MxMIndia

Tag: Digital Addressable Cable TV Systems

  • The Telecom Regulatory Authority of India has issued regulations of the quality of service and consumer complaint redressal mechanism for digital addressable cable television

    Address consumer complaints within 8 hrs: TRAI

    By A Correspondent

     

    The Telecom Regulatory Authority of India (TRAI) issued the Regulations on the Quality of Service and Consumer Complaint Redressal Mechanism for the Digital Addressable Cable TV Systems (DAS) on May 14.

     

    Under the new order, every multi-system operator (MSO) or his linked local cable operator (LCO) will have to establish a complaint centre in his service area, for redressal of complaints and for addressing service requests of his consumers before providing the digital addressable cable TV services.

     

    Every complaint centre will be accessible to the consumers from 8am in the morning to midnight on all days of the week. The complaint centre will have facilities for the local language of the area in addition to Hindi and English. Every MSO or his linked LCO will deploy sufficient number of employees at his complaint centre to meet the Quality of Service (QoS) parameters, as may be specified by the Authority from time to time.

     

    The MSO or linked LCO will have to ensure that the complaints centre is accessible and has a toll-free number which will be widely publicized. In the new regulations, TRAI has also issued details of how an Interactive Voice Response System (IVRS) should function, and how consumers should be made aware of the existence of the centre.

     

    Every MSO or linked LCO will have to establish a web-based complaint monitoring system to enable the consumers to monitor the status of their complaints. Every MSO or his linked LCO will also have to designate a one or more nodal officers in every state in which it is providing its services. In case the consumer is not satisfied with the redressal of his complaints through Complaints Centre, he can approach the nodal officer of the operator.

     

    MSOs or their linked LCOs have to publish a consumer’s charter for DAS providing all necessary details with respect to the services being provided by them.

     

    Under the Quality of Service (QoS) Regulations, a standard application form will be devised giving all details to be used for providing services such as connection, disconnection, shifting and return of set top box (STB).

     

    The consumer will have to be given a prior notice of a minimum of 15 days for disconnection of services. Similarly, the consumer will have to give a prior notice of minimum 15 days for making a request for disconnection.

     

    No charges other than rentals for STB will be charged in case the connection is suspended on the request of the consumer for a period of minimum one month to maximum three months.

     

    Operators will publish a manual of practice and provide it to the consumer at the time of enrolment. The manual of practice, apart from Hindi and English, should be in the language of the state where the cable services are provided.

     

    Every MSO will offer cable TV services on both pre-paid and post-paid payment options to the subscriber and will be responsible for generation of bills for the subscribers. It will be open to the subscriber to choose either the pre-paid or post-paid option.

     

    Operators will have to offer three schemes for STBs to the consumers, and these are outright purchase, hire purchase and rental. Operators will have to provide a minimum warranty of one year for STBs acquired by the consumer under outright purchase scheme.

     

    The security deposit of the STBs has to be refunded within seven days of surrender of the STB by the consumer.

     

    All MSOs and cable TV operators will conduct public awareness campaign about the salient provisions of these regulations.

     

    Meanwhile, TRAI has issued amendments to the Interconnection Regulations issued on April 30 under which the MSOs have been barred from charging any placement fee from broadcasters.

     

    Giving in to a collective demand of broadcasters, the Telecom Regulatory Authority of India (TRAI) has barred Multi System Operators from charging a placement fee from channels in lieu of placing them in select slots.

     

    TRAI has issued amendments to the Interconnection Regulations which were earlier issued on April 30. The interconnection regulations are applicable to all digital addressable cable TV systems (DAS).

     

    As per the amendments, TRAI states, “Multi System Operators are not to demand any placement fee from broadcaster.” In a move to make the system more transparent, TRAI has specified, “Tthe Reference Interconnect Offer of a multi-system operator submitted to the Authority to contain the basis on which the carriage fee payable by the broadcaster has been determined.”

     

    TRAI also mandates every MSO to display in his Electronic Programme Guide, all the channels offered by him, in the same genre in which a particular channel has been indicated by the broadcaster and one channel shall appear in only one genre.

     

    Under the new regulations, broadcasters will also have to declare the genre of their channels which may be either News and Current Affairs or Infotainment or Sports or Kids or Music or Lifestyle or Movies or religious/Devotional pr General Entertainment (Hindi) or General Entertainment (English) or General Entertainment (regional language).

