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Tag: Trai

  • Toon Disney is FTA in Chennai, Trai clarifies

    Toon Disney is FTA in Chennai, Trai clarifies

    NEW DELHI: Toon Disney in English and in Tamil are distributed as free-to-air (FTA) channels in the areas covered by conditional access system (Cas) in Chennai.

    The Telecom Regulatory Authority of India (Trai) clarified today in a release, placing the details of maximum retail prices fixed by the broadcasters in respect of Cas areas on the basis of the reporting done by them in terms of clause 7 (ii) of the Tariff Order of 31 August last year.

    The change had been made as the Authority was informed that some of the pay channels listed in its website are not pay channels in some of the notified areas and also some new pay channels for the CAS notified areas, have been reported, asserts an official release.

    TRAI has accordingly updated its list of channels with the charge per channel.

    Meanwhile, CAS has come into effect in South Delhi and some parts of Mumbai and Kolkata. Cable operators had begun blacking out pay (encrypted) channels from the evening of 31 December itself.

  • Tata Sky, Zee Turner case: TDSAT asks for Trais’s position on DTH operations

    Tata Sky, Zee Turner case: TDSAT asks for Trais’s position on DTH operations

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (Tdsat) today asked the Telecom Regulatory Authority of India (Trai) to look into the issue of transponder capacity as raised by direct-to-home (DTH) service provider Tata Sky as a limiting factor.

    The Tdsat has also asked Trai whether it would like to regulate prices for channels on DTH operations, as it has done in the case of cable operations in the Cas regime, or let market forces operate as they are now, in terms of broadcasters fixing their own prices.

    Trai had been asked to state the time they would need to do so, and their counsel wanted two weeks. Trai has been asked to file an affidavit by 19 January.

    Tdsat was hearing the ongoing case between Tata Sky and Zee-Turner, regarding the fixing of channel offered by the latter, which Tata Sky found too high. Tata Sky had filed the case earlier also because according to it, Zee-Turner had not acceded to its request to stream signals over the issue of prices, violating Trai regulation.

    The matter came to head when Tata Sky alleged that Zee-Turner was indulging in cartelisation, since it was not only a MSO, but also part of a broadcaster on behalf of Turner.

    While the Tata Sky counsel was addressing the court, the Zee counsel intervened to say that though Tata Sky was challenging Zee’s contentions on the ground that it was an arm of broadcaster Turner, the same was the case with Tata Sky, which had an agreement with Star television, and could simply not seek to plead as just a DTH operator.

    Tata Sky had said during the arguments that it had to operate through various transponders, and the total capacity of these was limited; but Zee rebutted that over and above the channels Zee was giving Tata Sky, the latter was still able to beam local channels, so the issue of a limited capacity of transponders did not hold good.

    This is when the court decided to rise and discuss the issue between the brother judges.

    On resumption of hearing, the court, instead of allowing the parties to continue arguments, directly addressed the Trai counsel and said that there are “larger issues that are worrying us”, and asked Trai to come out with their position.

    While the counsel for Tata Sky referred to an earlier judgement of the same court (July 14, 2006), the court said certain issues may have been overlooked and hence, it was only Trai that would first need to state its position.

  • ‘Trai has kept entry barrier low to make Cas acceptable’ : Nripendra Misra – Trai chairman

    ‘Trai has kept entry barrier low to make Cas acceptable’ : Nripendra Misra – Trai chairman

    The cable TV industry is on the cusp of change. The multi-system operators (MSOs) have chalked out plans to roll out digital cable, a transition that they believe will make their business models viable and add value to their networks.

     

    Perturbed by the cap on a la carte pricing of their channels at Rs 5, the broadcasters, on the other hand, have taken shelter in legal cases.

     

    Crucial to making Cas (conditional access system) a reality has been the role played by the Telecom Regulatory Authority of India (Trai). It has not only come out with a consumer-friendly tariff order but also made sure that progress is made by the MSOs on the implementation front.

     

    In this interview with Indiantelevision.com‘s Sibabrata Das, Trai chairman Nripendra Misra reiterates that digitalisation is the way forward. Cas will be implemented and even regulating direct-to-home (DTH) in areas of quality of service is on Trai‘s radar.

     

    Excerpts:

    How ready are the multi-system operators (MSOs) to implement Cas in the notified areas of Mumbai, Delhi and Kolkata?

    The progress is satisfactory and let there be no doubt in the minds of stakeholders that Cas is going to be implemented on the due date. There is no element of uncertainty. We already have reports of 10 MSOs (as of 16 December) having conducted the trial runs for testing out their digital systems under Cas. We want to be sure that there are no glitches in implementation of Cas and that the transition is smooth.

