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Tag: Trai

  • Airtel Digital TV operating revenue up as bottom line dips for first quarter

    Airtel Digital TV operating revenue up as bottom line dips for first quarter

    BENGALURU: The digital TV services segment from Sunil Mittal’s Bharti Airtel Ltd (Airtel), Airtel Digital TV, which provides direct to home (DTH) satellite television services, reported growth of 0.8 percent in operating revenue at Rs 744.8 crore for the quarter ended 30 June 2020 (Q1 2020, quarter or period under review) as compared to Rs 738.9 crore for the corresponding quarter of the previous year Q1 2019 (y-o-y). However, this is not a true oranges-oranges comparison, since as of 1 March 2020, Airtel Digital TV services has implemented new guidelines of NCF (Network Carriage Fees) under the new tariff order (NTO) from Telecom Regulatory Authority of India (TRAI). The company says in a media release that Airtel Digital TV revenue witnessed a growth of 9.3 percent y-o-y on an underlying basis, on the back of strong customer additions.

    Airtel Digital TV operating profit for the quarter under review declined 23.5 percent to Rs 276.2 crore (37.1 percent of operating revenue) as compared to Rs 361.2 crore (48.9 percent of operating revenue) for Q1 2020. Airtel reported 1.3 percent growth in Assets to Rs 3,462 crore for Q1 2021 from Rs 3,417.4 crore in Q1 2020. However, Assets in Q1 2021 were 12.9 percent lower than the Rs 3,794.9 crore in the immediate trailing quarter (Q4 2020). The segment’s liabilities for Q1 2021 grew 11.6 percent to Rs 4000.5 crore from Rs 3,585.2 crore in Q1 2020. Liabilities in the quarter under review were however 3 percent lower than the Rs 4,122.4 crore in the immediate trailing quarter Q4 2020.

    The company reported a 5.1 percent y-o-y increase in net DTH subscribers in Q1 2021 at 1.68 crore as compared to 1.6 crore in the corresponding quarter of the previous year.

    Bharti Airtel’s consolidated revenue for Q1 2021 grew 15.4 percent on an underlying basis to Rs 23,939 crore as compared to the year ago quarter. Consolidated EBIDTA for the quarter under review was Rs 10,639 crore (44.4 percent margin). India revenue at Rs 17,589 crore were up 14.6 percent and up 15.1 percent on an underlying basis y-o-y.

    An earnings media release for Q1 2021 quotes Airtel MD and CEO, India & South Asia Gopal Vittal: “We are going through an unprecedented crisis caused by COVID. Despite this, our teams have served the country well and kept our customers connected. Data traffic growth surged by ~73 percent y-o-y even as 4G net additions slowed down to 2 Million caused by supply chain shocks in the device ecosystem. Revenues grew by 15% Y-o-Y and performance was satisfactory across all segments. Our flagship “War on Waste” program, helped improve EBITDA margin by 1.6 percent over the previous quarter. To serve our customers even better, we have launched a company-wide program to improve our customer experience. We continue to invest in the best of emerging technologies to make our networks future ready. We have made rapid strides in our digital business, with nearly 155 million monthly active users across Airtel Thanks, Wynk, Xstream and our payments platforms. Today, 60 percent of Airtel’s entire business goes through its digital channels. We are most excited about the string of partners we are attracting in order to build greater stickiness and ultimately growth from our digital assets.”

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  • Tata Sky had the largest pay DTH subscriber base in CY 2019

    Tata Sky had the largest pay DTH subscriber base in CY 2019

    BENGALURU: Telecom Regulatory Authority of India’s (TRAI) The Indian Telecom Services Performance Indicator Report October – December, 2019 says that there were 6.998 crore (69.98 million, 699.8 lakh) direct to home (DTH) subscribers in India as on 31 December 2019 that paid for their subscription. This is in addition to the subscribers of the DD Free Dish (free DTH services of Doordarshan). It is important to note that till March 2019, the subscription figure of the total active subscribers included inactive and temporarily suspended subscribers for not more than the last 120 days. However, as per new regulatory framework of Broadcasting and Cable TV Services, the total active subscribers are now counted to includeonly those subscribers who are inactive/temporarily suspended for not more than the last 90 days.

