MxMIndia

Tag: Ashok Mansukhani

  • The session on 'Television 3.1' on day 1 of FICCI Frames saw the panelists assess the future of the broadcast industry

    #FF14 Day 1: Seamless content delivery across multiple platforms the way forward

    By a correspondent

     

    With so much being written and said of the emergence of multiple platforms and content delivery mechanisms in India, it was only apt to gather opinion from those that are driving the change to get a firsthand feel of the effects being spotted. The session on ‘Television 3.1’ on day 1 of FICCI Frames saw the panelists assess the future of the broadcast industry, in terms of content, marketing and distribution strategies in the era of convergence and multiplatform delivery mechanisms.

     

    The panelists comprised speakers like Tarun Katial, CEO, Reliance Broadcast, Vikram Chandra, CEO, NDTV Group, Mathieu Bejot, Executive Director, TV France International, Bharat Ranga, Chief Content and Creative Officer, ZEE Entertainment, Ashok Mansukhani, President, MSO Alliance and Todd Miller, CEO, Celestial Tiger Entertainment. The session was moderated by Janine Stein, Editorial Director, Content Asia.

     

    Vikram Chandra began by highlighting how 4G and smartphones will be the next big change agents in the Indian media landscape. “The recent months have witnessed a lot of people moving to the second screen to access content of their choice and with the access becoming more fast and affordable, smartphones will be the next big thing where content consumption is concerned,” he said.

     

    For Todd Miller, what will drive India in the months ahead will be the explosion of HD technology. Assisting that would be content from China that would be finding its way around the world, including India.

     

    Providing a different perspective, Bharat Ranga said that the way his network functioned it was a matter of tackling markets on a ‘meta’ level. Meta-national approach by companies that caters to market-specific conditions will drive the growth for broadcasters. Also, it will be essential for broadcasters to have a consumerist understanding of data and not marketing understanding. With the emergence of new platforms, Ranga noted that the industry will see the emergence of budding talents who will be able to bring in a different perspective.

     

    Ashok Mansukhani proposed that each stakeholder should be able to make money from the digitization exercise but that the consumer should have the final say. He said that the phase 3 and 4 of digitization will see a lot of players going fiber. While that will boost output, it is essential that the distribution rights of such an exercise are retained with the distributor, he noted.

     

    Tarun Katial said that India was ready to see content as the core subject that can be created for various platforms. The ability to have good investment strength and also the right mix of talent and content will help companies achieve the goal faster, he noted. Mr Katial added that while earlier ‘Content was King and Distribution was God’, the phrase has now changed to ‘Content is king and Technology is God’. Going forward, it is important that broadcasters have a hold on the IPs as that is what will matter in the future. And while much of the content at Reliance is being rented, Mr Katial added that very soon they will be working on producing content that would be their own.

     

  • MxMIndia spoke to the heads of the broadcast, MSO and cable lobbies on the first phase of mandatory digitization in the 3 metros

    Stakeholder view of one month of digitization

     

    By Ananya Saha

     

    It has been a month of mandatory digitization in the three metros of Mumbai, Delhi and Kolkata. Even though government officials may make us believe that the metros are completely digitized, , the ground reality appears to be different. Analogue signals continue to be available, and not all stakeholders are happy with the way things are shaping up. Meanwhile, in Chennai, the digitzation hearing has been postponed by four weeks. It is likely to happen only by December 31, though given a cloud over whether the government will be allowed to run a cable service (in Arasu Cable),  will be allowed to be

     

    Man Jit singh

    Calling the Phase I a tremendous success for industry, Man Jit Singh, President of the Indian Broadcasting Federation (IBF) and CEO, Multi Screen Media said, “Digitization has been a huge success. The kinds of effort that was done to get digitized, no where in the world have we seen this kind of achievement has been done. Kolkata has not reached 100% digitization yet, but I think it will get there.” He also acknowledged that fact that there are few illegal signals in Delhi and Mumbai but assured that the IBF is working with other stakeholders to have these illegal signals completely switched off.

     

     

    Roop Sharma

    On the other hand, Roop Sharma, President, Cable Operators Federation of India (COFI) highlighted how none of the promises made on digitization by MIB have been achieved so far. She said, said, “During Parliament discussion on the Cable TV Act Amendment Bill last November, the then I&B Minister Ambika Soni said digitization will provide choice of channels to consumers-through a-la-carte selection, provide high quality service, controlled pricing of pay channels and thus lowered billing to consumers, and that consumer to pay only for what they wish to watch. Consumers were to get internet video-on-demand and value added services through set-top-boxes, and she had said that small cable operators will not be rendered unemployed, there will be transparency and correct accounting of channel viewership, govt will get tax on all connections as no under-declaration will exist, and that there will be no ambiguity in TRP ratings. Now, with one month of digitisation over, has this been achieved?” She is of the view that nothing that I&B Minister had promised the Parliament has been achieved yet and still, the Ministry has announced successful completion of phase I and started roll out of phase II.

     

    The figures

    Swapan Chowdhury

    Currently, according to various stakeholders, over 95% digitization has been achieved in Delhi and Mumbai even as Kolkata trails behind with quite a less percentage. Swapan Chowdhury, General Secretary, Cable & Broadband Operators’ Welfare Association, Kolkata, however, estimated, “Mumbai achieved 75% digitization and 70% in Delhi while digitization in Kolkata is only about 40-45%.”

     

    Mr Chowdhury also said that the actual activation of set-top boxes in November for Kolkata has been than a lakh. Arvind Prabhoo, Owner, Orbit Television Network, Mumbai said that the actual reason behind high numbers from Mumbai is because of stopping of analogue signals. “Most of the networks have reported 90-95% switchover in Mumbai. This figure has happened after the stoppage of analogue signals. We were hardly touching 60-65% before the analogue signals were not switched off. Even then, at least 35-40% people have not taken to digitisation voluntarily.” Though the piracy is still an issue in some pockets of Mumbai, over 8-9 lakh STBs were installed this month alone.

     

    Certainties and Uncertainties

    “There are certain distributors who have not made their pricing policy clear yet. There us a lot of confusion over revenue-sharing. One of the major issue is Entertainment Tax. If the govt charges Rs 45 per STB connection, does that mean every house that has two television sets, pays Rs 90 entertainment tax,” voiced Mr Prabhoo.

     

    Ms Sharma said that broadcasters are making lumpsum deals with MSOs for pay channels and not based on the number of consumers opting for those channels. “Hence, there are no accurate figures. Discrimination is rampant. Rates of pay channels are not based on market demand but whims of the large content aggregators, vertical monopoy business houses/ companies like MediaPro who enjoy monopoly in pay TV content distribution,” she remarked.

