ITV

Tag: Trai

  • TDSAT adjourns Tata Sky vs Zee case

    TDSAT adjourns Tata Sky vs Zee case

    NEW DELHI: The Telecom Disputes Settlement Appellate Tribunal on Friday adjourned the hearing in the appeal by Tata Sky against Zee Turner’s demand for carrying all the channels they have on offer.

    The case, which relates also to the technical issue of transponder constraint, has been adjourned till 9 February, as the counsel for Zee Turner contested the contention of Tata Sky that the regulations of Trai did not have a “must carry” provison., but just a “must provide” provision.

    The Zee Turner counsel said that there exist two specific Trai-issued documents that could be placed in the court right away, or later, as the court thought fit, which show that Trai regulations carry a “must carry” provision. The court finally fixed 9 February as the date for filing those documents with a note from the Zee counsel.

    Reading out the affidavit to seek to prove his point, the Tata Sky counsel said that Trai had made four points in the affidavit: first, that it was considering the issue and consultative paper would be issued, without fixing a timeframe for that; secondly, that the affidavit does say that there are capacity constraints on the transponders; thirdly, that DTH is at par with the cable operations, being an addressable system; and finally, that Trai says its regulations did have a “must provide”, but not a “must carry” provision.

    Tata Sky’s argument was that since the regulations did not enforce any “must carry” provision, the DTH operator was not bound to carry all the channels provided as package/s by a broadcaster.

    To this, however, the Zee counsel asserted that there were two earlier documents by Trai that specifically assert a “must carry” provision, and these could be produced in the court.
    Part of the dispute between Tata Sky and Zee Turner rests on the fact that the latter has been insisting that the DTH operator carry all its channels and could not “pick and chose” from them.

    The former had argued that the transponder constraint does not allow them to run each and every channel from a broadcaster they take signals from.

    In this context, in the earlier hearing on 2 January, Tdsat had asked Trai to look into the transponder issue as well as other issues. Trai has said today that transponder constraint is a reality.

    On this, Tata Sky today pleaded that since Trai was considering issuing a consultation paper, and yet, not fixed a date for that, Tdsat may ask Trai to fix a date and issue an interim order to that effect.

    However, the proceedings took a different turn with the Zee Turner counsel bringing up the issue of Trai documents mandating a “must carry” provision.

  • HC adjourns Sony case against Trai to 24 Jan

    HC adjourns Sony case against Trai to 24 Jan

    NEW DELHI: The Delhi High Court bench hearing the case on the issue of the Telecom Regulatory Authority of India’s (Trai) constitutional standing to be a regulator today heard arguments by Sony Entertainment Television’s counsel, before adjourning it again to 18 January.

    The crux of senior counsel Soli Sorabjee’s hour-long argument was around the previously stated position that broadcasters are not covered under the Telecom regulatory nor cable operator acts. Hence Trai is not in a position to eithwer fix tariff or issue any other regulations or orders.

    The court had last December fixed the day for hearing this matter while stating that there would be no impact of the continued hearing on implementing Cas from the designated date: 31 December, 2006.

    The petition by Sony is now the main petition being heard by the court. The earlier petitions by first Star (2005), and then Sony, are all being heard as part of this main petition.

    Star had filed the orginal case in 2005 challenging the constitutional validity of Trai as a regulatory authority for broadcasters.

    Since the very locus standi of Trai had been sought to be shown as unconstitutional by Star, automatically all its powers and orders were challenged, including the order of tariff freeze. Later, Sony had filed a seperate petition on the orders of 24 August and 31 August regarding Trai’s constitutional validity, its orders relating to price fixing under Cas regime at Rs 5 per pay channel, as well as its order on interconnection.

    Trai had issued an order saying that signals to a cable operator or MSO could not be disconnected, whatever be the reason, by a broadcaster unless 21 days prior notice is issued.

    On the price fixing at Rs 5, the court had asked Sony to appeal to TDSAT as that was a quantitative issue.

    HC at the moment is only hearing the constitutional issue, which will continue on 24 January.

