ITV

Tag: Trai

  • The year of the great tossing

    The year of the great tossing

    The year Indian news television channels got a sneak peek at what Pi Patel must have experienced while battling the raging storm in mid-seas in Ang Lee’s Life award winning Life Of Pi. Like Pi, news channels were tossed around, heaved up and down, had spear sharp rain and high waves buffeting them, got scalded by the hot sun, went through bouts of starvation and dying thirst – and they lived – at least most of them did – to tell the tale. It was a tough, tough year for them no doubt.

    Rising inflation, a tough economic environment which saw advertising spends being slashed, rising costs for carriage on cable TV and DTH, further fragmentation and evaporation of viewership – all led to their top lines and even bottomlines being beaten black and blue. Net result: layoffs, restructuring, reorganisation, was the name of the game. To top it all, the regulators – the Information & Broadcast (I&B) ministry and Telecom Regulatory Authority of India (TRAI) – too got into the act. The I&B pushed ahead with its digitisation drive even as it cracked down on them for paid content, and the TRAI ordered a reduction in advertising time permitted on air on channels.

    The news television industry has always had problems of plenty. More than 100 TV channels battle for a piffling Rs 2000 crore in ad spends. And more jumped onto the bandwagon during 2013 -an estimate is that around 25 new news channels made their debut. As though there wasn’t enough competition for the small morsels of advertising available in the various states and languages all over the country. But what kept the whole industry gloomy was the heartbeat aka advertising revenue which stayed flat for the whole year; and for some it even dipped. The big players were the ones who got to taste a little blood while the others struggled to make money out of inventory.

    The alarm bells started ringing out earlier in the year when TAM Media the viewership ratings agency did a rejig with its panels and started reporting on LC1 towns and also a new set of data reflecting the digitisation that was spreading across phase 1 towns. As an outcome, some of the channels ended up showing near zero viewership. TAM said this was because real viewership patterns were cropping up with deeper penetration of people meters.

    NDTV India, one of the older news broadcast networks, tried in vain to prosecute TAM’s parent AC Nielsen in the US on charges of fraud, but the NY court shooed it away, saying it should fight the legal battle on Indian turf. Allegations of TAM being rigged started rising to a cacophony and unanimously several channels decided to unsubscribe from TAM including NDTV, Times, CNN and Zee. A fierce battle issued between channels, advertisers and TAM that also saw support grow for the Broadcast Audience Research Council (BARC).Angry advertisers threatened to pull out advertisements from channels that had unsubscribed from TAM- including the seven big networks. After weeks of an impasse, resolution finally came about with rolling ratings of four weeks and silver, gold and platinum packs for clients. The major change coming about was the conversion of TRPs to TVTs. Satisfied channels finally went back to TAM but are still clinging on to the new lifeline-BARC.

    It was in the second quarter of the year that a bunch of channels in Kolkata under the Saradha group went belly up with the financial and real estate group going bust. Questions were raised about the MIB’s laxity in issuing broadcasting licences. In a bid to tighten its procedures, it wrote to all channels, asking them to provide them with details about their operations and to see if they were still complying with the licence terms. Some 67 channels did not; and had their licences revoked. The MIB also became stricter about norms relating to directorial appointments on news channels’ boards.

    But the big big fight of the year was the one that blew up when the TRAI introduced a quality of service regulation that restricted advertising air time to just 12 minutes per hour. Broadcasters who were accustomed to showing 20 to 25 minutes of ads experienced a jolt when this came out. They all collectively revolted, specially the news channels claiming that their revenue would be affected in an industry that is already suffering much losses. The News Broadcasters Association (NBA) also met the I&B ministry to ask TRAI to go easy on this regulation.The industry seems to have pacified the ministry on the content front at least, with the NBA, the Broadcast Editors Association, and the Indian Broadcasting Foundation (IBF)’s Broadcast Complaints Content Council (BCCC) in place. This despite, 2013 saw paid news being discussed very aggressively. Suggestions to set up a body to monitor broadcast – just like how the Press Council of India (PCI) does for the print media – were made. But the NBA opposed this strongly, saying that the self-regulatory mechanisms that are in place are enough to ensure that the news channels stay in line.

