ITV

Tag: Trai

  • Ministry of home affairs spikes FDI hike in telecom, media

    Ministry of home affairs spikes FDI hike in telecom, media

    Mumbai: The Telecom Regulatory Authority of India’s proposal to increase foreign direct investment in the information and broadcasting and telecom sectors may never see the light of day.

    The reason: the ministry of home affairs has not agreed to increase FDI caps and/or entry routes in respect to “aviation, telecom and information and broadcasting sectors on account of their sensitivity and security concerns,” Minister of State for Home R P N Singh said in reply to a written question in parliament today, according to agency reports.

    Singh said the Home Ministry has also raised issues pertaining to “investments of concern” and in respect of different categories of investors and investments; source of investments and instruments of investment.

    Trai had earlier this year recommended hiking FDI caps for news television (TV) and private FM radio services to 49% from the current 26%. It had also proposed a FDI hike to 100 per cent (from 74 per cent currently) in distribution and carriage services such as direct-to-home (DTH) TV, cable networks and mobile TV.

  • TRAI orders MSOs to deliver RIOs; tariff packages

    TRAI orders MSOs to deliver RIOs; tariff packages

    MUMBAI: The fear of Friday the thirteenth seems to be coming true for registered multi system operators (MSOs) as the Telecom Regulatory Authority of India (TRAI) has come out with two different directions for them today. And it has warned them that it is time for the stakeholders to buck up and act fast.

    The first direction issued today gives 118 registered MSOs just 10 days to submit their interconnection agreements entered with the broadcasters for re-transmission of channels on their cable networks in the Digital Addressable System (DAS) notified areas. Another direction, gives them seven days to submit the details of tariff packages along with the terms and conditions for supply and installation of the set top box (STB) to their subscribers.

    Of the 118 MSOs, a few well-known names that feature in the list are: Siti Cable Network, Seven Star Dot Com, Sagar E Technologies, Ortel Communication, Manthan Broadband, JAK Communications, IMCL, Hathway Cable & Datacom and Den Networks amongst others.

    “Every MSO, according to the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) and regulation 5, 8 & 9 of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulation, 2012 (No. 9 of 2012), is required to have such interconnection agreement in DAS areas,” states the TRAI direction regarding interconnect agreement.

    According to regulation 5, it is mandatory for pay channel broadcasters to reduce the terms and conditions of the interconnection agreement into writing and deprive MSOs of their TV channel signals if no interconnect agreement is signed. Also, as per regulation 9, MSOs need to submit their interconnect agreement within the specified period to the authority.

    The TRAI direction had earlier said: “Every existing MSO shall submit to the authority by 31 July, 2012, all interconnect agreements entered into and amendments made therein prior to the date of notification of these regulations.”

    Regulation 8 gives power to the authority to intervene, inter alia, to protect the interest of the consumer and service provider. “The authority may, in order to protect the interest of the consumer or service provider or to promote and ensure orderly growth of the broadcasting and cable sector or for monitoring and ensuring compliance of these regulations, by order or direction, intervene, from time to time,” says the TRAI direction.

    With none of the MSOs so far caring to submit the tariff packages along with terms and conditions for supply and installations of STBs to their subscribers despite being ordered to do so under the Telecommunication (Broadcasting and Cable) Services (fifth) (Digital Addressable Cable TV Systems) Tariff Order, 2013 (No. 1 of 2013) issued on 27 May, the regulator has now cracked the whip on them to follow it and submit the packages within seven days from today. 

     
    It is to be noted that clause 5 of the tariff order states that every MSO has to report to the authority by 15 June 2013, the details of all the tariff packages and other terms and conditions for supply and installation of the STBs. According to this order, “Any change in the tariff package reported under sub-clause (1) and the introduction of a new tariff package for supply and installation of STB shall be reported to the authority at least seven days prior to such change or introduction, as the case may be.”

  • TRAI among other regulators to be answerable to Parliament

    TRAI among other regulators to be answerable to Parliament

    MUMBAI: The winter session of the Parliament seems to have seen the passage of one important bill. The Regulatory Reform Bill 2013 has been approved by the Prime Minister Manmohan Singh making all sector regulators (except finance) directly accountable to the Parliament. According to reports, the draft bill gives powers of licensing to regulators, which it is not currently with them.

     

    The cabinet note of the draft bill says that regulators will be legally accountable to the parliament and will have to present a report at the end of every fiscal year regarding work done in the previous year and agenda for the next year.