     

    Ashok Mansukhani

    Although, the DTH operators this writer reached were unavailable for comment, there have been mixed reports on its success rate. While one report says it has done well in the Capital where the availability of analogue signals has been low, MSO Alliance chief Ashok Mansukhani has another view. “DTH is surprised at its poor performance. They need to take a call on what they are upto: have they grown in the last six months,” he asked. “According to statistics, it’s 70:30 in favour of cable and that is not going to change soon. Where did cable have the capacity to retain 70% of cable base? For DTH, there is enormous churn which is as much as 33% of the total amount claimed. And how come the government doesn’t take the churn into account,” asks Mr Mansukhani.

     

    While Ms Sharma and Mr Prabhoo said that the issue of carriage fees has not been sorted out yet either, Mr Man Jit Singh sounded optimistic, “We expect there will be decrease in carriage fees as digitization rolls out for simple reason that the capacity constraint of analogue system will go away. However, carriage fees is not going away completely and it will take time. Both broadcasters and MSOs are working together to make a gradual transition to reach a stage economically in the short run so that it sorts itself out in the long run. We feel that carriage fees is moving in the right direction.”

     

    Phase II: Lessons from Phase I

    Phase I was not a smooth ride. And Phase II will be even tougher since it will be rolled out in 38 cities simultaneously. Apart from stronger communication aimed at the end consumer, the stakeholders need to tighten their belt for doing their bits too.

     

    Mr Mansukhani said that in the second phase, more attention should be given to the consumers and less to the broadcaster. “Awareness creation by all stakeholders is necessary since once people are aware, they are open to change. In the phase I, we were not communicated on the need of digitization and we still do not know why digitisation is happening,” said Mr Prabhoo.

     

    Ms Sharma said insisted that for the next phase transparency is required on each level: between broadcasters and channel aggregators; between channel aggregators and MSOs; between MSOs and LCOs and between LCOs and consumers. “Digital Cable System is new and is not tried and tested. Lots of teething problems, application hazards are poping up which needs to be addressed. Redressal of all such issues should be considered on practical ground and not on any task force or ministrial meeting. The first phase of digitization is practically incomplete. Supply of STB in the first phase is inadequate, the pressure of second phase will push the process into much more complication. Authority is not accepting the time for settling down for supply of STB and the technology,”said Mr Chowdhury.

     

    Mr Singh concluded, “The early seeding of boxes and getting the message out to consumers that they need to get their boxes early is one key message. IBF’s campaign to build public awareness was extremely effective and we should continue with that campaign for phase II. The ministry’s effort to coordinate with all stakeholders was in excellent trend that should continue. If anything, I think MIB  is going to take even more proactive stance of monitoring the actual implementation of the roll out of boxes city by city. So I think a lot of the learning from phase 1 will apply to Phase 2 and it is very positive.”

     

  • Effective implementation of digitization is among the immediate challenges for the new minister

    MxM Mondays: Expectations from Manish Tewari, the new I&B Minister

     

    It’s a week since Manish Tewari took charge as I&B Minister… just two days before the sunset date of Phase I of digitization. The foremost challenge he faces is overseeing and implementing the digitization process. While the digitization numbers as posted by the MIB look impressive, it remains to be seen if the challenging ground realities are met. Another task at hand would be to let the broadcast industry flourish.

     

    MxMIndia spoke to industry captains about their expectations from the new I&B Minister.

     

    Ravi Dhariwal

    Ravi Dhariwal, CEO – Publishing, BCCL

    I just wish that the new minister on board would help media industry in India grow and become more relevant – whether it is print or television. The minister should create an enabling environment where we, as a media fraternity, can serve the country in best traditions.

     

     

     

    Man Jit Singh, President, Indian Broadcasting Foundation and CEO, Multi Screen Media

    Man Jit Singh

    I have a three-pronged expectation list from the minister. I believe he has the same priorities as us when it comes to the process of digitization. We hope that the digitization process is smooth and continuous for him. And the second phase is also rolled out soon. I expect the new minister to support us in making sure there are no pirated signals or disruptive systems.

     

    The new I&B minister, as we know, supports self-regulation. As broadcasters, we believe self-regulation, and we look for his continuous support.

     

    The last and the most important thing is the issue of Price Control that was put in place in 2003. There was meant to be a sunset date for the price control, which has not happened till date. It has been too long that broadcasters have been following it. Now, it is the time that market forces decide the price.

     

    KVL Narayan Rao, President, News Broadcasters Association and Executive Vice-Chairman, NDTV Group

    KVL Narayan Rao

    I would not go so far as to call it expectation but a belief that he will continue to take forward the good policies that previous I&B minister, Ms Ambika Soni, had initiated. There are three things that Mr Manish Tewari should aim at: digitization being the first one. He should uphold the price for carriage fees and support self-regulation. He should support the industry from the perspective of unreasonable levels of taxation – whether it is direct or indirect service tax. We hope that the next Bill that he presents talks about these issues.

     

    Mr Tewari is a democrat, and will probably look at the whole picture and then make decisions.

     

    Ashok Mansukhani

    Ashok Mansukhani, President, MSO Alliance

    Basically, three things: the first thing – the first phase of digitization needs his personal interest to stabilize it. It requires political direction to put it on the right path, especially since the process of digitization has to happen through state governments. I don’t think the minister should leave it to bureaucracy alone.

     

    The second thing is that the second phase of digitization is too near the first stage, which is March. And, I think, at this moment it is a mirage to think that we can achieve that target on 31st March because the stabilization of the first phase of digitization is not dependent on a press note. It is the dependent on the acceptance of digitization by the consumer. Now the consumer is at least a month away from understanding what digitization means, what it will cost him and what the benefits are. This is a learning process and the process will take some time, and therefore, I think phase two – even though everyone will say it is non-negotiable – in my view, it will have to be pushed back by six months.

     

    The third step is that Mr Manish Tewari needs to very carefully look at the fact that you cannot regulate a multimedia delivery that India has in the form of cable, DTH, mobile TV and IPTV through the Cable Act. The Cable Act is fine as far as cable is concerned. We need to work towards an Electronic Media Management Act. Basically, this Act would function on the basis of self-regulation but which has a safety net of autonomous public authority that Supreme Court asked in 1992 for the Cricket Judgement in which SC had said that airwaves are neither private property nor government property but it is public property. And public property is best protected by an autonomous authority. In 1992, only cable and broadcasters were present but in 2012 you have four technologies and who knows if fifth one will come through 4G.