  • Metros to be fully ‘Cas’ed: Das Munshi

    Metros to be fully ‘Cas’ed: Das Munshi

    NEW DELHI/MUMBAI: Looks like conditional access system (Cas) will spread to fully cover the metros of Delhi, Mumbai and Kolkata.

    “The introduction of Cas in some parts of the metros has proved successful and it would be extended to other areas in these cities soon,” the information and broadcasting minister Priya Ranjan Das Munshi said today at a press conference in Delhi.

    The set-top boxes (STBs) seeded in these three cities, according to the Telecom Regulatory Authority of India (Trai) chairman Nripendra Misra, has already touched 382,000.

    Of the 1.2 million subscribers in the Cas areas, Trai’s estimate is that digital conversion would be at 50 per cent by February-end. “The indication that we are getting is that there would be 600,000 digital subscribers including direct-to-home (DTH) in the Cas notified areas of Delhi, Mumbai and Kolkata,” said Misra.

    In a meeting with the broadcasters today, Trai said it was aware that in some areas there was relay of pay channels without encryption. The regulator assured that the enforcement machinery would be energised to sort out such related issues.

  • Neo Sports challenges Trai decision on price cut for its sports channels

    Neo Sports challenges Trai decision on price cut for its sports channels

    NEW DELHI: The Telecom Disputes Settlement Appellate Tribunal today asked Trai to explain by 7 February the basis of its decision to slash the bouquet prices of Neo Sports and Neo Sports Plus channels’ from Rs 58.50 to Rs 37.25, on which the channels had filed an appeal.

    The channels’ contentions were on several grounds, especially that “sports” cannot be treated as a “genre” for fixing of price.

    The counsel for the channels argued at TDSAT today, that “sports” cannot be treated as a genre as a method of fixing a channel’s price because there are sports channels and sports channels.

    The channels said that there were huge differentials between the pricing of various sports channels, and that these differentials stem from the rights to cricket properties. Neo Sports channels presented its case saying that it had rights of almost two-third of the assured cricketing properties involving India, till 2010. These properties have a tremendous revenue generating potential and also have to be bought at massive prices, hence the higher prices, the channels argued.

    Trai had argued earlier that fixing of prices for channels of the same “genre”, which is one of the key factors as per the Trai principal Tariff Order’s clause 3, does not allow Neo Sports and Neo Sports Plus to fix their prices higher than those fixed for channels of the same genre of sports, like Star Sports and ESPN.

    Based on these arguments Trai last week had ordered a slashing of the prices of the two Nimbus channels to the levels of Star Sports and ESPN, that is, Rs 5 in Cas areas in the three metros, and Rs 37.25 otherwise.

    While Nimbus has questioned the authority of Trai to fix the price, it has also pointed out to the tribunal that the price of sports channels range from Rs 10 for Zee Sports, to Rs 42.50 for ESPN, with Ten Sports at Rs 14 falling in between.

    This shows a 400 per cent difference in pricing for channels of the same genre: sports, which, Nimbus has contended, goes against Trai’s own argument, which is the basis of the decision to slash Nimbus’ pricing.

    MSOs and cable operators refused comment, since the matter has become sub-judice. Roop Sharma, president of Cable Operators Federation of India, which had in the first instance filed the case against Nimbus originally, said they would respond to the notice when the time comes.

  • Trai slashes Nimbus bouquet price by Rs 21.25

    Trai slashes Nimbus bouquet price by Rs 21.25

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) has directed Nimbus Sports Broadcast Pvt Ltd to reduce the price of its two channels by Rs 21.25 to Rs 37.25. Nimbus had priced the bouquet at Rs 58.50.

    The regulator has asked Nimbus to furnish a report of compliance within seven days from the date of receipt of this direction. The directive was issued yesterday.

    Reacting to the decision, Nimbus officials have told Indiantelevision.com that they would be filing a challenge to Trai’s directive before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

    Trai ordered this in relation to a complaint filed by Cable Operators’ Federation of India, after reviewing the prices charged by other broadcasters in the the same genre, that is, sport.

