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Tag: Trai

  • MIB wants MSOs-b’casters to sign DAS agreements within 15 days

    MIB wants MSOs-b’casters to sign DAS agreements within 15 days

    NEW DELHI: A meeting of Telecom Regulatory Authority of India (Trai) officials with aggregators including multi system operators has been convened in the coming week to sort out problems being faced by MSOs and local cable operators relating to agreements and billing of digital access system (DAS) .

    This decision was taken in a meeting of the Task Force of Phase II of DAS.convened by the information & broadcasting ministry, which said that the agreements must be signed within the next 15 days.

    Failure to sign agreements by broadcasters and MSOs has in turn led to problems of LCOs billing consumers.

    Several channel aggregators who are not licensed are also said to be creating problems with regard to signing agreements. On the other hand aggregators have complained to the Trai that MSOs are using strong arm tactics. (DAS Phase II: Indiacast-Hathway- GTPL slugfest on DAS deals)

    Signing of agreements between the broadcasters and MSOs is a pre-requisite under the TRAI’s achieving various benchmarks for a smooth switch over to DAS under the Interconnection (Digital Addressable Cable TV Systems) Regulations 2012.

    Some nodal officers also allege that there is no uniformity in the installation charges levied by MSOs or LCOs. However, ministry officials said this problem had to be addressed at the state government level.

  • Broadcasters want Trai to reinitiate dialogue on ad regulation

    NEW DELHI: Worried about the implications of the Telecom Regulatory Authority of India‘s (Trai) ad regulation policy on their business models, television industry‘s apex body Indian Broadcasting Foundation (IBF) has urged the government to engage in discussion with the stakeholders of the broadcast industry and roll back the regulation for the time being.

    The IBF suggested that like content the government should encourage self-regulation that is in line with global standards rather than pushing the regulation down the throats of broadcasters who are already reeling due to ad slowdown.

    “IBF calls for withdrawal of the notification and re-initiation of a participatory dialogue that helps make self-regulation of advertising minuteage in line with global standards a reality,” the IBF said in a statement.

    It added, “The IBF has been working with Trai over the last several months to arrive at a way forward on the quantum of advertising duration. Its fundamental stance has always been to self-regulate, aligned with globally practiced standards.”

    The IBF said that the industry is in agreement with the objective of the regulation that is better viewing experience for consumers without being frequently disrupted by advertisements, but the regulation must take into account the economic sustenance of the broadcast business.

    “The staging of doing this has to be in line with economic sustenance of the broadcasting business and is best aligned to the full value of digitisation becoming a reality.”

    The broadcast industry is still dependent on ad revenue as the primary source of income and the trickle down benefits of the much-hyped cable digitisation has not yet been realised even as carriage fees continue to be a burden.

    “The trickle back effect from the first stage of digitisation is yet to begin. Carriage fees introduced in 2008 remain a burden, especially for the more than 500 smaller channel operators. Cable TV tariffs remain frozen at 2005 rates. HD TV and pay channel revenues are just about beginning to happen and will take time to start providing economic value.

    Unless these issues are dealt with by the government it would be unfair on part of the government to bring ad regulation as the business model of broadcasters would go haywire.

    “These factors need concomitant addressing. Regulation on just advertising minuteage will have a severe impact on the survival of the broadcasting industry from amputation of a critical arm of the fourth estate,” the IBF averred.

    It opined that the broadcasting industry is yet to fully recover from the shocks of 2008 recession that had slowed down ad growth.

    “Like several industries that continue to reel from the after effects of the global economic recession, India‘s television broadcasting industry has been suffering too. The industry is largely dependent on advertising revenues for its economic sustenance,” the IBF contended.

    The Trai had on 22 March notified the Standards of Quality of Service (Duration of Advertisement in Television Channels) that caps the ad duration at 12 minutes per hour. The authority had even amended the main regulation that was issued on 14 May last year.

    The amended version of the regulation was watered down by doing away with clauses but that has still not helped in pacifying the broadcasters who have united to pressure the Trai to halt the implementation of the ad regulation.

  • Trai brings ad regulation ghost back to haunt broadcasters again

    NEW DELHI: Turning the heat on broadcasters again, the Telecom Regulatory Authority of India (Trai) has notified the Standards of Quality of Service (Duration of Advertisement in Television Channels) after watering down the amended version of the ad regulation.

