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  • ACT continues to lead in wireline broadband internet additions in 2015: TRAI October 2015

    ACT continues to lead in wireline broadband internet additions in 2015: TRAI October 2015

    BENGALURU: South Indian broadband internet service provider Atria Convergence Technologies Private Limited (ACT) continued to lead in addition of new subscribers in wireline broadband internet services during the period between 31 December, 2014 and 31 October, 2015. ACT added 2.10 lakh net subscribers or 22.11 per cent of the all India additions during the period as per the Telecom Regulatory of India (TRAI) report for the month ended 31 October, 2015. As per the TRAI reports, as on 31 December, 2014, ACT had 6.1 lakh subscribers (3.98 per cent of all India subscribers) and it had 8.2 lakh subscribers (5.04 per cent of all India subscribers) as on 31 October, 2015. Hence, its growth has also been the highest in percentage terms at 34.43 per cent during the period.

    The top five players in India in the wireline broadband internet space in pecking order are the public sector Bharat Sanchar Nigam Limited (BSNL), Bharti Airtel Limited (Airtel), public sector Mahanagar Telephone Nigam Limited (MTNL), Atria Convergence Technologies Private Limited (ACT) and You Broadband (You BB). Among these five, only BSNL and Airtel could be termed national players at present. BSNL, Airtel and MTNL also provide wireline and mobile services while Airtel also has a direct to home (DTH) segment.

    Note: (1) 100,00,000 = 100 Lakh = 10 million = 1 crore

    (2) TRAI reports indicate data in millions of numbers up to two decimal places. Hence it is assumed in this report that a figure of 0.47 million (4.7 lakh) subscribers for You BB for July-2015 would be granular to the nearest 10,000. While percentages perforce have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.

    (3) Industry sources say that TRAI numbers in the case of ACT for May-2015 are incorrect at 0.66 million and the correct number would be 0.693 million. This paper considers the number as 6.93 lakh or 0.693 million.

    (4) MSOs have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger. Hathway is a case in point.

    (5) Ortel’s numbers for Q3-2015 have been estimated from the numbers released by it for Q1-2015, Q2-2015, Q4-2015 and FY-2015.

    (6) The term ‘operating revenue’ in this paper indicates ‘total income from operations.’

    Please refer to Figure 1 below. Overall, during the 10 month period in CY-2015 until end October 2015, wireline broadband internet subscriber base in India grew by 6.2 per cent or by 9.5 lakh net new subscribers. During the period, wired broadband internet subscriber base increased from 153.2 lakh to 162.7 lakh. During the period, the combined share of wireline broadband internet subscribers of the top 5 players has dropped 246 basis points from 88.45 per cent as on 31 December, 2014 to 85.99 per cent as on 31 October, 2015. The drop in share between 30 September, 2015 and 31 October, 2015 was 31 basis points from 86.30 per cent to 85.99 per cent as on 31 October, 2015. Of the 9.5 lakh new all additions, 4.4 lakh (46.32 per cent of total additions) were added by the top five players. Compared to the all India growth of 6.2 per cent in subscribers, the top five players combined subscription numbers grew by 3.25 per cent.

    Telecom major Bharti Airtel Limited (Airtel) is not far behind ACT in subscriber additions during the 10 month period. Airtel has added two lakh net new subscribers or 21.05 per cent of the net new all India additions during the period. Its subscriber base grew two lakh (grew by 14.18 per cent) in the first 10 months of CY-2015. Airtel’s wireline broadband internet subscriber base grew from 14.1 lakh (9.20 per cent of the all India base) as on 31 December, 2014 to 16.1 lakh (9.90 per cent of the all India base) as on 31 October, 2015. While the share of subscribers of Airtel, ACT and You BB has been growing, the shares of the public sector BSNL and MTNL have fallen, either because of fall in number of subscribers or because of no growth in numbers. Please refer to Fig 2 below.

    MSOs’ contribution to broadband

    As mentioned above, the combined share of overall wired internet subscribers of the top five companies is declining, with other players increasing their contribution to wireline broadband subscription numbers.

    The decline between 31 December, 2014 and 31 October, 2015 was 246 basis points. Other ISPs’ share of subscribers has increased to the same extent. Among the ‘Others’ are included Cable TV MSOs. MSOs in India, which are looking at broadband revenues to prop up their cable revenue numbers because of the comparatively higher ARPUs from broadband internet services. We can only repeat the figures that we have mentioned in our earlier report Wired Broadband: ACT, Airtel lead growth in Sep 2015; MSOs’ broadband numbers increasing.

    MSOs have started reporting double digit increase in internet subscribers and revenue. Four MSOs – Hathway, Siti Cable, Ortel and Den added 1.09 lakh (25.34 per cent of total additions in Q2-2016 or the quarter ended 30 September, 2015) subscribers during that period as per their financial reports filed at the bourses. QoQ, the combined broadband subscribers in Q2-2016 added by the four MSOs increased by 58.36 per cent from 0.69 lakh added in Q1-2016. The third quarter of the current fiscal (Q3-2016) ended on 31 December, 2015 and companies will start filing their numbers over the next few weeks.

    Some MSOs’ broadband numbers from our previous report

    Broadband contributes in double digit percentages to the total incomes or operating revenue of two of the four companies – Hathway (about 25 per cent and growing) and Ortel (declined from 21.07 per cent in Q1-2015 to 16.80 per cent in Q2-2016). In the case of Siti Cable and Den, revenue from broadband services contributed to less than five per cent to their operating incomes. However, sources at Siti Cable say that the company will now be focusing at broadband internet services in a big way.