    This 6.998 crore pay DTH subscriber base was split amongst four players. The TRAI report gave the breakup of pay DTH subscribers as Tata Sky with 31.80 percent, Dish TV with 30.55 percent, Airtel Digital TV Services with 23.31 percent and Sun Direct with 14.35 percent. The numerical break up assuming that the number of subscribers was rounded off to seven crore (70 million, 700 lakh) is Tata Sky 2.23 crore (22.3 million, 223 lakh), Dish TV 2.14 crore (21.4 million, 214 lakh), Airtel Digital TV 1.63 crore (16.3 million, 163 lakh) and Sun Direct one crore (10 million 100 lakh).

    Please refer to the figure below:

    According to the TRAI report, Pay DTH subscriber base in India grew by 0.068 crore (0.6 million or 6 lakh) as on 31 December 2019 to 6.998 crore (69.88 million, 699.8 lakh) when compared to 6.930 crore (69.30 million, 693 lakh) on 30 September 2019. Please refer to the figure below for the quarter-on-quarter change in pay DTH subscriber base.

    Cable TV operators

    The TRAI report says that the country has achieved 100 percent digitisation of Cable TV network. This is a stupendous achievement making India as the only large country where 100 percent digital cable has been achieved through mandatory regulations.

    As on 31st December 2019, there were 1613 MSOs registered with the ministry of information & broadcasting (MIB). Further, as per the data reported by MSOs / HITS operators, there were13 MSOs and one HITS operator who had a subscriber base of more than one million. Details of the total active subscribers of these 13 MSOs and one HITS operator are given in the following table.

    Satellite TV Channels

    A total of 918 private satellite TV channels have been permitted by the MIB for uplinking only/ downlinking only/both uplinking and downlinking, as on 31 January, 2019. The quarter-wise figures of the total number of TV channels is depicted in the chart given below.


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  • Lower ad revenue and exceptional items pull down Zeel bottom-line for Q4, FY 2020

    Lower ad revenue and exceptional items pull down Zeel bottom-line for Q4, FY 2020

    BENGALURU: Subhash Chandra’s Zee Entertainment Enterprises Ltd (Zeel) reported 2.5 percent growth in consolidated operating revenue for the year ended 31 March 2020 (FY 2020, year under review) as compared to the previous year (FY 2019). For the quarter ended 31 March 2020 (Q4 2020, quarter under review) Zeel consolidated operating revenue declined 4.8 percent as compared to the corresponding year ago quarter Q4 2019. EBITDA (operating profit) and PAT (Profit after tax) for the year under review declined 66.5 percent and 36.2 percent respectively as compared to FY 2019. Consolidated PAT for FY 2020 was Rs 524.59 crore and for FY 2019 it was Rs 1,567.34 crore. Consolidated operating EBITDA for FY 2020 was Rs 1,634.57 crore ((20.1 percent of operating revenue) and for FY 2019 it was Rs 2,563.94 crore (32.3 percent of operating revenue).

    The company reported operating loss (negative consolidated operating EBITDA) of Rs 283.86 crore and consolidated loss after tax of Rs 765.82 crore for Q4 2020. Poor macroeconomic environment, conversion of two FTA channels into pay in March 2019, and market share loss in certain markets drove the decline in ad revenues said the company in its FY 2020 and Q4 2020 earnings release. The lockdown in March 2020 further impacted revenues, it added.

    Bottomline numbers for the year and quarter under review were also lower on account of 47.7 percent higher operating costs in Q4 2020 and 24.5 percent higher in FY 2020. (Operating costs include programming costs). The company said in the earnings release that underlying cost increase led by higher movie amortisation, new channels and investments in its OTT platform ZEES. The reported operating cost included one-time accelerated amortisation of higher inventory of Rs. 259.80 crore.