    The main regulation was issued on 14 May last year that had the broadcasters up in arms. The matter finally reached Telecom Disputes Settlement and Appellate Tribunal (Tdsat) with the broadcasters getting interim relief in the form of a stay.

    The amended ad regulation has done away with contentious clauses by keeping a standardised ad duration at 12 minutes on clock hour basis for all channels as stated under the advertising code of the Cable Television Networks Rules (CTNR) 1994.

    As per the advertising code, no programme shall carry advertisements exceeding 12 minutes per hour, which may include up to 10 minutes per hour of commercial advertisements, and up to 2 minutes per hour of a channel’s self-promotional programmes.

    The advertising code among other things also states that “all advertisement should be clearly distinguishable from the programme and should not in any manner interfere with the programme use of lower part of screen to carry captions, static or moving alongside the programme”.

    The authority has also defined clock hour in the amended regulation. “The clock hour means a period of sixty minutes commencing from 00.00 of an hour and ending at 00.60 of that hour,” Trai said in the notification.

    While refusing to bow down under pressure from broadcasters, the Trai has also tried to pacify them by doing away or moderating certain clause from its earlier version in March.

    Some of the provisions that have been done away with include: (i) advertisements should be carried only during breaks in live sporting action, (ii) time gap between consecutive advertisement sessions should be of minimum 30 minutes in case of movies and 15 minutes otherwise excluding sporting events and (iii) no part screen or drop-down advertisements should be permitted etc.

    In order to minimise other breaks during certain live sporting events, in which natural breaks either occur after relatively long periods or there are no natural breaks such as F1 races, part screen advertisements should be allowed, the Trai said.

    It also said that “the “part screen” and “drop down” advertisements are integral forms of advertising and statutory rules already exist under the Cable TV Act to regulate the format and duration of advertisements that may be carried on television channels and the regulations are beyond the purview of Trai and in conflict with the provisions of rule 7 of the CTNR 1994”.

    The watered down version will also not go down well with broadcasters who are already bearing the brunt of of ad slowdown. It wouldn‘t be surprising if the matter ends up in the court again.

    The Trai contends that it is not bringing a new regulation; rather it is just implementing an existing one under the CTNR 1994 act. It also affirmed that regulating the duration of ads on television channels is the need of the hour in the interest of the consumers.

    The authority has alleged that most channels are in ‘brazen breach’ of the advertising code contained in the CTNR 1994.

    It has based its action on a report by I&B ministry’s Electronic Media Monitoring Centre (EMMC) that validated the rampant breach of permitted duration of advertisements in an hour by a large number of TV channels.

    Unperturbed by the allegations that it is overstepping the line, the Trai asserts that it has the power to define the term “quality of service” and lay down its standard and ensure its compliance.

    “Therefore, Trai has made these regulations to effectively monitor the duration of advertisement and to ensure that the broadcasters comply with the legislation in this regard,” it said in the notification.

    In order to monitor and ensure compliance of these regulations, broadcasters are now mandated to report the duration of advertisements carried in their channels to the Trai on quarterly basis in a prescribed proforma.

    The authority also warned that it would by order or direction issued from time to time, intervene for the purpose of protecting the interests of the subscribers or for ensuring compliance of the provisions of these regulations.

    The Trai amended the ad regulation following the Tdsat ruling that directed the authority to take stakeholders into confidence before implementing the ad regulation. The Trai issued a consultation paper on 27 August asking all stakeholders to give their responses which was followed by open house discussion.

    During the consultation process, the broadcasters contended that the ad regulation would result in fall in advertisement revenue. It was also mentioned that the restriction on advertisement duration would result in sharp increase in subscription charges.

    Some of the broadcasters suggested that the said regulations should be implemented after the completion of Digital Addressable System (DAS) in December 2014 or it should not be regulated on clock hour basis; instead it should be regulated on an average basis, averaged over a period of 24 hour.

    However, the Trai feels that if the ad duration is calculated on average basis the broadcasters will push more and more advertisements during prime time which attracts the highest number of eyeballs, to fetch higher rates for the commercial time slots.

    Some of the broadcasters were also of the view that sports channels merit different treatment. Live telecasts other than sports should also be treated at par with live sporting events.

  • Media Pro conducts raids against hotels in Orissa and WB for piracy

    Media Pro conducts raids against hotels in Orissa and WB for piracy

    MUMBAI: Media Pro Enterprise India, the joint venture between Star Den and Zee Turner, has said it has organised raids against local hotels/commercial establishments in Orissa with the help of Police for allegedly pirating signals of their channels distributed without any agreement.

