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Tag: Trai

  • TRAI issues regulations for reducing security deposit and registration fees of telemarketers

    TRAI issues regulations for reducing security deposit and registration fees of telemarketers

    EW DELHI: The Telecom Regulatory Authority of India (TRAI) today issued regulations to encourage telemarketers to register by reducing the registration fees and the security deposit with the service provider.

    The Telecom Commercial Communications Customer Preference (Fourteenth Amendment) Regulations, 2013 says some of the major entities like banks and insurance agencies have requested the Authority to reduce the registration fees and also the security deposit with the service providers to remove the entry barrier for small dealers/ agents.

    Some of the major banks and insurance agencies have submitted that there are small dealers/ agents, in their business model, who do not have the means to afford the initial security deposit of   Rs 1,00,000 with service providers for taking telecom resources. Since the banks and insurance companies are compulsorily mandating their dealers/agents for registration as a telemarketer with TRAI, they have requested for reduction in the registration fee and the initial security deposit so as to motivate and provide opportunity for these small agents/dealers to register with TRAI as a telemarketer. 

    The Authority considered the issue and issued the Telecom Commercial Communications Customer Preference (Fourteenth Amendment) Regulations, 2013 to address these issues. The salient features of the 14th Amendment to the TCCCPR are:

    · The registration period is extended from three to five years.  The existing registered telemarketers can renew their registration by paying a renewal fee of Rs 5000. 

    · The Registration Fee is reduced from Rs 10,000 (Rs 1,000 Registration Fee + Rs 9,000 Customer Education Fee) to Rs 5,000, which will be a common Registration Fee, without any separate Customer Education Fee. 

    · This initial security deposit with the service provider is reduced Rs 1,00,000 to Rs 50,000.

    · The revised provisions of the regulations will come into effect after 30 days.

  • TRAI seeks industry comments on FM Phase III migration

    TRAI seeks industry comments on FM Phase III migration

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has released the consultation paper on the migration of FM radio broadcasters from Phase-II to Phase-III. As part of the consultative process, the stake holders have been requested to offer their comments and views by 17 December 2013.

     

    Accordingly, this Consultation Paper (CP) has been prepared to seek the comments/views of the stakeholders on the date of migration from Phase-II to Phase-III; duration of permission after migration from Phase-II to Phase-III; and the amount of migration fee to be charged from existing operators on their migration from Phase-II to Phase-III.

     

    It also states that in case of counter-comments it may be submitted by 24 December 2013. The Ministry of Information and Broadcasting (MIB) sent a reference dated 9 April 2013, to TRAI seeking recommendations. The clarifications sought by TRAI were provided by MIB by 22 November, 2013.

     

    The highlights of the Phase-III policy for FM Radio broadcast will be the validity of license is 15 years from the date of operationalisation of the Channel (10 years in Phase II); FDI limit have been raised to 26 percent in a private FM radio broadcasting company (from 20 per cent in Phase II); and it also allows the permission holder to carry the news bulletins of All India Radio in exactly the same format (unaltered) on such terms and conditions as may be mutually agreed with Prasar Bharati, no other news and current affairs programs will be permitted under the Policy.

     

    The other salient features of the policy are

    – Permission for the channels shall be granted on the basis of Non-Refundable One Time Entry Fee (NOTEF).

     

    – NOTEF shall be arrived at through an ascending e-auction process, on the lines followed by DoT in the auction of 3G and BWA spectrum in the year 2010.

     

    – Reserve Price for new channels in existing FM Phase-II cities, the highest bid price received for that city in Phase-II (Click here for more details); and for new cities, the highest bid price received during FM Phase-II for that category of cities in that region.

     

    – In case the benchmark from Phase-II for a particular region is not available, the lowest of the highest bid received in other regions for that category of cities.

     

    – For new cities in border areas with a population less than one lakh, the reserve price shall be Rs 5 lakh.

    – Annual licence fee will be four per cent of gross revenue of its FM radio channel for the financial year or 2.5 per cent of NOTEF for the concerned city, whichever is higher. For the permission holders in the States of North East, J&K and island territories (i.e. Andaman and Nicobar islands and Lakshadweep) – at 2 per cent of gross revenue for each year or 1.25 per cent of NOTEF for the concerned city, whichever is higher, for an initial period of three years from the date from which the annual license fee becomes payable and the permission period of 15 years begins.