    Further, Zeel’s administration costs included Include a one-time provision of Rs. 343.30 crore for balances related to ad, subscription and other assets where recovery has become doubtful on account of COVID-19 led uncertainty. Also for FY 2020, exceptional items included goodwill write off of Rs. 113.70 crore pertaining to digital publishing business and provision of Rs. 170.60 crore relating to Inter Corporate Deposits (ICD). Another factor that impacted Zeel’s bottom-line for FY 2020 was  Rs. 383.50 crore loss in overseas investments in accordance with IND-AS 113 to, reflect the movement in fair value of these investments as on 31 March 2020.  

    However, these factors were partly offset by 41 percent growth in domestic business in Q4 2020, driven by the implementation of Telecom Regulatory Authority of India’s (TRAI) new tariff order (NTO) and growth in ZEE5's subscription revenues revealed Zeel. Domestic subscription revenues grew by 33 percent in FY 2020 as compared to FY 2020 driven by improved monetization of viewership post NTO implementation and ramp-up of ZEE5's subscriber base.

    Zeel’s ad revenue in Q4 2020 declined 14.7 percent to Rs 1,038.94 crore from Rs 1,217.49 crore in Q4 2019. Ad revenue for FY 2020 fell 7.1 percent to Rs 4,681.13 crore from Rs 5,036.66 crore in FY 2019. Subscription revenue in Q4 2020 increased 31.2 percent to Rs 741.36 crore from Rs 564.27 crore in Q4 2019. Subscription revenue in FY 2020 grew 25 percent to Rs 2,887.29 crore from Rs Rs 2,310.54 crore in FY 2019.

    Let us look at the numbers reported by Zeel

    Consolidated operating revenues for FY 2020, FY 2019, Q4 2020 and Q4 2019 were Rs 8,129.86 crore, Rs 7,933.90 crore, 1,951.08 crore and Rs 2,019.27 crore respectively. Consolidated total incomes (Operating revenue plus other income) for the same periods were Rs 8,413.50 crore, 8,185.35 crore, Rs 2,076.06 crore and Rs 1,991.76 crore respectively.

    Consolidated total expenses in Q4 2020 increased 66.5 percent to Rs 2,677.77 crore from Rs 1,612.60 crore in Q4 2019. Consolidated total expenses in FY 2020 increased 25.1 percent to Rs 7,109.70 crore from Rs 5,731.48 crore in FY 2019. Operating cost in Q4 2020 at Rs 1,304.62 crore was 53.9 percent more that the Rs 883.32 crore in the corresponding year ago quarter. Employee benefits expense (EBE) in Q4 2020 declined 22.7 percent to Rs 160.39 crore from Rs 201.46 crore in Q4 2019. EBE in FY 2020 increased 7.7 percent to Rs 780.51 crore from Rs 724.94 crore.

    Advertisement and publicity expenses (ad expenses) in Q4 2020 were 4.6 percent lower at Rs 184.12 crore as compared to Rs 193.01 crore in Q4 2019. Ad expenses in FY 2020 at Rs 695.60 crore were almost flat (declined 0.5 percent) as compared to Rs 699.27 crore in FY 2019. Other expenses in Q4 2020 more than tripled (up 238.3 percent) to Rs 585.81 crore as compared to Rs 173.17 crore in Q4 2019. Other expenses in FY 2020 increased 36.9 percent to Rs 1,190.49 crore from Rs 869.96 crore in FY 2020.

  • TRAI directs broadcasters to implement NTO 2.0 by 10 August

    TRAI directs broadcasters to implement NTO 2.0 by 10 August

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has directed all broadcasters to comply with the provisions of the New Tariff Amendment Order (NTO 2.0) by 10 August. Broadcasters must publish details including maximum retail price per month of channels and maximum retail price per month of bouquets of channels, composition of bouquets and also amended reference interconnected offer (RIO) and other on their website.

    The regulatory body said, “In order to promote orderly growth of the sector and to balance the interests of service providers and to safeguard the interest of the consumers, it is necessary to give effect to Tariff Amendment Order 2020 and interconnection amendment regulations 2020 without any further delay.”

    The regulatory body on 1 January, had notified the NTO 2.0 and the interconnection amendment regulations 2020. “TRAI has issued direction to all broadcasters to ensure compliance of various provision of the Telecommunication (broadcasting and cable) services dated 1 January 2020 and telecommunications (broadcasting and cable) services interconnection regulations, dated 1 January 2020.”