    The company has filed an FIR against two Puri-based hotels and one Bhubaneswar-based hotel for illegally broadcasting Media Pro Channels. The raid was conducted after the hotels refused to pay heed to the notices by the company.

    A senior official of Media Pro stated, “These hotels have violated the provisions of the Trai tariff order which prohibits the unauthorized broadcast of Media Pro channels without any mutual agreement with Media Pro. It is mandatory for all commercial subscribers to reach a mutual agreement with the relevant broadcaster and/or their authorized cable/DTH operator, including hotels with ratings of three-star and above, heritage hotels or any other hotel, motel, inn and such other commercial establishments providing boarding and lodging and having 50 or more rooms.”

    “Such establishments have to take broadcast signals directly from the broadcaster unless the broadcaster has authorized any operator to provide such signals. In this case, these three hotels qualify as commercial subscribers of such a category and were taking unauthorised feeds from an unauthorised local cable network,” he added.

    The company also said that in similar raid, the police had initiated an FIR against one commercial property in Kolkata, seized Set Top Boxes (STBs) and the manager was put inside bars for five days for illegally broadcasting the signals.

  • LCOs say taxes have to be paid by MSOs under DAS

    LCOs say taxes have to be paid by MSOs under DAS

    NEW DELHI: Organisations of cable operators in Delhi have expressed surprise at reports that the Delhi Government is attempting to charge some local cable operators with evading taxes.

    The local cable operators (LCOs) say that all the set top boxes are being imported by the multi-system operators (MSOs) and the exact number is also available with these MSOs who file their records with the Telecom Regulatory Authority of India (Trai). The action of Delhi Government is therefore misplaced, the LCOs say.

    Cable Operators Federation of India president Roop Sharma said it was for the importer of the MSO to pay VAT or other taxes and this did not fall in the realm of the LCO.

    Under the Digital Addressable System (DAS), even the entertainment tax has to be paid by the MSO who generates the bill, and the LCO does not come into the picture. Prior to digitisation, the LCOs generated the billing for the consumers, Sharma added.

    She stressed that the LCOs had supported digitisation as they were consistently being accused of under-reporting, and wanted to ensure transparency.

    Earlier reports had said that the Delhi government had alleged that LCOs had been evading taxes by concealing the number of connections.

    The Department of Excise and Entertainment Tax had issued notices to nearly 1,000 of 2,200 operators in the city warning them of cancellation of licences.

    The process is likely to take two to three months, according to officials. According to 2011 census, Delhi has 3.341 million households with 88 per cent TV penetration, which implies that about 2.9 million households have TV connections.

    It is understood that the government has collected nearly Rs 1.21 billion against a target of Rs 670 million, of which Rs 300 million has been collected from cable operators. This collection last year was nearly Rs 330 million.

  • Industry needs to come together to put all systems in place for Phase 2: Parameswaran

    Industry needs to come together to put all systems in place for Phase 2: Parameswaran

    MUMBAI: The multi system operators (MSOs) might have successfully installed set top boxes (STBs) in majority of homes in phase 1 of digitisation but the government feels that is just one aspect of the drive and other aspects like subscriber management system (SMS) and billing system need to be put in place if the real benefits of digitisation have to be realised.

    The Telecom Regulatory Authority of India (Trai) wants the industry to set things right for Phase 2 of cable TV digitisation. Trai consultant N Parameswaran said Tuesday that the stakeholders need to work towards having all the systems in place in order to implement digitisation in letter and spirit.

    “Digitisation has not happened in a manner that we wanted to. It’s not a regulatory issue. The industry has to come together and ensure that that all the systems are in place from day one for phase 2,” he said.

    According to Parameswaran, the real benefits of digitisation have not reached people. "The subscriber management system is not in place. What has happened is only set top boxes have been installed,” Parameswaran said, while taking part in a panel discussion on digitisation at Ficci Frames 2013.

    Parameswaran said that the Trai had recently issued notices to MSOs and LCOs (Local Cable Operators) to make their SMS operational in DAS areas to ensure things fall in place.

    While commending the industry for achieving digitisation in a short span of time, Den Networks CMD Sameer Manchanda assured that the SMS and billing system will fall in place in 60 days.

    “We should have all things in place in 60 days. Putting eight million STBs was a herculean task. Digitisation has taken years in other countries,” Manchanda said.

