the regulator but that did not preclude the broadcasters from challenging the validity of the regulations.

He also said that this was only a compromise reached between the broadcasters and the regulator and could not form the basis of penal action since it was not a regulation or legal provision.

October 3, 2013
TDSAT admits petition by LCOs wanting right of billing under DAS

NEW DELHI: Cable operators in the state of Maharashtra have got a head start regarding the billing system for cable television under DAS that MSOs are planning to put into effect. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has accepted its petition and the case filed by the Nasik District Cable Operators Association of Maharashtra will come up for hearing on 22 November.

Counsel Vikram Singh submitted that while the services were being provided by the local cable operators, the billing was meant to be done by the multi-system operators under the Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations 2012 of the Telecom Regulatory Authority of India.

TRAI counsel Saket Singh sought to argue that LCOs cannot approach TDSAT as they are not service providers. However, the Bench of Member Kuldip Singh admitted the case for hearing and asked TRAI to file its counter-affidavit.

It has also been stated in the petition that cable TV operations cannot be equated with telecom services since there was only one service provider for mobiles while there were the MSOs and the LCOs in television.

Regulation 14 of the Regulations issued on 14 May 2012 says ‘Every multi-system operator shall offer cable TV services on both pre-paid and post-paid payment options to the subscriber and shall be responsible for generation of bills for the subscribers.’

Regulation 15 says ‘Every multi-system operator either directly or through its linked local cable operator, as the case may be, shall give to every subscriber the bill for charges due and payable by such subscriber for each month or for such other period as agreed between the parties, for which such charges become payable by the subscriber.

The LMOs in Maharashtra have been fighting against the alleged dominance shown by MSOs by imposing restrictions on them as well as dictating terms relating to billing practice. A cable TV blackout was also held in various parts of the state from 6pm to 9pm on 2 October as a sign of protest.

October 3, 2013
Ad cap: Petitions to be heard on 21 Oct by TDSAT

NEW DELHI: So it looks like the Sony Entertainment Television network’s position on the ad cap situation seems right – at least for now. It was announced today that all matters challenging the issues relating to the ad cap sought to be implemented by the Telecom Regulatory Authority of India (TRAI) will be heard by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on 21 October.

After hearing counsel Abhishek Malhotra and other counsel, TRAI assured TDSAT that it will not take any coercive action against any more television channels including New Delhi-based E24 run by E 24 Glamour and Chennai-based Polimer Media’s channel, among others.

The counsel for TRAI told TDSAT that an anomalous situation had been created with some channels having accepted the ad cap with effect from today, 1 October. It was therefore requested that the matter be resolved once and for all.

Last week, TRAI had given a similar order in the case of Mastiii (owned by TV Vision, Mumbai), B4U, 9X Media, M Tunes HD and Music Xpress.

Earlier, TDSAT had accepted a similar petition by the News Broadcasters Association (NBA) which challenged the constitutional validity of the regulations of TRAI enforcing the ad cap. That petition had been listed for hearing on 11 November but will be heard along with the others.

The Tribunal had earlier said that while the channels will maintain weekly records of the advertising time per hour, they will not be required to submit this to the regulator. Unlike the current practice, the records will only be submitted to TDSAT at the time of the hearing of the case.

At that time, Counsel A J Bhambani for the NBA had said that a delegation of the Indian Broadcasting Foundation (IBF) had submitted a formula to the regulator but that did not preclude the broadcasters from challenging the validity of the regulations.
He also said that this was only a compromise reached between the broadcasters and the regulator and could not form the basis of penal action since it was not a regulation or legal provision.

October 1, 2013