    The news channels yelped that they feared a shut down if the ad cap were to be implemented right away. They suggested that the ad cap, if necessary to be implemented, should be concurrent with the completion of digitisation in the country as then there would be more revenue flowing in. I&B minister Manish Tewari seemed to concur and even came out in their support on this approach.

    The interim order got smiles on some of their phases. The year 2013 was choppy to say the least for most of the news industry. High carriage fees, a slowdown in advertising growth, and extremely thin subscription revenues had forced even the older and long established news networks to look for solutions to keep their businesses viable. Almost all of them reorganized, consolidated their news operations which led to lopping off of bloated employee payrolls. The big buzzword during the year was the integrated newsroom – wherein a centralized bureau of journos and news crew helps service web, TV, and other online properties for a news network having several news channels.Finally the regulator decided to give the news channels some more time. A new advertising limit per hour was set. 20 minutes of ad time for news channels and 16 minutes for GECs till 30 September and after that everyone would have to together switch to 12 minutes and would have to submit compliance reports. But this formula did not go down well with the NBA even as the TRAI announced that it would rap violators on their knuckles. Some NBA members– along with some other niche channels – decided to take steps to protect themselves. They challenged TRAI’s mandate in the Telecom Disputes Settlement Appellate Tribunal (TDSAT) which heard arguments from all the affected parties for nearly 20 days. The NBA’s appeal to the tribunal got them an interim order preventing the regulator from taking any action against erring channels, allowing them to heave a collective sigh of relief. Even as the TDSAT was about to deliver its judgment, a coincidental verdict was given by the Supreme Court which stated that the tribunal had no power to hear or adjudicate on challenges to TRAI regulations. Swiftly, the TDSAT dismissed the case and the NBA immediately moved the Delhi Court to hear its plea. The Delhi High Court after listening to the initial appeal decided to get into its details later, giving the next hearing date as 13 March 2014. It however gave an interim order disallowing the TRAI from taking any coercive actions against channels not following the 12 minute ad cap.

    At the time of writing, Zee Media Corp was slated to take the same route following the announcement of the merger of DMCL – the company that produces the Times of India-challenger newspaper DNA – with it. It had prepared for the merger by donning a new moniker, dropping Zee News and naming itself as Zee Media Corp. The year saw it running a skeleton Telugu news channel, even as it launched Zee Rajasthan Plus.Network18, NDTV, UTV Bloomberg, BAG Network, among many others shed staff. Network 18 bid adieu to nearly 350 people, NDTV shut down its Mumbai bureau itself and Bloomberg handed over the much dreaded pink slip to 30 staffers. Roles of those retained were redefined and they were given additional responsibilities.

    Several other new offerings are lined up for 2014 including an English news channel, English business channel and two regional channels for Odisha and Bihar-Jharkhand . The company also repackaged itself and came up with a new positioning which seeks to attract India’s youth to watch its news channels.

    The year 2014 looks set to be an exciting one with national elections on the anvil. Even international channels have taken note of this with Al Jazeera, France 24 and BBC World News sprucing up their presence in the country. But there are challenges that the broadcast news sector will have to face: the ad cap situation needs resolution, carriage fees need further reduction, and the struggle to make money continues. But what’s keeping the sector hopeful is the scheduled completion of digitisation by end 2014. The hope is that the dark clouds will part to reveal a silver lining. And then clear skies.With controversy surrounding the Sahara group and its consistent clashes with the Securities Exchange Board of India, it decided to drop the Sahara name from all the channels, retaining the Samay as a brand. India TV too changed its complete look while it has also brought on board several news professionals including veteran Q W Naqvi. Bag Films hired former Star group president Ravina Raj Kohli on its advisory board while IBN7 CEO Dilip Venkatraman left the organisation after giving it a new look. The ABP group announced that it would launch new services but was stalled on account of the MIB’s tough stance on licensing norms and procedures. Even then a rumour that persisted through the year was the rumour that its former partner Star India would re-enter the news channel business.