     

    The way I would like to see it that the last thing the Minister needs to do is that everybody somehow managed to do Phase I of digitization without getting any incentive from the government. But I think that what happened in the last week or first 10 days to the run up to sunset date was the sudden realisation that the much-beloved Census figures itself showed that 50% of people in India are poor. If that is so and in any case MSOs were giving a subsidy of nearly Rs 1000, Rs 500 is also proving too much for this really poor class. Someway has to be found to lower the burden on slum areas as much as possible. And one way to do it is what TRAI had wanted to do in 2010, which is to say that if you are a digital infrastructure provider, you will be treated on equal footing as other infrastructure providers and given a tax holiday for seven years so that whatever you invest now, you are able to then recover it in form of low taxes over the next seven years. Also, there has to be some form of set top subsidy scheme, which is not just borne by cable but is also borne by broadcasters in form of lower prices and government in the form of duty reduction.

     

    If digitization be his main objective, then apart from that he has to ensure that everybody is kept on a level-playing field. He made some statements in the beginning about it but he is silent in the last four days. So, I think that I am really looking for is more sane and more stable approach to digitization and a level-playing field, which is technology-proof for the future.

     

    Roop Sharma

    Roop Sharma, President, Cable Operators Federation of India

    We expect him to treat all stakeholders in the digitization process equally. He should understand the realities. The new minister should work in tandem with the ground realities of digitization. Mr Manish Tewari should listen to all stakeholders, and take into consideration the problem and hiccups that each state and stakeholder is undergoing in this process.

     

  • Does 100% digitization seem like a remote reality? Will the four metros switch off analogue signals from October 31 midnight?

    MxM Monday: Are the 4 metros really ready for digitization?

     

    By Ananya Saha

     

    It is less than a month to go (24 days to be precise!) before the extended Sunset Date on Phase I of digitization arrives. The West Bengal government has already asked for an extension, and Chennai grapples with issues too. While Mumbai and Delhi seem on track, does 100 percent digitization in all four metros seem like a remote reality? Are the four metros ready to switch off analogue signals from midnight of October 31?

    MxMIndia sought a variety of views from stakeholders – Multi System Operators (MSOs), Local Cable Operators (LCOs), and broadcasters – on the status of digitization for Phase I.

     

    Susmit Basu, VP, Strategy & Business Development, DEN Networks Ltd

    I will not comment about Chennai but Delhi, Mumbai and Kolkata are geared for digitization. The cable operators are positioned to digitise the market by the deadline. What is needed for digitization: setting up of digital head-end. Once the digital head-end is established, the same cable network that was running the analogue signals can transmit the digital signals. The third and the critical step is placing the set-top boxes in the homes.

     

    The first two steps in the three cities have already been covered. For the third step, with the earlier deadline of June 30, it was true that a lot of MSOs were not ready. Many were, like DEN, since we were pushing for STBs aggressively. But in the three months that has passed since then, MSOs have ordered a lot of STBs. Also the ministry, I&B, central government and TRAI are playing a very active role and tracking digitization day-to-day. It is quite remarkable the detail and granularity that they go into on taking status from various MSOs, finding and visiting various kinds of households to see if the digitization is happening and at what level.

     

    MIB has launched a campaign as well in the last few days, and that kind of consumer messaging was missing. We, as MSOs, came together and were doing a consumer awareness campaign. The kind of push that has been out through the new campaign by MIB, which is being beamed across various channels, is completely unprecedented in terms of the scale and the push from all stakeholders. Broadcasters are giving primetime inventory to run these ads. The entire ecosystem is working together.

     

    This is the last one month, and if we continue to work like this it is a very achievable task. Between now and the deadline, a lot more awareness is going to come into play.

     

    Swapan Chowdhury, General Secretary, Cable & Broadband Operators’ Welfare Association, Kolkata

    Digitization of the cable TV system is the need of the hour and cable operators of Kolkata and West Bengal are all set to welcome the next generation technology. The idea of adopting the technology is to win-win situation for all the stakeholders of the industry that started way back in 1990-91.

     

    Digitization has been taken up in a fashion which is contrary to its actual application. If we set aside the WB state government’s request for extension, what we see on the matter is:

     

    • There was no movement/activity from any stakeholder after Ordinance and Notification vide dated 11.11.2011 from the central government and cable operators were only been communicated from late December 2011.
    • MSOs were delivering STB without assigning any appropriate scheme to opt with variable price that fluctuates, very often leading to confusion in the market and in the consumers’ sentiment. Neither have MSOs undertaken any consumer awareness programme.
    • Cable operators were not informed of the revenue that will be retained by them after executing their role and responsibility untill April 30, 2012. The revenue sharing model between MSOs and cable Operators in the term of Section 5 of the Tariff order is for FTA @ 55:45 and pay channel @65:35. It has given better right to the MSOs, ignoring the cost incurred by the cable operators in executing the service. In the CAS zone TRAI alloted around Rs 82 for analogue free-to-air channel, but in absolute digital system the revenue of DFTA has brought down to Rs 45 only. Despite objection from cable operators, TRAI has not considered while formulation the sharing nor did they reconsider the same. Cable operators demanded allocation of considerable /justified charges to enable them to deliver digital cable TV service to the consumers after taking into consideration all costs involved therein, including cost of providing services, network upgradation, repairing and recurring cost, salaries and wages, electricity and all government statutory charges.
    • There were no steps to declare the programme package and its price so that cable operators could start dialogue with consumers. Cable operators are the interface of the whole system but have not been considered and kept informed in the matter, though they are responsible for ultimately selling the product to the consumers. Recently cable operators have come to know about the package and its rate from the media, but none of the MSOs have officially communicated this to the operators in detail till now.
    • There was no arrangement from the MSOs in regard to the “Interconnect Agreement” which is to be completed with the cable operators. Only in the last week of September did one MSO come out with their interconnect agreement, while the others are still to come. The terms and conditions of such an agreement is absolutely contrary to the interests of the cable operators; it has been formulated arbitrarily and is biased in nature. The MSOs have failed to win the confidence and trust of the cable operators who have been doing business since the last 20 years and are the key architecture in building this huge industry.
    • There was no advertisement material in the print media from the Ministry of Information & Broadcasting except one only; as a result consumers were not convinced of the system. On the contrary the DTH service providers were coming out with different and negative insertion in the print media, causing even more confusion.
    • The DTH service providers are also using their own infrastructure for promotiom of their own service and system. At a time when the cable TV industry is on the verge of a massive migration process from analogue to digital platform, the DTH service providers have played a negative role and stalled the digitization process.

     

    In absence of cooperation from the stakeholders, cable operators could not come forward. The malpractice of the broadcasters and the DTH service providers confused the consumers’ sentiment. Demand for STBs did not pick up as expected. Moreover, a few MSOs of Kolkata are running short of inventory and could not deliver set top boxes to their associated cable operators in spite of advance payment from the operators. The government is indifferent and not ready to understand the ground reality, and instead is trying to implement DAS forcibly.

