Tag: Trai

TRAI releases consultation paper on “Valuation and Reserve Price of Spectrum”

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on 23 July released a consultation paper on “Valuation and Reserve Price of Spectrum”.

On 10 July 2013 the Department of Telecommunications (DoT) sought the TRAI’s recommendations on the applicable reserve price for the auction of spectrum in 800 MHz, 900 MHz and 1800 MHz bands. In this context, TRAI has issued this consultation paper raising specific issues for consideration of stakeholders. The key issues raised in the consultation paper are quantum of spectrum to be auctioned, eligibility for participation, roll-out obligations, methods to be used for valuation and estimation of reserve price of spectrum, review of spectrum usage charges and spectrum trading.

Written comments on the issues raised in the consultation paper are invited from the stakeholders by 14 August 2013 and counter-comments by 21 August 2013 by the regulator.

Stakeholders have been requested to send their comments by the due dates as there is an urgency to complete the consultation process. In its reference, the DoT has stated that, in light of the Honourable Supreme Courts’s directive, TRAI may consider an expedited process; hence there will be no further extension of timelines.

This is also an advance notice that open house discussion on the consultation paper will be held on 26 August 2013 in New Delhi.

July 24, 2013

TRAI gets tough on deadline for CAFs

MUMBAI: The Telecom Regulatory Authority of India (TRAI) means business and how. The regulator had called for a meeting on 19 July with the leading Multi System Operators (MSOs) that provide cable TV services in Mumbai, Kolkata and 38 cities, covered under phase-II of Digital Addressable Cable TV Systems (DAS) implementation, to review the progress.

TRAI has set the following deadlines for collection of the consumer application forms (CAFs) from the subscribers, complete in all respects, including choice of channels/services and entry of complete details in the subscriber management system (SMS), by the MSOs in these cities:-

Sl. No.	Cities	Deadline
1	Municipal Council of Greater Mumbai area	2 August 2013
2	Kolkata Metropolitan area	23 August 2013
3	38 Cities covered under phase-II of DAS implementation*	20 September 2013

*Hyderabad, Visakhapatanam, Patna, Ahmedabad, Rajkot, Surat, Vadodara, Faridabad, Srinagar, Ranchi, Bengaluru, Mysore, Bhopal, Indore, Jabalpur, Auragabad, Kalyan-Dombivili, Nagpur, Nashik, Navi-Mumbai, Pimri-Chinchwad, Pune, Sholapur, Thane, Amritsar, Ludhiana, Jaipur, Jodhpur, Coimbatore, Agra, Allahabad, Ghaziabad, Kanpur, Luknow, Meerut, Varanasi, Chandigarh, Howrah.

TRAI has already collected 97 per cent of CAF forms from Delhi and 80 per cent from Mumbai.

Speaking to Indiantelevision.com, TRAI principal advisor Parameswaran N said, “The deadline to submit the customer application forms in Kolkata is 23 August and there will be no extension. TRAI will take an action against LCOs and MSOs who will not submit the CAFs on time.”

TRAI has requested cable TV subscribers of the above mentioned areas to cooperate and submit the CAFs, complete in all respects to the respective cable operators/MSOs at the earliest, to enjoy the full benefits of digitisation. In event of failure to do so, MSOs will have no option but to switch off the signal to those consumers who have not submitted the forms, otherwise such MSOs would be in breach of the law.

Incable MD Ravi Mansukhani said, “80 per cent forms have been submitted and by the end of this month it should be 100 per cent in Mumbai.”

A leading Cable operator‘s spokesperson said, “CAF forms cannot be filled in a month or two. It is a long process which will take time; LCOs have to understand that this process will increase their ARPU‘s (Average revenue per user) and at the same time the subscribers too are not educated about this issue and they would only be aware of the gravity of the situation once their connections will be downgraded.”

July 22, 2013

TRAI’s second activation ruling to hit providers by 40 per cent

MUMBAI: Like a callertune you heard recently? But wait now you will have to be doubly sure if you want it. Yes, you heard it correct. The Telecom Regulatory Authority of India (TRAI) has said that any value added service (VAS) will be activated only after receiving a second confirmation from the customer.

