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Tag: TDSAT

  • TRAI directed not to implement ad cap for music channels

    TRAI directed not to implement ad cap for music channels

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) was today directed not to take any coercive action against four music television channels with regards to ad cap.

    Telecom Disputes Settlement and Appellate Tribunal (TDSAT) member Kuldip Singh after hearing counsel Kunal Tandon directed the matter to come up for further hearing on 21 October.

    The petitions were filed on behalf 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 has been listed for hearing on 11 November.

    The Tribunal said 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.

  • TDSAT stays TRAIs action against ad cap

    TDSAT stays TRAIs action against ad cap

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has been left toothless by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). In an order passed today, the regulator has been forbidden from taking any ‘coercive action’ against news channels for not abiding by the agreement relating to ad cap.

    The petition filed by the News Broadcasters Association (NBA) challenges the constitutional validity of the regulations of TRAI enforcing the ad cap. The petition has been listed for a hearing on 11 November and will be presided by TDSAT chairman Justice Aftab Alam and member Kuldip Singh.

    The tribunal added 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. Unlike the current practice, the records will only be submitted to TDSAT at the time of the hearing of the case.

    Counsel A J Bhambani for the NBA 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.

    Speaking after TRAI Counsel Saket Singh had presented his arguments, Bhambani said 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 2013, which the TRAI accepted. But this could not be construed as a regulation.

    But TRAI had begun prosecutions on the basis of this proposal and not on the basis of any law, he stressed.  He said that TRAI had in fact submitted on 11 June before TDSAT that no action would be taken.

    Even otherwise, he said 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 Singh sought to interrupt to say that 20 of the 24 members of NBA were following the formula, Bhambani pointed out that one news channel had recently been forced to retrench a large number of staff.

    Earlier, Singh stressed that the proposal submitted by IBF had been worked out by a group that had the NBA president as one of its members.

    He also stressed that action had been taken only against those broadcasters who had violated the agreed formula more than 20 times.

    He said the proposal had made it clear that with effect from 29 May, the ad time per hour would not be more than 30 minutes. From 1 July, this would be reduced to 20 minutes per hour while GECs will cut this down to 16 minutes. This will be in force until 30 September, following which the 12-minute rule will be enforced from 1 October. TRAI had agreed as it felt this was the best way forward, Singh added.

    However, Justice Alam said that the proposal could be treated as a law and acted upon for prosecution of television channels. Furthermore, it could not preclude the channels from challenging the constitutional validity of the regulations.

    Referring to a point made by Singh, Justice Alam also said it would be unfair to ask for commitments from the channels when they were challenging the validity of the law and TRAI’s status quo in the matter. “This is arm-twisting,” he observed.

    When Singh sought to stress that the channels were violating their own agreement, Justice Alam said “We feel we will test the constitutional validity of your order.”

    He added that TDSAT felt that before taking any action against the channels, TRAI would have either informed the tribunal or at least given a warning to the channels.

    Referring to Singh stressing that the GECs were abiding by the agreement, Justice Alam said there was need to draw a line between news channels and GECs.

    Singh also proposed that TRAI would withdraw the complaints if the channels gave an undertaking before the tribunal about adherence.

    Meanwhile, in its order yesterday on a mention by the NBA counsel, TDSAT said, “Even while the appeals are pending, 14 complaints have been filed by the TRAI against different broadcasters for violation of the standards of quality service (Duration of Advertisements in Television Channels) (Amendment) Regulations 2013 that came into force on 22 March 2013.”

    TDSAT further noted that Singh had admitted that “Not only the complaints have been filed but as a matter of fact, cognizance was taken in those complaints at 2 p.m. today.”

    TDSAT had listed the matter for today and observed, “In view of the fact that the validity of the regulation is under consideration before the tribunal and having regard to the manner in which the matter has been proceeding, we are somewhat surprised at the sudden and drastic action taken by the TRAI.”

    “When we expressed our displeasure over the way the matter has been sought to be precipitated, Singh requested that the matter be taken up tomorrow at 2:30 p.m. so that he may get proper instructions in the matter.  We suggest that Singh should get instructions as to whether the TRAI is willing to withdraw the complaints filed during the pendency of the appeals before the tribunal or at least till an interim order is passed on the issue after hearing both sides.”

    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 TDSAT.

    With the news channels having obtained a stay from the TDSAT against any coercive action by TRAI, it remains to be seen how the IBF representing GECs will react and whether it will move TDSAT or any other court for similar stay.

