Tag: Trai

TRAI to meet b’casters, MSOs, DTH ops, telcos on ’17 roadmap

NEW DELHI: As promised by TRAI chairman RS Sharma, the regulator is getting pro-active. It has scheduled meetings with top executives of telecom, broadcasting, DTH and MSO companies over the next one week starting 6 January, 2017 to seek their opinion on issues to be taken up during 2017.

The first of these high-level meetings would take place Friday when TRAI Chairman and other officials would interact with CEOs of all telecom companies, including Bharti, Vodafone and Reliance Jio, to discuss and identify important issues that need to be taken up during the year, PTI reported.

A similar meeting is slated with top executives of cable, broadcasting, MSO and DTH companies on January 10, 2017, PTI quoted TRAI sources as saying.

“We have invited the CEOs of all telecom companies, including Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio and others for a discussion on January 6. Similarly, we have invited top executives of broadcasting companies, MSOs, and DTH companies on January 10,” the PTI report quoted sources as saying.

TRAI’s latest initiatives are in line with what Chairman RS Sharma had told indiantelevision.com in a year-end interview middle of December 2016 on charting a roadmap for 2017.

“What we plan to do in 2017 is something interesting. While there will be always issues that will need TRAI’s urgent attention — for example, the government may ask for advice on spectrum prices — we are trying to create a calendar for the next year…. highlighting the works that need to be taken up in 2017 and which will act as a roadmap,” Sharma had told indiantelevision.com.

Asked about the issues likely to be taken up by TRAI in2017, in consultation with the industry, Sharma had indicated it could involve data and consumer protection, Internet of Things (IoT), digital terrestrial broadcasting and other issues related to emerging technologies.

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“There would be a lot on TRAI’s plate in 2017” – RS Sharma

January 5, 2017
TRAI issues fresh paper seeking views on Net Neutrality definition

NEW DELHI: India’s telecoms regulator Telecom Regulatory Authority of India (TRAI) yesterday floated another consultation paper on Net Neutrality (NN) seeking to establish a framework that allows Internet users the `freedom of expression’ and non discriminatory access to the Net.

In the discussion paper, TRAI stated having identified the India-specific context, the next challenge is to examine what should be the country’s policy response on issues relating to any form of discriminatory treatment in the provision of access to the Internet and seeks views on framing a regulatory framework that would ensure that access to content on the internet is neither ‘blocked’, ‘throttled’ nor ‘preferentially treated’ by ISPs and telecom service providers (TSPs).

“The idea of equal or nondiscriminatory treatment of traffic that flows on the Internet resonates in the NN principles adopted by various jurisdictions, although the term itself does not necessary feature in their regulatory instruments. The EU regulations, for instance, create ‘common rules to safeguard equal and nondiscriminatory treatment of traffic’ without expressly using the term NN. Given that key terms such as `equal treatment’ are still contested, many have urged against a rigid definition of NN. This was also the view expressed by the DoT (Department of Telecoms) committee in its report where it stated that ‘the crux of the matter is that we need not hard code the definition of Net Neutrality but assimilate the core principles of Net Neutrality and shape the actions around them’,” TRAI said in the consultation paper.

The issue of Net Neutrality has been occupying Indian mind space for the last 13 months with pro and anti neutrality views floating around without actually addressing the issue that is also a topic of debate in developed markets like the US, Europe and in Asia. TRAI, which has dealt with the issue in a piecemeal fashion (zero rating plans), for example, earlier in 2016, refers to US regulator FCC stand on the issue in its present paper. However, with a new government led by President-elect Trump to take over later this month, even FCC stand may change on the issue of Net Neutrality.

Some of the questions raised by TRAI in its present 60+ pages paper on Net Neutrality include the following:

# How should “Internet traffic” and providers of “Internet services” be un-derstood in the NN context?

# Should certain types of specialised services, enterprise solutions, Inter¬net of Things, etc be excluded from its scope?

How should such terms be defined?

# How should services provided by content delivery networks and direct interconnection arrangements be treated?

# In the Indian context, which of the following regulatory approaches would
be preferable?

# Whether and how should different categories of traffic be objectively defined from a technical point of view for this purpose?

# Should application-specific discrimination within a category of traffic be viewed more strictly than discrimination between categories?

# How should preferential treatment of particular content, activated by a users choice and without any arrangement between a telecom service provider and content provider be treated?