    In Delhi, Spectranet, Satellite Channels, Sanjay Cable Network and Star Broadband Services have been issued letters by the information and broadcasting ministry that they are not in a position to switchover to addressable system by 31 December as they are not ready with the digital systems including headend, Cas and set-top boxes (STBs). What is the action Trai has taken?

    There are four networks who we found are not in a position to roll out their service. We have asked the other MSOs (Hathway Cable & Datacom, Incablenet, Wire & Wireless India Ltd. and Home Cable Network) to step in so that consumers falling under the Cas belt of Delhi do not suffer blackout of their cable TV service. We are constantly monitoring the progress made by the MSOs.

    How many MSOs have applied for licence and got approval to operate in the Cas areas?

    There were 21 MSOs and five more applied later. Our focus is on 21. Out of this, as I told earlier, 10 (as of 16 December) have started trials.

    Estimates are that there are around 1.2 million cable & satellite homes in the Cas areas. Have the MSOs brought in adequate number of STBs?

    There are already a total of over 300000 boxes available with the MSOs. It is tough to estimate the exact number of C&S households in the Cas region. The whole cable TV industry is marked by high levels of under-reporting of subscribers. But supply shouldn‘t be a problem as the MSOs say that they can quickly import the STBs in case of demand. Their argument is that they shouldn‘t be stuck up with investments if Cas, for any reason, doesn‘t pick up. We expect 40 per cent of analogue subscribers converting into digital. That apparently is in line with the global trend. Digitisation is a way forward and consumers falling under the Cas notified areas should start ordering for STBs from now so that there is no crowding towards the end.

    What gives you the confidence that Cas will take off this time?

    Unlike in 2003, we now have a broadcast and cable regulator in Trai. We have kept the entry barrier as low as possible so that Cas can get accepted by everybody. Consumers also can select individual channels and we have fixed a price cap on a la carte channels at Rs 5. The tariff order also means that STBs are available on rental schemes with a fixed deposit amount (Rs 30 per month on a deposit of Rs 999 and Rs 45 for a deposit of Rs 250). Besides, this time there is competition from direct-to-home (DTH) with DD Direct, Dish TV and Tata Sky already offering their services. In fact, we have found medium-sized MSOs in some non Cas areas investing around Rs 15 million on diogital headends so that they can compete against DTH.

    The average monthly bill for digital cable TV subscribers will not see a sigificant drop as they will be loaded with an entertainment tax of Rs 45 (other areas different), Rs 45 as rent on the STB (if they pay a deposit of Rs 250) and a service tax. Add to this a payout of Rs 77 on free-to-air (FTA) channels and there is a slim chance of lowering down the bills. Would you agree?

    We shouldn‘t be talking of a system where we do not pay taxes. The taxes are applicable even under the current system. That is no way to calculate the cable TV subscription rates. Consumers can now pay as little as Rs 5 for the channel they want to see and limit their bills.
    ‘Regulating DTH in the quality of service area is certainly on our radar‘

    Will the rental schemes attract value added tax (VAT)?

    Yes. In any case, taxation is not a subject which falls within the purview of Trai.

    Consumers complain that costs will go up as they have to pay for the second TV set as well?

    We have decided not to regulate on the concessional rates for the second or more TV sets. Market forces should take care of that – as has been happening now. In any case, a large percentage are single TV households. We shouldn‘t regulate wherever we can, but only in areas where there is need.

    How long will this price of Rs 5 and a minimum subscription commitment of four months for any channel last?

    We are open to taking a relook at this. As we determined on a price as low as Rs 5, we also decided to balance it by asking consumers to subscribe a channel for at least a period of four months. After six months, we intend to first assess whether a review on the pricing and other related issues is necessary at all or not.

    Are you looking at coming out with some kind of regulations for non Cas territories?

    We are considering if we should step in and regulate the non cas areas so far as quality of service is concerned.

    Will Trai try to encourage various modes of digitalisation?

    We have a forward-looking approach. We generally feel digitisation is the road ahead. Besides mandated Cas, we are looking at voluntary spread of digitisation across all technologies. We will be having a serious of discussions from January-June. The first round table kicks off on 27 January. There are various alternatives – DTH, Cas, IPTV. We will be having a series of regional meetings where we want to discuss and review all these things. Then we will send our recommendations to the government.

    Is Trai going to regulate DTH as well?