    In the Cas (Conditional access system) areas, Nimbus will have to stick to Trai’s tariff order where a la carte channels can be priced at a maximum of Rs 5.

    A clearly jubilant Cable Operators’ Federation of India president Roop Sharma told Indiantelevision.com that “this was a great decision as customers were being fleeced.”

    Trai has held that the decision was based on Clause 3 of its principal Tariff Order relating to charges, and said that Nimbus’ contentions were irrelevant especially because review of the prices charged by channels of the same genre showed that these are much less.

    Nimbus had argued that the prices for its two channels, Neo Sports and Neo Sports Plus, were higher than those of other sports channels because their content, composition and structure were different than such other rival sports channels.

    Trai in its decision observed that clause 3 of the principal Tariff Order specifies that the charges, excluding taxes, payable by (a) Cable subscribers to cable operator; (b) Cable Operators to multi system operators / broadcasters (including their authorised distribution agencies); and (c) Multi System operators to broadcasters(including their authorised distribution agencies) prevalent as on the 26th December 2003 shall be the ceiling with respect to both free-to-air and pay channels.

    Tra said that basically, channels of the same genre are required to charge the same price and this is a reasonable basic for fixing of prices.

    But the “thrust of the arguments of Nimbus does not bring out facts, which would justify a higher price being charged by them for its said sports channels as compared with other similar channels of the same genre”, Trai observed.

    The regulator compared the prices charged by Star Sports and ESPN and said that after due consideration, it has decided that Nimbus would have to slash the rate by Rs 21.25.

    Trai said that the argument that the prices charged were based on composition, content and structure of a sports channel did not hold ground.

    “Being business decisions, these may undergo a change in view of changing perception of the market and other perceptions, and such changes will not have a bearing on deciding the similarity of channels, as required under clause 3B, so long as the genre of the channel does not get altered on account of such changes,” Trai said.

    Trai observed that even in the case of Nimbus’ own two channels, Neo Sports and Neo Sports Plus, which were different in their respective compositions, contents and structures “both the said sports channels are having the same price”.

    “This shows that the broadcaster has not resorted to differential pricing even where composition, content and structure are different,” Trai observed.

    Commenting on the Trai directive WWIL senior executive vice president Arvind Mohanl said, “This is a seminal order and will go a long way to ease the burden on consumers.”

  • FTA subscription sharing: TDSAT for expanded review by Trai

    FTA subscription sharing: TDSAT for expanded review by Trai

    NEW DELHI: The Telecom Disputes Settlement Appellate Tribunal (TDSAT) has sent back the case related to MSO’s demanding a share of the Rs 77 for FTAs to be paid by consumers under the Cas regime, for an expanded review by the Telecom Regulatory Authority of India (Trai).

    The tribunal, in its order issued yesterday, said that the process would have to be completed within six weeks.

    According to the TDSAT, since the case is of great importance and has wide repercussions, Trai should also incorporate the views of all stakeholders, including those of the cable operators.

    Wire and Wireless India Limited (formerly Siticable) had filed the case against the 31 August, 2006, order by Trai, giving to the cable operators the entire Rs 77 that consumers pay for Free-to-air channels under the Cas regime.

    “We said that if this is done under the Cas regime, the Rs 75-odd in fees that we get for carrying pay channels will not even cover our variable costs, let alone overheads,” Arvind Mohan, vice president, WWIL, told Indiantelevision.com.

    In the court the WWIL counsel proffered his logic, stating that Trai had said that while cable operators could keep the Rs 77, MSOs could keep the subscription from pay channels, as well as the carriage fees.

    However, the subscription for the pay channels would also be shared between MSOs and LMOs as well as broadcasters, as per a Trai formula.

    ‘Carriage fees’ are the amount charged by MSOs for carrying a certain pay channel in the ‘prime band’ or ‘colour band’, that is, special, viewer-preferred slots. This was applicable when the channels were streamed in the analogue system, because in that system, the number of channels would be limited to a maximum of 60.