The paper, however, does seem to highlight that telecom service providers have to deploy certain traffic management practices to ensure that the wireless networks are able to maintain a certain quality of standards. Hence, it also attempts to establish the framework for what it calls “reasonable traffic management practices” to ensure the wireless networks do not get choked or congested, Economic Times reported yesterday evening on its website.

All stakeholders will have to give in their responses by February 28, 2017after which the telecom regulator will deliberate upon the responses and make its final recommendations to the government.

ALSO READ

“There would be a lot on TRAI’s plate in 2017” – RS Sharma

Free data, net neutrality: Discussion on TRAI paper to be held

Net Neutrality: Reactions from the consumers provide deep insights

Net Neutrality: TRAI receives a million mails, Indians awaits judgment day

January 5, 2017
TRAI issues fresh paper seeking views on Net Neutrality definition

NEW DELHI: India’s telecoms regulator Telecom Regulatory Authority of India (TRAI) yesterday floated another consultation paper on Net Neutrality (NN) seeking to establish a framework that allows Internet users the `freedom of expression’ and non discriminatory access to the Net.

In the discussion paper, TRAI stated having identified the India-specific context, the next challenge is to examine what should be the country’s policy response on issues relating to any form of discriminatory treatment in the provision of access to the Internet and seeks views on framing a regulatory framework that would ensure that access to content on the internet is neither ‘blocked’, ‘throttled’ nor ‘preferentially treated’ by ISPs and telecom service providers (TSPs).

“The idea of equal or nondiscriminatory treatment of traffic that flows on the Internet resonates in the NN principles adopted by various jurisdictions, although the term itself does not necessary feature in their regulatory instruments. The EU regulations, for instance, create ‘common rules to safeguard equal and nondiscriminatory treatment of traffic’ without expressly using the term NN. Given that key terms such as `equal treatment’ are still contested, many have urged against a rigid definition of NN. This was also the view expressed by the DoT (Department of Telecoms) committee in its report where it stated that ‘the crux of the matter is that we need not hard code the definition of Net Neutrality but assimilate the core principles of Net Neutrality and shape the actions around them’,” TRAI said in the consultation paper.

The issue of Net Neutrality has been occupying Indian mind space for the last 13 months with pro and anti neutrality views floating around without actually addressing the issue that is also a topic of debate in developed markets like the US, Europe and in Asia. TRAI, which has dealt with the issue in a piecemeal fashion (zero rating plans), for example, earlier in 2016, refers to US regulator FCC stand on the issue in its present paper. However, with a new government led by President-elect Trump to take over later this month, even FCC stand may change on the issue of Net Neutrality.

Some of the questions raised by TRAI in its present 60+ pages paper on Net Neutrality include the following:

# How should “Internet traffic” and providers of “Internet services” be un-derstood in the NN context?

# Should certain types of specialised services, enterprise solutions, Inter¬net of Things, etc be excluded from its scope?

How should such terms be defined?

# How should services provided by content delivery networks and direct interconnection arrangements be treated?

# In the Indian context, which of the following regulatory approaches would
be preferable?

# Whether and how should different categories of traffic be objectively defined from a technical point of view for this purpose?

# Should application-specific discrimination within a category of traffic be viewed more strictly than discrimination between categories?

# How should preferential treatment of particular content, activated by a users choice and without any arrangement between a telecom service provider and content provider be treated?

The paper, however, does seem to highlight that telecom service providers have to deploy certain traffic management practices to ensure that the wireless networks are able to maintain a certain quality of standards. Hence, it also attempts to establish the framework for what it calls “reasonable traffic management practices” to ensure the wireless networks do not get choked or congested, Economic Times reported yesterday evening on its website.

All stakeholders will have to give in their responses by February 28, 2017after which the telecom regulator will deliberate upon the responses and make its final recommendations to the government.

ALSO READ

“There would be a lot on TRAI’s plate in 2017” – RS Sharma

Free data, net neutrality: Discussion on TRAI paper to be held

Net Neutrality: Reactions from the consumers provide deep insights

Net Neutrality: TRAI receives a million mails, Indians awaits judgment day

January 5, 2017
Respond to Vodafone’s TRAI challenge in two weeks, govt directed

MUMBAI: Terming it as “premature”, the central government has opposed a plea by the telecom major Vodafone Mobile Services challenging TRAI’s recommendation to impose Rs 1,050 crore penalty for not providing interconnectivity to Reliance Jio.