  • Postpone 12-minute ad cap deadline to Dec 2014: I&B minister Manish Tewari

    Postpone 12-minute ad cap deadline to Dec 2014: I&B minister Manish Tewari

    MUMBAI: He could well be labeled the messiah of the broadcasting industry if his suggestion is heeded. Minister of Information & Broadcasting Manish Tewari has recommended that the 12 minute per clock hour advertising cap deadline be moved ahead to December 2014 from 1 October 2013 suggested by the Telecom Regulatory Authority of India. (TRAI)

     

    “The final phase of India’s cable TV digitization is likely to be over by September 2014,” he is reported to have said. “And the broadcast industry would be in a position to generate a substantial dividend from the digitized cable TV ecosystem which could well compensate them for the loss of air time revenues on account of the reduction in advertising air time. We, at the I&B, have hence suggested to the TRAI that ad air time reduction should follow the completion of digitization.”

     

    TRAI had in May 2013 mandated that general entertainment TV channels (GECs) and news TV channels should reduce their advertising air time per hour to 16 minutes and 20 minutes respectively from 1 July 2013 and to 12 minutes by 1 October 2013. The reason: GECs were booking and telecasting around 18-20 of ads per hour while for news channels the figure was 25-30 minutes. The advertising clutter was resulting in a poor viewing experience for TV watchers; hence TRAI had ordered the broadcast ecosystem to cut back around a year ago, but had delayed enacting the order until to May 2013.

     

    Broadcasters – specially news TV channels – had immediately protested this move, saying it could impact their financial viability. The news channels had also asked the Telecom Disputes Appellate Tribunal (TDSAT) to intervene a month or so ago after the headless body found itself a chief.

     

    However, both GECs and news channels had – for the large part – complied with the TRAI ad cap mandate and reduced their air time to 16 minutes and 20 minutes from 1 July 2013. The major Indian GECs had managed to increase their advertising air-time rates between 12-30 per cent, but news channels have said this has been difficult for them. They have also complained that high cable TV carriage fees have been a drain on their resources.

     

    The ball is now in TRAI’s court. Will it concur with the minister and his ministry’s recommendation? Will it do so for only the news TV channels or for all genres? Will the other genres of TV channels accept the largesse being doled out to the news channels alone? Will they also join the chorus and implore the government to help them out too? Questions that beg answers!

  • TRAI ad cap: Why news channels want concessions?

    TRAI ad cap: Why news channels want concessions?

    MUMBAI: News channels have been rather miffed with TRAI’s ruling that advertising air time should be restricted to just 12 minutes per hour. And they have been seeking some succor from government. Two weeks ago they got a lifeline when the Telecom Disputes Settlement Appellate Tribunal (TDSAT) allowed them to appeal against the TRAI mandate.

     

    And apparently, if sources are to be believed that appeal was filed with the TDSAT today, the hearing for which will be on 19 September.

     

    “In a democracy you have the legal right to approach the court against injustice and that is what we are doing,” says one of the broadcasters who wished to remain unnamed.

     

    Certain issues that news providers are grappling with are high carriage fees, falling advertising revenues, an unfavourable economy and low subscription rates. These have already nearly crippled the broadcast news industry with all of them being forced to cut back ad time per hour to 20 minutes from 1 July.

     

    Those in the know say the News Broadcasters Association (NBA) perspective is that other genres can cope with the ad restriction better because their shows are pre-produced. News-based and news-oriented shows which are live are unpredictable.

     

    “In news, generally there are discussions. What will we do if a discussion ends a minute early or a minute late?” asks the news broadcasting executive. “Sometimes, news channels cover incidents without even a break. In such cases, it puts a lot of strain on news channels as they either violate the rule or fall short of fulfilling it. Also in the case of natural disasters where death has occurred we find it difficult to carry advertising. And this could continue for days. What about the loss of air time then?”

     

    Lowering of advertising air time will work better in a digitised cable TV universe, is the news broadcasters view, as substantial subscription revenues will kick in (most news channels run as free to air services now) and carriage fees will drop to almost zilch. But that is in the future, they say, as digitisation has still some way to go nationally and has happened in only a limited number of cities.

     

    “We had asked TDSAT to phase it out in such a way that it comes into effect at the same time that digitisation takes place in the country,” says another broadcaster.

     

    Sources indicate that TRAI is unlikely to relent on allowing any increases in air time as chairman Rahul Khullar is pretty clear that quality of services is something which is the regulator’s responsibility. But they add that one area where he may give concessions is when round the clock news reportage is forced upon news channels by natural or manmade disasters or events.

     

    “We believe there has been an informal agreement with the TRAI agreeing to the news broadcasters’ demands that if they don’t consume the air time within the day because of live coverage they will be allowed to consume it in the next 24 hours,” says a source.”Now that has to be written into law.”