    Hathway reported broadband revenue of Rs 71.9 crore (26.24 per cent of operating revenue) in the current quarter, 58.4 per cent higher YoY than the Rs 45.4 crore (17.23 per cent of operating revenue), and 10.4 per cent more than the Rs 65.1 crore (24.62 per cent of operating revenue) in the immediate trailing quarter. Last quarter, the company said that it had added 50,000 broadband subscribers in Q1-2016, and claimed a broadband subscriber base of 4.6 lakh, of which 1.7 lakh were under Docsis 3.0. Hathway says that broadband ARPU increased 6.8 per cent QoQ to Rs 616 from Rs 577 and that its Docsis 3 consumer ARPU has reached Rs 750.

    Ortel’s broadband customers grew 8.9 per cent to 63,663 in Q2-2015 from 57,528 in Q2-2015 and grew 4.5 per cent from 60,900 in Q1-2016. Ortel’s broadband ARPU in Q2-2016 was Rs 395, in Q2-2015, it was Rs 398 and in Q1-2016, it was Rs 393. Ortel reported 11.7 per cent growth in YoY total broadband services revenue to Rs 8.1 crore (16.80 per cent of operating revenue) in the current quarter as compared to Rs 7.3 crore (19.89 per cent of operating revenue) and a 7.9 per cent QoQ growth from Rs 7.5 crore (17.40 per cent of operating revenue).

    Siti Cable says that it has added 16,950 broadband subscribers in Q2-2016, taking its broadband subscriber base to 91,450 from 74,500 in the previous quarter. Broadband revenue increased 50 per cent YoY in Q2-2106 to Rs 9.30 crore (3.30 per cent of operating revenue) from Rs 6.20 crore (3.95 per cent of operating revenue) and increased 3.3 per cent QoQ from Rs 9 crore (2.83 per cent of operating revenue).

    Den says that it has added 21,000 subscribers in Q2-2016 as compared to 12,000 in Q1-2016. Its total broadband subscriber base in Q2-2016 was 57,000 as compared to 35,000 in Q1-2016 and 16,000 in Q2-2015. Den’s broadband revenue increased 58 per cent in Q2-2015 to Rs 8.23 crore (3.03 per cent to operating revenue) as compared to the Rs 5.21 crore (1.96 per cent of operating revenue) in Q1-2016 and Rs 1.44 crore (0.49 per cent of operating revenue) in the corresponding year ago quarter.

  • TRAI makes interconnect agreements mandatory between broadcasters & MSOs

    TRAI makes interconnect agreements mandatory between broadcasters & MSOs

    NEW DELHI: In view of several multi-system and local cable operators supplying signals even in the absence of an agreement, the Government today said that it was mandatory for the broadcaster of pay channels to enter into written interconnection agreement (ICA) for retransmission of its pay channels irrespective of whether subscription fee is paid by the MSO to the broadcaster.
     
    The Telecom Regulatory Authority of India (TRAI) today released the Telecommunication (Broadcasting and Cable Services) Interconnection (DigitalAddressable Cable Television Systems)(Sixth Amendment) Regulations 2016 in this regard.  
     
    The amendment provides for sufficient time (minimum sixty days) for entering into new interconnection agreement before the expiry of existing ICA between the service providers for retransmission of TV signals.
     
    It was made clear that after this amendment, no scope will be available in the name of mutual negotiations for continuing the provisioning of TV signal after expiry of the existing ICA. 
     
    MSOs have been mandated to inform the consumers in the event of failure to execute new ICA, about date of expiry of its existing ICA and disconnection of TV channels, fifteen days prior to the expiry of existing ICA to enable the consumers to take informed decision in respect of their choice. 
     
    At the outset, TRAI said it was observed from the interconnection details submitted by the service providers that signals of TV channels are being provided by several broadcasters to MSOs and MSOs to LCOs even in the absence of valid ICA in writing. 
     
    It was also observed that continuation of retransmission of signal without valid ICA, on the pretext of continued mutual negotiations, often results in disputes and sometimes abrupt disconnection, which affects the quality of service to the consumers. 
     
    In this regard, the draft sixth amendment was released for consultation on 3 November last and an Open House Discussion (OHD) was held on 11 December. 
     
    The amendment was issued after considering the stakeholder’s comments and in-house analysis.
     
    TRAI noted that a few stakeholders expressed their concern, stating that the timeline of 60 days for starting of negotiation will bring practical difficulties and inconvenience at the ground level in view of the large number of service providers across the country. 
     
    This concern has been addressed by adding the word “at least” before 60 days in the amendment thereby they can start negotiations any time prior to 60 days. Moreover, several broadcasters and MSOs do their mutual agreements for all its operating areas or pan-India basis simultaneously. 
     
    A few stakeholders had suggested that similar provision may be made in the regulations for non-DAS areas and also in other platforms such as DTH. In this context it was mentioned that the delay in renewal of ICA is predominantly observed between broadcasters and MSOs in areas where Digital Addressable Cable System has been implemented. 
     
    However, TRAI noted that the stakeholders’ request may be taken up while reviewing interconnection regulations as a whole, in future, when such need arise.
     
    TRAI is already in the process of finalising a model ICA to ensure smooth transition to DAS.
  • Karnataka LCOs approach High Court to seek stay of DAS Phase III

    Karnataka LCOs approach High Court to seek stay of DAS Phase III

    NEW DELHI: Having a ripple effect of sorts after Telangana, Andhra Pradesh, Sikkim, Maharashtra, Odhisa and Guwahati, now it looks like Karnataka is all set to follow suit to get a court extension on the Digital Addressable System (DAS) Phase III deadline.

     

    On 8 January, the Karnataka High Court is all set to hear a petition filed by the Karnataka Cable TV Operators Association for a stay on implementation of Phase III in view of the low seeding of set top boxes (STBs), problems with interconnect agreements and other issues.