The government rejected the plea by Vodafone, which operates in 21 circles, against a penalty of Rs 50 crore per telecom circle recommended by TRAI. The Telecom Regulatory Authority of India had suggested the penalty on grounds that Vodafone had violated terms and conditions relating to points of interconnection among service providers.

Additional solicitor-general Sanjay Jain, appearing on behalf of the Centre, said that since the role of TRAI was advisory, what material did the telecom company had to show that the Centre’s decision would be clouded by the recommendation.

Justice Sanjeev Sachdeva, who was hearing the matter, directed the Centre to file a short affidavit within two weeks and limit it to the question of maintainability of the suit.

TRAI recommendation was made to DoT (department of telecommunications), and is based on a complaint by Reliance Jio Infocomm Ltd, which alleged that Vodafone had refused to comply with interconnection norms. TRAI had also recommended a similar penalty on Bharti Airtel and Idea Cellular Ltd.

Senior advocate Rajiv Nayar, appearing for Vodafone, urged the court to decide whether TRAI exceeded its jurisdiction by giving the recommendation. The telecom argued that TRAI has the power to impose “financial disincentives” for breach of Quality of Service regulations and to ensure compliance of terms and conditions of licence.

The ASG opposed the maintainability of the petition, saying once DoT took a decision, then it was an appealable order.

The court gave the telecom ministry and TRAI two weeks to file their reply on the issue of maintainability and listed it for hearing on 6 February.

January 4, 2017
Respond to Vodafone’s TRAI challenge in two weeks, govt directed

MUMBAI: Terming it as “premature”, the central government has opposed a plea by the telecom major Vodafone Mobile Services challenging TRAI’s recommendation to impose Rs 1,050 crore penalty for not providing interconnectivity to Reliance Jio.

The government rejected the plea by Vodafone, which operates in 21 circles, against a penalty of Rs 50 crore per telecom circle recommended by TRAI. The Telecom Regulatory Authority of India had suggested the penalty on grounds that Vodafone had violated terms and conditions relating to points of interconnection among service providers.

Additional solicitor-general Sanjay Jain, appearing on behalf of the Centre, said that since the role of TRAI was advisory, what material did the telecom company had to show that the Centre’s decision would be clouded by the recommendation.

Justice Sanjeev Sachdeva, who was hearing the matter, directed the Centre to file a short affidavit within two weeks and limit it to the question of maintainability of the suit.

TRAI recommendation was made to DoT (department of telecommunications), and is based on a complaint by Reliance Jio Infocomm Ltd, which alleged that Vodafone had refused to comply with interconnection norms. TRAI had also recommended a similar penalty on Bharti Airtel and Idea Cellular Ltd.

Senior advocate Rajiv Nayar, appearing for Vodafone, urged the court to decide whether TRAI exceeded its jurisdiction by giving the recommendation. The telecom argued that TRAI has the power to impose “financial disincentives” for breach of Quality of Service regulations and to ensure compliance of terms and conditions of licence.

The ASG opposed the maintainability of the petition, saying once DoT took a decision, then it was an appealable order.

The court gave the telecom ministry and TRAI two weeks to file their reply on the issue of maintainability and listed it for hearing on 6 February.

January 4, 2017
DTH adds 14 lakh active subscribers in Q2-17 as per TRAI data

BENGALURU: The DTH industry in India has added about 14 lakh (1.4 million) active subscribers in the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the immediate trailing quarter (Q1-17). The number of active DTH subscribers in the country increased to 6.19 crore (61.9 million) as compared to 6.05 crore (60.5 million) in Q1-7. TRAI had reported 4.05 crore (40.5 million) active subscribers for the corresponding year ago quarter Q2-16. . It may be noted that TRAI (Telecom Regulatory Authority Regulator has been reportingthe net active subscriber base included temporarily suspended subscribers that have been inactive for not more than 120 dayssince Q3-16 (quarter ended 31 December 2015).