    Perhaps, we need to look at regulating DTH in the quality of service area. It is certainly on our radar. As the DTH base grows, subscribers need to be protected. But DTH is at an infant stage and it may be too early to regulate it like cable. Let us not forget that cable TV has grown in India so far as an unorganised industry.

    As the DTH base grows, subscribers need to be protected. But DTH is at an infant stage and it may be too early to regulate it like cable. Let us not forget that cable TV has grown in India so far as an unorganised industry.
  • MSOs have to now start trial runs on STBs: Trai

    MSOs have to now start trial runs on STBs: Trai

    MUMBAI: The Telecom Regulatory Authority of India (Trai) has directed multi-system operators (MSOs) to start trial runs on homes where they have seeded the digital set-top boxes (STBs) for conditional access system (Cas).

    “We have reports of 10 MSOs having conducted the trials for testing out their digital systems under Cas. The deadline starts from today. We want to be sure that there are no glitches in implementation of CAS and the transition is smooth,” said Trai chairman Nripendra Misra while addressing a consumer forum meet today in Mumbai.

    The progress is satisfactory and let there be no doubt in the minds of stakeholders that CAS is going to be implemented on the due date, he added. “Digitisation is a way forward and consumers falling under the Cas notified areas should start ordering for STBs from now so that there is no crowding towards the end.”

    With effect from 1 January, pay channels in the notified areas of South Mumbai, Delhi and Kolkata can be viewed only through the STBs.

    The cable and broadcast regulator will encourage various modes of digitalisation, Misra said. “We want to discuss on the road ahead for digitalisation. Besides mandated CAS, we are looking at voluntary spread of digitalisation across all technologies. We will be having a serious of discussions from 27 January-June.”

    Clarifying on the issue of taxes, Misra said it did not fall under the purview of Trai. “VAT will be on the deposits and rental schemes of the STBs,” he added.

  • HC adjourns Star, Sony case against Trai to 18 Jan

    HC adjourns Star, Sony case against Trai to 18 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 was adjourned after a sizeable time spent in hearing the initial arguments from both ESPN and Sony as well as the multi-system operators (MSOs). The issue will come up for hearing again on 18 January.

    The MSOs, who are supporting Trai, were represented by Dr Abhishekh Singhvi, CS Vaidyanathan and Aryama Sundaran, whereas the boradcasters’ consel was Soli Sorabjee. ESS and Sony had moved the Delhi HC, challenging Trai’s constiutional standing.

    The court heard the initial arguments and felt that since the parties concerned have not completed filingrejoinders and counters the matter may be postponed till the next date.

    The case relates to the cable rules empowering Trai as CAS regulator. The High Court is hearing only the constituional issues on the matter and the quantum issues are beig heard by TDAST.

    Spokesperson for the MSOs refused to divulge details of the arguments as the matter is subjudice, and the counsel was not available till late evening.

    Tomorrow, hearings are slated for three cases in TDSAT. The first is on a appeal by ESPN on the August 24 order Trai of fixing tariff at Rs five per pay channel, and second is also an appeal by ESPN against the Trai order of 24 August on distribution margins for pay channels, which as per the order stand at 45 per cent for broadcasters, 30 per cent for MSOs and 25 per cent for local cable operators. The issue of Cas rule relating to signing of a standard contract is also coming up during this hearing, with the MSOs opposing the ‘forcible’ signing of a contract.

    The third case also relates to the same issues, on an appeal filed by Sony Entertainment Television.

    The Surpeme Court will hear the final arguments in the case filed by Sea TV, an affiliate of Zee Group based in Agra, on the issue of underdeclaration of the number of households by the cable operators.

    Sea TV had applied for access to Star channels two years ago, and the broadcaster had said that they had given access to Moon TV. Sea TV should get the signal from Moon TV, Star had pointed out. However, Zee had intervened saying Sea TV was bound to be given access and had disputed that an MSO (in this case the Moon TV) or an LCO can be an agent of a broadcaster, which was the genesis of the case being heard.

  • TDSAT asks Tata-Sky, Sun TV Group to settle differences

    TDSAT asks Tata-Sky, Sun TV Group to settle differences

    MUMBAI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has proposed to direct-to-home (DTH) player Tata-Sky and Chennai-based broadcaster Sun TV Group that they resolve their dispute between themselves.

    According to a tribunal official, the two parties are set to negotiate a potential settlement at a meeting in Chennai that is likely to take place by the end of week.

    Nonetheless, the tribunal dispute forum has also drawn up the date for next hearing before adjourning the case to 29 November if the attempts to achieve a “lucid response” through the discussion fails.