    The year 2014 looks set to be an exciting one with national elections on the anvil. Even international channels have taken note of this with Al Jazeera, France 24 and BBC World News sprucing up their presence in the country. But there are challenges that the broadcast news sector will have to face: the ad cap situation needs resolution, carriage fees need further reduction, and the struggle to make money continues. But what’s keeping the sector hopeful is the scheduled completion of digitisation by end 2014. The hope is that the dark clouds will part to reveal a silver lining. And then clear skies.

  • 2014: Industry hopes high

    2014: Industry hopes high

    MUMBAI: A year of risks and several speed breakers has come to an end and the horizons of the New Year are already showing a silver lining. Every member of the media and entertainment industry in the country is expecting magical spells to be cast in 2014. Let’s look at what to anticipate from the next 12 months.

     

    Starting with the Ministry of Information and Broadcasting (MIB) the eagerly awaited forecast is that phase I and II of Digital Addressable System (DAS) are completed without any obstructions or delays. And phases III and IV flow smooth like silk so that India can boast of a digitised environment by the next New Year (2015).

     

    Broadcasters are expected to follow content norms as well as invest more in creating better content. With general elections coming up, channels are set to heat up their mercury levels to prove who is the best in the genre. Prasar Bharati is getting Rs 3,500 crore funding from the MIB which should enable modernisation of the pubcaster with high quality production and better quality shows as well as yield more revenues and profit.

     

    The Telecom Regulatory Authority of India (TRAI) has had a tough time this year dealing with the multi-system operators (MSOs), local cable operators (LCOs), direct-to-home (DTH) players, aggregators and broadcasters. With the year seeing too many conflicts between all the players of the industry, TRAI will surely want that all the stakeholders to find solutions. The regulator will also hope for smooth role out of DAS phase III and IV and gross billing to begin for phase I and II.   

     

    The regulator that recently came out with a consultation paper to curb monopoly of MSOs will be looking at curtailing excessive power clout and monopolies in every sector of television – cable TV, content aggregation and broadcasting.

     

    Moreover, TRAI will hope that all that it started in 2013 sees light in 2014. One such initiative is the acceptance of the ad cap regulation by all broadcasters. It would also hope that the quality of service for TV viewers is consistently kept in mind by broadcasters. Last, but not the least, it would also want that the new regulations for DTH licences are passed.

     

     Broadcasters are the happiest of the lot as they see better revenues flowing in the next year as digitisation pans out across India. Channels will be embroiled in acquiring or producing new innovative shows that will give them an edge over their competitors. Generating better TVTs either through new shows or hit movies that will help them dislodge the leader. Broadcasters are seeing much potential in the soon to be launched new rating system Broadcast Audience Research Council (BARC) which is expected to show their performances in true light.

     

    However, nothing is as eagerly awaited as the fate of the ad cap that is currently hanging mid air with the Delhi High Court. Even as some broadcasters are more than happy with the 12 minute advertising air time limit, most of them feel it is a hindrance to their functioning and will hamper their revenues if put to effect before digitisation is complete. At the same time they are also looking forward to strike better deals with their advertisers as well as better syndication for their programmes in the international market providing them a global exposure.

     

    As digitisation sets in, distribution should also be easier and transparent. Even as channels will engage with domestic DTH and cable TV platforms for better carriage and revenue share deals, they will look forward to reaching out to more audiences through international platforms.

     

    Bottomlines will be managed better as broadcasters will control their costs by trimming their staff, scaling up their programming, enhancing distribution and controlled marketing. With several TV channel licenses being stuck with the MIB, new channels are waiting to see the light of the day in 2014.