The growth seems to have slowed in Q2-17 down despite the extended sunset date for DAS IV nearing. In the previous quarter, the industry had added 19.7 lakh (1.97 million), 25.5 lakh (2.55 million) in the quarter ended 31 March 2016 (Q4-16). Further, the industry has witnessed a faster growth of inactive subscribers as compared to active subscribers in Q2-17. Total number of registered subscribers grew 2.9 percent in the current quarter, while active subscribers grew by just 2.3 percent. In Q1-17 TRAI had reported 9.153 crore or 91.53 million registered subscribers, which grew to 9.416 crore or 94.16 million or a growth of 26.3 lakh (2.63 million) registered subscribers. As mentioned above active subscribers grew by just 14 lakh or 1.4 million in the same period.

Of the six private players in the Indian DTH ecosystem, three are publically listed and their numbers are available in the public domain – They are in alphabetical order: Airtel Digital TV Services or Airtel DTH which is a small segment/division of Indian telecom major Bharti Airtel Limited; Dish TV, the largest DTH player in the country in terms of number of subscribers; and Videocon d2h. These three have about two thirds of market share of the DTH universe in India. Of the other three players, Tata Sky is a major player and should have a market share about equal to Airtel DTH or Videocon d2h (about 20 percent). The other players – Reliance DTH and Sun Direct have a combined market share between 13 to 15 percent in terms of subscribers. It may be noted that at present probably the largest DTH player in India is the government’s FreeDish, but since it is a free service, no subscriber data is available even with PrasarBharati.

Please refer to Fig A below for DTH subscriber growth.

For Q2-17, the growth of the three major players was even slower than the industry – their combined subscriber base grew just 1.9 percent quarter-over-quarter (q-o-q) by just 7.45 lakh (0.625 million) to 400.25 lakh (40.025 million) from 392.8 lakh (39.28 million) in the immediate trailing quarter.

Fig B below indicates the approximate market share in terms of subscribers of the six private DTH players in the country.

Let us see how they performed during the current quarter (Q2-17)

Airtel Digital TV Services or Airtel DTH

Airtel DTH reported 21.9 percent year-over-year (y-o-y) increase in operating revenues to RsRs 854.5 crore in Q2-17 as compared to Rs 706.8 crore in Q2-16. The segment’s operating profit (EBIT) more than quadrupled y-o-y to Rs 69.8 crore from Rs 17 crore, but declined 42.7 percent q-o-q from Rs 121.9 crore.

Airtel’s DTH segment added 18.29 lakh subscribers between Q2-16 and Q2-17, or a 17.3 percent y-o-y increase. The company says that this is the highest growth in percentage terms over seventeen quarters. It had 124.05 lakh subscribers as on 30 September 2016. Q-o-q, the segment witnessed a 2.1 percent growth (2.56 lakh adds) in subscribers from 121.49 lakh in Q1-17.

ARPU in Q2-17 increased to Rs 232 from Rs 224 in the corresponding year ago quarter, but declined marginally (by Re 1) from Rs 233 in the immediate trailing quarter.

Dish TV

Three segments contribute to Dish TV’s numbers – DTH; Infra Support Services; and ‘Others’.

Dish TV’s DTH segment revenue in Q2-17 declined 14.2 percent to Rs 509.55 crore from Rs 594.16 crore in Q2-16. The segment reported 15.5 percent lower operating profit in the current quarter at Rs 86.43 crore as compared to Rs 102.24 crore in the corresponding year ago quarter.

The company reported addition of 2.59 lakh net subscribers for Q2-17. It closed the quarter with 151 lakh subscribers. Average revenue per user (ARPU) for Q2-17 was Rs 162 in the current quarter versus Rs 161 in the corresponding year ago quarter. It may be noted that as of this fiscal, Dish TV has been reporting ARPU number net of service tax and hence comparison with the other players is inappropriate.

Dish TV reported 11.9 percent higher y-o-y subscription revenue of Rs 728.8 crore for Q2-17, as compared to Rs 651.4 crore. Operating revenue in the current quarter increased 9.6 percent y-o-y to Rs 779.6 crore from Rs 711.2 crore in the corresponding quarter of the previous year.

Dish TV reported PAT of Rs. 70.1 crore in Q2-17, down 19.4 percent as compared to Rs 87 crore in Q2-16. EBIDTA in the current quarter increased 3.6 percent to Rs 264.2 crore from Rs 255 crore in Q2-16.

Videocon d2h

Videocon d2h reported 12.5 percent y-o-y growth in total revenue from operations for Q2-17 at Rs 776.16 crore as compared to Rs 690.08 crore and a 1.7 percent q-o-q growth from Rs 763.25 crore.