     

    It’s over to the two Ts – TDSAT and TRAI – now.

  • TDSAT directs Media Pro to restore signals to Lucknow MSO

    TDSAT directs Media Pro to restore signals to Lucknow MSO

    NEW DELHI: In an order that may help multi-system operators whose applications for DAS licence are pending with the government, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed Media Pro Enterprises to restore television signals to Lucknow-9 Cable Network of Lucknow as an interim measure.

    The Lucknow-based operator had said that its application for licence under Digital Access System (DAS) has been pending before the Information and Broadcasting Ministry for several months.

    Chairperson Justice Aftab Alam and member Kuldeep Singh also directed the Lucknow network to file an affidavit to the effect that its application filed in the Ministry for grant of license under Rule 11 C of the Cable Television Networks Rules, 1994 was not defective but was complete and in order, in all respects. It would also file a copy of the application in a sealed cover.

    Meanwhile, the Lucknow-based operator would pay to content aggregator Media Pro all dues following a reconciliation of accounts and further to file an undertaking before this Tribunal that it would transmit or retransmit programmes of any channels following the provisions of section 4 A of the Cable Television Networks (Regulation) Act, 1995. This undertaking has already been filed.

    Media Pro counsel Tejveer Singh Bhatia had told the Tribunal that his client could not supply the signals as it was prohibited from doing so under clause 3(2) of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Television Systems) Regulations, 2012 ‘for the simple reason that the Petitioner did not have a license under Regulation 11 C of the Cable Television Networks Rules, 1994.’

    But Counsel for the operator Vikram Singh said as there was inordinate delay in the grant of license, the operator had approached the Lucknow Bench of the Allahabad High Court which had disposed off the Petition by order dated 2 June 2013 directing the concerned authority to rid the application for license within 15 days from the date of receipt of the certified copy of that order. Counsel also stated that the date stipulated in the High Court’s order has expired on 2 July 2013 but it has so far not received any communication in regard to its application for the license.

  • TDSAT to accept news broadcasters’ appeal on ad cap

    TDSAT to accept news broadcasters’ appeal on ad cap

    MUMBAI: Is there some relief in store for India’s TV broadcast sector in terms of advertising allowed to be telecast per hour? A slight glimmer of hope appears to have emerged yesterday.

     

    Media reports are that the Telecom Disputes Settlement Apellate Tribunal (TDSAT) has given directions to the News Broadcasters Association (NBA) to submit its appeal against the 12 minute per hour Telecom Regulatory Authority of India’s (TRAI’s) mandate. It also gave TRAI two weeks to file its responses to news broadcasters’ concerns. And the NBA has been given a further two weeks to file a rejoinder after that, say media reports. A new chairman Justice Aftab Alam was appointed to the TRAI last month.

     

    TRAI’s order has forced news channels to reduce their advertising commercial time per clock hour down to 20 minutes and general entertainment channels to 16 minutes per hour from 1 July 2013. This is slated to go down further to 12 minutes per hour from 1 October during the peak season of spending by most brands on TV.

     

    News channels have for the past decade or so operated by having an advertising inventory of between 25 and 30 minutes per hour of telecast, is what the TRAI had observed. This dragged down the quality of viewing experience of TV viewers and it had hence under the quality of service rules for consumers mandated that the advertising air time be brought down almost immediately mid-last year.

        
    Broadcasters had yelped and protested and even challenged TRAI’s locus standi on this decision last year with the TDSAT. But with no chairperson in place, the appeal had been kept in abeyance. The TRAI then came up with the quality of service regulations for advertising on TV on 22 March which have since then been enforced on the industry.

     

    ”It is true that broadcasters were going overboard in carrying too much advertising per hour,” says a media observer. ”But the business model of high carriage fees, low distribution revenues and relatively low ad rates has forced this upon news broadcasters. At least, general entertainment channels can charge higher rates. The government could have waited till digitisation was completed and the benefits of higher subscription-lower-carriage fees kicked in.”

     

    In fact most news broadcasters have pleaded that their survival is at stake. Estimates are that news channels in India account for an approximate six per cent genre viewership share.

     

    Advertising revenues for the almost 150 plus news channels operating in India in various language tot up to about Rs 2,200 crore. Broadcasters have claimed that the reduction in air time will not concomitantly be compensated by a hike in ad rates as advertisers and their agencies have only been eroding those over the past few years. They have also said that a large group of small advertisers who have been the main revenue source for TV news channels will not be in a position to absorb sharp hikes in ad rates. 10 second TV commercial rates for news channels vary between Rs 200 to Rs 2,500.