     

    The cable TV sector which has undergone immense change in 2013, will surely expect great returns in the coming year. One thing which they will be hoping for is internet on cable TV to spread thereby generating VAS revenues.  Their long wish list will also include reduction in import duties on STBs, preferably subsidies from the government for promoting digitisation, higher ARPUs from consumers, better synchronisation with other MSOs, fair entertainment and service tax – preferably service tax holidays, fair charges for usage of public utilities for distribution, higher carriage fees from broadcasters, lower content costs from broadcasters and aggregators and longer licensing norms from I&B. The year also witnessed a few announcements by the MSOs for acquiring content for their cable channels. These MSOs will hope that the venture is successful and helps them reap benefits with better revenue flow.

     

    On the DTH front, operators have high hopes that the tag of having the lowest ARPUs in the world will fade away as higher ARPUs will flow in. The dream is that content costs will be lowered which will help them generate better revenue as well as invest in getting innovative technologies for the future of TV and mobile.

     

    Digitisation for DTH players means high net addition of subscribers and lower churn in 2014 as some subscribers will shift from cable TV to the DTH platform. Leading players want to offer better packages to their subscribers with more availability of channel which can only come with more capacity bandwidth that is in the hands of the Indian Space Research Organisation (ISRO).

     

    At the production front, 2013 wasn’t really big on experiments; at least as far as TV shows are concerned. Only a few like the adaptation of the international format – 24, the reality show Connected Hum Tum and Comedy Nights with Kapil made some difference in programming. As we usher in to the New Year, we obviously expect more newness in the shows produced. But for that, the production houses need to get respite from the issues that keep bothering them.

     

    One of the major issues that cripple the production houses is the restrictions by broadcasters on the budget per episode. And then, it is for sure that the production houses in the New Year would wish for a better budget approval from the broadcasters. Another issue is the ever-rising demands of the crew unions, including the technicians and other crew members. The crew members have not just been fighting for a raise in their salary but have demanded many other privileges that have kept the production houses on their toes. Because of this, some production houses prefer working outstation than in Mumbai in order to cut down on costs.

     

    The year 2013 witnessed a really interesting case — there was a huge hoopla when an actor portraying the popular character, Gutthi (from Comedy Nights with Kapil on Colors) decided to pull out of the show over few differences with the production house and the channel. While the actor said the right to the character belonged to him, the production house thought otherwise. By the end of the year, nobody got a clear picture about who really owned the character. However, we hope the New Year doesn’t just bring clarity to this particular case but the industry also works in order bring a system in place about the entire intellectual property rights (IPR).

     

    The wish list for the New Year would never end. But some of the other desires that the production houses perish include better following of discipline by the actors on the set, better creative people with improved ideas that grabs the eyeballs, less interference from broadcasters in the production process and of course, many more new and intriguing shows that not only brings more viewers but good business that would improve the functioning of entire industry.

     

    The expectations are high but they aren’t too farfetched. With time, discussions and a little bit of a push we can see much of it becoming a reality.

  • Kolkata to miss the 31 Dec TRAI deadline for gross billing?

    Kolkata to miss the 31 Dec TRAI deadline for gross billing?

     

    KOLKATA: The Kolkata multi-system operators (MSOs) are likely to miss the 31 December deadline given by the Telecom Regulatory of India (TRAI) to start gross billing.

     

    The cable TV sources in Kolkata feel that the MSOs will not be able to meet the deadline. “They are likely to start the gross billing for the month of December from 7 January,” say the sources.

     

    It should be noted that the 31 December deadline was granted, as the MSOs missed the earlier 15 December deadline to start gross billing in phase I areas. Says Kolkata based cable TV analyst Mrinal Chatterjee, “Kolkata missed the deadline since neither the MSO nor the last mile owner (LMO) are prepared for the process.”

     

    Kolkata has around 30 lakh cable television homes. “The MSOs updated the minister on the total process of digitisation and billing.  As of now we have ad-hoc billing, but soon billing as per package will start. Though customers are happy, the operators do not want the billing to be in place,” opines Siticable Kolkata director Suresh Sethia.

     

    Siticable has around 10-11 lakh STBs in Kolkata DAS I area.