    TRAI has also expressed discontent over one broadcaster allegedly discontinuing its low priced bouquets from 1 August and pushing higher-priced bouquets, in violation of NTO 1.0. It has also stated that the broadcaster has not informed TRAI about such change.

    The authority has also claimed that distribution platform operators (DPOs) have complained that some of the broadcasters are not willing to sign RIOs according to NTO 2.0. Hence, many DPOs are not willing to enter into such agreements creating an overall regulatory vacuum in the industry. Moreover, it has been also stated that some broadcasters are extending old agreements with few DPOs. 

    The industry watchdog has stated that non-implementation of the NTO 2.0 is leading to chaos in the sector and jeopardising the business processes which has been harmonised after NTO 1.0 came into effect. According to it, delay and uncertainty in the implementation of NTO 2.0 will again bring back non-transparency and discriminatory practices in the sector.

    Notably, major broadcasters moved to court after NTO 2.0 was notified. While the cases are subjudice, the ongoing pandemic has delayed the judgements. Hence, an ambiguity is prevailing in the industry. And the latest notification might irk broadcasters more.

  • Wired broadband subscriber base sees turnaround in March; ACT keeps expanding

    Wired broadband subscriber base sees turnaround in March; ACT keeps expanding

    KOLKATA: The number of broadband subscribers reached 687.44 million at the end of March with a monthly growth rate of 0.93 per cent, slower rate compared to February. While it stood at 681.11 million at the end of February, it grew at 1.15 per cent that month. Surprisingly, fixed wireless subscribers have jumped up by 2.48 per cent whereas it fell by 1.72 per cent in February. Wired subscriber base has also increased by 0.51 per cent in contrast to a negative trend in the previous month.  

    The Telecom Regulatory Authority of India (TRAI) has released the telecom subscription data as on March 2020. As per the report, the top five service providers constituted 98.99 per cent market share of the total broadband subscribers at the end of March. These service providers were Reliance Jio Infocomm Ltd (388.39 million), Bharti Airtel (148.57 million), Vodafone Idea (117.45 million), BSNL (24.50 million) and Atria Convergence (1.61 million).

    As on 31 March, the top five Wired Broadband Service providers were BSNL (8.08 million), Bharti Airtel (2.47 million), Atria Convergence Technologies I.e, ACT (1.61 million), Hathway Cable & Datacom (0.97 million) and Reliance Jio Infocomm Ltd (0.87 million). Notably, Atria has been on an upward ride until the beginning of this year. At the end of last December, its subscriber base was at 1.52 million.

    Source: TRAI

    While fixed-line broadband sector was struggling to get new subscribers for the last few years, especially due to surge of high-speed low-cost data offered by telco operators, a Crisil report spoke of a spike in fixed broadband subscriptions since 25 March. While the report has predicted a huge growth, TRAI’s April data will be able to show actual numbers based on reports from operators.

    As on 31 March 2020, the top five Wireless Broadband Service providers were Reliance Jio Infocom Ltd (387.52 million), Bharti Airtel (146.10 million), Vodafone Idea (117.43 million), BSNL (16.43 million) and MTNL (0.18 million). 

  • Difficult to balance consumer interest with stakeholder objectives: TRAI’s RS Sharma

    Difficult to balance consumer interest with stakeholder objectives: TRAI’s RS Sharma

    NEW DELHI: Telecom Regulatory Authority of India chief RS Sharma, on Thursday, demystified myths and impressions about the regulation of the sector in a panel discussion at FICCI FRAMES 2020.

    He said that it is immensely difficult for regulators to strike a balance between consumer interest and objectives of other stakeholders. Sharma commented when Media Partner Asia executive director and co-founder Vivek Couto asked about heavy-handed TV regulations.

    "The objective of TRAI is to ensure the interest of consumers, stakeholders, distributors and creators and ensure there is a growth of the sector. Since 2004 to 2017, there were price caps. If you put these price caps, it disincentivises the producers. Why should I keep any control on pricing? The industry thinks the regulator is heavy-handed and the regulator thinks they are light touch. The basic approach TRAI has had in regulating this sector is that we have adopted a light-touch approach and allowed market forces to operate in this space. We believe that the market is the best determinant and accelerator for the adoption of new technologies and satisfying consumers, so long as there is fair play, transparency, non-discrimination. Then, we don’t need to intervene.”