     

    The note was suggested by the Planning Commission. Two functions of regulators mentioned in the draft copy are “to protect the interests of all consumers, by ensuring quality of service and lowering of costs and to promote competition, efficiency and economy and prevent market domination, cartelisation and anti-competitive behavior and for orderly growth of the relevant public utility industry.

     

    On being passed, this bill will put the Telecom Regulatory Authority of India (TRAI) directly under purview of the parliament.

  • DAS: The Chennai conundrum

    DAS: The Chennai conundrum

    MUMBAI: The country may have entered the third and fourth phases of digitisation, but one of the major metros, Chennai, seems to be lagging behind in the digitisation process from phase one onwards. However, it is time for them to buck up as the Telecom Regulatory Authority of India (TRAI) may soon start cracking the whip on broadcasters, MSOs and LCOs in Chennai if they fail to comply with the digital addressable system (DAS) or digitisation norms, leading to severe repercussions.

    In a meeting organised on 9 December by the TRAI with the three stakeholders, the Regulator said that it has already notified the TV channels in Chennai that are still transmitting analogue signals. The deadline to implement DAS was 1 November 2012, but despite the entire framework such as interconnection, quality of service and consumer complaint redressal and tariff being in order, the stakeholders haven’t really followed the process,TRAI reiterated.

    One of the biggest hurdles in the implementation of digitisation is the dispute between the regulator, the information and broadcasting ministry and the Jayalalithaa-led Tamil Nadu government controlled Arasu Cable corporation that it should be given a DAS licence.

    Arasu Cable, that delivers cable TV services to almost half the subscribers in the city, was revived in 2011 and rapidly grew under the alleged patronage of the Jayalalithaa government.

    A TRAI consultation paper on monopoly in the cable TV sector released in June 2013 put it very aptly: “The Government of Tamil Nadu has incorporated Tamil Nadu Arasu Cable TV (TACTV) Corporation Ltd. on 02.09.2011 for distribution of cable TV in Tamil Nadu. It has taken over 27 Headends from the private MSOs. TACTV Corporation is providing cable TV services with most pay channels at a cost of Rs 70 per month to the public through local cable operators. Prior to this, another MSO, M/s KAL (Sumangali) Cable, which is a subsidiary of the Sun group, had dominance in the cable TV services in Tamil Nadu. However, KAL Cable continues to be dominant in Chennai city, where TACTV has not been registered as an MSO under DAS. Interestingly, channels of the Sun group, an integrated player providing both broadcasting and distribution services, were not available on the TACTV network for quite some time.”

    TRAI had then made it clear that Central and State government ministries, departments, companies and undertakings should not be allowed to enter into the business of broadcasting or distribution of television channels.

    The TRAI consultation paper had estimated that Tamil Nadu has 1.3 crore cable TV homes out of which 50 lakh are subscribers of Arasu. Other estimates are that Chennai has 38 lakh cable TV homes and seven lakh DTH homes. These estimates put Arasu’s subscriber base at 14 to 15 lakh.
    Recent reports claim that the dominant MSO had even ordered a large shipment of STBs in June this year, but has not gone ahead since it has not been issued a DAS licence. Since Arasu is still delivering analgoue signals, most other MSOs too have been tardy on switching over to DAS completely, fearing they would alienate their subscribers.

    In the meeting that the regulator had with the MSOs on 9 December, it ordered them to stop analogue signals and implement complete digitisation. It directed the MSOs to get the Subscriber Management System (SMS) in place with details of customers including their choice of channels.

    It also hurled another missive at broadcasters, clearly ordering them to provide their signals only to those MSOs that are registered for providing cable TV services through DAS. MSOs have been cautioned to ensure that only digital transmissions are provided through their network and Customer Application Forms (CAFs) are collected soon.

    TRAI has stated that it will closely monitor the progress of digitisation in the city and will also consider taking strict action against those who do not follow the protocol.
    Even customers have been advised to ensure that they receive cable TV connection only from operators supplying DAS signals or face a blackout of their TV screens.

    TRAI has also urged them to duly fill the CAFs at the earliest and submit them to their local operators. If they fail to do so, MSOs will be compelled to cut off transmission of those consumers, failing which they may will be in breach of law.

    In Chennai, out of the 38 lakh cable TV homes, only four lakh STBs have been seeded. This leaves nearly 34 lakh houses receiving analog signals.

    Will cable TV operators, broadcasters, and MSOs change the status quo and possibly face the ire of the state? They have not dared to challenge its might for the past year or so. On one side is the telecom regulator which is glaring down on them; on the other there is the state government has made its intentions clear when it asked the centre that Arasu be given a DAS licence. A conundrum if there ever was one.