     

    Explaining the nitty-gritty’s of bill payment, a MSO says, “If a customer has chosen a package of Rs 180, he will have to pay Rs 180, plus Rs 10 (amusement tax) and12.36 per cent service tax.”

       
    A LMO affiliated to Hathway Cable & Datacom informs that the MSO has sent the bills to him in a compact disk (CD) and expects him to take a print out and give it to customers.

     

    The way things are progressing, it seems like another deadline is on its way to be missed.

  • Chennai & DAS: Madras High Court puts I&B, TRAI in a tough spot

    Chennai & DAS: Madras High Court puts I&B, TRAI in a tough spot

    MUMBAI: It seems like deja vu. It was around this time last year that Information and Broadcasting (I&B) Minister Manish Tewari was urging the Telecom Regulatory Authority of India (TRAI) to move fast on deciding on the issue whether the Tamil Nadu Arasu Cable TV Corp should be given a digital addressable system (DAS) licence. The TRAI had responded with a paper issued on 28 December 2013 on “Issues related to entry of certain entities into broadcasting and distribution activities.”

    It had recommended that the Central Government, State Governments and their entities should not be permitted to enter into the business of broadcasting and distribution of TV channels. Based on that, a DAS licence was not issued to Arasu, despite continued pressure from the Centre’s allies AIADMK and Tamil Nadu chief minister Jayalalithaa.

    Now the ball has landed back with the I&B Ministry over the weekend, with the Madras High Court reportedly telling it to once again take a stand on the MSO’s DAS licence. The court also directed the TRAI not to take any coercive action against it even if it continues to deliver analogue signals to its six million odd subscribers in the state. And it also said the case was adjourned for four weeks.

    “..it is not known to this court why the Centre has not taken any decision on the application of Arasu. When the authorities of the Union of India and the state instrumentality are not in a position to take any decision on granting or receiving the DAS licence, as the case may be, the ultimate sufferers are the subscribers. Therefore, I am of the considered opinion that the subscribers cannot be put to hardship. As such, there cannot be any disconnection of signals to the subscribers by the authorities,” said Justice V Dhanapalan on Friday.

    The Madras High Court issued these orders based on a petition that Arasu cable had filed with it. Arasu, on its part, had taken a decision to move the courts following TRAI’s announcement, earlier this month, that Chennai’s cable TV operators, broadcasters, and MSOs should take positive steps towards complete DAS in Chennai – one of the initial phase I metros – or face its wrath.

    Clearly, the I&B Ministry is in a catch 22 situation. The TRAI in its recommendations has been clear on disallowing state control in cable TV and DAS.

    With the Madras High Court now telling the Ministry to reconsider its earlier stance on it, could the court’s direction provide it with a parachute? With the current government at the Centre appearing to be on shaky ground following the Congress (I) debacle in four states, it might well use this as a trump card to win some points with the AIADMK in what appears to be building up as a tough battle for it in the 2014 elections. Additionally, the ministry and the TRAI also wants tardy Chennai to move full steam on digitisation and licensing the largest player Arasu – albeit it being state owned – might well help it achieve that objective.

    But should the I&B Ministry continues to hold on to its position that it will not issue the licence, digitisation might not really progress as Arasu will not take things lying down as it is a tour de force in the state and in the city of Chennai. With the court ruling in its favour, Arasu is well within its rights to continue with its analogue feed now, no matter how much the TRAI cracks the whip. And that’s something which will make the government’s digitisation diktat look incomplete, with one major metro abstaining from it, as it has been doing for nearly a year or so now.

    Meanwhile, local cable TV in Chennai continues to be pained by what’s being going on in the state. Some cable TV operators who are not part of Arasu’s network in Chennai went on a hunger strike yesterday to protest against the analogue signals being transmitted by it.

    “First and foremost a call needs to be taken on Arasu’s licence but more importantly TRAI needs to caution broadcasters who are giving these analog signals to them. They should be asked to sign official deals with MSOs for giving digital signals only,” says Chennai Metro Cable TV Operators Association General Secretary M.R. Srinivasan.