     

    -Each applicant will be allowed to own more than one channel but not more than 40 per cent of the total channels in a city subject to a minimum of three different operators in the city.

     

    -No entity will be permitted to hold more than 15 per cent of all channels allotted in the country excluding channels located in Jammu and Kashmir, North Eastern States and island territories.

     

    -Networking of channels will be permissible within a private FM broadcaster’s own network across the country subject to 20 per cent of the total broadcast in a day is in the local language of the city and promotes local content.

     

    – The permission holder is required to follow the Programme and Advertisement Code as followed by All India Radio as amended from time to time or any other applicable code, which the Central Government may prescribe from time to time.

     

    In this phase, about 839 additional channels in about 294 cities across the country are being offered for the auction.

  • TRAI to host OHD on 10 December for new DTH licences

    TRAI to host OHD on 10 December for new DTH licences

    MUMBAI: The direct-to-home (DTH) players can now put their viewpoints on issues related to new DTH licences. The Telecom Regulatory Authority of India (TRAI) has called for an open house discussion (OHD) on 10 December at Ghalib Seminar Hall, Ghalib Institute Aiwan-e-Ghalib Marg, New Delhi for stakeholders to meet the regulator and present their viewpoints on the consultation paper and the supplementary consultation paper released earlier by TRAI.

     

    The regulator had earlier on 1 October issued a consultation paper on extension of DTH licences. The TRAI had later on 14 November also issued a supplementary consultation paper, which sort to get views of the industry stakeholders on the comprehensive review of the provisions in the existing DTH guidelines.

  • Kolkata may bill cable TV consumers from 10 December

    Kolkata may bill cable TV consumers from 10 December

    KOLKATA: On 29 November,  indiantelevision.com  had reported that the Telecom Regulatory Authority of India (TRAI) pushed the deadline for MSOs to submit duly-filled CAFs (Consumer Application Forms) to 15 December, also asking them to implement gross/direct billing by December.

    The latest development is that Kolkata is likely to start the billing process from 10 December.
    Said Siticable Kolkata director Suresh Sethia: “We have been prepared for a long time but since some MSO’s were not ready, we had to wait.  Now, everyone has agreed to bill as per package from 10 November. We will put the bills on the system. The operators will distribute the same to subscribers. The bills will mention amusement tax and service tax components separately.”

    If all goes well, Kolkata will end up leading the pack as players in other metros are targeting January, in some cases even the last quarter of the current fiscal to start direct billing.
    Popular perception is that direct billing will bring transparency and order into an otherwise largely unorganised business.

    Director Manthan Broadband Sudip Ghosh said: “Billing is the first step to inform consumers of the changed ecosystem in a digitised environment.”

    However, several MSOs are opposing the process. Sources reveal that though Kolkata has some 30 lakh cable homes, MSOs like DEN and Digicable haven’t even started the package, let alone starting direct billing.

    Swapan Chowdhury, convener of the Cable Operators Digitalisation Committee of the Association of Cable Operators, too felt that with DAS not implemented properly in the city, packages not available and technical problems in the software and system used for direct billing, it could be said the government was simply putting pressure on the MSOs to collect taxes easily. “No one is concerned about the operators,” he said.

    Apurba Bhattacharya, general secretary, Cable Operators Sangram Committee too opined that everything was a hodge podge in DAS I.

    Cable TV analyst Mrinal Chatterjee pointed out that many customers weren’t paying the rentals. “Bill should be introduced. As the central and state government too is losing tax unless the bill is introduced. Some MSOs claim that they are ready with the bill and the backend system needed for it but they are not!” she said.

    Media analyst Namit Dave posed a very real question: “At a time when some CAFs are not filled in and customers are unable to see their favourite channels even after opting for the preferred bouquet as offered in the channel package, is the city ready to take on direct billing?”

