Tag: Trai

TRAI seeks views on methodology for calculating reserve price of FM phase III

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has recommended that the reserve price for FM radio channels in phase III should be 0.8 times of the valuation of FM radio channels in that city.

In a consultation paper on the subject of reserve price at the request of the Information and Broadcasting Ministry, TRAI suggests reserve price of Rs 5 lakh per city, for FM radio channels in 11 border cities in phase-III.

The regulator has also asked if stakeholders agree with the proposed approach/methodology for determination of the valuations of FM Radio channels in 253 new cities in phase-III.

The Ministry sent a reference dated 16 December 2014 to the Authority seeking recommendations of TRAI on reserve prices for 831 FM radio channels in 264 new cities in the phase-III. With this, the private FM radio operations would be permissible in 350 cities.

Comments/views of the stakeholders on the issues related to estimation of the reserve prices for auction of FM radio channels in new cities should be sent latest by 25 February.

TRAI has said that for FM channels in 253 new cities, the Reserve Price can be fixed at 80 per cent of the derived valuations.

For 11 new cities classified in the ‘Others’ category, no reference price is available from phase-II as no city was available in this category in that phase. These cities have population figures of less than one lakh and are located in the border areas of Jammu and Kashmir (J&K) and the North- Eastern (NE) States. The Cabinet approved the RP for each of these 11 cities as Rs 5 lakh.

These cities are of strategic importance. The availability of FM radio broadcasting service in these far-flung areas can also be used for Emergency Warning Services (EWS) with the specific approval and guidance of the local district administration. When the reserve price of Rs 5 lakh per city set for these cities in phase-III, the policy is compared with the proposed RPs for ‘D’ category cities of NE and J&K, it appears to be reasonable to encourage the participation of a large number of prospective bidders. The inherent design of an ascending e-auction process would anyway ensure that the true market value of the FM radio channels in each city is discovered during the process of auction. So the RP for each of these 11 new cities may be Rs 5 lakh.

The Consultation Paper noted that the non-refundable one time entry fee (NOTEF) for FM radio channels in all the cities coming up during phase III is to be discovered through an ascending e-auction. The phase-III policy guidelines provides the mechanism for migration of existing FM radio operators from phase-II to phase-III regime.

According to the decision of the Empowered Group of Ministers (EGoM), the Ministry had in April 2013 sought recommendations of TRAI on the migration fee to be charged from existing phase II operators on their migration to the phase-III regime of FM radio. Broadcasting authority sent its recommendations on ‘Migration of FM Radio Broadcasters from phase-II to phase-III’ on 20 February 2014.

The methodology for determination of the reserve prices for auction of FM Radio channels was already finalised by the Government. In its recommendations of 20 February 2014, the Authority recommended that the methodology for determining the reserve prices for fresh (new) cities (where no private FM radio channels are operational) in phase-III should be reconsidered as the current methodology might jeopardize the auction.

Thereafter, MIB decided to seek fresh recommendations of the Authority on reserve prices for new cities in phase-III and also make the 2011 census data applicable for identification and categorisation of the new cities. Based on the 2011 census data, MIB has identified 37 additional cities where 112 private FM radio channels are proposed to be put up for auction. This is in addition to the already identified 227 new cities earlier earmarked for FM radio expansion as per the 2001 census data. Further, based on the 2011 census data, MIB has also upgraded the category of 11 new cities that were already mentioned in the phase-III policy guidelines dated 25 July 2011. Thus, there are now, in 264 (227+37) new cities, a total of 831 FM radio channels that are to be put up for auction.

February 6, 2015
Broadband continues upward spiral as narrowband declines in June-Sept 2014

NEW DELHI: The number of narrowband Internet subscribers declined from 190.31 million at the end of June 2014 to 178.67 million at the end of September 2014, showing a quarterly decline of 6.12 per cent.

However, the quarterly report of the Telecom Regulatory Authority of India (TRAI) ending September 2014 shows the number of Broadband Internet subscribers increased from 68.83 million at the end of June to 75.73 million at the end of September with a quarterly growth of 10.03 per cent.

The report says as at the end of September 2014, there were a total of 187 pay channels as reported by broadcasters for which the wholesale channels rates have been taken on record. During the quarter ending September 2014, the rate of Raj Music Kannada channel was taken on records.