Videocon d2h reported PAT of Rs 6.32 crore (0.8 percent margin) Q2-17, current. For the corresponding year ago quarter (Q2-17), the company had reported a loss of Rs 24.59 crore while for the immediate trailing quarter (Q1-17) the company had reported profit of Rs 2.66 crore (0.3 percent margin).

The DTH major also reported 15.5 percent year-over-year (y-o-y) growth in net subscriber numbers at 125.2 lakh for Q2-17 as compared to 108.4 lakh and a 1.9 percent quarter-over-quarter (q-o-q) growth from122.9 lakh. Monthly Average revenue per user (ARPU) in the current quarter increased to Rs 209 from Rs 201 in Q2-16 but declined by Rs 2 from Rs 211 in the immediate trailing quarter.

January 4, 2017
DTH adds 14 lakh active subscribers in Q2-17 as per TRAI data

BENGALURU: The DTH industry in India has added about 14 lakh (1.4 million) active subscribers in the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the immediate trailing quarter (Q1-17). The number of active DTH subscribers in the country increased to 6.19 crore (61.9 million) as compared to 6.05 crore (60.5 million) in Q1-7. TRAI had reported 4.05 crore (40.5 million) active subscribers for the corresponding year ago quarter Q2-16. . It may be noted that TRAI (Telecom Regulatory Authority Regulator has been reportingthe net active subscriber base included temporarily suspended subscribers that have been inactive for not more than 120 dayssince Q3-16 (quarter ended 31 December 2015).

The growth seems to have slowed in Q2-17 down despite the extended sunset date for DAS IV nearing. In the previous quarter, the industry had added 19.7 lakh (1.97 million), 25.5 lakh (2.55 million) in the quarter ended 31 March 2016 (Q4-16). Further, the industry has witnessed a faster growth of inactive subscribers as compared to active subscribers in Q2-17. Total number of registered subscribers grew 2.9 percent in the current quarter, while active subscribers grew by just 2.3 percent. In Q1-17 TRAI had reported 9.153 crore or 91.53 million registered subscribers, which grew to 9.416 crore or 94.16 million or a growth of 26.3 lakh (2.63 million) registered subscribers. As mentioned above active subscribers grew by just 14 lakh or 1.4 million in the same period.

Of the six private players in the Indian DTH ecosystem, three are publically listed and their numbers are available in the public domain – They are in alphabetical order: Airtel Digital TV Services or Airtel DTH which is a small segment/division of Indian telecom major Bharti Airtel Limited; Dish TV, the largest DTH player in the country in terms of number of subscribers; and Videocon d2h. These three have about two thirds of market share of the DTH universe in India. Of the other three players, Tata Sky is a major player and should have a market share about equal to Airtel DTH or Videocon d2h (about 20 percent). The other players – Reliance DTH and Sun Direct have a combined market share between 13 to 15 percent in terms of subscribers. It may be noted that at present probably the largest DTH player in India is the government’s FreeDish, but since it is a free service, no subscriber data is available even with PrasarBharati.

Please refer to Fig A below for DTH subscriber growth.

For Q2-17, the growth of the three major players was even slower than the industry – their combined subscriber base grew just 1.9 percent quarter-over-quarter (q-o-q) by just 7.45 lakh (0.625 million) to 400.25 lakh (40.025 million) from 392.8 lakh (39.28 million) in the immediate trailing quarter.

Fig B below indicates the approximate market share in terms of subscribers of the six private DTH players in the country.

Let us see how they performed during the current quarter (Q2-17)

Airtel Digital TV Services or Airtel DTH

Airtel DTH reported 21.9 percent year-over-year (y-o-y) increase in operating revenues to RsRs 854.5 crore in Q2-17 as compared to Rs 706.8 crore in Q2-16. The segment’s operating profit (EBIT) more than quadrupled y-o-y to Rs 69.8 crore from Rs 17 crore, but declined 42.7 percent q-o-q from Rs 121.9 crore.

Airtel’s DTH segment added 18.29 lakh subscribers between Q2-16 and Q2-17, or a 17.3 percent y-o-y increase. The company says that this is the highest growth in percentage terms over seventeen quarters. It had 124.05 lakh subscribers as on 30 September 2016. Q-o-q, the segment witnessed a 2.1 percent growth (2.56 lakh adds) in subscribers from 121.49 lakh in Q1-17.