    Clearly, it seems as if the I&B ministry and the TRAI are caught between a rock and a hard place. Where will the two go from here now is anyone’s guess!

  • DishTV to approach TRAI on Star Sports 2

    DishTV to approach TRAI on Star Sports 2

    MUMBAI: For quite some time India’s largest DTH platform Dish TV has wanted to carry Star’s new sports channel launched earlier this year, Star Sports 2 as part of its service. But this has not happened. 

    Dish TV says it has not signed the RIO as it has several terms it objected to. It moved the Telecom Disputes Settlement Appellate Tribunal (TDSAT) for grievance redressal. 

    The interim order on the case came out late today stating that the question of validity of the terms of an RIO need to be first examined by the Telecom Regulatory Authority of India (TRAI) under clause 13.3 of the Telecommunication (Broadcasting and Cable Services) Interconnect Regulations (2004).

    One of the terms that Dish TV has been disputing is regarding ‘Remote access (e.g. through dial up or otherwise) to the Affiliate’s DTH platform (information related to subscribers) shall be provided to the Company in order to permit the Company to verify the subscriber numbers.’

    As per this term, Star Sports wanted access to its subscribers’ details on Dish TV. To this, the tribunal stated that this term is contrary to a previous opinion of TRAI that was upheld by the TDSAT.

    After hearing this, the Star Sports counsel said that his client won’t insist on incorporating this term in its RIO but the TDSAT said in a similar situation had arose before and therefore this clause may not have found mention in the RIO.

    “In so far as the other disputed terms and conditions are concerned, it will be open to the petitioner to sign the interconnect agreement, including the disputed terms and conditions without prejudice to its rights and contentions and keeping its option open to seek its remedies,” reads the TDSAT order. 

    Dish now has two options before it – either sign the RIO, comply with the terms and take the channel or else not take the channel. Star Sports says that if it wants to take it to the TRAI, it has to sign the RIO including the above mentioned one. The TDSAT has requested the regulator to have its say on it within six weeks from the date of filing.

    According to Dish TV, there are about 10 to 12 such terms that they object to and will be writing to the TRAI about in the first half of next week. “We do expect the TRAI will issue a direction to the broadcaster to amend clauses in the RIO. If Star Sports still does not adhere to the TRAI’s directions we will certainly revert to the tribunal to point out the recalcitrance again,” says Dish TV CEO R C Venkateish.

    Star Sports officials, on the other hand, are also quite clear that Dish TV will have to sign the RIO if it wants the channel. “Despite the fact that the disputed terms in the RIO, this stand of the broadcaster that I have to sign the RIO before approaching the TRAI is indicative of their attitude towards the law of the land,” said Venkateish.

    It is up to the regulator now to decide whether the terms in the RIO fit with the regulations.

  • MSO Alliance launches ad campaign on monthly billing

    MSO Alliance launches ad campaign on monthly billing

    MUMBAI: Soon consumers will find bills coming to them for using cable TV service. And the message will be reaching them loud and clear through a print campaign that was launched today in the New Delhi edition of The Times of India and Navbharat Times. The print campaign which aims at educating consumers of monthly billing reads: “Attention Digital Cable TV subscribers- Now pay as per your selected channel pack. Get a cable TV bill from your MSO every month starting December 2013.”

    The campaign is an initiative of the multi-system operator (MSO) Alliance that comprises national players: DEN Networks, Hathway Cable & Datacom, Siti Digital Cable Television and InCableNet. The MSO Alliance also has announced that the subscribers who have got a set top box (STB), submitted the ‘Know-Your-Client’ details and channel package selection, will get a bill for their cable TV service every month. The first bill will be generated for the month of November. The new facility has been introduced in keeping with the Telecom Regulatory Authority of India’s (TRAI) regulation on starting gross billing from December.    