     

    As was reported earlier by Indiantelevision.com, the High Courts have already given extensions for various periods in the states of Andhra Pradesh, Assam, Maharashtra, Orissa, Sikkim, and Telangana, apart from Tamil Nadu where prolonged legal cases have been pending since Phase I.

     

    Meanwhile, senior officials in the Information and Broadcasting Ministry today met legal experts to consider options before it to counter these orders even as sources in the Ministry told this website that the orders given so far will be implemented until a counter action is found.

     

    One of the option before the Government is to ask the Supreme Court to bar any challenge to Phase III in various High Courts as this is a policy issue and the apex court had itself ruled earlier that it would not interfere in matters of policy. The second option is to oppose each case in the respective High Court, which is being done.

     

    While insisting that there will be no extension of the switch off of analogue signals beyond 31 December, 2015, the Ministry is also making a more realistic assessment of the seeding of STBs.

     

    Meanwhile, the Telecom Regulatory Authority of India (TRAI) is awaiting counter suggestions before it comes out with a model interconnect agreement by mid-January.

  • Adcap case on 11 February to consider if pay channels have right to show commercials

    Adcap case on 11 February to consider if pay channels have right to show commercials

    NEW DELHI: The Delhi High Court, which is slated to hear the advertising cap (adcap) challenge case on 11 February, today agreed to consider contentions on whether pay channels should be permitted to carry commercials in view of subscription fee charged by them. 

     

    In a brief hearing, counsel Vivek Sarin on behalf of Home Cable Network Pvt. Ltd, which has come as an intervenor in the case, also told the Court that the petitioners had not disclosed the fact that broadcasters had given their consent to observe the 10+2 minutes ad cap rule under the Cable Television Network Regulation Rules 1994 and the Act that followed a year later and also under the Uplink and Downlink Guidelines.  

     

    Defending the plea that pay TV broadcasters should not be allowed to take ads as they charged subscription fee, Sarin wanted the Court to order that offending pay TV broadcasters should deposit the advertisement revenue earned during the period from 17 December, 2013 onwards in the Consumer Welfare Fund maintained by the Union Government.

     

    He said the Standard of Quality of Services Regulation 2012 and the subsequent amendment of December 2013 was clear that all channels had to observe the adcap.

     

    However, Sarin also sought to argue that since pay channels charge a subscription fee, they should not be permitted to air ads and even if they do so, then the subscription charges should be adjusted accordingly. He said that the amendment of 17 December, 2013 to the Standard of Quality of Services Regulation should be modified accordingly and the protection given by the subsequent order of 27 November last should also be modified.

     

    The case, filed by 9x Media, News Broadcasters Association (NBA) and others against the Telecom Regulatory Authority of India (TRAI) and the Union Government, has been adjourned from time to time on the plea that the government and the broadcasters are in talks on the issue.

     

    Sarin wanted issuance of directions to the TRAI to enforce the 2012 Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations as amended in 2013 and the provisions of rule 7(11) of the Cable TV Network Rules 1994 against the offending pay TV broadcasters.

     

    He also sought directions to TRAI and the Union Government to enforce the Clause 5.1 of the Down Linking Guidelines and the undertakings given by the Pay TV Broadcasters under Form A 1 against the pay TV broadcasters.

     

    In the last hearing in November 2015, the Information and Broadcasting Ministry informed the Delhi High Court that it was in talks with the NBA and other stakeholders on the issue of the advertising cap of 12 minutes per hour on television channels.

     

    Consequently, the Court put off hearing of the matter to 11 February, 2016 but observed that the matter had been pending for some time and therefore it will hear and conclude the case in the next hearing.

     

    The intervention application by multi system operator (MSO) Home Cable Network and its head Vikki Chaudhary said it wanted to intervene as it was directly affected by the outcome of the present petition and “the ordinary subscribers are unduly burdened with unjustified charges when the cost of operating the channels can be recovered from the advertisement revenue. The said cost includes notional profits also.”

     

    The application wanted the NBA petition to be dismissed and added, “The pay channel broadcasters are profiteering at the expense of subscribers and the DPOs. There is no justification for changing monthly subscription when commercial advertisements are inserted. The Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations 2012 (with Amendments thereafter) is justified to the extent they are applicable to pay channels. The pay channel broadcasters cannot charge the subscription fee while inserting commercials into the content or in the alternative, the subscribers have to be compensated for the revenue earned on the basis of their being subscribers of the channels.”

     

    In the last two hearings on 8 and 23 September, the NBA had sought the adjournment on the ground that the matter was under discussion with the Ministry to seek certain clarifications.

     

    It is learnt by Indiantelevision.com that this comes in the wake of a statement made by I&B Minister Arun Jaitley in January last year that there should be no ad cap in the print or electronic media, However, no instructions have been issued in this regard by Jaitley so far.

     

    The Court in an initial hearing of this case directed that TRAI will not take action against any channel violating the ad cap rule until the hearing of petition is over. The Court has since reiterated that this order will continue. In an earlier hearing, the Court had, at the regulator’s instance, directed that all channels keep a record of the advertisements run by them.

      

    The NBA had challenged the ad cap rule, contending that TRAI does not have jurisdiction to regulate commercial airtime on television channels. Apart from the NBA, petitions have been filed by Sarthak Entertainment, Pioneer Channel Factory, E24 Glamour, Sun TV Network, TV Vision, B4U Broadband, 9X Media, Kalaignar, Celebrities Management, Eenadu Television and Raj Television.

  • Q1-2016 TRAI report: Radio industry performance improves

    Q1-2016 TRAI report: Radio industry performance improves

    BENGALURU: The Telecom Regulatory Authority of India (TRAI) released combined advertisement (Ad) revenues of 239 private FM radio stations for the quarter ended 30 June, 2015 (Q1-2016) a few days ago. There were a total of 243 radio stations in the India as on that date. 