    Under the Cas system, where digitalisation is compulsory, the number of channels shown can be innumerable, theoretically, and not less than 600, or 10 times that under the analogue system.

    WWIL argued today that Trai itself had gone on record that ‘carriage fees’ are a temporary phenomena and would disappear under the Cas regime, because the carrying capacity would shoot up from 60 to at least 600. Hence, the MSOs would lose that avenue of revenue.

    Trai argued that sharing of the FTA purse would lead to disputes and hence it had opted for a simple formula that MSOs could keep the carriage fees and the cable operators could keep the Rs 77 from the consumer subscription for FTAs.

    The tribunal, however, felt that he matter was seminal and the views of all the stakeholders need to be incorporated, and asked Trai to file the response of the views of all parties concerned within six weeks.

    Incidentally, this is the second time in two weeks that TDSAT has asked Trai to review aspects of an important case. The first was last week when TDSAT asked Trai to give their views on transponder capacity issue after examination of the facts. That case too, had been filed by Siticable, now known as WWIL.

  • Trai warns some MSOs against analogue streaming in Cas areas

    Trai warns some MSOs against analogue streaming in Cas areas

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) has warned all the MSOs that strict action would be taken against anyone beaming analogue signals in Cas (conditional access system) areas.

    This was informed to the MSOs at a meeting at Trai office on Friday. Trai said that this would have to be stopped with immediate effect, as it went against the law. Trai advisor Rakesh Kakkar told indiantelevision.com that the the regulator would come down with a heavy hand on anyone beaming analogue signals, as has been happening in some cases.

    Trai took stock of the ground situation regarding the availability of set-top boxes (STBs) and was reportedly convinced that there is no real shortage, but there is some delay in actual deployment due to the last minute placement of orders by subscribers.

    The MSOs also stated their positions about how many STBs have been deployed and how many are being imported. Reportedly, most MSOs are going for airlifting of STBs next week.

    Kakkar said that there was no shortage of STBs, but because of bunching of applications by consumers, there is problem with deployment. He added that there are some technical problems due to lack of stabilisation because of a sudden rush of orders for boxes in a short period.

    There are reports that customers are not getting channels as per the rules, and though the streaming is digital, no bouquet or a ala carte choice is available at the moment. In fact, Kakkar asked: “You must be getting the same channels through the Cas boxes as you did without Cas isn’t it?” That is because of the rush and customers not filling their forms in time, and also because the boxes given out in the initial rush were all preset, he explained. This will change soon, he added.

    MSO sources said also that they assured that there are enough boxes. One representative said that his company’s seeding is already 9,000 boxes a day. Incablenet representative Ashok Mansukhai said: “We have told Trai that our deployment would reach 10,000 boxes per day. We will be airlifting boxes from next week.”

    Wire & Wireless Ltd is also getting in additional boxes. “We have deployed 1.5 lakh boxes across the three metros over the past five days. We are going for airlifting of new boxes. By next week we will have 50,000 more boxes brought in, and by 31 January, we shall have additional 1.5 lakh boxes in position for deployment. This is apart from the 34,000 boxes awaiting clearance at Mumbai airport and another 12,500 boxes at Kolkata airport,” said WWIL executive vice president Arvind Mohan.

  • ‘A revolutionary year that was also one of the government’s total failure to control the broadcasters’

    ‘A revolutionary year that was also one of the government’s total failure to control the broadcasters’

    One healthy thing is that the industry is moving… maybe slowly in some areas, but it is definitely moving, which was not there earlier. The manufacturers lobby which had become stagnant are looking forward again. Fibre optical networks are spreading.

    New technology is coming, and words we had never used two years ago, like IPTV & Mobile TV, are now common usage. DTH has been launched already and this will give competition to the cable sector and they will be bound to improve their services. HITS is on the way and if it is operated on C band then it will be good for the cable industry, but if it is put on Ku band, that will kill the cable industry. That will be a disaster.