ARPU in Q2-17 increased to Rs 232 from Rs 224 in the corresponding year ago quarter, but declined marginally (by Re 1) from Rs 233 in the immediate trailing quarter.

Dish TV

Three segments contribute to Dish TV’s numbers – DTH; Infra Support Services; and ‘Others’.

Dish TV’s DTH segment revenue in Q2-17 declined 14.2 percent to Rs 509.55 crore from Rs 594.16 crore in Q2-16. The segment reported 15.5 percent lower operating profit in the current quarter at Rs 86.43 crore as compared to Rs 102.24 crore in the corresponding year ago quarter.

The company reported addition of 2.59 lakh net subscribers for Q2-17. It closed the quarter with 151 lakh subscribers. Average revenue per user (ARPU) for Q2-17 was Rs 162 in the current quarter versus Rs 161 in the corresponding year ago quarter. It may be noted that as of this fiscal, Dish TV has been reporting ARPU number net of service tax and hence comparison with the other players is inappropriate.

Dish TV reported 11.9 percent higher y-o-y subscription revenue of Rs 728.8 crore for Q2-17, as compared to Rs 651.4 crore. Operating revenue in the current quarter increased 9.6 percent y-o-y to Rs 779.6 crore from Rs 711.2 crore in the corresponding quarter of the previous year.

Dish TV reported PAT of Rs. 70.1 crore in Q2-17, down 19.4 percent as compared to Rs 87 crore in Q2-16. EBIDTA in the current quarter increased 3.6 percent to Rs 264.2 crore from Rs 255 crore in Q2-16.

Videocon d2h

Videocon d2h reported 12.5 percent y-o-y growth in total revenue from operations for Q2-17 at Rs 776.16 crore as compared to Rs 690.08 crore and a 1.7 percent q-o-q growth from Rs 763.25 crore.

Videocon d2h reported PAT of Rs 6.32 crore (0.8 percent margin) Q2-17, current. For the corresponding year ago quarter (Q2-17), the company had reported a loss of Rs 24.59 crore while for the immediate trailing quarter (Q1-17) the company had reported profit of Rs 2.66 crore (0.3 percent margin).

The DTH major also reported 15.5 percent year-over-year (y-o-y) growth in net subscriber numbers at 125.2 lakh for Q2-17 as compared to 108.4 lakh and a 1.9 percent quarter-over-quarter (q-o-q) growth from122.9 lakh. Monthly Average revenue per user (ARPU) in the current quarter increased to Rs 209 from Rs 201 in Q2-16 but declined by Rs 2 from Rs 211 in the immediate trailing quarter.

January 4, 2017
TRAI: FM Radio ad revenues move up in Q2-17

BENGALURU: After the recent slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been averted, albeit marginally for Q2-17 (quarter ended 30 September 2016, current quarter) according to the data released by The Telecom Regulatory Authority of India.

According to TRAI data, radio combined ad revenues reported by 259 stations were Rs 502.13 crore or an average of Rs 1.94 lakh per station for Q2-17. This was slightly higher than the Rs 1.92 crore (combined revenue Rs 468.08 crore from 244 stations)for the immediate trailing quarter. Q2-17 ad revenue was however short by about Rs 10 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs 481.56 crore (2.04 crore per station) from 236 stations.

Please refer to Figure A below for FM Radio Ad Revenue over a five year plus period spanning a 22 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 30 September 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.

In absolute terms, combined Radio ad revenue in Q2-17 increased 4.2 percent and 7.3 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 5 percent y-o-y, but increased 1.1 percent q-o-q. The total number of stations in Q2-17 increased 9.7 percent y-o-y and 6.1 percent q-o-q.

Please refer to Figure B for y-o-y and q-o-q changes

Conclusion

Overall, despite the year-end and first quarter of a new fiscal drops, ad revenues as well as ad revenues per station show a linear increasing trend as more and more advertisers have begun to understand the value proposition this very local medium with a pan-India footprint can offer. Further, the third quarter of the fiscal (Q3, quarter ended 31 December) is also the festival quarter of the year in India – a sweet quarter as far as the radio industry is concerned. However, It remains to be seen how demonetisation has affected ad revenues for the fledgling medium for Q3-17. As mentioned above, during the third quarter of a fiscal radio ad revenues have historically been the highest.