    Trends across 16 consecutive quarters (four fiscal years) 

    Please refer to Figures A and B below. The all India simple average revenue per radio station and the QoQ and YoY (year on year) change has been calculated using TRAI data – the overall ad revenue mentioned by TRAI divided by the number of radio stations, which have reported revenue numbers to TRAI.

    As has been the trend over the period mentioned above, Q1 of a year is generally the leanest quarter in terms of ad revenue as per TRAI data. The second quarter – Q2 has the next lowest average ad revenues per station. Over the last two consecutive years FY-2014 and FY-2015, the highest ad revenue per radio station per year has been reported for the third quarter (Q3), while in FY-2012 and FY-2013, the highest ad revenue was reported in Q4, so there is a tie for the first and the second highest quarters in terms ad revenue per station between Q3 and Q4.

    For the year ended 31 March, 2015 (FY-2015), this website had mentioned that the numbers reported by the radio industry for the year were the probably the best (Indiantelevision link, Radioandusic link) so far. Despite an 8.88 per cent QoQ (quarter on quarter) fall in average ad revenue per station in Q1-2016, the ad average revenue per station of Rs 1.65 crore is the best yet for the first quarter over a period of four years. In Q1-2015, YoY ad revenue grew 11.90 per cent. Hence historical trends indicate that FY-2016 could be an even better year in terms of average revenue per station and overall revenues.

    Note (1): (a)100,00,000 = 100 lakh = 10 million = 1 crore

    (b) The author has taken the liberty to introduce a measure – average revenue per radio station. This is a rough yardstick and may not necessarily be indicative of a station or a networks performance, because factors such as geography and market conditions within the area of operations are among many of the factors that will also determine performance.

    (c) This report is skewed more towards general financial numbers in terms of revenue and results, and not operational performance.

    The TRAI report for Q1-2016

    As per the TRAI report for Q1-2016, the total advertisement revenues reported by 239 radio stations was Rs 393.9 crore or Rs 1.65 crore per station. In the immediate trailing quarter of Q1-2016, that is, for Q4-2015 (quarter ended 31 March, 2015), the combined advertisement revenues reported by 241 radio stations was Rs 435.89 crore or Rs 1.81 crore per station, hence the above mentioned QoQ drop of 8.88 per cent (Rs 0.16 crore) in ad revenue per station. For Q1-2015 (quarter ended 30 June, 2014 or Q1-2015), 241 radio stations reported combined ad revenues of Rs 354.97 crore or Rs 1.47 crore per station, or the above mentioned YoY growth of ad revenue per station of 11.90 per cent or Rs 0.18 crore per station in Q1-2016.

    Please refer to Fig A. The slope of the simple linear trend line (the dotted black line with a red end in Fig A below) projects that the average ad revenue per station in Q2-2016 should be about Rs 1.78 crore, which would be significantly higher than the Rs 1.66 crore reported for Q2-2015. How much this figure is in line with the actual number depends upon the numbers reported by the radio companies and revealed by TRAI. But, if one were to go by the published Q2-2016 results of some of the players in this report, the combined revenues of these sample player has gone up in double digits Q2-2016 as compared to Q1-2016, and of course are higher than those reported for Q2-2015.

    Further, Figure B below indicates that QoQ fall in ad revenue per station in Q1-2016 was the second steepest fall during a 13 quarter period starting Q1-2013 (Q1-2013 as compared to Q4-2012) until Q1-2016. The steepest QoQ fall in ad revenue per station was in Q1-2013 at 9.95 percent during the same period. The highest YoY rise in ad revenue per station was in 21.31 percent in Q2-2014. Q4 is another quarter that has seen QoQ dips in ad revenue per station in FY-2014 and FY-2015. YoY, ad revenue per station has always increased between Q1-2012 and Q1-2016.

    Let us look at how a few radio networks performed:

    Note (2):  (a) This report considers PAT posted by two radio companies (ENIL – Radio Mirchi, 32 radio stations; Jagran Prakashan – Radio City – 20 radio stations), along with operating results of DB Corp (My FM, 17 stations); B. A.G.Films (Radio Dhamaal, 10 stations); HT Media (Fever FM, four stations); and TV Today (Oye! FM, six stations), or a total of six radio networks that represent 89, or 36.63 per cent of the 243 private FM radio stations in Q1-2016.

    (b) While Q3 for the current fiscal (Q3-2016) has already ended on 31 December,2015 and financial results will be declared by the players in a few weeks times, individual Q2-2016 (quarter ended 30 September, 2015) results have already been reported by them. The Q2-2016 numbers of individual players in this report have been obtained from their filings with regulatory bodies, the TRAI number for Q2-2016 has been extrapolated and could prove to be inaccurate.

    (c) Revenues for the sample stations mean Total Income from Operations and generally include ad revenue and other operating revenues.

    (d) Phase III and other radio stations acquisitions: ENIL has received permission from the Ministry of Information & Broadcasting (MIB) to acquire four stations from TV Today Network Limited (Oye! FM), viz., those at Amritsar, Patiala, Shimla and Jodhpur – which the company says have been/will be re-branded and re-launched shortly as Mirchi, adding to its North India network strength. With another seven stations acquired in phase III auctions, the core Mirchi brand will now be available in 43 cities. There are/will be a total of 39 FM radio stations that Jagran Prakashan Limited currently has. This includes the existing 20 radio stations plus 11 stations acquired in phase III auctions and eight radio stations under the brand Radio Mantra. Radio Mantra was earlier operated by Shri Puran Multimedia, Jagran’s promoter group. Besides, the group also runs a web radio network with 21 web radio streams under Planetradiocity.com. During the Phase III auctions, DB Corp (My FM) acquired 14 frequencies, through which MY FM will extend its presence to seven states and 30 cities with 31 stations. HT Media acquired 10 radio frequencies during phase III auctions, taking its total radio stations to 14. However these changes are not considered here, for this report pertains to the period before the new stations were acquired.