    Will TRAI’s current warning turn out to be just what it is?

  • TRAI ad cap case: Judgement day dawns?

    TRAI ad cap case: Judgement day dawns?

    MUMBAI: Exactly a month after hearings first began in the ad cap case in the Telecom Disputes Appellate Tribunal (TDSAT), the verdict is set to be pronounced today. The TDSAT has listed it in the cause list for 11 December.

     

    The case that is being fought by broadcasters led by the News Broadcasters Association(NBA) against the Telecom Regulatory Authority of India (TRAI) is all set to be given a new direction.

     

    Indiantelevision.com gives you the highlights of the broadcasters vs TRAI ad cap legal slugfest and the coincidental twist that came near the end.

     

    The NBA’s main contentions were that TRAI does not have the authority to regulate content and that the agreement between the two is not of a licensor and a licensee but is rather a registration. It also said that the TRAI had not fulfilled the laying requirements before parliament thus making the regulation invalid.

     

    However, the TRAI stated that there was no rule in the TRAI act saying that merely because they hadn’t done the laying requirements, the regulation cannot be implemented. It also claimed that according to the terms of the licence and by applying section 7 of the Cable TV Networks Act it was authorised to implement the regulation to ensure the customers get quality of content on TV.

     

    After hearing the NBA, the TRAI, music channels and some other channels the TDSAT had reserved the judgement. The twist that came last week was when in a separate case of BSNL vs TRAI and others, the Supreme Court had ruled that cases in which the validity of a regulation by TRAI is challenged, cannot be heard in the TDSAT and has to be appealed against in the High Court since by law a regulation needs to be passed through parliament. This has put the fate of the ad cap regulation in a fix since officially TRAI claims it is a regulation.

     

    We wonder how the TDSAT will decide the case. Most probably, the TDSAT will dismiss it and request the petitioners to move the Hight Court after the verdict the SC gave on Friday. Had the petition been regarding the application of the regulation, the TDSAT could still have decided on it. However, the SC judgement clearly states that TDSAT cannot take a call on the very act that created it. TDSAT was formed under section 14 of the TRAI act giving it legislative and administrative powers.

     

    Section 36, under which the regulation was formed clearly underlines that if it is framed, it needs to be consistent with the terms of the TRAI act.

     

    However, after the SC ruling, the TDSAT seems to have been rendered powerless to decide on this case, even after 20 days of hearings and a long wait for the result, which will now be affected by the SC ruling.

     

    If the broadcasters are asked to move the HC, it means more time for them to deliberate on the validity of the regulation. But it is possible that they will have to follow the 12 minute ruling till the time, the HC does not say anything about it.

  • 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.

  • 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.”

  • Ad cap dispute to move to High Court?

    Ad cap dispute to move to High Court?

    MUMBAI: Its wings have been clipped. If one goes by the decision of the Supreme Court announced yesterday, all appeals against regulations set by the Telecom Regulatory Authority of India (TRAI) will now be dealt with in the various High Courts, not by the Telecom Disputes and Appellate Tribunal (TDSAT).

     

    TRAI has since 2010 been contending that TDSAT cannot hear appeals against its regulations, only those against its directions, decisions or orders. And yesterday a bench of the Supreme Court ruled in its favour.

     

    The authority normally sets regulations on issues such as rates, inter-connection and quality of service. TDSAT, TRAI states, was set up to adjudicate any dispute between a licensor and a licensee, between two or more service providers, between a service provider and a group of consumers, and to hear and dispose appeals against a direction, decision or order of TRAI.

     

    This is clearly set to have an impact on the course of the ad cap regulation set by the TRAI, which the TDSAT is set to adjudicate upon, following hearings involving broadcasters’ and the regulator’s lawyers. Broadcasters have been stating that the TRAI-mandated ad cap is going to have a detrimental impact on their business and the argument has been on whether it is in the form of a direction or a regulation. The stance of the TRAI has been that what it has issued is a regulation and not a direction under the quality of service, keeping in mind the interests of consumers.

     

    Observers expect the ad cap hearing to now move to the High Court. Other cases that will be impacted included the VAS regulation which has crippled the VAS industry but was issued by the TRAI keeping in mind consumer interest.

     

    The background of the Supreme Court ruling is that over the years several appeals have been filed with it by telcos such as Bharat Sanchar Nigam , Cellular Operators Association of India, Tata Teleservices and Reliance Infocomm against TDSAT orders involving regulations set by TRAI. And the TRAI had itself filed a petition in the Supreme Court in 2010 against a TDSAT order which had asked the authority to take a fresh look at the telecommunication interconnection (port charges) Amendment regulation 2007 after Bharat Sanchar Nigam had filed an appeal against it.