Techzone managing director Naveen Bhandari says VAS revenues will take a beating

Speaking on the order, Huawei Telecommunications (India) PR and brand – head Suresh Vaidyanathan matter-of-factly says, “One needs to understand why this ruling was done. Of course, nobody wants unwanted calls or smses. Therefore, I think, it is a welcome move.”

TRAI made the ruling after it observed that there are various complaints regarding value added services offered by telecom service providers. According to it, the first offer of a service was on the service providers‘ platform and a second confirmation from the customer was through a dedicated consent gateway owned by a third party and not by the service provider.

Vaidyanathan feels that the Indian telecom industry is grown-up enough to understand it. He adds, “I‘m sure, it is only going to have a short term impact, if there would be any. On the contrary, it will only help structure the VAS economy.”

SpiceDigital director & head of
business development and
alliances Shehzad Azad feels the
ruling may create problems
for users in understanding the
usage of VAS services

Similarly, OnMobile Global, chief commercial officer, Sanjay Bhambri feels that double consent with clear communication of price points us in the larger interest of consumers and industry and gives the industry a clearer picture on the way forward. “We feel that the revised directive (which mandates second confirmation from customers through a consent gateway managed by the operator) is a positive step from TRAI compared to the earlier one which mandated activation of services post confirmation from customers through SMS, fax or email.”

But he is quick to point out that the ruling does have its downfall. “There could be transitional technology issues in connectivity of two consent systems resulting in poor consumer experience and drop outs, in the interim. Thus, the interconnecting multiple systems and changed user experience may result in consumers taking time to adapt to the new experience,” adds Bhambri.

One of the biggest players of the Rs 26,000 crore industry feels that there will be an almost 50 per cent an erosion in revenues and that it it expected a ruling of this sort.

Shotformats Digital Productions, managing director and CEO, Niyati Shah points out, “It is likely to affect each and every company by as much as 30 to 40 per cent. And to control the damage, the telecom providers are very actively working towards new methods of consumer acquisition, engagement and also ensuring the best quality product to retain consumers.”

Shotformats Digital Productions, managing director and CEO, Niyati Shah
says the ruling will hit the market
by close to 30-40 per cent

Suburban and rural India contributes to more than 65 per cent of Mobile VAS revenues. Industry professionals say that it is not surprising that more than 30 per cent of people are unable to correctly follow even the simple one step keyword instructions for Person to Application (P2A) based media services like polls and contests. Now that there‘s an additional gateway being introduced, it would take at least one to two quarters for the platforms to stabilise which would result in further dip in revenue.

SpiceDigital director & head of business development and alliances Shehzad Azad adds, “Not many have the knowledge or the skill about VAS services. Therefore, there are chances of people not sending second conformations within the given timeline.”

He states an example of the service SpiceDigital offers for railway enquiries and believes that there are many who don‘t know how to send SMSes. “Customers will face problems even if they need any information with this ruling coming into place,” he opines.

Talking about the future of the industry after the ruling Techzone managing director Naveen Bhandari says, “A large portion of the core VAS revenues are generated from subscription based services which already has an existing subscriber base.”

For example caller ring back tones (CRBT) which is a subscription based product contributes to approximately a fourth (varies from 20 per cent to 25 per cent depending on the operator) of the total core VAS revenue and is the largest contributor to the revenue.

“A product like that is typically composed of almost 70 per cent renewal revenue and 30 per cent new acquisition. Hence, in a window of two to three months, it‘s the new acquisition revenue that would get hit. But without proper steps the effect would be stable over the total kitty in four to six months period, considering average customer lifetime for VAS products is not more than three months.”

So what is it that will lower the impact of TRAI‘s new ruling and provide some succor to the industry? Most telecom providers say that there is a need to have mobile handsets which can support local languages so that it becomes easy to educate the consumer. And from the telecom operator‘s side, there is a need for a more focused marketing approach which will result in a better understanding of the customer‘s need and help create and supply the right content to the right target audience in a form that is easier to use and consume.