    Entertainment Network India Limited (ENIL) that operates brand Radio Mirchi is the only separately listed radio company in India and one of the most profitable ones by far. Other stations/radio brands of consequence, whose results are within the public domain have been considered in this report.

    Please refer to Figure C below. The curved black line with a red extrapolated end (curve D in Figure C below) indicates the all India average ad revenue per station as per TRAI data. Three radio networks had average revenue per station that has consistently been higher than the all India average. Revenue per station was the highest in the case of Fever FM (Curve A in the Figure C below) at Rs 6.13 crore in Q1-2016 and 7.34 crore in Q2-2016, followed by Radio Mirchi (Curve B in Fig C below) with Rs 3.17 crore in Q1-2016 and Rs 3.63 crore in Q2-2016. Radio City (Curve C in Fig C below) also reported average revenue per station of Rs 2.37 crore in Q1-2016 (43.64 per cent more than the all India average ad revenue per station of Rs 1.65 crore) and Rs 2.78 crore in Q2-2016.

    The other three – Dhamaal (Curve G in Fig C below), My FM (curve E in Fig C below) and Oye! FM (curve F in Fig C below) reported lower average revenue per station than the industry average ad revenue per station.

    In Q1-2016, the combined revenues of the six players fell 15.86 per cent (fell Rs 37.51 crore) QoQ to Rs 199.01 crore from Rs 236.51 crore, a drop that was significantly higher than the 8.88 per cent QoQ fall in the average ad revenue per station based on TRAI numbers. Also, YoY, the combined revenue reported by these stations increased by 7.15 per cent from Rs 185.73 crore, much lower than the 11.90 per cent YoY growth in ad revenue per station as per TRAI numbers. These combined QoQ numbers have been significantly pulled down by the 18.38 per cent QoQ drop (Rs 22.87 crore drop) in Radio Mirchi’s revenues in Q1-2016. Combined YoY increase has not been as sharp as compared to the industry average, because all the players reported lower revenue growth rates in Q1-2016 as compared to Q1-2015 than the growth rate of the all India average ad revenue per station.

    The lowest QoQ fall in percentage terms in Q1-2016 was by Fever, which saw revenues drop 5.03 per cent (drop of Rs 1.30 crore), while the highest drop was 36.85 per cent (drop of Rs 1.44 crore) in the case of Oye! FM.

    The highest YoY percentage growth in Q1-2016 among the six players in this report in revenues was by Radio City at 10.19 per cent (Rs 4.38 crore), while Oye! FM reported a YoY decline of 26.74 per cent (Rs 0.9 crore) in revenues in Q1-2016.

    For Q2-2016, the six networks reported 15.55 per cent QoQ growth in combined revenues to Rs 229.95 crore from Rs 199.01 crore. YoY, combined revenue of the six networks in percentage terms in Q2-2016 increased 10.27 per cent (increased by Rs 21.42 crore). Dhamaal saw the highest YoY revenue growth in Q2-2016 at 25.93 per cent (0.46 crore), while Mirchi saw the highest YoY growth in Q2-2016 in absolute rupees at Rs 12.13 crore (11.65 per cent). Oye! FM saw a YoY decline in revenues of 38 per cent (declined 1.60 crore) in Q2-2016.

    Fig D below indicates the operating results of four of the six networks considered in this report and Profit after tax (PAT) for the other two. While Mirchi has reported the highest profit after tax, far surpassing the operating results or EBIDTA reported by the other five, it is Fever FM that is likely to be the most profitable one, considering that during the period under consideration, it had only four radio stations in its network.

  • DAS Phase III: Govt. insists 76% STB seeding; stakeholders claim huge shortage

    DAS Phase III: Govt. insists 76% STB seeding; stakeholders claim huge shortage

     
     NEW DELHI: The Government has claimed that the percentage achievement of coverage of Digital Addressable System (DAS) Phase III so far is 76 per cent, even as reports from multisystem and local cable operators in various states alleged there was huge shortage of set top boxes.
     
    In fact, the 13th Task Force meeting – the last to be held before the deadline of 31 December – was told that the percentage achievement was 86.25 if Tamil Nadu that has some legal and other issues is excluded. The meeting was told there were only 405 zero seeding areas till the last report.
     
    But reports from MSOs and LCOs to Indiantelevision.com from various parts of the country including Maharashtra, Madhya Pradesh and West Bengal said there is acute shortage of set top boxes (STBs) and indicated under 50 per cent seeding.
     
    In the 13th Task Force meeting presided over Special Secretary J S Mathur, Joint Secretary (Broadcasting) R Jaya said the number of urban areas to be digitised in Phase lll after updation of 27 States/UTs is 6016. While changes had been made in some urban states on the basis of reports from some state governments and union territories, comments were still awaited from the States/UTs of Maharashtra, Karnataka, Bihar, Tamil Nadu, Lakshdweep and Dadra Nagar Haveli. 
     
    Out of the 685 areas including West Bengal (where 280 areas were removed soon after the Task Force meeting), 450 areas had less than 1000 TV households and 226 from 1000 to 5000 TV households.
     
    Jaya said out of 510 MSOs registered for Phase lll areas as on the date of the meeting, only 190 MSOs are entering seeding data in the Management Information System (MIS). A total of 135 MSOs have still not logged into MIS and 185 MSOs have logged but have not reported any seeding. She said the Ministry had granted 567 registrations so far. Ninety applications are under process and 35 applications are pending clarifications. Affidavits are awaited from 170 applicants. About 100 applications were received in November and December. 
     