     

    In the process, the government and the TRAI are giving misleading information in connection with the seeding rate of STBs. The actual penetration is far below the recent announcement by the I&B Ministry. In Kolkata out of approximate 40 lakh STBs, only 12-13 lakh STBs have been seeded and hence forcible implementation of DAS on the deadline date will deprive around 65-70 percent of cable subscribers.

     

    Anil Khera, CEO, Videocon d2h

    All the responsible bodies, whether it is TRAI, MIB, Broadcaster, DTH operator & MSOs, are doing everything to achieve the deadline.

     

    As a DTH operator we would like to welcome the efforts by the government and bodies affiliated to broadcasting & distribution. All DTH operators in country have jointly digitized nearly 50 million homes pan India. India’s total household population as per the 2011 survey is 240 million households, out of which 150 million have TVs, which takes India’s CTV ownership penetration to 60 percent. Out of 150 million TV households, 50 million have been digitized already by DTH operators.

     

    In the first phase of digitization there are 11 million households in four metros. Out of which two million have been already digitized by DTH operators and as per MIB’s latest figures released, there are only 2.2 million homes left to be digitizes or where boxes need to be seeded. We all are 99.99 percent sure that this time, digitization dates will not get postponed. If this phase gets started on the specified dates, the rest of the country’s schedule will follow in a timely way.

     

    The digitization process will bring about a level playing field for DTH and cable operators in the content cost, taxation and addressability. This also help the DTH and cable operators to increase the ARPUs because of non leakage of revenue. The digitization process will create a wonderful, transparent ecosystem whether it is DTH operator, cable operator, broadcaster, state government or central government. Everyone will reap the benefits of this law of digitization.

     

    The consumer will get universal pricing, choice of packaging, enhanced picture quality, and better viewing experience, whether he stays on DTH or cable. Earlier the consumer used to switch between cable and DTH as cable has no entry cost. But now it will be a cautious decision by the consumer. This will create box rationalization. Also, everyone will migrate to ‘per TV price’ regime. Digitization is therefore will lead to a paradigm shift in home entertainment.

     

    There is another benefit to the consumer, and that is high definition. We have almost all the required channels in GEC, movies, music and sports genres in HD format, and most of the DTH players are also capable of broadcasting 3D channels.

     

    Sunil Lulla, MD and CEO, Times Global Broadcasting Company

    A law has been passed and awaits implementation. Over the last many months, broadcasters, MSO, LCO, DTH operators and consumers have been made aware of digitization and the benefits of the same. MIB has released information which indicates that penetration of the four cities under DAS Phase I is rapidly progressing. The sunset date of October 31 has to be met.

     

    Broadcasters, MSO s and MIB are all promoting the date and benefits, with a shared responsibility. There is never a perfect marketplace and perhaps some consumers may wait till late or beyond.

     

    Television has come to be a part of every Indian’s life (definitely in these cities) and consumers will act. Perhaps some may be slow off the block. From a business point of view, Broadcasters and MSOs are in discussion to close DAS-based negotiations. Obviously each part of the eco-system is desirous of gaining an economic advantage. We must not take a short-term view of things – DAS will evolve to a more transparent and welcoming economic regime in satellite television and cable broadcasting, and that’s what we should look forward to.

     

    In essence, digitization will and must happen. Significant investments have been made by MSOs, DTH operators and broadcasters in ushering in digitization. There should be no spoilers to what will be a new and healthier market place.

     

    Digitization is not a rainbow; on November 1 we will not find a pot of gold there. It is the ushering in of uniform capacity in cable systems, resulting in transparent choices for the consumer. Moreover, the consumer experience is enhanced in terms of better picture quality and sound. Certainly we expect transparency in terms of declaration of subscribers, which is the first big step towards a stronger economic system. Adoption of channels is the key for viewer homes and that will be a big decision homes evolve, too. From an expectation perspective, with capacity being created and placement as such ‘banned’ as per law, carriage should not be an economic stream for cable systems.

     

    However, given the investments made by MSOs we expect a phased increase in subscription revenues and it is likely that broadcasters and MSOs will jointly market channels in communities/ micro-geographies. Over time, ARPUs at the homes will need to go up, if there has to be an upside in terms of economic value for all stakeholders. Broadcasters, MIB, MSOs, DTH operators have expended significant resources in communicating the benefits and deadline of DAS. Moreover the beginning of digitization in terms of discussion, policy and partially via CAS all started eight years ago. So the industry cannot say it’s not prepared. However, it can never be perfect. Let’s move on and welcome digitization!

     

    Ashok Mansukhani, President, MSO Alliance

    Mumbai and Delhi are ready. Chennai is a question mark. Kolkata is a question mark.

     

    The next step, hence, is up to the government to decide. MSOs are completely geared up for Kolkata, but if there is an issue of the state government, the will of state government prevail. Chennai as a market is not known to many, except there are 3-4 major players there. The ministry has said in its presentation that over 50 percent of Chennai has been covered through DTH and 20 percent has been covered by Sumangi TV, which is its own partner. So Chennai should not be a problem with so much of houses already covered, unless the state government has different view. The way I see it, is that the deadline will not be extended but if the state government is not ready they will speak to the central government.

     

    The four metros are ready. But if you have political factors deciding on consumer issues, then there is no comment. What more can an MSO do than what we have done or are doing? The MSOs are ready.

     

    The customers are ready. There have been surveys that prove the awareness of the consumers. What is needed is the education of consumers, and fast, by MSOs and DTH operators to explain various packages. There have been enough advertisements. Even the MSO alliance has campaigned in the four metros. Awareness of DAS is not an issue. Awareness of DTH packages is what has been submitted to the government and the packages should be available on every operator’s website soon.

     

    The MSOs are ready to broadcast 200-300-500 channels. The question is: are customers ready to buy pay channels in the way they were paying for bulk channels? The cost of channels will be decided by the cost at which the broadcaster wants to sell their product. And whether customers are ready to pay a la carte or bouquet is a question that broadcasters need to answer. The pipeline owner cannot predict what a customer will do. Ultimately, it is their own product (broadcaster) and they should advertise on their own channel to promote their product. I do not see that happening.

     

    Every broadcaster is thinking that it is the divine right to be bought by the customer. In the past you had packages being sold as bulk. The broadcaster sold a bulk package to MSO, who sold the bulk package to operator, who sold the bulk package to consumer. Now, the customer can ask: I have a budget of Rs 200, which channels can you give me in that budget? This is what going to be the question for the next few weeks. Everybody knows that we are switching to new technology, which is more cost beneficial, more attractive, more features. There is no negative in adopting new technology.