In non CAS areas, the maximum number of television channels being carried by any reporting multi-system operator was 400, whereas the maximum number of channels being carried by any reporting MSO was 100 in conventional analogue form.

Apart from All India Radio, there were 243 private FM radio stations in operation at the quarter ending September 2014, according to information supplied to TRAI by the Information and Broadcasting Ministry.

Apart from the free DTH service of Doordarshan, Freedish, there are six private DTH operators. All the six private DTH operators are offering pay DTH services.

The total numbers of registered and active subscribers being served by these six private DTH operators as reported to TRAI were 70.33 million and 39.13 million respectively as on 30 September 2014.

January 30, 2015
Ad Cap: Broadcasters buoyed by Arun Jaitley’s comment

MUMBAI: While delivering speech at the first Justice J. S Verma Memorial lecture Information and Broadcasting Minster of India Arun Jaitley opposed the concept of Ad Cap in channels. He termed this concept as a contradiction to the Article 19 (i) A of Indian constitution.

Jaitley had said, “With the growth of digital platforms, news channels are going to find it immensely difficult to survive. The definition of news has changed; it was accuracy then and spontaneity now.”

With this Jaitley stressed on the fact that as news is now immediately available on the digital platforms, lesser people will tune into the television for the same.

NDTV executive vice-chairperson KVL Narayan Rao said, “If this development turns real it will put an end to the lengthy sustaining debate. We will be extremely delighted and grateful to the government as we have been campaigning for this since a long time now. It will strengthen the development and bring a balance as the distribution charge is very high and the major source of revenue is advertisement.”

The Minister, during his speech also noted how distribution costs were “phenomenally high.” He was of the opinion that low revenues in the media industry is a threat as it leaves direct effect on quality in terms of news gathering and reporting. “Low revenue will result in numerous amalgamations and takeovers,” Jaitley had said.

Speaking to Indiantelevision.com on Jaitley’s remark on Ad Cap, Multi Screen Media president Rohit Gupta said, “We were never in favour of ad cap and see this comment of the Minister as a positive step. This will enable us to develop and hence I appreciate and welcome the statement.”

The I&B Minster had also mentioned that many a times he come across speeches that he actually never delivered. According to him, these things happened due to two reasons: 1) Misinterpretation by the reporter in charge, and (2) In order to generate more TRP both are directly proportional to revenue. “If adequate revenue is generated then companies will have better reporters and there will be less thrive for TRP and hence the final product will be more credible,” he said.

Appreciation also came from India TV editor in chief and chairman and News Broadcaster’s Association president Rajat Sharma. “News broadcasters have been raising this issue for more than a year now, I am happy that Arun Jaitley has understood the problem. He has realised that ad cap will make news channels unviable but more important is the minister’s view that the ad cap is against freedom of expression provided in the Constitution of India.”

Focus News managing editor Shailesh Kumar termed it as a move in the right direction. He said “If the remark of I&B Minister on Ad Cap turns into a decision, it will be a blessing for the channels. Most of the channels are going through a tough time and need to generate more revenue.”

On the other hand, Zeel MD and CEO Punit Goenka was of a slightly different opinion. While speaking to Indiantelevision.com, Goenka said, “It is a good move for news and music channels.” Separating his channel from the others, he further added, “Zee will continue to follow the ad cap. The ministry comes up with such statements and many fall for the trap.”

Jaitley concluded his speech by saying, “It will be music to Rajat (Sharma) and other media person’s ear on hearing this view from me. My I&B Ministry, a couple of years ago came out with a statutory amendment to law saying no channel will telecast advertising beyond so many minutes, since then I am struggling in my own mind as how this meets the challenge of Article 19 (i) A (of Indian Constitution). Is the government suppose to say how much news and how much advertisement or it should be viewers prerogative to switch when it turns monotonous.”

The controversial law was invoked by the Authority in May 2012 and it was disputed by television broadcasters, who had also challenged the jurisdiction of Telecom Regulatory Authority of India (TRAI) in this regard before the Telecom Disputes Settlement & Appellate Tribunal (TDSAT).