July 20, 2013

TRAI warns MSOs and LCOs in Kolkata to get their act together

MUMBAI: The Telecom Regulatory Authority of India (TRAI) held a meeting with the leading Multi System Operators (MSOs) in Kolkata to review the progress of implementation of Digital Addressable Cable TV Systems (DAS).

The regulator has brought up the fact that though sufficient time has elapsed since 1 November 2012 the Subscriber Management System (SMS) of DAS has not been effectively operationalised by the MSOs, providing cable TV service in Kolkata. The SMS is to have complete details of the subscribers including their choice of channels. Unless this is done the full benefit of digitisation cannot be extended to all the stakeholders including the subscribers. This will also help the subscribers to budget their bills.

In an effort to educate and sensitise the subscribers, TRAI has been issuing public notices from time to time. The broadcasters and the cable TV service providers have also been running scrolls in the TV channels and TV advertisement for the last few months requesting the subscribers to submit the duly filled-in Consumer Application Forms (CAFs). Through these public notices, scrolls and TV advertisements the subscribers were also alerted about deactivation of cable TV services, in case of non-submission of the forms.

The reason for this was that, in terms of Digital Addressable Cable TV Systems Regulations 2012, MSOs can transmit digital signals and activate the Set Top Box (STB) only after receiving the CAF from the consumer with his/her preference and entering all the details in its SMS. If there is no form, the MSOs are obliged under law not to transmit the signal and deactivate the cable TV services.

TRAI expressed its serious concern to the fact that only 20 per cent of the subscriber‘s details and their choices are available in the subscriber management system in Kolkata. Whereas this figure is more than 80 per cent in other metro cities and that the inaction on the part of MSOs and LCOs in implementation of DAS will not be tolerated.

Accordingly the MSOs have been directed to take immediate steps to ensure that the subscribers details and their choice of channels/bouquets/services are entered into the SMS. The regulatory body would be keeping a close watch on the progress in this regard and would take all possible actions, including penal action as per the TRAI Act to ensure compliance of its regulatory framework.

Cable TV subscribers have been requested to cooperate and submit the CAFs complete in all respect, to the respective LCO/MSO at the earliest, to enjoy the full benefit of digitisation. In event of failure to do so MSOs will have no option but to switch off the signal to those consumers who have not submitted their CAFs otherwise such MSOs would be in breach of the law.

July 18, 2013
TDSAT to accept news broadcasters’ appeal on ad cap

MUMBAI: Is there some relief in store for India’s TV broadcast sector in terms of advertising allowed to be telecast per hour? A slight glimmer of hope appears to have emerged yesterday.

Media reports are that the Telecom Disputes Settlement Apellate Tribunal (TDSAT) has given directions to the News Broadcasters Association (NBA) to submit its appeal against the 12 minute per hour Telecom Regulatory Authority of India’s (TRAI’s) mandate. It also gave TRAI two weeks to file its responses to news broadcasters’ concerns. And the NBA has been given a further two weeks to file a rejoinder after that, say media reports. A new chairman Justice Aftab Alam was appointed to the TRAI last month.

TRAI’s order has forced news channels to reduce their advertising commercial time per clock hour down to 20 minutes and general entertainment channels to 16 minutes per hour from 1 July 2013. This is slated to go down further to 12 minutes per hour from 1 October during the peak season of spending by most brands on TV.

News channels have for the past decade or so operated by having an advertising inventory of between 25 and 30 minutes per hour of telecast, is what the TRAI had observed. This dragged down the quality of viewing experience of TV viewers and it had hence under the quality of service rules for consumers mandated that the advertising air time be brought down almost immediately mid-last year.

Broadcasters had yelped and protested and even challenged TRAI’s locus standi on this decision last year with the TDSAT. But with no chairperson in place, the appeal had been kept in abeyance. The TRAI then came up with the quality of service regulations for advertising on TV on 22 March which have since then been enforced on the industry.

”It is true that broadcasters were going overboard in carrying too much advertising per hour,” says a media observer. ”But the business model of high carriage fees, low distribution revenues and relatively low ad rates has forced this upon news broadcasters. At least, general entertainment channels can charge higher rates. The government could have waited till digitisation was completed and the benefits of higher subscription-lower-carriage fees kicked in.”