     

    Vikram Mehra, Chief Marketing Officer, Tata Sky

    Digitization would benefit every stakeholder including the government, broadcaster, MSOs, DTH operators and consumers. The consumers will have an immediate benefit of choice with more channels, a better viewing experience, attractive package options, new and better services like HD, VoD, DVR and an improved quality of service. Going with the latest MIB numbers and reports, we believe that all the four metros are surely geared to meet the deadline.

     

    Digitization is in favour of every stakeholder especially the consumer. Every stakeholder including the government, broadcaster, MSOs and DTH operators are currently building awareness around digitization to ensure that the deadline is met.

     

    Every stakeholder including the government, broadcaster, MSOs and DTH operators are currently running multiple campaigns to build awareness and educate the consumer on the benefits of digitization. The internal study across the four metros indicate that there is high awareness among consumers and many of them are now going digital.

     

    As far as DTH is concerned, the industry has been driving digitization in the country for the last six years. It is currently adding over one million customers every month. With digitization coming in, the unfair pricing advantage arising out of structural anomalies such as under-declaration will go away, thus putting all pay-TV operators on a level playing ground. With pricing becoming similar, the brand that provides the greater customer service and value for money will become a winner.

     

    Jehangir S Pocha, CEO, INX News

    There is no doubt that people across India (not just the four metros) are not only ready but eager for digitization. It will offer consumers more and better quality TV channels, it will allow the ailing broadcast industry to grow, and most significantly it will allow average Indians to get cheap and instant access to broadband internet connections. All this will empower citizens and produce huge and obvious benefits for advertisers, equipment and IT companies, and a range of industries. The US was the first nation to reap these benefits when it built its ‘information superhighway’ in the 1990s and the rest of the world was quick to follow America’s example.

     

    Unfortunately in India, some narrow-minded cable operators and misguided politicians have kept India 20 years behind the rest of the world. These people just don’t seem to understand how digitization, especially greater availability of broadband internet lines, can transform nations. They appear to be more interested in protecting the narrow vested interests of a handful of people benefiting from the current artificial scarcity in broadcasting bandwidth. Their main weapon is their ‘go-slow’ strategy, which sees them raising all kinds of spurious excuses to delay the rollout of digital services.

     

    It is exactly things like this that have always hurt India’s modernisation and progress. I hope better sense prevails in our industry. Failing that, I hope the courts, government and the anti-monopolies commission protect India’s larger interest by ensuring rapid digitization.

     

    Arvind Prabhoo, Owner, Orbit Television Network

    The cable operators, MSOs and broadcasters are ready for digitization. But it does not look like the consumer is ready for it. In spite of all commercials, in spite of cable operators telling the consumer that digitization is a must, I think 30-40 percent of consumers are not taking it seriously. They are thinking that the cable operator is trying to push the product for their own benefit, or that since it is an initiative of the government it will get postponed. Unfortunately, on November 1 they will ask the cable operator or the MSO to resume the new service immediately, which is not going to be possible. To educate the consumer on how to use the set-top box (STB) is becoming quite an issue. And therefore, I predict that 30-40 percent of at least Mumbai will be blacked out by November 1 if immediate steps are not taken.

     

    Seeding of boxes is also an issue in Mumbai. Imagine 30-40 percent of households not being connected. To top it all, there were thundershowers in Mumbai a few days ago and 3-4 percent of STBs got damaged. In my network alone, 80-90 percent STBs got damaged because of voltage fluctuations. When we approached the MSO, they said that they will replace it after a particular time. What happens to the consumer in a 2-3-5-day period when they do not have access to STB till the box is replaced or repaired? What is the cable operator supposed to do in that case? We have an inventory of 5-10 service STBs but in case there is more damage, where do we go? It would have been preferred in such a case that government allowed us to keep on the analogue signals, and the consumer would have had access to a few channels if not all channels.

     

    I think the government needs to look into the matter. The government should come out with a white paper explaining why they have made digitization compulsory. This will help the consumer understand that it is not the cable operator or broadcaster who is initiating the deadline.

     

    The only beneficiary I see in the whole digitization process is the government. I doubt if any of us in the chain are going to benefit.

     

    Roop Sharma, President, Cable Operators Federation of India (COFI)

    Two states out of the four are definitely not ready. Chennai has just got the tenders out. They do not even have the required number of STBs. Cases are on in the court currently for revenue sharing with operators. STBs are not inter-operable when they should be.

     

    The lower-strata consumers are not switching to DTH saying they do not have the money. The government is not making the stance clear that every STB connection needs to pay 10.5 percent as service tax or entertainment tax nor that it will consume 20 watts of electricity.

     

    The problem of the STB has not been solved. The cable operators are opposing it since they are the face of digitization. The cable operators will face the consumers, not MSOs and broadcasters.

     

    We are all for digitization, but there should be transparency and consumers should be made aware of all the hidden charges and expenses by the government.

     

    MR Srinivasan, General Secretary, Chennai Metro Cable TV

    The calculation done by the I&B ministry for the Chennai market is wrong. They have taken Chennai’s cable and satellite homes at 11 lakh. Chennai metropolitan area in itself consists of 40 lakh connectivity of households. Out of 11 lakh, they have numbered 6-6.5 lakh as digital connectivity and two lakh of the existing MSOs in Chennai. Considering 11 lakh is the universe, close to nine lakh homes are digitised and only two lakh STBs are required to complete 100 percent digitization in Chennai.

     

    But this is an absolutely wrong perception by the I&B ministry. Out of the four million households, seven lakh have STBs. Also, none of the STBs are seeded in Chennai. They are smuggled to the Middle East or Sri Lanka. Out of seven lakh STBs, which they are claiming are present in Chennai, 50 percent are not available. Since it is cheap in India, compared to neighbouring countries, half of the stock ends up getting smuggled. Only two lakh boxes have been seeded out of the 3.3 million STBs are required. Apart from the two MSOs already present, two private players have taken the licenses but are not yet ready. There is uncertainty in the business here in Chennai because of the presence of Government Cable Corporation. Hence, they are not keen to invest STBs.

     

    Also, the last UPA government distributed free television sets. Hence, every house in Chennai has a second television set at home. To go digital, even the second TV set requires STB. The I&B ministry and TRAI have not come forward in Chennai to check the situation. We have requested the I&B ministry to have representation in the task force from Chennai, but it has not happened. With 25 days left, the tender has been floated recently. Thus, to procure boxes in fast-track mode is going to be difficult.

     

    Implementing the sunset date in Chennai is impossible. If they still go ahead, only 10 percent of the consumers in Chennai will be able to watch through digital signals. If the analogue signals are turned off according to the current sunset date, it will result in a law and order problem in Chennai.