The News Broadcaster’s Association (NBA) along with others had challenged the ad cap rule, contending that TRAI does not have jurisdiction to regulate commercial air time on television channels. The Delhi High Court panel led by Chief Justice G Rohini and Justice Rajiv Sahai adjourned the petition till 24 March, 2015.

Meanwhile TRAI gave assurance of taking no action against any channel till the matter is resolved in court. The regulator’s instance, directed all channels to keep a record of the advertisements run by them. It can be noted that the ad cap case was adjourned to 21 January, 2015 when it last came up for hearing on 20 November, 2014.

January 26, 2015
Tamil Nadu cable ops go on strike; demand increase in analogue cable TV tariff

MUMBAI: More than 1.25 crore analogue cable TV homes in Tamil Nadu (except Chennai) will not be able to watch their favourite programmes on 24 January, thanks to the strike by the Tamil Nadu Cable Operators.

The strike, which began at 9 am on 24 January will end at 9 pm tonight. The reason stated for the move is the low cable TV tariff. Currently the analogue cable TV households in Tamil Nadu pay Rs 70 to the local cable operators, of which Rs 20 goes to the government.

“The LCOs are bleeding. While the prices of all goods and services have gone up, it is only the cable TV service whose tariff has come down,” said Chennai Metro Cable Operators Association general secretary MR Srinivasan.

The cable operators are also requesting the government to increase the subscription from Rs 70 to Rs 150 for analogue cable TV services.

“The government hasn’t done any investment on ground for the setting up cable TV system in the state, they are only paying the broadcasters for the pay channels. And without making any investments they are dictating the LCOs to collect only Rs 70 from consumers,” he added.

According to Srinivasan, the multi system operators (MSOs) haven’t been given any compensation for the infrastructure, which went free to the government.

“Even after the Telecom Regulatory Authority of India (TRAI) giving clear guidelines on the tariff on the free to air channels, the government in Tamil Nadu hasn’t adhered to it,” he informed.

While the representatives have met government officials, no decision has been taken as yet.

January 24, 2015
Use of educational broadcasting channels should be via Prasar Bharati: TRAI

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has reiterated its earlier recommendations regarding further strengthening the maintenance of an arm’s length relationship between Prasar Bharati and the government and ensuring functional independence and autonomy of Prasar Bharati.

TRAI said that the non-commercial use of direct-to-home by the central and state governments for educational purposes should be done through the Prasar Bharati route through suitable agreements between Prasar Bharati and the concerned central/ state governments.

Responding to a letter from the Information and Broadcasting Ministry in this regard on 31 October last year, TRAI said Prasar Bharati should ensure that content dissemination through such non-commercial educational channels comply with the code and conduct of broadcasting established in India such as Programme code, AIR code etc. and the content disseminated through such channels should be such that it can form part of any regular Prasar Bharati channel.

As the transponder capacity is a scarce resource, the allocation of transponder capacity to central/state governments for running DTH educational channels on a non-commercial basis should be done in a very careful and judicious manner, said TRAI.

It should not lead to a situation where transponder capacity is kept idling on one hand when on the other hand service providers are kept waiting for the same, thereby adversely impacting the expansion and improvement of quality of their services.

The authority had given its recommendations to the government on the issues relating to entry of certain entities into broadcasting and distribution activities on 12 November 2008 and subsequently on 28 December 2012 in response to the references received from the Ministry. The original recommendations and the clarifications provided later clearly opposed the entry of central and state governments in the broadcasting and distribution activities. These recommendations of the authority were arrived at taking into consideration the relevant constitutional provisions, constituent assembly debates, judicial pronouncement of the Supreme Court, report of the Sarkaria Commission on Centre State Relations, international practices and the views of stakeholders.

The Ministry’s reference was about the use of a specific technology for a specific application by the central / state governments and ‘in essence boils down to enabling broadcasting/ distribution by the central and state governments.

January 22, 2015
Ad cap conflicts with fundamental rights: Arun Jaitley

NEW DELHI: Reiterating that the government is not inclined to interfere in the content or the business of media entities, Information and Broadcasting minister Arun Jaitley has said he is not in favour of a cap on advertising for TV or print media.

In the first J S Verma Memorial Lecture, Jaitley wondered how a 12-minute cap could be reconciled with the fundamental right of freedom of speech.