In fact most news broadcasters have pleaded that their survival is at stake. Estimates are that news channels in India account for an approximate six per cent genre viewership share.

Advertising revenues for the almost 150 plus news channels operating in India in various language tot up to about Rs 2,200 crore. Broadcasters have claimed that the reduction in air time will not concomitantly be compensated by a hike in ad rates as advertisers and their agencies have only been eroding those over the past few years. They have also said that a large group of small advertisers who have been the main revenue source for TV news channels will not be in a position to absorb sharp hikes in ad rates. 10 second TV commercial rates for news channels vary between Rs 200 to Rs 2,500.

July 18, 2013
TRAI: Activation of VAS only on second confirmation

NEW DELHI: With the aim of reducing complaints relating to value added services (VAS) offered by telecom service providers, the Telecom Regulatory Authority of India (TRAI) on 10 July said any will be activated only after receiving a second confirmation from the customer.

In the directions issued by it, TRAI says the service provider has to provide a system which takes a second consent from the customer before providing a value added service through any means – OBD, IVRS, WAP, Mobile Internet, USSD, SMS, Tele-calling or any other mode of activation.

The first offer of a service is on the service providers‘ platform and a second confirmation from the customer is through a dedicated consent gateway which is owned by a third party and not by the service provider.

At the outset, TRAI said activation of VAS by service providers has been the cause of many customer complaints. The Authority has been addressing, from time to time, consumer issues, which have come to its notice through consumer complaints, relating to activation of value added service through different modes, without the explicit consent of the consumer. These directions essentially prescribe the manner in which the explicit consent of the consumer is to be obtained for activation of value added services through different modes. While issuing these directions, the Authority has also considered the interests of the service providers and growth of value added service industry.

In partial modification of existing directions, TRAI has directed all Service providers to implement a uniform procedure for taking explicit consent of the consumer for activation of value added service and for deactivation of value added service.

A Common de-activation procedure using toll Free Common Short Code 155223 has been provided and all requests for de-activation have to be completed in four hours).

VAS activation procedure will henceforth include all forms of activations and scenarios – OBD, IVRS, WAP, Mobile Internet, USSD, SMS, Tele-calling and any other mode of activation.

The deactivation procedure should be publicised through advertisements in newspapers, updation in the website and SMS blasts.

A full 24 hours before auto renewals of the VAS services, information about renewals to be provided to the customers, through SMS and Outbound Dialing (OBD).

In case of wrong activation, the amount will be refunded within 24 hours of the customer‘s request. Such customer requests should be within 24 hours for VAS with validity of more than one day and within 6 hours for VAS with validity of one day.

In case of USSD and SMS mode of activation, no activation response time should be more than 10 seconds and 60 minutes respectively and in case of non-response, the same should be treated as ‘no activation required‘.

Upon activation of VAS service, the de-activation number, the validity of the VAS service and charges for renewal should be explicitly informed.

A Monthly report on activations, de-activations and complaints received and their redressal to be submitted to TRAI.

The directions for obtaining explicit consent of consumers for subscribing, renewing and deactivation of Value added services are available on TRAI website http://www.trai.gov.in

July 11, 2013
No more extensions on CAFs, expect phased switch-offs

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has put its foot down this time on the issue of non collection of customer application forms (CAFs). The decision taken by the regulator is: no more extensions for CAFs in the DAS areas of Mumbai and New Delhi.

As is known, the meeting between TRAI and leading MSOs was scheduled today. And Indiantelevision.com learns that the regulator has mandated the switch-off of all the non-complying customers.

“We will be complying with the law of the land” says Hathway Cable CEO Jagdish Kumar. “Starting tomorrow we plan to downgrade all those subscribers who haven‘t submitted the forms. We will only be providing them with free-to-air channels till 15 July and post that we will be disconnecting those who don‘t send in their forms even after that warning completely by switching off their service.”

The cat and mouse game between the regulator and leading MSOs has finally come to an end. The final decision is: no slack from the local cable operators and customers would be entertained anymore. There is a grace period of five days that the LCOs have to make the final round of collections, post which the switch-offs would commence.