  • TRAI cracks the whip again on DAS phase I MSOs

    TRAI cracks the whip again on DAS phase I MSOs

    MUMBAI: Consumer billing has been a major irritant for all those involved in the process of India’s cable TV digitisation. The Telecom Regulatory Authority of India (TRAI) has been hauling up all and sundry amongst the multi-system operators (MSOs) to issue bills to cable TV subscribers, but has not managed to get the process in motion as yet even in the DAS phase I metros of Mumbai, Delhi and Kolkata.

    Now it’s time for another warning from the TRAI. It has written to 29 MSOs in the DAS phase I areas, telling them that they have to get their act together on consumer billing for the month of November 2013. Bills should be dispatched to cable TV subscribers by either the MSOs or local cable TV operators by 15 December; and a compliance report submitted by 31 December. Earlier on 6 November, the TRAI had intervened asking the MSOs to send a compliance report for Delhi, Mumbai and Kolkata by 15 November.

    The direction comes from the powers conferred on the authority under section 13, read with sub clauses (i) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) and regulation 14, 15, 16 and 24 of the Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations, 2012 and to protect the interest of the consumer.

    As per the direction, the MSOs also need to ensure that a proper receipt is given by it or its linked LCO for every payment made by the subscriber. “The MSOs will have to offer cable TV services to its subscribers on both pre-paid and post-paid payment options and generate bills for subscriber. That apart, the MSO also has to provide to the pre-paid subscriber, at a reasonable cost, the information relating to the itemised usage charge showing actual usage of service,” states the TRAI direction.

    What is notable is that it is not mandatory for the MSOs or its linked LCO to provide to the subscriber the information for any period beyond six months, preceding the month in which the request is made by the subscriber. According to the direction, “Every MSO shall, on request from the subscriber, change his payment plan from pre-paid to post-paid or vice-versa, without any extra charge.”

    To make the billing process clearer, the regulator has, as per regulation 15 of the Standards of Quality of Service (Digital Addressable Cable TV Systems) Regulations, provided that every MSO should – either directly or through the LCO – “give to every subscriber the bill for charges due and payable by such subscriber for each month or for such other period as agreed between the parties, for which such charges become payable by the subscriber.”

    The subscriber will be billed, generally on a monthly basis, including the service tax registration number and the MSO’s entertainment tax registration number. “Every MSO or its linked LCO, shall give 15 days, from the date of the bill, to every subscriber for making payment of the bill and in case the subscriber fails to make payment after expiry of the due date of payment, the MSO or LCO may charge simple interest of 12 per cent per annum on the amount due for the delay in making payment,” states TRAI’s direction.

  • Cabinet set to deliberate on TV ratings guidelines

    Cabinet set to deliberate on TV ratings guidelines

    MUMBAI: The Telecom Regulatory Authority of India’s (TRAI’s) recommendations are seeing movement to enable them to serve as the gold standard for television ratings. Currently with the law ministry, the file relating to TV rating guidelines is expected to be presented to the Cabinet very soon.

    The TRAI had come up with its own analysis and recommendations around how TV ratings should be done in India following  discussions with the various stakeholders in September 2013; with the Union Cabinet expected to deliberate and give it sanction soon it could well be en route to become law.

     “The recommendations are fair and are neither pro nor against any measuring body. However, it is very clear that it will be passed by the cabinet,” says the highly placed source from the Indian Broadcasting Foundation (IBF).

    As reported by indiantelevison.com in September, the regulatory body had sent out the recommendations on what should serve as guidelines to put in place a transparent, credible and reliable television ratings process in the country.  

    Amongst the recommendations is that any agency wanting to offer TV viewership monitoring or rating services has to perforce get itself registered with the ministry of Information & Broadcasting (MIB) if it fulfills the following guidelines: “The rating agency shall be set up and registered as a company under the Companies Act, 1956; any member of the board of directors of the television rating agency should not be in the business of broadcasting/ advertising/advertising agency; the rating agency should have a minimum net worth of Rs 20 crore; the rating agency should also meet the prescribed cross-holdings requirements.”

    TRAI had also stated that to keep the ratings process credible, there should be a minimum of 20,000 panel homes which have to be set up within six months of the guidelines being implemented. Thereafter the number of panel homes has to be increased by 10,000 every year until it reaches 50,000.