    Sharma emphasised that for regulators consumers’ choice will always have major importance.

    Speaking about the evolution of the sector and change in consumption patterns of viewers, he pointed out that proliferation of cheap data that will drive OTT services.

    According to the new tariff order (NTO), consumers could choose the TV channels they want to watch and pay only for them at maximum retail prices (MRPs) set by broadcasters, instead of the pre-set bouquets offered earlier. It was said that the NTO will make channels cheaper but it seems prices of like-to-like option went up. Sharma argued that the amendments to NTO and the TRAI channel selector app were introduced to make things transparent for consumers.

    “As technology moves forward, with 5G, there will be more disruption and change in watching habits. Emerging trends will necessitate a new framework. Regulation should ensure that technological developments are not throttled or scuttled. They should be allowed to grow and take place," he said.

    Meanwhile, the ministry of information & broadcasting additional secretary Atul Kumar Tiwari spoke on the contentious subject of regulatory structure for OTT platforms. He said, "We invited them to come back to us with some kind of self-regulatory mechanism. We would like to have a light-touch regulation but there has to be some kind of regulation on the streaming content."

  • Tamil Nadu MSO writes to TRAI alleging broadcasters’ non-compliance to NTO 2.0

    Tamil Nadu MSO writes to TRAI alleging broadcasters’ non-compliance to NTO 2.0

    KOLKATA: Tamil Nadu-based multi-system operator (MSO) Apple Network Private Ltd. has written a complaint to the Telecom Regulatory Authority of India (TRAI) against major pay-TV broadcasters for allegedly not complying to new tariff order 2.0 (NTO 2.0). It also claimed that broadcasters are not coming forward to execute the new RIO agreements/ amendments in accordance with NTO 2.0.

    The complaint is “against the Pay Channel broadcasters but not limited to Star India, Sony Pictures Network India, Zee Entertainment Enterprises Ltd, IndiaCast Media Distribution Pvt Ltd, Discovery Communications India, Bennet Colman and Company Ltd etc. as the said broadcasters are acting arbitrary and are showing high handedness by not complying with law of land,” the MSO wrote to TRAI.

    The MSO also demanded that the invoices sent by broadcasters since March until date (6 July) have to be corrected as NTO 2.0 came into effect from March. It has also mentioned that despite several petitions, the broadcasters have failed to get any interim stay on the order. It has alleged that despite repealed requests broadcasters are not uploading the amended RIO on their respective websites. 

    It has added that due to the current situation LCOs have not been able to collect payment causing immense suffering to its business. But broadcasters are not offering any relief and are demanding the entire Invoice amount which is generated on the basis of MSR report.

    “Therefore, in view of the above, the undersigned herein requests you to take severe coercive actions against the pay channel broadcasters for non-implementation of NTO 2.0 as on account of Covid2019, it is totally uncertain as to when the writs pending in different high courts will be taken up and until then, the broadcasters can not be permitted to illegally enrich themselves. Further, you may direct all pay channel broadcasters to enter valid RIO agreement in compliance with NTO 2.0 and accordingly revise the billing wef 1 March 2020,” it added. 

  • Tata Sky solidifies lead in the DTH sector

    Tata Sky solidifies lead in the DTH sector

    KOLKATA: According to ‘The Indian Telecom Services Performance Indicator Report October – December 2019‘ published by the Telecom Regulatory Authority of India (TRAI), the Indian DTH service has displayed phenomenal growth since launch in 2003. The total number of total active subscribers with pay DTH operators (Tata Sky, Airtel, Dish TV, Sun Direct) in India in the quarter ending December 2019 was 69.98 million, which is an increase from 68.30 million in the quarter ending September. 

    In terms of market share, Tata Sky led the DTH sector with the highest 31.80 per cent share followed by Dish TV at 30.55 per cent. Compared to the previous quarter, Tata Sky has further strengthened its market share lead over Dish TV. The data also suggests Tata Sky is 1.5X the size of Hathway, Den and GTPL Hathway all combined.