     

  • In the run-up to the Sunset Date of October 31, we spoke to Ashok Mansukhani, President of the MSO Alliance, on the preparedness for 100 percent digitization in the four metros

    Jaldi 5 with Ashok Mansukhani: To achieve 100% digitization, govt must be a facilitator, not a schoolmaster

    Earlier this month, the government came up with a status report stating that 68 per cent of  the TV households in the four metros were digitized, a figure that was disputed by head of the Cable Operators Federation of India (COFI) Roop Sharma when we interviewed her yesterday (http://www.mxmindia.com/2012/09/jaldi-5-with-roop-sharma-govt-must-be-transparent-with-consumers-on-digitization/).

    We asked the very same questions to Ashok Mansukhani, President, MSO  Alliance about on-ground reality of digitization.

     

    We have a little over a month to go for digitization in the four metros. If the government estimates of last week were to be believed, by now over  70 per cent of Mumbai, Delhi, Kolkata and Chennai would be digitized. Is that the case?

    The information is the same as that of the government. However, 68 percent is not the national figure. It varies from city to city. With four weeks to go for the first phase of digitization, the question is about the rest of 30 per cent homes. Of course, it is not insurmountable. Lack of publicity from broadcasters is a problem. Then, there is no joint selling effort from  broadcaster and MSOs. The packages are yet to be announced. That is when the customers will begin to think of switching to digitization. Right now, they think DTH and cable is different.

     

    Are the lower income groups in these cities buying set-top boxes?

    The slums in Mumbai and Delhi sure have a television. But how do they know that from October 31 midnight, the analogue signals will stop? The digitization message says ‘box nahi to, TV bhool jaao’. One has to remember that digitization is a means to enable customer, not a retribution.

     

    The lower strata homes are being made used to use a set-top box and a remote. They have been told, ‘you see it, we will come and collect it later.’ Now this later will happen only when the packages are announced. The packages, however, have to be communicated door-to-door.

     

    There is a worry that there will be some piracy in the form of pilferage of signals after November 1.

    This is a rubbish claim that I have been hearing since long. The pilferage happens only when the broadcaster keeps his decoder ‘on’. Once that is switched off, there is no way that pilferage can happen. Yes, it can also happen if someone demodulates a cable signal. But the government has the power to take action against that person.

     

    What more would you like the government/others to do to ensure 100% digitization?

    The government needs to speed up the fiscal incentives, and should act as a facilitator. The fact is that it has become a schoolmaster instead. Since each city has different issues, which need to be tackled positively.

     

    The last mile which is managed by the local cable operators is the key to the implementation of Digitization. Are all cable operators working step-in-step with MSOs in the four metros about the implementation of the October 31 deadline?

    There is no issue with the cable operators. They have been pushing for DAS since 2000.

     

  • Mumbai has an estimated requirement of 34.85 lakh STBs, and so far 17.07 lakh STBs have been installed

    Mumbai completes 50% digitization target

    By A Correspondent

     

    A review by the Ministry of Information & Broadcasting has revealed that in Mumbai, 50 per cent of cable TV homes have already been installed with STBs. Mumbai has an estimated requirement of 34.85 lakh STBs, and so far 17.07 lakh STBs have been installed. The MSO-wise installation of STBs in Mumbai is:

     

    National level MSOs: Hathway – 6.16 lakh, Den – 1.40 lakh, Digicable – 2.57 lakh, IMCL – 4.77 lakh, WWIL – 50,000 Independent MSOs - 1.69 lakh.

     

    Mr Ashok Mansukhani, President, MSO Alliance and director with Hinduja-owned IndusInd Media & Communications (IMCL) said: “We are committed to complete the installation by the deadline. However, since there is no agreement with the broadcasters, it is acting as a hindrance.”

     

    In the absence of the agreement, the price of channels cannot be decided, and the same cannot be passed on to the local cable operators (LCOs). The LCOs then have a problem giving a clear price list to the customers.

     

    The Cable Television Networks (Regulation) Amendment Act, 2011 has made it mandatory for switchover from the existing analogue Cable TV networks to Digital Addressable System (DAS) by December 2014, in the entire country in four phases. In the first phase, four metro cities of Delhi, Mumbai, Kolkata and Chennai are to be covered by October 31.

     

    The Ministry has been coordinating with the stakeholders regarding the preparedness of the industry for digital switch-over. Installation of Set Top Boxes in cable TV homes is the most crucial precondition for digital switch over of cable television.

     

    The Ministry is holding fortnightly Task Force meetings with all the stakeholders to take constant stock of the progress and to chalk out the measures to address emerging concerns. So far 14 meetings have taken place. The meetings are held with National level and independent Multi-Systems Operators every 15 days to assess their preparedness in terms of head-end capacities to carry minimum 500 channels from January 1, 2012 and the progress of installation of Set Top Boxes in cable TV homes. They have also been advised to prepare micro plans for completion of the requisite task within the deadline and complete all the infrastructural preparations within time.

     

    Meanwhile, in order to enable the MSOs to up-load the data on the website of the Ministry, the Ministry has put in place a software and the website has been enabled for the purpose of real-time collection of data. The software will automatically generate analytical information based on the data uploaded, resulting in a clear view of the progress made. This will not only be useful for MSOs and other stakeholders but also for the Ministry, as it will infuse transparency in the system, and enable timely corrective action.

     

  • MxMIndia gets you reactions from industry stakeholders on the government's decision to postpone the digitization deadline for Phase I to October 31, 2012

    Can we achieve the October 31 deadline?

     

    By Shruti Pushkarna

     

    Under mounting pressure from various stakeholders, the government announced an extension of four months for the first phase of digitization of cable television. Digital Addressable System (DAS) will now be effective from November 1 in the four metros, Delhi, Chennai, Kolkata and Mumbai.

     

    A press release issued by the I&B Ministry read: “The Cable Television Networks (Regulation) Amendment Act, 2011 has made it mandatory for switchover of the existing analogue Cable TV networks to Digital Addressable System (DAS) by December 2014, in a phased manner. In respect of four metros of Delhi, Mumbai, Kolkata and Chennai, the digital switchover is mandated to be completed by 30th June 2012.”

     

    But towards the end in the press note, the ministry acknowledged that keeping ground realities in mind, the MIB is compelled to set a new deadline. The statement reads, “…keeping in view public interest and after intensive and extensive consultations, as well as written commitments from all the stakeholders, for fully implementing the regulations of TRAI, the Ministry of Information & Broadcasting has decided to modify the 30th June deadline for a complete switch over to 31st October 2012 for all four Metro Cities i.e Delhi, Mumbai, Chennai and Kolkata. All the TRAI regulations for DAS will come into effect from 1st November, 2012.”

     

    The extension was announced notwithstanding the pending matters before the Delhi and Bombay High Courts and the TDSAT. The Bombay High Court will hear the petition on June 21 and the Delhi High Court will hear the matter on June 25, which is also the date when TDSAT will hear a similar matter filed by LCOs and IndusInd Media & Communications Ltd.