    IndiaCast Group CEO Anuj Gandhi said the ARPUs (Average Revenue Per User) will increase gradually. The key is to segment existing channels and create packages accordingly. A case in point, Gandhi said, was having a South Indian channel package for Mumbai.

    Gandhi urged the industry to take one step at a time. The immediate priority, he said, was to get back-end systems in place. “For broadcasters, it’s a scary thought that the customers are getting more channels for the same price,” averred Gandhi.

    According to Multi Screen Media (MSM) CEO Man Jit Singh, government should continue to play the facilitators role like it did in the first phase. He also said that STBs have installed, subscribers are getting digital signals but little has changed apart from that.

    “What we have shown in first phase is that we came together as an industry to implement digitisation. The government also has a critical role to play. It should continue to play the facilitators role to bring together different stakeholders in the industry,” Singh said.

    He added, “Tiering and ARPU is incremental to drive the market together by understanding the consumer needs and expectations. The burden of expansion has to be shared by the Local Cable Operator (LCO), Multi System Operator (MSO), broadcaster and the consumer.”

    IBM Global Business Services India/SA Director & Partner, Industry Leader – Media & Entertainment Raman Kalra said that it is important for the industry to keep parallel strategy in place as the business model is evolving continuously.

    “Consumer is willing to pay but the industry should know how to extract it. The key is to know your customers to facilitate micro-segmentation and then work on the content strategy accordingly,” Kalra said.

    Reliance Broadcast Network Limited (RBNL) CEO Tarun Katial said the advent of digitisation has made things easier for new channels as the carriage and placement is not a big problem anymore.

    He also said that the availability of more channels has meant that consumers are sampling more channels which is good for niche channels. He also felt that dynamics will change as advertisers will now have to shell out more for advertising on television as subscription revenues go up and advertising duration is cut down.

    Times Television Network (TTN) MD & CEO Sunil Lulla said, “The current economics are not adequate for the success of Phase 2 of digitisation. There is an urgent need for industry transformation and an effective change in consumer experience. We are sitting at the cusp of change where widespread and deep digitisation will happen on the back of consumers, regulators and government working together.”

  • TV ratings: NBA wants independent audit

    NEW DELHI: Though the Broadcast Audience Research Council (Barc) is expected to give out its first report by March 2014, the Government has been urged by the News Broadcasters Association (NBA) to set up a third party audit.

    Information and Broadcasting Ministry sources told indiantelevision.com that while it has been following up with Indian Broadcasting Foundation (IBF) for constitution of a transparent and credible audience research mechanism, the NBA has written to the Government for setting up an independent third party audit by a reputed agency to evaluate and measure the TAM system.

    Meanwhile, the Ministry had asked the Telecom Regulatory Authority of India (Trai) in December last year to make recommendations on comprehensive guidelines/accreditation mechanism for agencies studying television rating points to ensure fair competition, better standards and quality of services.

  • Decision on Arasu DAS licence will depend on Govt. view on Trai report

    Decision on Arasu DAS licence will depend on Govt. view on Trai report

    NEW DELHI: The Government has said the application by the Tamil Nadu Arasu Cable Television Corporation Ltd. for issuance of a digital addressable system licence is under consideration.

    However, Information and Broadcasting Ministry sources said that the application was being examined in the light of the report of the Telecom Regulatory Authority of India (Trai) which is opposed to granting licences for television channels or distribution networks owned or supported by state governments or political parties.

    The sources also said that no time frame could be given for a final decision on the application for registration as multi-system operator received on 5 July last year to operate in notified areas of Chennai.

    A newly constituted Inter-Ministerial Committee was currently examining the recommendations of Trai in its report in mid-December reiterating its stand taken in 2008, and so a decision on Arasu would be taken only after this process is finalised.

    Chaired by the Additional Secretary of the I&B Ministry, the IMC has representatives of the Departments of Information Technology, Telecommunications, Economic Affairs, and Industrial Policy and Promotion apart from some experts. The representatives of these Ministries should be of a rank not lower than Joint Secretary.

    The two Joint Secretaries (Broadcasting) in the I&B Ministry serve as member secretaries depending on the subject and section concerned.

    The experts are: Chairman and Managing Director of the Broadcasting Engineering Consultants India Ltd., the Director-Generals of Doordarshan and All India Radio, and the Engineers-in-Chief of DD and AIR.

    The Committee may co-opt any number considered necessary from time to time.

    Recommendations of the IMC would be communicated to the I&B Ministry Secretary and ‘thereafter to the Minister for instructions on matters relating to the recommendations of Trai.