    To meet and fulfill the last criteria, TAM, the current measuring body, will have to invest a large sum of moolah ( Rs 100 crore plus) every year. This could well be a major challenge for it, if sources are to be believed. For the Indian broadcast industry, has pretty much been chary of funding any of its expansion plans, in the past.

    “Its very existence will be under tremendous threat over the next year or so,” says a media observer. “If it manages to raise the money despite all the cross media equity holding restrictions, then it should be all right. But it will have to contend with BARC which will be getting the industry’s support and should start by mid to late next year.  I would not like to be in TAM’s shoes.”

    However, the source adds that most stakeholders involved in it hope that TAM will be able to participate in the working of BARC as well.

    Another industry source comments, “We don’t care about what happens to TAM. The industry has opted for a new measuring system, then why should we think about TAM’s fate?”

    Watever be the case, one thing is clear BARC is no more suffering teething problems and will sooner than later  bring about a paradigm shift in the audience measuring game in India. And as far as TAM goes, it needs come up to scratch and follow the TRAI guidelines.

    The ratings race may have only just begun.

  • TDSAT ad cap: All arguments done

    TDSAT ad cap: All arguments done

    MUMBAI: It has been a long three weeks of hearings at Telecom Disputes Settlement Appellate Tribunal in the ad cap case between the News Broadcasters Association and other channels versus the Telecom Regulatory Authority of India (TRAI). Several arguments went back and forth between all the parties and, finally, it has come to an end.

     

    The last day saw the music channels, Polimer Media and TRAI give their rejoinders. Polimer Media’s rejoinder was that Article 19 1 a of the Constitution does not apply in this case since it is not a writ petition. It also said that pay channels and FTA channels cannot be treated the same.

     

    The music channels’ counsel Ramji Srinivasan argued that TRAI cannot use both section 36 and section 11 of the TRAI act for the regulation and now do a flip and call it a direction. If TRAI did want to frame the regulation, it should have done so under section 36 and not used multiple sections from multiple acts.

     

    However the music channels’ counsel said that they do have a license from the TRAI but if the regulator wants to use it then it needs to to apply section 7 (11) of the Cable TV Networks act strictly without additions or subtractions.

     

    He also presented data showing the effect the ad cap will have on their revenues. He said that channels in this genre will need to resort to a 30 per cent hike in ad rates if the cap does come into effect.

     

    Srinivasan said that amicus curiae Aman Ahluwalia had said that news channels will be severely affected by ad cap since their viewership is low; similarly the music channels are also in danger since they are are also niche with a limited viewership. And hence the ad regulation should not be applied to anyone at all.

     

    Finally the TRAI gave its rejoinder clarifying that it has framed a regulation under section 36 of the TRAI act and if the TDSAT feels it is a direction then it is not impeded in saying so. However the regulator maintained that it is not a direction, it is a regulation.

     

    The TDSAT is supposed to announce its judgement on the case.

  • MCOF to meet MSOs to discuss billing issues

    MCOF to meet MSOs to discuss billing issues

    MUMBAI: The easier a process becomes, the better it is. It seems this is the process that Maharashtra Cable Operators’ Foundation (MCOF) has opted for in order to make the entire digitisation process a smooth ride. In a new initiative, the apex body of cable operators in Maharashtra has sent a letter to all the MSOs inviting them to a meeting where they would discuss about the proper implementation of digitisation.

     

    In the letter, of which Indiantelevision.com has a copy, the MSOs have been requested to schedule the meeting in the coming week.

     

    When both the parties meet, they are expected to discuss issues related to: interconnect agreement, billing, Consumer Application Form (CAF), package activation, a la carte channels choice, disconnection of set top boxes (STBs) without notice, misleading and false  information given about the LMO to the customer over call center, ownership of STB and uniform rates.
    We are making an effort from our side to meet each MSO separately, says Arvind Prabhoo

     

    The letter has come out a day after the Telecom Regulatory Authority of India (TRAI) gave the MSOs the final deadline of 15 December to submit the duly filled CAFs and also implement gross billing by December.  “CAF is not the only issue, there are issues related to service tax and billing,” says MCOF president Arvind Prabhoo.  “There is no clarity on whether the consumers will be billed on the service provided by the MSO or on the MRP of the package that the subscriber opts for,” he adds.