     

    Soon after the announcement of the new sunset date, MxMIndia spoke to various stakeholders to get their reactions on the new timeline and to find out if October 31 is an achievable deadline. While some welcomed the government’s decision for postponement to November 1, others felt that the extension issued by the ministry is not enough for the humongous task at hand.

     

    MSOs welcome the govt’s decision, though some still unsure of achieving the deadline

    Ashok Mansukhani

    Ashok Mansukhani, Director, IndusInd Media & Communications Ltd said: “I think it’s a sensible development and it will help in smooth transition to digitization. The new date is completely achievable, it was fully discussed in the taskforce. I don’t know about Tamil Nadu since the government there is supposed to install the set top boxes but for the other three metros, certainly it will happen. It’s a welcome step and it was fully discussed in the taskforce and it’s a natural result of the taskforce deliberation.”

     

    JS Kohli, CEO, Digicable said: “We are happy with the postponement. Although it’s not a six month extension but yes we can deliver on the new date. We are satisfied with the extension.”

     

    JS Kohli

    Ravi Gupta, Independent MSO, Delhi said: “The new sunset date is good although it is two months less than what we were expecting. They should have given a six months extension, I still don’t think we can achieve the task by November 1. A lot of digital headends are under installation and integration is what takes time. I don’t think anyone from the ministry has done a detailed study of this process. No senior official from the ministry or from the TRAI has visited a digital headend. A minimum of six months extension should have come.”

     

    LCOs happy with the extension but feel four months not enough

    MR Srinivasan, General Secretary, Chennai Metro Cable TV Operators Association said: “It is good in a way because we are not yet ready because in Chennai only 2 lakh boxes are available. But now atleast we have some breathing time. Moreover, the government of Tamil Nadu is planning to start some MSO operation in Chennai, so it’s some relief and we have some time to plan ahead and be ready before the sunset date. Actually we expected an extension upto December but atleast we have got a slight relief, something is better than nothing.”

     

    Sanjay McGee, Local Cable Operator, East Delhi said: “Although it’s a good decision, in the last meeting between LCOs and I&B Ministry, Rajiv Takru agreed that four months extension was not enough. At first the ministry refused any extension, but when we urged on atleast three months extension, Rajiv Takru stated that if there has to be an extension then take atleast six months. But they have taken a middle path and decided on four months. They shouldn’t have announced the extension at this point, they should have waited till June 29. Now the consumer will not take the deadline seriously and the pace will slow down. If we keep working at the same pace as of today, then we might be able to achieve the new deadline.”

     

    Swapan Chowdhury, General Secretary, Cable & Broadband Operators’ Welfare Association, Kolkata said: “I am not satisfied because four months will not cover up the whole situation. Government might have given an extension but they have not considered any facts and figures. I say that because 70 per cent in Kolkata still don’t have set top boxes (STBs), so four months are not enough for deployment of such a huge number of STBs. It will not even happen on November 1. Maybe another 20 or 30 per cent seeding will be done up till the new date but what about the remaining numbers. In the June 8 meeting with the I&B Minister it was categorically mentioned that none of the government appointed nodal officers have checked the actual seeding position or the status of ordered material. Unless and until the government studies the ground situation deeply it will again fall back. The actual facts are different from what’s being presented on paper. They should have given an extension upto atleast Jan 1.”

     

    Broadcasters disappointed with the postponement, suggest on strict penalties for those who don’t adhere to the timelines

    Sunil Lulla

    Sunil Lulla, Managing Director & CEO, Times Television Network said: “It’s a complete disappointment. What is the guarantee that the new date will be held, when there is a date set by law, why should the date be changed? A lot of time, money and effort has gone by broadcasters in promoting and communicating the date and making sure consumers went along. The industry and the consumer suffers because there are some parts of the entire constituent which may not have adhered to these deadlines, may not have implemented the seeding of the boxes. This was announced on the net through a press release, the government hasn’t really notified us. I think it would have made sense for them to invite all stakeholders and agree on a new date if there was to be one and to a process by which these date wont slip.”

     

    Rahul Sood

    Rahul Sood, Head- Network Distribution & Affiliate Sales, NDTV said: “Basically LCOs were pushing for a Jan 1 timeline and broadcasters were saying that if you have to give an extension, it should be only for three months. So I guess they have taken a middle path by extending it upto October 31. The TRAI guidelines which came out on April 30 were such that within six months there has to be implementation of the same. I think that’s the loophole that MSOs and LCOs were quoting and asking for a minimum six months extension. So keeping all that in mind, I think ministry has taken this step. But if as an industry we have this discussion again on October 20, then it’s a real shame. There should be no excuses now, timelines have been extended, now there has to be a joint willingness to from all stakeholders to make sure this happens. While they have issued this date change, I think with that strict penalties and penalization code should be put in place as well for those who don’t adhere to the new timelines.”

     

    An independent commentator says new sunset date ill-conceived

    Dinyar Contractor

    Dinyar Contractor, Editor and Executive Publisher, Satellite and Cable TV Magazine said: “This is not going to work, this date is ill-conceived. There is no way that set top boxes can be procured and deployed in that timeframe even if the order is released today. As I’ve mentioned earlier, delivery time on set top boxes alone is around four months so this extension makes no sense except postponing one more extension. Any date prior to end of December is not realistic and is not going to resolve the problems or the issue, which is obtaining and deploying set top boxes. So I feel that the extension is inappropriate.”

     

  • MxMIndiacaught up with various stakeholders of broadcast and cable industry to get their responses on the recently issued TRAI tariff order and to understand their respective concerns in the run up to digitization of cable television

    54 Days to D-Day | Industry voices concerns on sunset date (Video)

    By Shruti Pushkarna

     

    With less than 60 days to go for the switch from analog to digital distribution, different stakeholders of the broadcast and cable industry are battling out their respective concerns with the government and the regulatory authority. Following the Tariff Order and Interconnection Regulations for the Digital Addressable Cable TV Systems issued by Telecom Regulatory Authority of India (TRAI), a lot of stakeholders have raised issues that will affect their business in which they deem the order to be unfair.

     

    While the News Broadcasters Association (NBA) protested against the carriage fee mentioned in the order, local cable operators (LCOs) carried out a black flag protest during the recent Assocham event attended by the Minister for Information and Broadcasting, Ms Ambika Soni. The LCOs have objected to the revenue share prescribed by the regulator and the Multi System Operators (MSOs) have expressed concern over the increased number of ‘must carry’ channels mandated by TRAI.

     

    MxMIndia spoke to a few representatives of the industry to understand their concerns in the run up to digitization.