    If it is on C band, digitalisation will become faster, but if it is on Ku band, all the DTH players would start giving out their signals, because they are already on Ku band. And the consumer will also suffer because one after another DTH players will come and ask for money for their channel bouquets if the subscribers want them, so this will hurt the latter’s interests.

    But I must say that Trai has given importance to the last mile operator, and this has been a major positive this year, they have realised the worth of the LMO and understood that it is the last mile people who have created the industry. They know now that the LMO is the one who gives the connection and actually works in the field.

    Thus, to get 25 per cent to carry pay channels on the network was worthwhile. That was not there at all and that is a great achievement. You can say this is only in the CAS area, but a beginning has been made, that these people ought to get this much, which is a model now. So now we can take this forward and at least demand what we deserve. When voluntary CAS is extended to the 55 cities, we shall at least get some margin for letting them use our networks, based on this model.

    Again, Trai for the first time has worked out the pay channel rates. Rs 5 for CAS areas and even for the non-Cas areas they have set an upper cap and declared the prices. Yes, of course the broadcasters will protest because they do not want to be controlled. The problem for the cable operator is that he never, before this, knew what he was going to charge the customer, who also never knew what he was being charged for and at what rate.

    But the best came from the High Court, the order that CAS had to be rolled out. The courts, whether TDSAT or High Court or Supreme Court has been acting only in public interest, and two of the major decisions related to fixing the price of a sports channel, when Neo wanted to charge an astronomical price but was not allowed, and when the court upheld the government Act on sharing sports events of national importance with Doordarshan.

    But beyond the rosy developments, the two worst things that happened this year were failure to extend CAS, and the failure to control the broadcasters. And in fact non-extension of CAS is mainly due to resistance from broadcasters lobby. They have earned too much of money in a non-addressable system and wants the market to stay that way.

    I feel sad also that the government this year did not heed to our demand, the only demand, that we be given funds for going digital, which would have really helped, but that was turned down. It is small money and the government should have facilitated the LMOs by telling banks to make it easy for them to get small loans to facilitate digitalisation.

    For the government this was a year of failures on several fronts, I am a member on three government committees, and all three here failed to deliver because of lack of will of the government and the most dangerous development is vertical integration, creating absolute monopolies, and the governments failure to implement cross-media restrictions.

    As far as CAS is concerned, extension, even under voluntary effort will be good for the industry. But even if an LMO, say in a place like Kota in Rajasthan ushers in voluntary CAS, the broadcasters will not give him the decoders under one pretext or the other, saying that his SMS or some other system is not accurate and he is still under-declaring his subscriber base. The government has thus squarely failed to reign in the broadcasters on all fronts.

    In passing, I must say one thing: the image of the LMOs so far had been that we are rowdy, uncontrollable. But in a series of meetings the government has seen who is rowdy, the journalist broadcasters or cablewallahs and officials are now saying, at least the LMOs have some dignity! That is why the goodwill for us has increased in the government quarters.

  • ‘Rolling out of Cas has been the most significant development’

    ‘Rolling out of Cas has been the most significant development’

    Lots of consumer centric stipulations have been made in the said Regulations which, among other things, include establishment of call centres by DTH operators, redressal of consumer complaints within stipulated timeframes and the concept of Nodal Officers to be appointed by DTH operators.

    Trai has also issued Interconnect Regulations for DTH services mandating the Broadcasters to come out with Reference Interconnect Offer (RIO) for DTH operators and provision of channels on a la-carte basis by broadcasters to DTH operators under the said RIO.

    Trai has also come out with a Tariff Order for non-Cas areas whereby not only the price freeze, which was already in operation, has been continued, but now even the ceiling in respect of cable rates have also been provided at the retail level.

    In addition, Trai has also stipulated the provision of a la carte channels to MSO/Broadcasters in non-Cas areas. The order has created a lot of hulchul in the industry.