     

    The meeting has been called to discuss the issues concerning both the MSOs and the LMOs.

     

    “We are making an effort from our side to meet each MSO separately. In the meeting, we will try and understand the system of billing devised by the MSO and make suggestions, if required. If not, we will go hand-in-hand with MSOs, provided our legal status is maintained,” informs Prabhoo.

     

    The apex body which comprises more than 1500 LMOs is also unsure about the settlement mechanism between the MSO and the LMO once the billing is done. “The MSOs so far haven’t spoken to the LMOs on how they will pay the LMO for the customer it bills,” points out Prabhoo.

     

    Expressing concern on the 15 December deadline set for submitting CAFs, Prabhoo says, “If 50 per cent CAFs have been filled in one year on an average, how does TRAI expect the remaining 50 per cent to be filled in next three weeks? Also, with the holiday season coming in, is TRAI looking at switching off STBs, if the deadline is not met?”

     

    With TRAI pushing MSOs to start gross billing from December, Prabhoo comments, “The issue relating to entertainment tax is subjudiced. So when the MSO says it will start gross billing from next month, is it looking at levying entertainment tax as well?”

     

    It should also be noted that the Nasik Cable Operators Association has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on billing. While TRAI was supposed to respond to it on 22 November, the tribunal has granted time till 23 January to the regulator to respond. “So when both entertainment tax and billing is subjudiced, why is TRAI pushing cable operators for contempt of court?” he questions.

     

    On the issue of TRAI asking the MSOs to either convince the LMOs to start billing or do it themselves, Prabhoo sternly says, “They can do it, if they want. We are not going to be delivery boys. We are owners of our own businesses. And we have the right to bill our own consumers and that is what we are fighting for.”

  • TRAI extends CAF deadline to 15 December

    TRAI extends CAF deadline to 15 December

    MUMBAI: The multi system operators (MSOs) have time till 15 December to submit Consumer Application Forms (CAFs). The Telecom Regulatory Authority of India (TRAI) principal advisor N Parameswaran has shown forbearance and given the MSOs another 15 days to submit 100 per cent CAFs. The earlier deadline to submit CAFs was today, 20 November.

     

    The extension comes after Parameswaran’s meeting with the national MSOs held today in New Delhi. Though the MSOs had their concerns to address, in the meeting that lasted for one and a half hours, TRAI concentrated on two key issues — one, meeting the deadline for submitting CAFs for phase II by 15 December, and another, implementing gross billing from December for phase I.

     

    The meeting was attended by Hathway Cable and Datacom, Siti Cable, InCable, DEN Network, Digicable and GTPL.

     

    “We spoke at length on the issues that each MSO faces in order to comply with the deadline,” says a MSO on request of anonymity. “With LCOs not cooperating with us for submitting duly filled CAFs, and also the ongoing court cases that LCOs have filed to ensure the consumer stays under them, achieving the deadline is difficult,” he says.

     

    “The regulator will show leniency in states like Hyderabad, Madhya Pradesh and Gujarat that face problems, but in others it will not act as a Santa Claus if the deadline is not met,” says IndusInd Media and Communications Limited MD Ravi Mansukhani.

    According to Mansukhani, the bills are being generated by the MSOs, but the LCOs are not delivering them to the subscribers. “The TRAI has asked us to ensure that the bills should reach the subscribers by December. The regulator has asked us to either convince the LCO to deliver the bills to subscribers or to send them directly to each subscriber,” says Mansukhani.

     

    About 30 to 90 per cent CAFs have been collected so far. “The regulator has taken an average of this figure, which is around 50 per cent, and has said it is not enough. We have been asked to comply with this final deadline,” he mentions.

     

    The MSOs spoke at length on improving their relations with LCOs. “We want each party to realise and reap the benefits of digitisation,” states a MSO.

     

    The MSOs also raised logistic issues they were facing for collecting CAFs. “Unlike phase I which involved the big five players, phase II has several small players involved as well. And this is creating hindrance,” opines Mansukhani.

     

    The MSOs only have a few days to convince the LCOs to get ahead with both CAFs and billing. “It is a tough task, but we will have to give our best,” concludes Mansukhani.

     

    Seems like a difficult Christmas for the MSOs if they fail to meet deadlines.