DEN Networks COO MG Azhar says: “We have collected 86 per cent CAFs in Delhi, but starting tomorrow we will be downgrading the non-complying customers to base packs.”

The phased switch-offs begin from tomorrow. Apparently, digitisation‘s progress cannot be stalled any further.

July 10, 2013
TRAI to hold open house in Bengaluru on monopoly/market dominance in cable TV services

NEW DELHI: Stakeholders in the cable TV services have a platform to voice their opinion. The Telecom Regulatory Authority of India (TRAI) has announced an open house to be held in Bengaluru on issues relating to monopoly and market dominance in cable TV services.

TRAI sources told indiantelevision.com that only one open house is planned on the subject, based on the responses received.

Earlier, stakeholders had been given a final opportunity to give their comments by 1 July to its consultation paper on the subject issued on 3 June, and counter-comments by 8 July. The open house will be on 16 July.

The paper was aimed at wanting to know if stakeholders agreed that the state should be the relevant market for measuring market power in the cable TV sector or suggest alternatives.

In the first place, TRAI which said it had issued the paper at the instance of the Information and Broadcasting Ministry, wanted to know if stakeholders agreed that there is a need to address the issue of monopoly or market dominance in cable TV distribution and how its ill effects can be addressed.

The paper contained a series of fifteen questions touching various aspects. TRAI has sought to know whether curbing market dominance and monopolistic trends as well as restrictions in the relevant cable TV market should be based on area of operation or based on market share.

Those who support the area of operation option need to specify how the area of relevant market ought to be divided amongst MSOs for providing cable TV service. While those who feel that the monopolistic trends should be based on market share, should specify the threshold value of market share beyond which an MSO cannot be allowed to build market share on its own. The open house will also concentrate on devising ways of achieving this in a market where a MSO already possess market share beyond the threshold value. Furthermore, TRAI also wants comments on the suitability of the rules defined in the paper in this connection.

Stakeholders had to give their views about the threshold value increase indicated by the regulator, or suggest defining restrictions.

TRAI also wanted to know if ‘control‘ of an entity over other MSOs/LCOs be decided according to the conditions mentioned in the paper or suggestion on alternatives. Stakeholders wanting different restrictions to curb market dominance have been asked to suggest these.

TRAI has apart from this, sought to know whether the parameters listed by it in the paper are adequate with respect to mandatory disclosures for effective monitoring and compliance of restrictions on market dominance in Cable TV sector, and the periodicity of such disclosures.

The regulator wanted to know of any amendments to be made in the statutory rules/ executive orders for implementing the restrictions.

July 9, 2013
TRAI seeks to define TV ratings guidelines

NEW DELHI: Even as the government-mandated Broadcast Audience Research Council (BARC) has been working on getting its act together, the Telecom Regulatory Authority of India (TRAI) today expressed the need for urgency in finalising its regulations for TV ratings agency accreditation. In an Open House today on its consultation paper on “Guidelines/Accreditation Mechanism for Television Rating Agencies in India,” TRAI officials indicated that the system of rating agencies could be streamlined only through proper guidelines mandated by it.

TRAI chairman Rahul Khullar, Principal Advisor (Broadcasting and Media), and other officials were present at the open house attended by about 30 stakeholders, including News Broadcasters’ Association head K.V.L, Narayan Rao, BARC CEO Partho Dasgupta, Paritosh Joshi, Indian Broadcasting Foundation (IBF) secretary general Shailesh Shah, among others.

The stakeholders were generally in favour of a self-regulated mechanism through BARC which has committed to roll out TV ratings by Q2 2014.

Most of the attendees agreed that TAM had failed in its task and any agency that takes over this work should be able to give a more rational coverage of viewership.

Khullar at the meeting candidly said that even if BARC is progressing, he had been mandated by the ministry of information & broadcasting to start the consultative process on TV ratings which he was doing. He also said it was not clear who would be the regulating agency for the TV rating process in India: TRAI, I&B minsitry, or industry itself.

Some participants of the Open House however expressed their fears that it is quite likely that TRAI will end up being the regulatory agency for the same.