    Cross media ownership issue and restriction in holding shares within electronic media and distribution sector may act as an impediment to the overall growth of the sector
    _____****_____

    No previous order/Regulation of Trai had generated as much heat and controversy as the present Tariff order for non-Cas areas. While the MSO and cable operators have welcomed it, the broadcasters on the other hand have severely criticised it, as in their view their commercial interest have not been adequately taken care of by Trai. The broadcasters are arguing that the present tariff order would benefit only one segment – the MSOs as no a la-carte choice can be provided to consumers in non-addressable analog environment because of technological impediments. Their grievance is that the Regulator has not addressed the problem of “under-declaration”. The matter is currently sub judice in the TDSAT.

    The Trai is in the process of issuing its recommendation to the government on IPTV and Mobile TV which would give further impetus to the proposed digitisation.

    The Cable and Satellite Television sector is the only sector where both Service Tax and Entertainment Tax are levied at present which amounts to double taxation. It may be mentioned that levy of both service tax and entertainment tax ultimately make the services costlier for the consumers. It is pertinent to point out that when a movie/ film is shown in a cinema, only entertainment tax is levied and no service tax is charged for screening the movie in a cinema theatre.

    Both DTH services and cable services are at present reeling under the heavy burden of multiple taxation and levies (such as license fee, service tax, entertainment tax, VAT on customer premises equipment which cumulatively add up to as high as 56 per cent) which are acting as an impediment to the growth and development of these services. Such a high multiple taxation and other levies vis-?-vis other sectors has resulted in these services becoming costlier and unaffordable for the masses.

    Accordingly, to ensure proper growth and development of this sector, the multiple levies/ taxation structure needs to be rationalised.

    Similarly, the customs duty structure on STBs and other equipments which are quite crucial for digitization also needs rationalisation in line with IT and Telecom sectors.

    It is imperative that to promote the growth of digital platforms, duty structure/concession applicable to IT and Telecom sector be extended to the broadcasting industry to provide a level playing field
    _____****_____

    All in all, year 2007 has been excellent for the Broadcast, DTH and Cable sector, and would be remembered as the year in which the solid foundations have been laid for digitisation and to create an environment enabling the broadcasting and distribution sector to takeoff and move towards the path of growth and development at an accelerated pace.

    In the present era of convergence the distinction between Broadcasting, Telecommunication and Information Technology is disappearing very fast. It is therefore imperative that in order to promote the growth of digital platforms, duty structure/concession applicable to IT and Telecom sector be extended to the broadcasting industry and it is treated as part of telecom infrastructure to provide a level playing field.

    The need of the hour is to create the same kind of conducive environment by the government by creating level playing field and granting fiscal incentives and concessions to the sector as has been done for the telecom sector and this sector would also register phenomenal growth in coming years.

  • Trai orders access providers to comply with SMS short code guidelines

    MUMBAI: Sector regulator Trai has issued an order instructing all access providers to comply with the DOT’s guidelines issued recently for allocation of short codes by the access providers to the content providers including SMS based services.

    It is mentioned that the short codes are being used by service providers/ content providers for variety of applications including downloading ring-tones, contests, quiz, polls, information and enquiry service, entertainments, SMS Games, Astrology, Cricket updates etc.

    Access providers particularly mobile operators are allocating short codes to their content providers for various value added services including SMS based services within their network. Trai observed that some of these short codes were not in accordance with the National Numbering Plan-2003 and DOT’s earlier orders on this issue, asserts an official release.

    As per the license agreement access providers should adhere to the National Numbering Plan in this context Trai had asked access providers to stop use of these prohibited levels vide its direction dated 31 July 2006. Subsequently this issue was examined by DoT and necessary guidelines in this regard were issued.

    As per the guidelines issued by DoT five digit code starting with level five is to be used by access providers for allocation of short codes to their content providers including SMS based services within their network and accordingly all existing four digit short codes are to be prefixed by five to convert the same to five digit codes.

    Further the existing five and six digit short codes are to be migrated to five digit codes by replacing the first digit or first two digits respectively by five and so on.

    Trai has sought compliance of the DoT guidelines fro amll the access providers as and when the same is implemented but not later than 31 May 2007, adds the release.