    Commenting on the development, a Tata Sky Spokesperson said, “At Tata Sky our commitment is to ensure our ever increasing base of consumers can access their entertainment across platforms. This philosophy has enabled us to cement our leadership position in the direct to home and overall pay TV business, as underlined in TRAI’s latest report. As we explore technology driven newer platforms for content delivery and further scale up our customer support, we are confident that our viewers will continue to make Tata Sky the prime choice of their entertainment needs. The report also reinforces our belief that Television as a medium of entertainment continues to grow and strengthen.”

  • TRAI launches channel selector app

    TRAI launches channel selector app

    MUMBAI: In a move to facilitate consumers to view their TV subscription and choose the channels of their interest while removing the unwanted ones, the Telecom Regulatory Authority of India launched a channel selector app. 

    TRAI said that after issuing the new tariff order for broadcasting services it was noticed that consumers were facing difficulty to opt for TV channels or bouquets of their choice on the web portal or applications of their respective distributed platform operators (DPO).

    TRAI has developed this app in order to provide reliable, robust and transparent systems to television subscribers. The app will fetch data of subscribers from respective DPOs platform through APIs. 

    The regulatory body said that the app shall allow the customers to view all available channels and bouquets and pick individual ones. TRAI has claimed that the algorithm based app ensures that there is no duplication of channels and provides “optimised” channel subscriptions, to ensure cost savings. The app can also be used to modify and manage the existing subscription of the customer.

    Most of the major DTH and cable operators are onboard the app, the regulator said. Efforts are underway to include other players to make them useful for all customers.

    Channel Selector App is available on both Google Play Store and Apple Store.

  • TRAI reiterates need for converged regulatory regime for telecom & broadcasting services

    TRAI reiterates need for converged regulatory regime for telecom & broadcasting services

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) again highlighted the need for a converged regulatory regime for telecom and broadcasting services in India following the model of the Federal Communications Commission (FCC) in US and Office of Communications (OfCom) in the UK. 

    As large scale changes in these two sectors are taking place due to convergence, the regulatory body opines that there is an urgent need for having a comprehensive regulatory framework to deal with various issues arising out of the convergence of technologies and services.

    In reply to a letter by Rajyasabha MP Subhash Chandra regarding the need to have an independent regulator, TRAI has mentioned that there is no need for a separate regulator for broadcasting and cable sector addressing the ministry of communication.

    “Large scale changes in the telecom and broadcasting sector are taking place due to convergence and without a converged regulatory framework any attempts to regulate the telecom and broadcasting sectors in coming times may result in bottlenecks, imperfect competition, disputes and opportunities for arbitrage. Thus, if one service can be provided by two different routes and the license fees of one is much lower, then the tendency would be to use this alternative. The regulatory regime has to be such that the consumers and service providers should benefit from the technological advances,” it added.

    “The regime should not create any hindrance in the deployment of any technology for offering any type of telecom services including broadcasting services. At the same time due to technological developments, no service providers should be able to disturb the level playing field by taking advantage of regulatory policies. To achieve these objectives, it is necessary that licensing should be service neutral and the converged regulatory regime for telecom and broadcasting services should be in place. The organisational restructuring in view of technological developments is a must, otherwise, it may be difficult to exploit the full benefits of these technological developments,” the regulator highlighted. 

    Notably, the government brought the broadcasting and cable television services within the ambit of telecommunication services for the first time in 2004. TRAI, in addition to the telecoms sector, had also been set up as the regulator for the media and broadcasting industry. TRAI mentioned in the letter that since then it has brought various reforms in the industry including digitisation, the new tariff order which has helped it to grow. “Looking at the role so far played by TRAI, it is obvious that there is no need for a separate regulator for broadcasting and cable sector,” it states. However, those reforms were most of the time challenged in various judicial forums by the stakeholders and the regulatory body has been blamed for “micro-managing” the sector.

    Earlier in 2018, TRAI proposed a converged regulator for information and communications technology (ICT) and broadcast sectors but television broadcasters and broadcasting associations had opposed the proposal.