     

    Ashok Mansukhani, President, MSO Alliance

    What’s your first response to the Tariff Order?

    The Tariff order has a mixture of good and bad. Fundamentally, it lays out the path for digitization but there are certain issues which worry us like the mandatory ‘must carry’ channels. We don’t think that’s a fair thing to do, if the broadcasters have the right to decide how many channels to bring to India or create within India, we should have the right to decide what should be the capacity, obviously the capacity is much larger in a big city than a small city. Apart from that, there are some issues on revenue share, which is based on a formula which is pending in the Supreme Court. Our worry is that if the Supreme Court decides otherwise, the whole business model would break down. These are the main two concerns.

     

    News broadcasters are objecting to the carriage fee mentioned in the order issued by TRAI, what’s your view on it?

    Now everything will be transparent. What is possibly going to happen is that carriage fee, which is creating such a big hoo-ha today, will get replaced by genuine pay channel ecosystem but that is about five years away. In the current process, we have to digitize about a 100 million homes and enormous sums of money are required but no fiscal incentive or tax incentive or infrastructure incentive has been given by the government. I think in the run up to digitization, the broadcaster should not derail the process; rather they should sit down with the cables operators and the MSOs and work packages with attractive content and at compelling rates to attract consumers. I think that’s really what they should be doing instead of writing editorials about carriage fees.

     

    Do you think the sunset date of June 30 is achievable?

    No, it’s not achievable. There are just 60 days left. The negotiations with broadcasters have not begun. The revenue shares are default revenue shares but no discussions with operators have taken place. No agreements are in place. Out of 10 million boxes, only 2 million boxes have been installed. Many of those boxes don’t have smartcards, in other words, they don’t have the conditional access system, and they are vanilla digital set top boxes. I think it’s high time for the government to carry out a reality check. I am sure this will be discussed in the next task force and I am sure government will fix a new date.

     

    Jehangir Pocha, CEO, INX News

    What’s your first response to the Tariff Order?

    The TRAI order has been a disappointment to news broadcasters because we were repeatedly told that there would be no carriage fee. We were repeatedly told that there would a mandated EPG or menu system, which has not been delivered. These two things add up to a huge financial burden on broadcasters, especially news broadcasters, an industry that is, contrary to public assumption, not doing at all well, that is facing huge financial burdens and many channels have gone bankrupt.

     

    Apart from carriage, do you see any other issues in the run up to digitization?

    I think the other issues are really about the willingness and commitment with which the policy can be rolled out because this is going to disrupt some vested interests, it’s going to disrupt a regular way of doing business and therefore, there is going to be a natural push back. But the concept of digitization is superb, it’s wonderful that the government and the regulator have pushed for it, but there have been some imperfections in what they have presented. Another thing that doesn’t make enough economic common sense to me is how the price was set so low for free channels and pay channels because the entire industry’s problems stem from the fact that the consumer is literally being subsidized by paying such low price for content, which in every other country, costs so much more. How this price has been set, by whom and who’s paying for the inherent subsidy in this, there hasn’t been enough transparency on this.

     

    Both NBA and the IBF have expressed disconcert at the carriage fee in the order issued by TRAI, but the TRAI maintains that there is no cause for dissatisfaction on carriage fee. As a news broadcaster, what will be your next step?

    I think we will have to explain to TRAI and the ministry just what the imperfections in this otherwise very positive bill are, and how they will create a huge financial burden for news broadcasters, how it will push us towards bankruptcy, how it will stop us from being able to create quality content and how it will, in fact, stop us from growing. If the government is interested in inclusive growth, news broadcasters play a very valuable role in this industry and in this nation. And our financial concerns should be addressed in some manner both by TRAI and the government.

     

    Do you think the sunset date of June 30 is achievable?

    Everything is achievable if the intent is there. There may be some practical concerns but let’s be realistic, while the policy is being presented now, we knew for 6 to 7 months that it was going to happen and I’m not sure if MSOs and LCOs spent adequate amounts of money, time and effort on preparing for this day, which they knew was coming. Now they are saying, this day has come and we need more time. We have seen consistent attempts to delay digitization, and I think we should have very little patience with more delays.

     

    Pulak Bagchi, VP, Star India

    What’s your first response to the Tariff Order?

    It’s a step towards the right direction and I think it will be path breaking in terms of the reforms it triggers in the cable space.

     

    What’s your view on the concerns being raised by news broadcasters over carriage fee?

    Carriage is a phenomenon which is certainly not new – it’s been around since the inception of the industry. What TRAI has done is only put a method into the madness, which should be commended. Earlier, there was no transparency in the payments that were being made, now atleast you’ll be having a foothold into the figures. You’ll also be able to determine whether they are reasonable or not. TRAI has also said that they will be intervening in cases of arbitrary levels. So there’s really no cause for concern. I think we should not be pressing the panic button; it has taken so many years for the government and the regulator to come up with these formulations. It’s important that we live up to the mandate and we must also give regard to the expectations of the people of this country. Given that digitization is a reality today, the sooner we embrace it, the better.

     

    Do you think the sunset date of June 30 is achievable?

    It is, because it’s targeted towards four major cities where it’s not an alien concept. Perhaps there will be some incremental approaches that will be taken in those respective areas and I’m sure that the deadline could be met. There’s no difficulty in abiding by the timelines.

     

    Are there any marketing initiatives or consumer awareness campaigns that you are undertaking in the run up to digitization?

    Star and IBF have made it mandatory for all members to spread awareness in their respective channels. We are carrying out marketing campaigns, we are also doing citizen focused awareness programmes where people can be brought up to speed with what digitization is all about. And we are also trying to infuse in the public sensibilities as to why it is good for them.

     

    Roop Sharma, President, Cable Operators Federation of India (COFI)

    What’s your first response to the Tariff Order?

    It’s very bad from LCO’s perspective. Since there is a vertical monopoly and no cross media holding, none of the MSOs will be negotiating with the cable operator and if they don’t negotiate with the cable operator, the latter will end up taking only a Rs45 share, with which the business becomes unviable and the LCO will be unable to give better quality service to the consumer. Even the set top boxes, which are going to be put, are of vanilla quality, they are very primitive boxes. Consumer will not be able to get internet, broadband or other services on the same box. Cable operator has to spend so much money in upgrading and the government has just mandated a technology. We are even ready to upgrade, but we must get a proper share. The regulator wants to be the controller of the business. As a result, lot of cable operators will be forced to sell off their network or the network will die its own death. There will be a lot of unemployment generated in the market.

     

    Do you think the sunset date of June 30 is achievable?

    No, the timeline is very short. First is the procurement of boxes – in Chennai none of the MSOs have given any orders for boxes. Even in Kolkata, we are hearing that the state government was not consulted.