    She said the Home Ministry in July 2015 decided that no security clearance was deemed for issue of registration to MSOs. Since this would involve amendment in the rules, till that time, provisional registrations are being issued by the Ministry. The Joint Secretary further mentioned that the applications are still being received and in some cases the registrations are pending for want of documents. She also mentioned that as informed in the PowerPoint presentation made at the meeting, the MSO dark areas were minimal. 
     
    A Toll free facility has been operational for the last two months and an average of about 500 calls are being received every day over the last 10 days. 
     
    About 400 officers from AIR and Doordarshan have been nominated to inspect the headends of MSOs and in this regard inspection reports have already been received from 50 officers. 
     
    Shortage of STBs and their delivery and pending interconnect agreements with broadcasters as reported by some MSOs, were also mentioned. It was informed that requests had been received from Uttarakhand, Andhra Pradesh and Maharashtra and some MSOs for extension in cut-off date for Phase lll of digitisation. 
     
    It was also pointed out that seeding data received from direct to home (DTH) operators was based on PIN codes of places. DTH operators were requested to confirm their data as per the urban areas notified by the Ministry to confirm correct seeding status in Phase lll areas. 
     
    The representative of DTH mentioned that they have at present 16 million active set top boxes and another two million STBs, which shall be activated soon after the 31 December timeline in Phase lll areas. He added that apart from this, four million STBs are catered to by DD Freedish and another eight million by digital cable. He said the the seeding data for each notified phase lll urban area would be sent very shortly. He stated that the data for seeding of 16 million STBs may be taken. 
     
    It was decided that the seeding data may be accepted. Jaya said the data for two million STBs to be activated after the cut-off date shall however be included only after report of their activation is finally received. 
     
    A representative of Ortel Communications mentioned that due to component shortage with STB manufacturers, the delivery of STBs ordered by them is affected despite advance payment made by them. He added that they have seeded 30 per cent of STBs so far and have a stock of about 20 per cent. 
     
    Mathur said the notification for the cut-off date for Phase lll had been issued on 11 September, 2014, which was more than a year ago. Further, several awareness campaigns, Task Force and MSO sub-group meetings and orientation workshops for the State and district Nodal officers have been held during this period. In addition concerned officials of the State Governments including the Chief Secretaries have been sensitised from time to time on the importance of the initiative. Hence there was no case whatsoever to consider any extension in the cut-off date. 
     
    On a query by the Indian Broadcasting Foundation (IBF) representative about 700 MSOs have single headend for both final phases, Jaya said an advisory was issued to all registered MSOs informing them that in case they have a single control room for Phase lll and Phase lV areas, they must take separate lRDs from broadcasters for taking digital signals in Phase lll areas and analogue signal in Phase lV areas. 
     
    A representative of the Telecom Regulatory Authority of India (TRAI) said it was made clear in all meetings that analogue signals can not be transmitted in Phase lll areas after 31 December, 2015. MSOs and broadcasters were required to make arrangements in advance for feeding Phase lll and Phase lV areas. He added that as per the interconnect regulations analogue transmission is permitted in Phase lV areas and MSOs and broadcasters should find a technological solution to the problem of segregating the feeds from the same control room. 
     
    When the IBF representative apprehended piracy problems in Phase lll areas, he was told the broadcasters must take action as per the law against those indulging in piracy. He was told that it is their responsibility to ensure that analogue signals are not transmitted in Phase lll areas without affecting transmission of analogue signals in Phase lV areas. 
     
    He was also told that the Ministry will write to all State/UT Governments to take action against those violating the law. Jaya remarked that broadcasters have to cancel the agreements entered by them for analogue signals in Phase lll areas.
     
    The Maharashtra government representative said difficulties have been reported from the field in implementing digitisation in the state within the timelines. 
     
    The Maharashtra Cable Operators Federation representative said about 60 per cent areas in Maharashtra are not served by the national MSOs. He said about one million STBs are to be seeded, which is not possible. He added that 40 registrations are pending to be issued by Ministry. 
     
     
    A representative of consumer organisation Savera said consumers were facing difficulties in redressal of their complaints from the MSOs/LCOs, and suggested the Consumer Affairs Ministry be added for redressal of the complaints. He also suggested that the Ministry may hold workshops on cable TV digitisation in all districts for awareness of the consumers. He was told that 11 workshops were held by Ministry for implementation of Phase lll and similar workshops have been planned to be held in Phase lV also. Besides, five advertisements on separate dates were issued in newspapers pan-India and both News and general entertainment channels (GECs) have been carrying ads and scrolls accordingly for information of all.
  • DAS Phase III fourth updated urban areas list shows changes in W. Bengal

    DAS Phase III fourth updated urban areas list shows changes in W. Bengal

    NEW DELHI: The Government, which had last month issued an update list of urban areas to be covered during Phase III of the Digital Addressable System (DAS), today issued a fourth list relating to West Bengal.
     
    The list issued on 3 November had related to the urban areas to be covered in seven states and one union territory.
     
    That was in addition to the 16 states for which upgradation had been announced on 16 October.
     
    Around 250 towns have been deleted from the West Bengal list while DAS has been shifted to around 10 other towns in 20 districts in West Bengal. This leaves a total of 1,055,469 TV households to be covered by midnight tonight.
     
    The third updated list had referred to changes in Andhra Pradesh, Chhattisgarh, Jammu & Kashmir, Kerala, Madhya Pradesh, Manipur and Telengana, and the Union Territory of Daman & Diu.
     
    Earlier in October, the states and UTs where changes were made are as follows: Arunachal Pradesh, Assam, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Mizoram, Nagaland, Odisha, Rajasthan, Punjab, Tripura, Uttarakahd, Uttar Pradesh, Andaman and Nicobar,and Puducherry.
     