January 2, 2017
TRAI: FM Radio ad revenues move up in Q2-17

BENGALURU: After the recent slump in advertisement revenues by private FM radio stations in the quarters ended 30 June 2016 (Q1-17) and 31 March 2016 (Q4-17), the trend seems have been averted, albeit marginally for Q2-17 (quarter ended 30 September 2016, current quarter) according to the data released by The Telecom Regulatory Authority of India.

According to TRAI data, radio combined ad revenues reported by 259 stations were Rs 502.13 crore or an average of Rs 1.94 lakh per station for Q2-17. This was slightly higher than the Rs 1.92 crore (combined revenue Rs 468.08 crore from 244 stations)for the immediate trailing quarter. Q2-17 ad revenue was however short by about Rs 10 lakh per station as compared to the corresponding year ago quarter for which TRAI reported combined ad revenue of Rs 481.56 crore (2.04 crore per station) from 236 stations.

Please refer to Figure A below for FM Radio Ad Revenue over a five year plus period spanning a 22 quarter period starting with the quarter ended 30 June 2011 (Q1-12) until the quarter ended 30 September 2016 (Q2-17) as per TRAI data. The amounts are in Rs crore and rounded off to the nearest decimal place in the case of combined ad revenue and two decimal places in the case of Average Revenue per station.

In absolute terms, combined Radio ad revenue in Q2-17 increased 4.2 percent and 7.3 percent year-over-year (y-o-y, as compared to the corresponding quarter of the previous year) and quarter-over-quarter (q-o-q, immediate trailing quarter) respectively. Average revenue per station in the current quarter declined 5 percent y-o-y, but increased 1.1 percent q-o-q. The total number of stations in Q2-17 increased 9.7 percent y-o-y and 6.1 percent q-o-q.

Please refer to Figure B for y-o-y and q-o-q changes

Conclusion

Overall, despite the year-end and first quarter of a new fiscal drops, ad revenues as well as ad revenues per station show a linear increasing trend as more and more advertisers have begun to understand the value proposition this very local medium with a pan-India footprint can offer. Further, the third quarter of the fiscal (Q3, quarter ended 31 December) is also the festival quarter of the year in India – a sweet quarter as far as the radio industry is concerned. However, It remains to be seen how demonetisation has affected ad revenues for the fledgling medium for Q3-17. As mentioned above, during the third quarter of a fiscal radio ad revenues have historically been the highest.

January 2, 2017
Telcos’ carbon footprint: TRAI may seek reduction, green tech soon

MUMBAI: Telecom regulator TRAI is seeking to come out with a consultation paper that would review issues related to reduction in carbon footprint for the telecom infrastructure that includes mobile towers. A TRAI source said the green telecommunication discussion topics are expected to be finalised over next few weeks after a reference from the DoT (Department of Telecom.)

(Owing mainly to several policy reforms, telecom sector investments in India meanwhile are expected to reach Rs 68,000 crore (approx US$ 10 billion) this fiscal year, according to telecom secretary J S Deepak, which is approx a 670 per cent increase since FY16.)

DoT had asked TRAI to review the targets that had been stated earlier with regard to percentage of towers to be powered by hybrid energy in a time-bound manner, and the methodology of calculation of carbon footprint from the telecom networks, including base transceiver station (BTS), the TRAI source said, PTI reported.

It said that the consultation paper would be the next step in the regulator’s previous recommendations of 2011 on the subject. TRAI had recommended to the government to reduce carbon footprint by mobile operators, which was accepted by the government, and the latter had issued directions with regard to targets through use of green technologies.

However, the telecom operators had concerns about the capex related to conversion of BTS into green towers through the use of hybrid energy and other means, the source pointed out. The new consultation paper would review methodology of calculation and the milestone (of carbon footprint).

TRAI had, in 2011, sought industry views on issues such as — how should the carbon footprint of the telecom industry be judged; how should carbon credit policy be evolved, and the time-frame for implementing.

It had sought views on issues such as what proportion of non-grid power supply to towers in rural areas could be anticipated to be through renewable sources of energy, and a relevant metric for certifying a product as green. It had also sought from the industry an estimate of the carbon footprint of the mobile, fixed and broadband networks.

TRAI had, in the paper, noted that the growing infrastructure required more electricity. Part of the power came from the grid and remainder through burning of fossil. Both sources contributed to negative eco effects.

January 2, 2017