In an effort to put an end to controversies generated by TRPs, TRAI had on 17 April issued a paper to deal with issues such as establishing an accreditation mechanism for TV rating agencies and methodology of audience measurement to ensure transparency and accountability in the rating system.

The consultation paper on “Guidelines/Accreditation Mechanism for Television Rating Agencies in India” also seeks to get the views of stakeholders on sample size; secrecy of sample homes; cross holding between rating agencies and their users; complaint redressal; sale and use of ratings; disclosure and reporting requirement; competition in rating services; and audit.

The consultation paper has been issued at the behest of the I&B ministry, which had earlier received a report from the Amit Mitra Committee on the subject. IBF has since been working to set up BARC as an alternative to TAM.

TRAI officials said incorrect ratings will lead to production of content which may not be really popular while good content and programmes may be left out. Therefore, there is a need to have an accurate measurement and representative television ratings for programmes.

July 1, 2013
Phase II of ad cap comes into effect; channels follow TRAI mandate

NEW DELHI: Indian TV viewers are going to be a delighted bunch. Reason: the number of TV commercials being bombarded at them on TV channels just got reduced.

The Telecom Regulatory Authority of India (TRAI) ad cap regime imposed on news and general entertainment channels came into force today with an upper limit of 20 and 16 minutes per hour respectively. This will run till 30 September, following which the 12-minute rule will come into play from 1 October.

Both Indian Broadcasting Foundation (IBF) and the News Broadcasters Association (NBA) have said their members are following the regime, the first phase of which came into effect on 29 May when its members agreed not to exceed 30 minutes of advertising per hour. IBF president Man Jit Singh and NBA president K V L Narayan Rao told indiantelevision.com that the TV channels would stand by their commitment to the government since this was now the law.

The final decision of 29 May had taken a lot of wrangling, with the matter also going to the Telecom Disputes Settlement & Appellate Tribunal against TRAI which insisted that it was only implementing a regulation which was part of the Cable TV Networks Rules 1994.

Following this, the IBF Board finally appointed a committee of five persons – K V L Narayan Rao, Zee Entertainment CEO Puneet Goenka, Asianet managing director K Madhavan and Disney UTV media managing director K Anand with the assistance of secretary general Shailesh Shah – to research, debate, consult and arrive at what will work.

The committee admitted in its report that some channels especially those in regional languages ran more than 30 minutes of advertising per hour. Shah, however, claimed to indiantelevision.com that the per hour ad time works out to just over 11 minutes if a full-day average is taken.

The TRAI, however, says it is going to keep a sharp eye on each channel to ensure that there is no violation of the time cap set on the TV broadcast industry. “TRAI would continue to monitor the timing of commercials per hour by various channels,” says TRAI principal advisor on broadcasting and media N Parameswaran.

It is quite likely that the air time reduction, could result in revenue losses for the channels. Though none of the broadcast bodies have clearly highlighted how much this erosion could be, media buyers do acknowledge that broadcasters will no doubt hike ad rates with the implementation of 12 minute ad cap on 1 October.
“The impact cannot be felt as of now. Once the ad time comes down to 12 minutes (across GECs) in October that is when the crunch will be felt,” said an executive from a leading media buying and planning company. June to September is a lean period for advertising on channels, especially considering it is the monsoon season all over India.

There are also few who believe that the ad cap restriction will improve quality of viewing. Madison Group COO- buying Neel Kamal Sharma opines, “It is a win-win situation. On one hand the advertisers will benefit as now they can target their audiences in an effective way. The broadcasters will also increase their ad rates. Parallel to this even digitisation will bring in extra revenue for the broadcasters, decreasing their dependence on ad revenue.”

Sharma hopes for the transition to take place in a fair manner, which has been recognized by all without shifting the entire burden onto advertisers. “We must take a long term view of the situation and handle it carefully as some people may try to take advantage of the situation to increase rates disproportionately which may neither be good for them nor good for TV industry’s growth in the long run as many advertisers have already started exploring alternative options,” he adds.

The message for broadcasters is clear: take tiny steps – together with your advertising partners. Don’t go for the long jump; you might end up jumping alone.

July 1, 2013