“It will be music to the years of media persons. My ministry, a couple of years ago, came out with a statutory law that no channel will telecast advertisements beyond so many minutes. I have been struggling, in my own mind, since then as to how this meets the challenge of Article 19(1)A,” Jaitley said.

The ad cap law brought in by the Telecom Regulatory Authority of India (TRAI) has been legally challenged and the matter is pending in court.

Jaitley was also in favour of increasing FDI in media from the current cap of 26 per cent, saying when foreign newspapers were anyway available online in India, there was no point opposing the move. He said, “The debate over whether foreign media should be allowed to establish in the country and the extent of foreign equity has been made irrelevant by technology. Today, sitting here, I can access any newspaper in the world over internet.”

Referring to the financial pressure on modern media, he said, “The financial model of most media organizations is becoming challenging. The cost of news distribution has become huge. Cost of circulation is high. Most are unable to sustain. This is leading to consolidations and mergers. Those with deep pockets are acquiring media.”

The minister said that the media, in the spirit of fairness, must carry a disclaimer with respect to news where there was a conflict of interest.

Jaitley said financial pressure on media affected the quality of news and its credibility. Because of this, media houses spend less and less on news collection, hire less reporters who are not paid well, he said.

He stressed on the challenge posed by digital media to the traditional forms of news dissemination and pointed out how newspapers and magazines abroad were shutting down in favour of digital platforms. He, however, said that the revenue model for digital media was not clear and it was still evolving.

He also raised the issue of cross-media ownership and said in his concluding remarks that it was an issue that needed to be debated. “Most jurisdictions world over ban cross-holdings in the media. Can all mediums be vested with one person? How is larger public interest going to be impacted by this? It should be debated,” Jaitley said.

January 19, 2015
TRAI reiterates earlier view, opposes partial auction of 2100 MHz

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has opined that clubbing the 2100 MHz band spectrum with the spectrum of other bands for auction in February will be defeated if sufficient spectrum is not made available in the 2100 MHz band.

“A split auction of 2100 MHz (one in February 2015 and remaining, say, in December 2015 after availability from Defence Ministry) will artificially increase the market price of 2100 MHz in February because of the severe supply constraint. The 15 MHz of spectrum in the 2100 MHz spectrum being vacated by Defence Ministry should be auctioned in view of the in-principle agreement reached with MoD, even if it is not available immediately,” TRAI said today.

The Authority reiterated that in the upcoming auction of 2100 MHz band spectrum, an auction-specific cap should be placed that no bidder would be permitted to bid for more than two blocks in a local service area (LSA) if three to four blocks are available in that LSA.

TRAI said there is no change in the reserve prices for spectrum in the 2100 MHz bands from what were recommended earlier.

It said the Department of Telecom is responsible to ensure that the spectrum being auctioned is either interference free or to share information upfront about the areas where interference is likely to occur so that the telecom service providers participating in the auction can take informed decision.

These views were given to the DoT in Clarifications/Reconsideration of Recommendations on ‘Valuation and Reserve Price of Spectrum: 2100 MHz Band.’

TRAI had sent its recommendations on ‘Valuation and Reserve Price of Spectrum: 2100 MHz Band’ on 31 December, 2014 to the DoT. On 8 January, 2015, the DoT sought clarifications/reconsideration on many of the recommendations.

After considering the comments given by the DoT, TRAI has furnished its response to the Government. The Authority, has reiterated its earlier recommendations with detailed reasoning.

As highlighted in the Authority’s recommendations on ‘Valuation and Reserve Price of Spectrum: Licences Expiring in 2015-16’ dated 15 October, 2014, it is vitally important to auction spectrum in the 2100 MHz band along with spectrum in the 900 MHz band. The same sense of urgency was echoed by the DoT when, through its letter dated 27 November, 2014, it requested TRAI to expedite the process for its recommendations on the reserve price of 2100 MHz band and related issues so that the auction of spectrum being released by Defence could be conducted along with the auction of spectrum in the 800 MHz/900 MHz/1800 MHz bands scheduled to be held in February 2015. Heeding DoT’s request, TRAI delinked the 2100 MHz band from other bands – 2300 MHz and 2500 MHz band – which were part of the DoT’s reference of 16 October, 2014, and issued its recommendations specifically for 2100 MHz band on 31 December, 2014.