    “This move is important as it will ensure that there are no additional or random charges levied on the subscribers. Our viewers will thus pay only for what they watch and they must insist on a bill from their local cable operator or MSO at the time of monthly payment,” said MSO Alliance secretary and DEN Networks CEO S.N Sharma. 

    As per the TRAI regulations, subscribers will get 15 days from the date of the bill to make their payment. In case the subscriber fails to make the payment after the expiry of the due date of payment, the MSO or the affiliate LCO has the right to charge interest on the outstanding amount.

    The Union Government and the TRAI had rolled out a four-phased plan for digitisation of cable TV across India early last year. Phases I & II of this process covering Delhi, Mumbai, Kolkata and 38 other major cities have already been completed. According to the Ministry of Information and Broadcasting, over 26 million STBs were installed in these cities, over 70 per cent of which were by digital cable companies.

  • TRAI ad cap: Broadcasters’ appeal dismissed by TDSAT

    TRAI ad cap: Broadcasters’ appeal dismissed by TDSAT

    MUMBAI: The highly awaited Telecom Regulatory Authority of India (TRAI) ad cap appeal in the Telecom Disputes Settlement Appellate Tribunal (TDSAT) has been dismissed by the tribunal as not maintainable by it, as predicted by indiantelevision.com earlier.

    Apparently, what influenced the TDSAT decision was the recent Supreme Court verdict stating that TDSAT does not have the authority to hear cases challenging TRAI regulations.

     

    The next course of action for the News Broadcasters Association et al, likely lies in approaching the High Court for relief. 

  • TRAI asks DTH operators to provide interoperability of STBs

    TRAI asks DTH operators to provide interoperability of STBs

    MUMBAI: In September this year, the licence of India’s oldest DTH provider Dish TV was to expire after a period of 10 years and then there was no provision for an extension. On 1 October the regulator came out with a consultation paper and on 14 November it issued a supplementary paper. 

    With the last date to provide feedback approaching, TRAI had an open house discussion (OHD) on 9 December with the leading DTH providers give suggestions on the consultation and supplementary papers released by TRAI.

    During the OHD, TRAI chairman Rahul Khullar said that set top boxes (STBs) should be inter-operable for the end consumer, either commercially or technically. He also told operators that the viewers should have the option to use the same STBs if they wished to change their service provider. But if operators found it to be a challenging prospect then they should be given an option of returning the STBs to their provider in exchange for money that could help them buy a new one.

    The Information and Broadcasting (I & B) Ministry had directed TRAI to set up new guidelines for obtaining DTH licenses in India. The OHD between TRAI and DTH players was to frame new recommendations regarding the same.

    During the OHD, DTH operators were asked to give views on issues such as entry fee and quantum thereof, licence fee, conditions governing cross holdings and period of extension. Representatives from the industry said that new licences should be given for a reasonably long duration and the government should have the power to cancel these if operators violate rules.

    Khullar conveyed to operators that once the new licence rules come into effect, they will have two options: one, to either continue under their earlier terms and conditions till their licence expires or two, to change to the new system.

    Khullar has told DTH operators that they can submit any additional points till Friday.

  • The SC court judgement & TDSAT’s powers

    The SC court judgement & TDSAT’s powers

    MUMBAI: The broadcasting industry that has been fiercely fighting the ad cap regulation by the Telecom Regulatory Authority of India (TRAI) got a jolt last Friday when the news emerged  that the Supreme Court, in a separate case, had declared that the Telecom Disputes Settlement Appellate Tribunal (TDSAT) does not have power to deal with appeals over regulations framed by the authority.

    The judgment in BSNL vs TRAI and others case came out on the Supreme Court web site today. It had some crucial points regarding what can be termed as ‘regulations’ and whether TDSAT has the authority to hear appeals against them. 

    According to the judgment, the powers under Section 36 of the TRAI act are legislative and not administrative and by virtue of Section 37 of the Act, they are at par with rules framed by the Central Government thereby mandating them to be laid before both houses of Parliament. Thereafter, Parliament has the power to annul or modify the same. But there is ambiguity on what happens if it is not laid in parliament. Does it stand void? Or can it still be taken as a regulation?