    The updated list with regard to these states and UTs also indicates areas that have been deleted and those which have been added, apart from the number of television households to be covered in each case.
     
    The changes have been made on the basis of the list of Urban local Bodies in West Bengal received from the Joint Secretary, Municipal Affairs Department, West Bengal according to an e-mail of 18 December. 
     
    It has been clarified that the list does not contain areas covered in the first two phases.
     
    The list of areas to be covered in Phase III was issued on 30 April this year.
  • Facebook’s Free Basics in a pinch in India; Zuckerberg comes to rescue with op-ed

    Facebook’s Free Basics in a pinch in India; Zuckerberg comes to rescue with op-ed

    MUMBAI: Facebook founder and CEO Mark Zuckerberg is on a mission – digital equality in the world. His means to achieve it? Internet.org that has been rechristened as ‘Free Basics’ in India. What’s standing in his way? The Telecom Regulatory Authority of India (TRAI).

     

    The prolonged debate over net neutrality and whether Free Basic will be detrimental to it has not only led to the establishment of online communities such as savetheinternet and online celebrities like All India Bakchod (AIB) to release a three part series on the subject, but also caught the government body’s attention. TRAI has asked Facebook’s only partner in the project, Reliance Communications to cease all work on Free Basics till it takes a call on the fairness of operators placing prices on certain online content and services.

     

    A move that only egged on Facebook further and that’s when it came up with an extensive online campaign that asked users to sign a petition addressed to TRAI in support of Free Basics.

     

    To further abate the growing skepticism over the service amongst Indian netizens, the social media giant also went offline with their advertising campaign. From full page advertisements in leading newspapers to billboards across the country’s metros, Facebook has made its presence felt and motive clear: it will leave no stones unturned to make Free Basics a reality.

     

    The idea behind the campaign was to highlight the need for Free Basics in India, especially for the underprivileged.

     

    “Hundreds of millions of people in India use the Internet every day and understand the benefits it can bring. This campaign gives people the opportunity to support digital equality in India. It lets people speak in support of the one billion people in India who remain unconnected, and lets them participate in the public debate that is being held by the Telecom Regulatory Authority of India on differential pricing for data services. And it gives them the opportunity to support Free Basics, which is proven to bring more people online and accelerate full internet adoption,” a Facebook spokesperson tells Indiantelevision.com.

     

    The campaign did gain ground and as per a survey commissioned by Facebook, overall, 86 per cent of respondents support Free Basics when presented with arguments for and against the service

    conducted by David Binder Research in partnership with India’s Hansa Research, the survey was sampled from 3000 people in India.

     

    “At the heart of the results was awareness of the importance of the Internet in shaping India’s future. A majority (65 per cent) of Indians agreed with the statement that, ‘a connected India is a stronger India and connecting more people makes India stronger, more informed, and more competitive in the world’ and more than half support the Digital India initiative,” the report states.

     

    Nevertheless, questions were raised on whether Free Basics truly adheres to what the advertisement campaign claims —  internet for all.

     

    In fact, the Advertising Standards Council of India (ASCI) received several complaints and petitions from netizens across the country stating that the advertisements were insensitive and only painted a one dimensional picture about rural India and its basic needs. Several argue that it is a very simplistic way to sell their product projecting Free Basics as some sort of a magic wand that waves away underprivileged India’s problems.

     

    While TRAI still awaits an official response from Facebook over the credibility of their campaign, Zuckerberg’s op-ed in one of India’s leading daily clearly addresses the subject.

     

    “More than 35 operators have launched Free Basics and 15 million people have come online. And half the people who use Free Basics to go online for the first time pay to access the full internet within 30 days. If we accept that everyone deserves access to the internet, then we must surely support free basic internet services. That’s why more than 30 countries have recognised Free Basics as a program consistent with net neutrality and good for consumers. Who could possibly be against this? Surprisingly, over the last year there’s been a big debate about this in India,” writes Zuckerberg,” adding, “Instead of wanting to give people access to some basic internet services for free, critics of the program continue to spread false claims – even if that means leaving behind a billion people.”

     

    One would argue that Zuckerberg is almost suggesting that India accepts Free Basics without any questions asked as it at least solves its problem of internet for all. The question of net neutrality is secondary to a developing country.

     

    Citing an example of a farmer in India, Zuckerberg highlights the power of internet in connecting India. “A few months ago I learned about a farmer in Maharashtra called Ganesh. Last year Ganesh started using Free Basics. He found weather information to prepare for monsoon season. He looked up commodity prices to get better deals. Now Ganesh is investing in new crops and livestock.”

     

    What is interesting to note here is that the example is in line with their campaign that speaks of rural India urging everyone to focus on immediate advantages of free internet for all.

     

    Regarding its long term effect on net neutrality and Facebook’s advantage over other players in market, the CEO argues, “There is no advantage because the platform is open to all developers. Facebook does not receive or give any money to developers, telcos or anyone else for their participation in Free Basics, nor does Facebook generate any revenue from the version of Facebook within Free Basics as there are no ads in it. Our connectivity efforts have brought 15 million new people online and is consistent with net neutrality because the actual results from the program prove it serves as a bridge to the full internet for people, and is non-discriminatory.”

     

    And while Zuckerberg rallies for Free Basics, even as he takes his paternity leave, a Reliance Mobiles’ TVC on ‘New Ways To Facebook’ has surfaced, adding an interesting angle to their partnership, and its impending impact on free competition in the market.

    Promising free access to Facebook even on offline mode through their specially designed ‘Go To Facebook’ button, which is available exclusively to Reliance Mobile users, the mass media campaign might not go down well with the ‘save the internet’ crusaders.

     

    Whether this will dent the progress Free Basics has had in convincing netizens in favour of it, or Facebook’s mission of Free Basics will be possible, one thing is for sure, it’s certainly made the space more exciting and started many a conversations.