  • SC admits LCOs plea against Tdsat’s DAS order

    SC admits LCOs plea against Tdsat’s DAS order

    NEW DELHI: The supreme court today admitted for hearing an appeal by united cable operators welfare association (Ucowa) challenging the revenue sharing model under the digital addressable system (DAS) for cable television.

    Chief justice Altamis Kabir, justice Vikramjit Sen and justice S A Bobde also issued notice to the telecom regulatory authority of India (Trai) and the information & broadcasting ministry.

    The court also decided to list for hearing this appeal along with the appeals filed earlier by Incable and Digicable.

    All the three appeals are against the judgment of the telecom disputes settlement and appellate tribunal (Tdsat) of 19 October last year.

    In its petition, the Ucowa said the tariff order and regulations were aimed at helping the television broadcasters and the direct-to-home platforms.

    They said it was also clear that the channels were deliberately not revealing their retail tariff per channel.

    The counsel stressed that they were not opposed to introduction of digital DAS but some infirmities had to be corrected.

    The LCOs had failed to get any relief from Tdsat on their plea that the revenue sharing pattern of 55:45 on the basic service tier (free to air television channels) of Rs 100 and 65:35 on the upper tier of Rs 150 (combination of FTA and pay channels), and their appeals were dismissed.

    The appeals by the MSOs had been filed against the unfair fixation of the wholesale rate the price broadcasters can charge of channels for DAS at not more than 42 percent of the non-Cas area rate. The MSOs are concerned about the rate that would be fixed after DAS is implemented countrywide (by December 2014).

  • Jharkand high court gives Manthan breathing space

    Jharkand high court gives Manthan breathing space

    New Delhi: The Jharkand high court has directed Media Pro not to take any coercive steps against Manthan Broadband Services if the latter has a valid digital access system licence.

    The court bench at Ranchi issued a notice to Media Pro on a petition filed by Manthan Broadband Services against the information & broadcasting ministry and Media Pro.

    The matter was listed by justice Appeaser Kumar Singh for further hearing on 10 May.

    The court took note of the fact that the statutory forum, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) is not in session at present and is likely to sit only from 10 May.

    The petitioner said he has obtained the DAS licence (as also listed in the Ministry’s website) and is also complying with the orders of TDSAT, but Media Pro has been taking coercive steps against it. These included stopping the transmission of television channels.

  • Trai brings ad regulation ghost back to haunt broadcasters again

    NEW DELHI: Turning the heat on broadcasters again, the Telecom Regulatory Authority of India (Trai) has notified the Standards of Quality of Service (Duration of Advertisement in Television Channels) after watering down the amended version of the ad regulation.

    The main regulation was issued on 14 May last year that had the broadcasters up in arms. The matter finally reached Telecom Disputes Settlement and Appellate Tribunal (Tdsat) with the broadcasters getting interim relief in the form of a stay.

    The amended ad regulation has done away with contentious clauses by keeping a standardised ad duration at 12 minutes on clock hour basis for all channels as stated under the advertising code of the Cable Television Networks Rules (CTNR) 1994.

    As per the advertising code, no programme shall carry advertisements exceeding 12 minutes per hour, which may include up to 10 minutes per hour of commercial advertisements, and up to 2 minutes per hour of a channel’s self-promotional programmes.

    The advertising code among other things also states that “all advertisement should be clearly distinguishable from the programme and should not in any manner interfere with the programme use of lower part of screen to carry captions, static or moving alongside the programme”.

    The authority has also defined clock hour in the amended regulation. “The clock hour means a period of sixty minutes commencing from 00.00 of an hour and ending at 00.60 of that hour,” Trai said in the notification.

    While refusing to bow down under pressure from broadcasters, the Trai has also tried to pacify them by doing away or moderating certain clause from its earlier version in March.

    Some of the provisions that have been done away with include: (i) advertisements should be carried only during breaks in live sporting action, (ii) time gap between consecutive advertisement sessions should be of minimum 30 minutes in case of movies and 15 minutes otherwise excluding sporting events and (iii) no part screen or drop-down advertisements should be permitted etc.

    In order to minimise other breaks during certain live sporting events, in which natural breaks either occur after relatively long periods or there are no natural breaks such as F1 races, part screen advertisements should be allowed, the Trai said.

    It also said that “the “part screen” and “drop down” advertisements are integral forms of advertising and statutory rules already exist under the Cable TV Act to regulate the format and duration of advertisements that may be carried on television channels and the regulations are beyond the purview of Trai and in conflict with the provisions of rule 7 of the CTNR 1994”.

    The watered down version will also not go down well with broadcasters who are already bearing the brunt of of ad slowdown. It wouldn‘t be surprising if the matter ends up in the court again.