     

    TRAI had under that regulation reduced port charges by about 23 to 29 per cent on various slabs.

     

    TRAI had petitioned in the Supreme Court that TDSAT can only decide against any direction, decision or order passed by the TRAI, and not its regulations. And yesterday’s ruling by the Supreme Court clearly indicates where the law of the land lies.

  • Gujarat HC adjourns TRAI DAS order till 13 December

    Gujarat HC adjourns TRAI DAS order till 13 December

    MUMBAI: The Telecom Regulatory Authority of India (TRAI), the central government and the Gujarat state government has time until 13 December to submit their responses to the Gujarat High Court. The three parties were dragged to court by the Gujarat Cable Operators Association (GCOA) on issues associated to the digitisation process.

     

    The court hearing which took place on 6 December was adjourned till 13 December as the lawyers representing the multi-system operators (MSOs) were not present at the court hearing. “It was TRAI that made MSOs a party in the case. The Court adjourned the case since the lawyers representing the MSOs did not turn up for the hearing,” said Gujarat Cable Operators Association president Pramod Pandya.

     

    Earlier, GCOA had filed a petition to the HC, challenging the legality of Telecommunication (Broadcasting and Cable) Services Tariff and the Telecommunication (Broadcasting and Cable Services) Interconnection Regulations. After this, in its hearing on 13 November, the Court had asked the TRAI and government to declare the reasons for formulating the existing laws pertaining to tariff and interconnection.

     

    Pandya had earlier told Indiantelevision.com that the TRAI aims to remove the local cable operators. “We have challenged all the notifications passed by TRAI. This includes revenue share, consumer application forms (CAFs) and billing,” he said. 

     

    The parties were given 15 days to submit their responses; however, it’s almost a month now since the first Court hearing took place. “We are hopeful that the HC will come out with its judgment on 13 December hearing,” he concluded.

  • Unbundling channel rates a danger to TV ecosystem?

    Unbundling channel rates a danger to TV ecosystem?

    MUMBAI: In the midst of the digitisation process in India, several issues continue to be left unanswered. One such being the matter of unbundling of channels for which the Telecom Regulatory Authority of India (TRAI) issued a consultation paper asking suggestions from stakeholders regarding the same but no decision was reached after that. There is however a rift between MSOs and aggregators on the issue with the MSOs favouring it and aggregators being against it.

    The real question is whether or not it will benefit everyone including the broadcasters, MSOs, aggregators and finally the consumer. 

    A report on the situation in the US by investment banking and asset management firm Needham and Co’s entertainment analyst and MD Laura Martin says, unbundling of cable TV rates could well be a recipe for disaster for all concerned. In the report, Martin has taken a look at the issue from the consumer’s perspective and its consequences for them and for the ecosystem. 

    Martin’s report reveals that US households pay about $720 per year for 180 channels out of which they watch just 18. Consumers would like to pay $30 per month to watch these 16-20 channels. As compared to this, in India, annual rates are a paltry $30-$60 per annum for anywhere between 120 channels to 200 plus channels. 

    Martin argues that if consumers wanted to have all 180 channels as a la carte, their annual spending would increase to $1260, i.e, 75 per cent higher than the current price. 

    Here’s how it goes: cable TV channels in the US generate $56 billion from advertising and $45 billion from subscribers, while pay TV distributors pocket $30 billion, if one goes by last year’s figures. She estimates that if there was unbundling about 124 channels out of these 180 would be wiped out as they would not be in a position to have an average of the 165,000 viewers which Martin estimates are needed to break even on each cable TV channel’s $280 million per annum investment. Her view is that niche channels would simply disappear.

    The decrease in channel choices, points out Martin, would also mean that approximately $80 to $113 billion would be lost in consumer value and the government would lose $20 billion in taxes. It will also put the US, which is already dealing with a high unemployment rate of 7.3 per cent in October 2013, at a risk of losing 1.4 million additional jobs.

    She also warns that if these 180 channels do not create content that is engaging young Americans in the 18-34 year age group, there might be no traditional linear television left in 10 years. Viewers are resorting to cord-cutting and migrating increasingly to online for their entertainment to services such as Hulu, Netflix, Big Frame, Defy Media, Fullscreen, Machinima, Maker Studios,etc. According to a statistics portal Statistica, 43 per cent of Americans between the ages of 18 and 34 preferred Netflix as compared to 46 per cent of paid subscribers who chose cable.