  • Final Task Force meet for DAS Phase III; Govt & TRAI deny any chaos

    Final Task Force meet for DAS Phase III; Govt & TRAI deny any chaos

    NEW DELHI / MUMBAI: The last sunset of 2015 on 31 December will not only end this calendar year but will also mark the sundown on the era of analog signals in Phase III areas of Digital Addressable System (DAS) in India.

     

    Millions of television households are set to be digitised taking the country one step closer to the ‘Digital India’ vision. The government is adamant that analogue signals will be cut off from 1 January, 2016 for areas covered under the DAS Phase III. In the light of the deadline being merely two days away now, a final Task Force meeting has been convened for tomorrow (30 December, 2015) to take stock of the situation.

     

    A senior executive in cable fraternity feels that the cut-off of signals can lead to a massive law and order situation on ground and the government should be held responsible for any mishap that takes place. He says, “It’s just a day left and still they don’t know what will happen after that. The analog signals will be cut off; it’s a fair call but what if consumers go and vandalise the cable operator? He will have to undergo serious financial damage. Moreover, that can even trigger a riot. We are dealing with vulnerable areas and the government needs to understand that.”

     

    Another senior level executive at a national multi system operator (MSO) opines, “Imagine a scenario when 5000 people are watching New Year special programming on various channels and in the midst of it, the signals are cut off! Does digitisation mean harassing the consumer? What have the authorities done to ensure a smooth transition? When a huge road is made, government gives exemption right. We pay toll and then later the amount is taken care of. Why could they not do something similar with cable if they really wanted the digitisation process to be smooth? I fail to understand why we had to do it in phases. We could have done it state-wise too. Overall, I think there is no option but to wait and watch.”

     

    A source from the Information and Broadcasting Ministry, who did not wish to be named told Indiantelevision.com that both the Telecom Regulatory Authority of India (TRAI) and some High Courts had already said that interconnect agreements (ICA) have to be in place.

     

    The source further added that enough time had been given to the stakeholders and TRAI had held several meetings with different segments of the stakeholders to iron out differences wherever they existed.

     

    Reacting to the judgement of the Bombay High Court that stop-gap agreements should be permitted till TRAI issues a format of the kind of ICAs that should be signed, sources said that both the Ministry and TRAI were already working on a formal format for the ICA. The Ministry source said that it would accept the directive of the Bombay High Court since it worked in favour of digitisation.

     

    Speaking to this website, a TRAI spokesperson said that the regulator had already floated a Consultation Paper for a model ICA for which the last date for comments is 31 December, 2015 and for counter-comments is 7 January, 2016. In view of the urgency, he expected TRAI to come out with its model ICA within a week of receiving all comments.

     

    When asked about the shortage of set top boxes (STBs) in many areas, the Ministry source said that the actual position would become clear after the Task Force meeting.

     

    However, reports so far indicate that there was no shortage of STBs though there had been some areas, which could not receive them in time.

     

    The TRAI official added that MSOs had assured the regulator that there was no shortage of STBs. While there were reports stating that some local cable operators had not received STBs, the spokesperson said that STBs were now available in the open market and any viewer could obtain these readily.

     

    Denying reports of any chaos in the event of the switch-off of the analogue signals, the Ministry source said that viewers all over the country had been made aware of the deadline through intensive ad campaigns run on television and social media and therefore problems would be minimal with regard to the deadline.

     

    The TRAI source added that with other options like HITS and DTH including Freedish available, the regulator did not foresee any chaos. In fact, several mobile apps were already offering TV channels live.

     

    The source conceded that many viewers had taken the open route of subscribing to a private dish operator but said this was obvious in any competitive economy.

  • No delay in DAS Phase III deadline, stop gap agreements allowed till TRAI draws up formal format

    No delay in DAS Phase III deadline, stop gap agreements allowed till TRAI draws up formal format

    NEW DELHI: The Bombay High Court has directed that local cable operators (LCOs) should be allowed to execute draft model standard interconnection agreement as a stop gap arrangement in view of the approaching deadline of Phase III of Digital Addressable System (DAS).

     In an order by Justice V. M. Kanade and Justice Revati Mohite Dere, which came shortly after another judgment by the Court declining to stay the DAS Phase III deadline, it was said that the Registration Authorities will give full cooperation for registration of the agreements. The Court clarified that the parties should execute an agreement but registration of the same may not be done immediately.

     The Court directed the Telecom Regulatory Authority of India (TRAI) to finalise the draft in accordance with the request made by the LCOs and multi system operators (MSOs) by the next date, 4 January “so that in future a standard format of the agreement can be executed between MSOs and LCOs throughout the country.”

     In the petition filed by the Maharashtra Cable Operators Federation (MCOF) against the TRAI and some MSOs, the judges said the agreements to be executed between the parties will be subject to further negotiation, which is going on between the parties and subject to further orders and directions given by the Court in respect of some of the clauses mentioned in the said agreement.

     The Court kept open all other contentions of the petitioner MCOF and the respondents.

     Reiterating that it was not necessary to postpone the deadline of 31 December, the Court said the MSOs will “forthwith supply the Set Top Boxes (STBs) to the local cable operators upon the payment of the costs of the STBs and licence fees as per the agreement.”

     It said MSOs and LCOs will ensure that all the customers will get the STBs in time and “if necessary, they will work overtime – day and night – for supplying these Set Top Boxes before 31 December 2015.”

     The application filed by India Broadcasting Foundation (IBF) to intervene was allowed. MCOF was asked to add IBF as Party Respondents and also supply the copy of the petition and other necessary documents.

     While Mumbai and some other cities of the state have been covered in the first two phases, several cities have been listed for the third phase.