    Tata-Sky had moved the tribunal accusing the broadcaster of refusing supply of its bouquet of channels. The DTH player approached the disputes forum after repeated requests to provide the signals of the channels of Sun’s bouquet of channels on “non-discriminatory terms” proved futile.

    According to the norms laid down by the Telecom Regulatory Authority of India (TRAI), all content should be made available to all delivery platforms on a nondiscriminatory basis.

    Sun TV promoter Kalanithi Maran has set forth plans to enter the DTH space through the still to launch commercially Sun Direct TV. He runs a string of successful channels, which include SunTV, GeminiTV, SuryaTV, UdayaTV, KTV, TejaTV, UsheTV, KiranTV, AdithyaTV, Sun News, KiranTV, GeminiTV, TejaTV, Teja News, Udaya2 and Udaya News.

  • Upscale commercial establishments to pay market rates for pay channels: Trai

    Upscale commercial establishments to pay market rates for pay channels: Trai

    MUMBAI : In an order issued today, the sector regulator has decreed that pay broadcasters will now be able to charge “market rates” to more upscale hotels and big commercial establishments that access their channels.

    The Telecom Regulatory Authority of India (Trai) has stated that the tariffs of pay channels as well as set top box rentals will be left to mutual agreements and market forces in both CAS and non-CAS areas “subject to restrictions on maximum bouquet price in relation to sum of individual channel prices”.

    For the purpose of tariff regulation, Trai has identified two categories of commercial subscribers. One category consists of hotels with a grading of 3 star and above and heritage hotels. This category will also include any other hotels, motels, Inns and such other commercial establishments providing board and lodging and having 50 or more rooms. In the second category would fall all other commercial establishments.

    The regulator has grouped the rest of commercial establishments into the residual category and decreed that the same rules that govern ordinary cable subscribers will apply to them also, both in CAS and non-CAS areas.

    Taking note of a point made by pay broadcasters with respect to clubs, pubs and other such establishments, Trai’s tariff orders also provide that whenever “any commercial cable subscriber uses the programmes of a broadcaster for public viewing by 50 or more persons on the occasion of special events at a place registered under Entertainment Tax Act, then also the tariff will have to be mutually decided between the parties concerned.

    The pricing formula Trai has worked out is:

    I. The maximum retail price of any individual channel shall not exceed three times the average channel price of the bouquet of which it is a part.

    For example, if the maximum retail price of a five-channel bouquet is Rs 150 per (average channel price of Rs 30), the maximum price an individual channel can be priced at is Rs 90.

    II. The sum of the individual maximum retail prices of the channels shall not be more than 150 per cent of the maximum retail price of the bouquet. Therefore, the total a la carte pricing all these five channels together can charge would be a maximum of Rs 125 (Rs 150 + Rs 75).

    Trai issued the order after the Supreme Court agreed with its argument that in order to ensure an orderly growth of the telecom sector in the country, it was necessary to have differential tariffs for commercial and non-commercial subscribers of conditional access system (CAS).

    Trai’s submission was in response to a petition filed by the Association of Hotels and Restaurants, which challenged an order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that upheld the dual rates.

    Trai had placed the draft Tariff Orders, both for CAS notified areas and non-CAS areas, along with a letter to stakeholders inviting comments by 10 November.

    Broadcasters see Trai’s decision as a positive step towards generating subscription revenues. “Business will see at least a three-fold jump,” says Novex Communications head Ketan Kanakia.

  • CAS rollout: MSOs look to channel package tiers

    CAS rollout: MSOs look to channel package tiers

    MUMBAI: Multi-system operators (MSOs) have initiated talks with some broadcasters for providing their bouquet of pay channels at special rates in the conditional access system (CAS) regime. This would enable cable networks to tier various channel packages for consumers.

    The Telecom regulatory Authority of India (Trai) has fixed the a la carte pricing of pay chanels at a maximum of Rs 5 under CAS. The MSOs want broadcasters to price their bouquets below the average of Rs 5 per channel.

    “We are in a very nascent stage of discussions. Some of the broadcasters have moved the courts and are, in fact, waiting for the verdict. We expect to have more definite proposals within a fortnight,” says Hathway Cable & Datacom managing director and CEO K Jayaraman.

    The MSOs will tier different packages to make it price friendly for consumers. “We will be working out packages based on a combination of genres. This will be in addition to the a la carte pricing which, with a cap at Rs 5, is expected to be quite popular,” says Jayaraman.

    Adds IndusInd Media and Communications Ltd (IMCL) director-in charge Ravi Mansukhani: “Once the broadcasters give us their bouquet pricing, we can work out our own bundling which will offer choice to consumers and make it more attractive than the a la carte pricing.”