In its back-reference of 8 January, 2015, the DoT has not indicated the exact amount of spectrum in the 2100 MHz band that will be put to auction. However, media reports suggest that only 5 MHz is likely to be put to auction. The swapping of spectrum leading to release of an additional 15 MHz will be carried out later after the DoT notify the Defence band.

Quoting the Communications & IT Minister, the media has reported that the notification is likely to be done in the next 45 days. Media reports also mention that the swapped spectrum in 2100 MHz may be put to auction in December 2015.

These media reports are neither a positive development nor particularly encouraging. The whole purpose of clubbing the 2100 MHz band spectrum along with spectrum of other bands for auction in February 2015 will be defeated if sufficient spectrum is not made available in the 2100 MHz band. Moreover, it was emphasized by the Authority that, if swapping has been agreed in principle, the spectrum can be put to auction and the actual assignment made after the auctions viz. once the release of spectrum is cleared by MoD. This remains a distinctly feasible option because time is on DoT’s side: actual assignment can wait till end 2015, close to a year away.

The MoD has informed TRAI that the proposal for release of 15 MHz of spectrum in 2100 MHz band on a pan-India basis in lieu of an equal amount of commercial spectrum in the 1900 MHz band has been agreed to in principle and this has also been conveyed to the DoT. In its back-reference, the DoT has not assigned any reason for not putting this spectrum to auction in February 2015. In the absence of any plausible reason to hold back this spectrum, the Authority is not in a position to review its recommendations and, therefore, stands by them.

The Authority would also take this opportunity to sound a note of caution. If media reports are to be believed and if spectrum is auctioned in two chunks, one in February 2015 and remaining, say, in December 2015 after availability from Defence, the result would be a split auction. A split auction of 2100 MHz will artificially increase the market price of 2100 MHz in February 2015 because of the severe supply constraint. What is more, that will then become the anchor price for the next 2100 MHz auction. This situation can be averted by putting all the available spectrum for auction in February.

The full text of the response to the Government has been placed on TRAI’s website www.trai. gov.in

January 15, 2015
TRAI pulls up broadcasters, MSOs on DAS implementation

NEW DELHI: Broadcasters were taken to task for their failure to file reports relating to subscribers while multi-system operators (MSOs) were rapped for failure to meet their commitments relating to billing in two separate meetings held with senior officials of the Telecom Regulatory Authority of India (TRAI) held in the first fortnight of this month.

The meeting, with selected broadcasters earlier this month, also saw TRAI officials asking the broadcasters about agreements with MSOs under the reference interconnect offer (RIO).

Broadcasters were also urged to step up awareness among subscribers in phase III and phase IV so that the transition to digital addressable system (DAS) is smooth.

TRAI also urged broadcasters to highlight problems faced by them in the switch-over to DAS and issues relating to connectivity.

In the meeting with MSOs earlier this week, problems relating to issuance of licences were also taken up.

The MSOs were also asked to provide a list of areas not reached by them, an issue that had also been raised at the last DAS Task Force meeting.

A TRAI official told Indiantelevision.com that issues relating to set top boxes were not taken up as they are being dealt with directly by the Information and Broadcasting Ministry.

January 15, 2015
India SatCom-2015: Ushering in a new era

MUMBAI: Accounting for approximately 17 per cent of the global population and with a growing middle class and a large population still living in rural & remote areas, India presents large market opportunities for satellite communication services. With the government’s focus on ‘Digital India’, one of the significant market enablers for broadband penetration shall be over satellite, as a large share of the population still remain beyond the reach of the terrestrial broadband network including fiber and cable.

To shake off the inertia and cynicism and bring about an awakening call to the policy makers for the need to refocus on satellite communication policy and to realise the dream and vision of our Hon’ble Prime Minister – Narendra Modi to make “ Digital India “ –India’s road map for providing inclusive growth & development for its entire population of 1.3 billion, we are organising a unique day long seminar about Satellite Communication and how we can use this technology to transform the lives of the people of India. On behalf of Broadband India Forum ( BIF ), we are pleased to invite you to attend this gala event to be held on 16 January 2015 at Hotel Le Meridien , Janpath, New Delhi from 10am. The theme of the conference is India Satcom-2015: Ushering in a new era.