  • TV industry to debate digital dividends at Casbaa India Forum

    TV industry to debate digital dividends at Casbaa India Forum

    NEW DELHI: The ongoing satellite capacity crunch and the challenges of navigating a complex regulatory environment to identifying the future trends in the country‘s multichannel TV market in the era of digitization will be among the subjects under discussion at the India Forum of the Cable and Satellite Broadcasters Association of Asia (Casbaa).

    The meet on 7 March here will bring into focus the disparate voices of various television industry stakeholders.

    “India is undeniably a vast and complex market, but one that continues to provide unparalleled opportunities and potential to investors,” said Casbaa CEO Christopher Slaughter.

    “However, success depends on the ability to navigate the hurdles of the country‘s broadcasting industry and CASBAA‘s annual India Forum provides an ideal platform to hear from leaders and experts from across borders and market segments.”

    Industry leaders will bring their unique perspectives on the current state of Indian broadcasting and what to expect moving ahead.

    Headlining the respected roster of speakers at the event will be government representatives Information and Broadcasting Ministry Secretary Uday Kumar Varma, Telecom Regulatory Authority of India Chairman Rahul Khullar; TRAI Principal Advisor Parameswaran N., and Sudhir Gupta, and Ms. Supriya Sahu, both Joint Secretary (Broadcasting & Policies) in the Ministry.

    The varied list of speakers and panellists will also include Thomas Choi (CEO, Asia Broadcast Satellite), Smita Jha (Leader, Entertainment and Media Practice, PwC India), LV Krishnan (CEO, TAM Media Research), Sameer Manchanda (Chairman & MD, DEN), Ravi Mansukhani (MD, IMCL), Deepak Mathur (SVP, Commercial, Asia-Pacific and the Middle East, SES), Harit Nagpal (MD & CEO, Tata Sky), Bharat Kumar Ranga (Chief Content & Creative Officer, Zee Entertainment), Man Jit Singh (CEO, MSM; President, IBF), Shashi Sinha (Chairman of Technical Committee, BARC; CEO, IPG Mediabrands India), Bill Wade (President & CEO, AsiaSat), Robert Zitter (EVP & CTO, HBO), Deepak Jacob (President, Legal & General Counsel, STAR TV India) among others.

    Partners for the CASBAA India Forum 2013 include Supporting Sponsor SES and Sponsors AsiaSat, Brightcove, CSG International, Eutelsat, IBM and Star India.

  • Trai issues notice to broadcasters to implement ad cap

    NEW DELHI: Even as it has sought clarity from the Information and Broadcasting Ministry on its powers in acting against violators, the Telecom Regulatory Authority of India (Trai) has issued notices to broadcasters to adhere to the 10+2 ad cap fixed by it in May last year.

    And even as broadcasters are unsure of Trai’s powers in implementing these regulations, the Authority has asked all broadcasters to give reasons by 10 March for not implementing the ad cap limit.

    Trai had stated that no broadcaster shall carry advertisements exceeding 12 minutes in a clock hour in a programme. The clock hour commences at 00.00 of the hour and ends at 00.60. Any shortfall of advertisement duration in a clock hour shall not be carried over. Advertisements included not only the commercials, but also the channel’s own promotions for its shows or for the channel per se.

    Broadcaster bodies had at that time opposed the suggestions citing ground realties in implementing them and the fact that the duration and number of ad breaks should be decided by market forces and not by regulating authorities. It is also felt by the broadcasters that this will hit their annual balance sheets.

    Broadcasters bodies Indian Broadcasting Foundation (IBF) and News Broadcasters Association (NBA) have been asked by the broadcasters to take a call on the issue as enforcement of the Trai rules may affect their viewership as well as their earnings, particularly in a scenario where the channels are still dependent more on commercial revenues than on subscriptions.

    A consultation paper in March 2012 had stated that there was a precedence of a Supreme Court ruling which had held that the restriction on advertising space in newspapers would lead to reduction in their revenues which was in violation of Article 19 (1)(a). The same rule should also apply to television.

    It was stated that the regulation also contradicts Trai’s own ruling of 2004, which had stated that there should be no regulation on advertisements – both on free to air and pay channels.

    Trai, upset over inaction on complaints against broadcasters, had asked the Ministry earlier this month to clarify if it is empowered to enforce rules on duration and format of TV advertisements if it wants to avoid possible “embarrassment” and litigation.