  • TDSAT-TRAI ad cap: NBA finishes rejoinder

    TDSAT-TRAI ad cap: NBA finishes rejoinder

    MUMBAI: It was day two of the News Broadcasters Association (NBA) submission of its rejoinders in the hearings on the proposed Telecom Regulatory Authority of India (TRAI) ad cap regulation. NBA counsel Anup Bhambhani clarified that it was untrue that channels had tried to suppress documents, as everything related to teleport licence is in the public domain and hence easily accessible to the regulator. Channels had individual teleport licences while others were uplinking through Bharti Airtel or Essel Shyam which made them the licensees and not the channels.

     

    The counsel also pointed out that the TRAI had not informed the TDSAT that ads are of three types- commercial, social and programme promos. Not every ad is a paid ad and DAVP ad rates are also low.And the number of minutes of advertising does not take into consideration any of these facts; and hence is not reflected in these categories. He stated that the TRAI had gone overboard in describing the type, length and look of the adverts, in a consultation paper issued in 2012. And even though it was later dropped, it never had any mention of section 7 (11 )of the Cable TV Networks Regulation (CTN) act. Also, the proposed 10+2 regulation finally did not mention that TRAI was using section 11 of the TRAI act in order to enforce section 7 (11) of the CTN act.

     

    According to the NBA counsel, the 7 (11) argument was very ingenious in order to defend the TRAI regulation which was previously never mentioned. Assuming TRAI can regulate, the intention while framing was not keeping in mind this regulation. He pointed out that the ministry of information and broadcasting (MIB) is the authority for the news channels and not the TRAI.

     

    The NBA lawyer also clarified that the Bengal Cricket Association vs MIB and Doordarshan judgement does not apply to private broadcasters as is stated in para 79 of the case. Although the case was read against the channels, it claims that the argument that ‘airways are public property’ only applies when you are seeking a teleport licence for setting up a TV station. While thinking of granting a licence, Article 19 (1) of the Constitution that speaks about freedom of speech and expression, can be thought of but not after it has been granted.

     

    Mentioning the Sakaal papers case, the NBA counsel said that that case was contended because page numbers were restricted and similarly in the case of TV channels also ad duration is being controlled. It also stated that there is no need to prove a loss because even if there is a prospect that there may be a shutdown due to the restriction then it is a violation of Article 19.

     

    Another point argued was that when TRAI says it is laying down standards of quality under section 11 of the TRAI act, as per precedents it had itself set, it can only include technical aspects such as tariff regulation and never content. According to the NBA, duration is content.

     

    Addressing the point that the amicus curiae had made, the NBA counsel presented data supporting the fact that channels’ ad rates would need nearly 50 to 100 per cent increases, if losses due to lower air time are to be covered. To support the contention that TRAI only has recommendatory authority, the NBA lawyers pulled up SO 44 and 45 from the TRAI notifications which said “Broadcasting and cable services to be telecommunication services and showed that it is mentioned in it by the central government that TRAI only has a recommendatory function regarding duration of commercials.”

     

    SO 45E 1 b states “Without prejudice to the provisions contained in clause (a) of sub-section (1) of section 11 of the Act, to make recommendation regarding (b) the parameters for regulating maximum time for advertisements in pay channels as well as other channels”.

     

    Even though broadcasting has no correct definition, the NBA read from the TRAI explanatory memorandum 2012 where it mentioned broadcasting services to be ‘dissemination of signals.’

     

    Another argument was that TRAI couldn’t change a statutory law by changing ‘per hour’ to ‘clock hour’ and reporting authority as TRAI. Before coming up with the regulation TRAI didn’t even bother to serve a notice to broadcasters.

     

    TRAI’s argument that it was for the benefit of consumers that the regulation is being framed was countered by the NBA saying that viewers need choice. If they wanted channels free of ads they should be ready to pay more for the service or else they have an option to switch channels. The channels said they are happy to consider it post DAS is implemented which according to a KMPG report will make subscription and advertisements a 50:50 affair.

     

    A major point raised was the discrimination towards pay channels and bias towards the pubcaster Doordarshan which according to the NBA was also violating the regulation.

     

    Tomorrow the music channels are expected to give their rejoinders.