The chief architect of the ‘Digital India’ program- Hon’ble Minister of Communications & IT-Shri Ravi Shankar Prasad ji has been invited to grace the occasion by inaugurating the conference and delivering the inaugural address.

The dignitaries who have been extended the invitation to be a part of the conference are Rahul Khullar, Chairperson- TRAI, Rita Teotia, Special Secretary- Dept. of Telecom and Kiran Karnik prominent Indian administrator chiefly known for his work in the broadcasting and outsourcing industries, RK Arnold, Member TRAI besides leading industry veterans viz. Vern Fotheringham-CEO & MD, Kymeta Corp, USA who shall be delivering the keynote address & David Hartshorn-Secretary General, Global VSAT Forum ( GVF ) who shall be bringing an international perspective to the discussions.

The occasion will also see the release of the White Paper on Satellite Vision – 2020 besides the launch of the India SatCom Forum under the aegis of Broadband India Forum. This will be entrusted to take the recommendations of the conference forward and work diligently to provide industry inputs in the New Satcom Policy-2015.

The conference is expected to be attended by eminent visionaries, technocrats, industry specialists and bureaucrats from Telecom Regulatory Authority of India, Ministry of Information and Broadcasting, Doordarshan, Prasar Bharati, Bharat Sanchar Nigam Limited, Department of Telecommunications, Government of India, Telecom Engineering Center, Indian Space research Organization / ANTRIX,WPC (Wireless Planning & Coordination Wing) and from the Broadcasters, Satellite Service Providers,Satellite Operators, Telecom Service Providers, Broadband Service Providers / Internet service Providers, DTH Operators , VSAT Service Providers, System Integrators, Technology Providers and Users.

The conference has been supported by two large international organisations- the Global VSAT Forum (GVF) and the Cable & Satellite Broadcasters Association (CASBAA).

January 10, 2015
TRAI ready to consider proposal for e-commerce but says it is already over-burdened

NEW DELHI: With more and more people depending on their computers and smart phones to transact business transactions and transfer money, the Government appears to have woken up to the need for someone to regulate this.

While confirming this, a source in the Telecom Regulatory Authority of India (TRAI) told indiantelevision.com that the role of the regulator had remained confined to telecom until 2004 when it was asked to also look into issues relating to broadcasting and had later drawn up regulations relating to telemarketing following complaints by telecom consumers about mobile calls.

The need for an e-commerce regulator was felt after the Confederation of All India Traders (CAIT) sought the Commerce Ministry’s intervention over ‘predatory pricing’ strategies of e-tailers during festival sales last year. It asked the government to set up a taskforce to “probe into the working and business model of e-commerce companies” and to set up a regulatory authority to monitor the business.

The source said TRAI will consider the proposal but will have to consider that it is already burdened with issues like spectrum e-auction and the digital addressable system for cable television.

Now, an inter-ministerial panel has requested the Authority to take up the role or suggest if there is a need for a separate regulator for e-commerce. The panel has sought an update from the Consumer Affairs Ministry on measures taken to introduce online dispute resolution in e-commerce.

The inter-ministerial panel will prepare a paper, sought by the Data Security Council of India, on imposing restrictions on the location of servers and on getting companies like Google and Amazon to set up data centres in India.

The Department of Industrial Policy and Promotion has informed the committee there is no plan to change the foreign direct investment (FDI) policy in e-commerce. The Department is understood to have said there was no lack of clarity in the FDI policy for e-commerce. If required, the Department noted, issues related to e-commerce funding and operations could be addressed by formulating guidelines for the sector rather than by modifying the FDI policy.

Last month, the DIPP had suggested up to 49 per cent FDI in consumer e-commerce following representations by several US companies. FDI is barred in e-commerce companies selling directly to consumers and there are restrictions on sourcing from local manufacturers. The DIPP also suggested a mechanism to facilitate US investments in India after Amazon, which has invested about $300 million in India, sought the government’s approval for further investments.

Foreign e-commerce companies are allowed to operate as online marketplaces. FDI of up to 100 per cent is permitted in business-to-business e-commerce.

January 9, 2015