    The bench stated that ‘the Tribunals are competent to hear matters where the vires (read: powers) of statutory provisions are questioned. However, in discharging this duty, they cannot act as substitutes for the High Courts and the Supreme Court’ meaning that they cannot hear cases which go into legislative laws.  Although the Tribunal will have the power to test the vire of subordinate legislation the exception would be questions regarding the vires of its parent statute. ‘A Tribunal which is a creature of an Act cannot declare that very Act to be unconstitutional’ reads the judgment.

    This makes the Tribunal incapable of deciding the fate of the ad cap case as it is a challenge to the validity of one of its parent statute.  

    The TRAI Act, amended in the year 2000 brought judicial functions under the TDSAT and kept the legislative and administrative powers under the regulator.

    The BSNL vs TRAI and others case verdict states: ‘In exercise of the power vested in it under Section 14(b) of the Act, TDSAT does not have the jurisdiction to entertain the challenge to the regulations framed by the Authority under Section 36 of the Act.”

    Now, if anyone wants to challenge the validity of the regulation framed under section 36, such as the ad cap regulation, the party has to file a petition before the High Court and not TDSAT. However, cases regarding the application of a regulation can still be taken to the TDSAT.

     

    The ad cap regulation that has been challenged by the News Broadcasters Association (NBA) and others has now come under a cloud. The contention of the broadcasters is that regulation is not valid and TRAI does not have the authority to regulate content, let alone prosecute it. However, the TRAI claims that advertisements form a part of content and by the contract between licensor and licensee; it had come out with the Standards of Quality of service (Duration of advertisements in TV channels) (amendment) regulation 2013 under section 36 and section 11 of the TRAI act.

    The judgement in the case has been reserved and according to lawyers from both sides, TDSAT will have to take into consideration this SC verdict and then give its final verdict on the case. Legally speaking, TRAI says it came out with an ad cap ‘regulation’ but the NBA says that TRAI has not fulfilled the laying requirement.

    If the TDSAT’s verdict says that the case is dismissed then the next step for the NBA would be to challenge TRAI in the High Court, which seems to be most likely one. 

    But it could also lead to some furrowed brows amongst the TV channel executives as  the stay order on TRAI not to take any coercive actions against channels that are not following the ad cap would be annulled and from then till the time the HC does not give a stay, TRAI could go back to taking its aggressive stance against broadcasters

    Click here for the Supreme Court Verdict

  • TRAI asks Kolkata MSOs to start gross billing by next week

    TRAI asks Kolkata MSOs to start gross billing by next week

    KOLKATA: It was just last week that indiantelevision.com reported that Kolkata multi-system operators (MSOs) are likely to start the gross (consumer) billing process from 10 December following a directive by Telecom Regulatory Authority of India (TRAI).

    Now, TRAI met the MSOs again on 6 December and has asked them to start the billing process by 15 December.

    Kolkata has around 30 lakh cable television homes. As of now, an informal billing process is in place, but with effect from November, customers may have to pay the bill as per the package. “Collection may come in the next two-three months,” said Siticable Kolkata director Suresh Sethia.

    “Billing for the November package will start by 15 December. We will also advertise in newspapers and on our local channels to make our consumers aware about this development,” added Sethia.

    Siticable has around 10-11 lakh STBs in Kolkata Digital Addressable System-I (DAS-I) area.

    Explaining the details of the bill payment process, one of the MSOs informed that if a customer has chosen a package of Rs 180, he will have to pay Rs 180 + Rs 10 (amusement tax) + 12.36 per cent of Rs 180 (service tax) in the coming time.

    The billing system will bring transparency and organise the business, however, some operators are opposing it.

    But, the view of the majority is that only digitalisation can bring uniformity and a system in the so-called unorganised sector. Manthan Broadband director Sudip Ghosh said, “Billing is the first step to inform consumers of the changed ecosystem in a digitised environment.”