    The Trai contends that it is not bringing a new regulation; rather it is just implementing an existing one under the CTNR 1994 act. It also affirmed that regulating the duration of ads on television channels is the need of the hour in the interest of the consumers.

    The authority has alleged that most channels are in ‘brazen breach’ of the advertising code contained in the CTNR 1994.

    It has based its action on a report by I&B ministry’s Electronic Media Monitoring Centre (EMMC) that validated the rampant breach of permitted duration of advertisements in an hour by a large number of TV channels.

    Unperturbed by the allegations that it is overstepping the line, the Trai asserts that it has the power to define the term “quality of service” and lay down its standard and ensure its compliance.

    “Therefore, Trai has made these regulations to effectively monitor the duration of advertisement and to ensure that the broadcasters comply with the legislation in this regard,” it said in the notification.

    In order to monitor and ensure compliance of these regulations, broadcasters are now mandated to report the duration of advertisements carried in their channels to the Trai on quarterly basis in a prescribed proforma.

    The authority also warned that it would by order or direction issued from time to time, intervene for the purpose of protecting the interests of the subscribers or for ensuring compliance of the provisions of these regulations.

    The Trai amended the ad regulation following the Tdsat ruling that directed the authority to take stakeholders into confidence before implementing the ad regulation. The Trai issued a consultation paper on 27 August asking all stakeholders to give their responses which was followed by open house discussion.

    During the consultation process, the broadcasters contended that the ad regulation would result in fall in advertisement revenue. It was also mentioned that the restriction on advertisement duration would result in sharp increase in subscription charges.

    Some of the broadcasters suggested that the said regulations should be implemented after the completion of Digital Addressable System (DAS) in December 2014 or it should not be regulated on clock hour basis; instead it should be regulated on an average basis, averaged over a period of 24 hour.

    However, the Trai feels that if the ad duration is calculated on average basis the broadcasters will push more and more advertisements during prime time which attracts the highest number of eyeballs, to fetch higher rates for the commercial time slots.

    Some of the broadcasters were also of the view that sports channels merit different treatment. Live telecasts other than sports should also be treated at par with live sporting events.

  • Media Pro, Manthan in dispute over commercial terms

    Media Pro, Manthan in dispute over commercial terms

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (Tdsat) has directed Manthan Broadband Services Pvt Ltd to immediately pay a sum of Rs. 25 million to Media Pro Enterprise India Pvt Ltd within a period of one week and also pay an amount of Rs 27.5 million every month starting from 28 February pending further directions.

    Tdsat member P K Rastogi also directed that Media Pro will not give effect to its notices of 8 January and public notice issued on 11 January for disconnection of the signals of TV channels of Media Pro to the various networks of the Manthan Broadband, against which the petition had been filed by the latter.

    The dispute between the two parties relates to: reconciliation of accounts, request of the petitioner (Manthan) for downgradation of subscription fee in view of the migration of several operators, implementation of DAS in Kolkata and calculating the outstanding amount after accounting for the credit period.

    The notice had been issued under clause 6.1 of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations 2012 and clause 4.1 of the Telecommunication (Broadcasting and Cable Services) Interconnection Regulations 2004.

    Listing the matter for directions on 21 March, Tdsat said the representatives of both the parties should meet to reconcile their accounts within two weeks. Media Pro may file its reply within 10 days along with ledger statements and rejoinder can be filed by Manthan within 10 days thereafter.

    Media Pro had issued notice on 4 January demanding an amount of Rs 34.71 million for Digital Addressable Systems and non-DAS areas of Kolkata and an amount of Rs 100.84 million from various non-DAS head end in East zone.

    But Manthan submitted that the account maintained by the Media Pro was always faulty and being made up for the purpose of putting pressure on the petitioner to pay over and above the agreed amount and re-negotiate the agreement to give growth to the respondent.

    It was also pointed out by Manthan that DAS has not been implemented in Kolkata due to law and order problems. However, Media Pro counsel contended that DAS commenced in Kolkata beginning 1 November 2012.

    According to a statement handed over by the counsel for Media Pro during hearing, an amount of Rs 121.4 million is to be paid by Manthan for subscription up to February 2013. If 60 days credit period is allowed in terms of the agreement, the subscription amount up to November 2012 becomes payable by 31 January which is Rs 122 million according to the statement by Media Pro.

    Manthan has paid an amount of Rs 62.7 million and Rs 35 million in December 2012 and February 2013 respectively. However, it is stated that the cheques for an amount of Rs 36.6 million were dishonoured. Tdsat noted that Manthan has to pay around Rs 60 million up to 31 January, if the statement by Media Pro is relied upon.