    The stumbling block to such negotiations at this stage, however, is a number of court cases filed by broadcasters questioning the Rs 5 cap fixed by the sector regulator. Broadcasters feel the regulated pricing is unfair and will hurt their subscription incomes.

    Hathway and IMCL, meanwhile, will soon kick-off CAS awareness campaigns jointly. The estimated spend: Rs 10 million. Hathway plans to spend an additional Rs 5 million in the first phase, says Jayaraman. Hathway has already started marketing its digital drive in bus shelters, radio and other mass media platforms.

    “We are also planning to invest independently through various marketing initiatives. This will be in addition to the joint campaigns where the spend could be Rs 10 million,” says Mansukhani.

    The MSOs have started offering digital set-top boxes (STBs) and cable at an advance deposit of Rs 250 in the CAS notified regions of south Mumbai, Delhi and Kolkata. Consumers will have to pay a rent of Rs 45 per month only after 1 January, the scheduled date for implementation of CAS. If they are not happy, they can discontinue the service.

    “We have started seeding 1,000 STBs a day since 1 November. We expect this to further pick up,” says Jayaraman. Hathway is aggressively pushing for digital cable in both Mumbai and Delhi.

    IMCL has been slow to push the STBs to its consumers. “Once the marketing campaign gathers momentum next week, we hope to seed 1,000 STBs a day. The offtake should further speed up as we go forward,” says Mansukhani.

  • Non-supply of channels: Tata Sky moves TDSAT against Sun TV

    Non-supply of channels: Tata Sky moves TDSAT against Sun TV

    MUMBAI: Tata Sky has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the south Indian media major Sun TV Group’s reluctance to make available channels to its direct-to-home platform.

    The petition, filed today before the tribunal, alleges that the Sun TV Group has refused to supply its bouquet of channels to the DTH player. The case is scheduled for the first hearing tomorrow (15 November).

    Tata Sky approached the disputes forum after repeated requests to provide the signals of the channels of Sun’s bouquet of channels on “non-discriminatory terms” proved futile.

    Tata Sky has sought an appropriate direction in the matter from TDSAT, alleging that Sun TV has quoted unreasonable terms for supplying its signals.

    When contacted by Indiantelevision.com, Tata Sky managing director and CEO Vikram Kaushik today refrained from commenting on the development.

    Earlier speaking to Indiantelevision.com, Kaushik mentioned, “We are in talks with Sun TV, the most popular network in the southern states, but no commercial agreement is expected soon. We gave them a proposal and are in negotiations with them. But a deal is still far away.”

    A point of note is that Tata-Sky is simultaneously also battling for Zee-Turner channels. Although the tribunal has directed Zee Turner Ltd, distributors of Zee and other channels, to provide its signals to Tata Sky, the issues of pricing, capacity and other related issues have yet to be sorted out.

    According to the norms laid down by the Telecom Regulatory Authority of India (TRAI), all content should be made available to all delivery platforms on a nondiscriminatory basis.

    Interestingly, Sun TV promoter Kalanithi Maran has set forth plans to enter the DTH space through the still to launch commercially Sun Direct TV. He runs a string of successful channels, which include SunTV, GeminiTV, SuryaTV, UdayaTV, KTV, TejaTV, UsheTV, KiranTV, AdithyaTV, Sun News, KiranTV, GeminiTV, TejaTV, Teja News, Udaya2 and Udaya News.

  • CAS pricing case: TDSAT sets 12 December for next hearing

    CAS pricing case: TDSAT sets 12 December for next hearing

    MUMBAI:The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has fixed 12 December as the date for next hearing in the case filed by broadcasters against the Rs 5 tariff for pay channels set by sector regulator Trai (Telecom Regulatory Authority of India) in a CAS (conditional access system) regime.

    The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) has fixed 12 December as the date for next hearing in the case filed by broadcasters against the Rs 5 tariff for pay channels set by sector regulator Trai (Telecom Regulatory Authority of India) in a CAS (conditional access system) regime.

    The pay broadcasters have challenged the two Trai notifications dated 24 August (on carriage fee) and 31 August (channel pricing). They are also contesting the revenue sharing model designed for industry stakeholders by Trai. The sector regulator had specified in the notification that the revenue generated from pay channels leaves the broadcaster with 45 per cent, while the MSOs stays on with 30 per cent and the cable operators get 25 per cent.

    Earlier this year, a division bench of the Delhi High Court had passed an order directing the implementation of CAS with effect from 31 December in the south zones of the three metros – Mumbai, Delhi and Kolkata.