     

  • We shall all have to brace ourselves to a large surge in operational logistics at the last minute, but yes all this is surmountable, says Neeraj Sanan, EVP- Marketing and Distribution, MCCS

    [60 Days to D-Day] All stakeholders need to work together: Neeraj Sanan

    The Telecom Regulatory Authority of India (TRAI) issued new rules refurbishing the regulatory structure of the broadcasting, cable and DTH industry ahead of the digitization switch over in four metros, Delhi, Mumbai, Kolkata and Chennai from July 1. The order deals with issues such as channel availability, channel pricing, carriage fee and revenue sharing.

     

    Digitization is being seen as the game changer for the Indian TV industry, expected to bring a sea change for viewers, broadcasters and cable operators. The broadcasting industry is expected to see a growth in subscription revenue post digitization, as opposed to the present model where they depend largely on advertising revenue.

     

    As per the new guidelines, ‘The Broadcaster would enjoy ‘must carry’ provision from 1.1.2013 or 1.4.2013 as the case may be, for Hindi, English and channels in the regional language of the concerned area.’  In the order, TRAI has also addressed the much debated issue of carriage fee. The order states, “Keeping in view the fact that substantial investment for implementation of Digital Addressable Cable TV Systems is made by the MSO and the cost involved in carriage of channels, the Authority has decided that every MSO may fix the Carriage Fee. However, it should be published in the Reference Interconnect Offer and applied in a uniform, non-discriminatory and transparent manner. The Carriage Fee cannot be revised upward for a minimum of 2 years. The Authority would intervene in case it is felt that the Carriage Fee is unreasonable.”

     

    The regulatory has also prescribed the MSOs to increase their channel carrying capacity, stating that every MSO should have a minimum capacity to carry 200 channels by July 1, 2012.

     

    MxMIndia’s Shruti Pushkarna spoke to Mr Neeraj Sanan, EVP- Marketing and Distribution, MCCS to get his response on the Tariff Order and Interconnection Regulations for the Digital Addressable Cable TV Systems issued by TRAI.

     

    What’s your first response to the Tariff Order? Specifically the MCCS position?

    It is a reaffirmation of the government’s stated position and something that TRAI has been working towards for a long time.

     

    The TRAI observes that the Order will help profitability of channels. But carriage fee exists. Do you think your bottomline will be impacted in a positive way with this?

    The TRAI’s order will help all stakeholders move to a position of working in a structured manner. A well-run business can hope to get its deserved profit.

     

    Do you see the implementation happening in the four metros before July 1?

    I understand that a lot of intelligent people in well-run MSO and LCO organizations are working round the clock to make it happen. A key factor here will be for the government to continue to do what it has been saying. We shall all have to brace ourselves to a large surge in operational logistics at the last minute, but yes all this is surmountable.

     

    What are the marketing initiatives you are undertaking to ensure that you retain viewers?

    This is a challenge more for a distributor.

     

    Do you think the government is doing enough to promote the switch to digitization and explain the benefits to consumers?

    There is always something better we could do, but yes, government has been consistent in it’s thought. Now it is for all stakeholders, including all state governments to realize the prudence of digitization and work together to make it happen.

     

    Are there any areas of worry in the run-up to digitization (given that we have just 60 days to go)?

    No constructive business happens without risk and yes there are a lot of things that could go awry but if all players remain aligned, this is achievable. We should all realize that it is history being written everyday for distribution and we need to carefully tread this path.

     

  • MxMIndiaspoke to Sahil Gupta, Senior Manager, Tax and Regulatory Services, PwCIndiato get his reading of the tariff order for cable TV issued by TRAI.

    [60 Days to D-Day] Digitization good for industry: Sahil Gupta, PWC

    The Telecom Regulatory Authority of India (TRAI) issued the Tariff Order and Interconnection Regulations for the Digital Addressable Cable TV Systems on April 30.

     

    Aimed at providing the viewers with a better viewing experience and maximum choice, digitization is being seen as the biggest change broadcast and cable industry in the country is set to witness. Television viewers will get to choose a minimum of hundred Free to Air (FTA) channels at a maximum retail price of Rs100, as per new tariff rules for Cable TV announced by TRAI.

     

    The order states: “The basic purpose of digitization is to ensure ample choice to the consumer as well as to enable him to budget his subscription according to his paying capacity. Accordingly, the Authority has mandated MSOs to carry a minimum of 500 channels from January 1, 2013. However, keeping in view that the smaller MSOs having less than 25000 subscribers may need some additional time for building the capacity, they have been given time up to April 1, 2013. Besides, to ensure that the consumer is not adversely affected, the Authority has prescribed that every MSO should have a minimum capacity to carry 200 channels from July 1.”

     

    In the new guidelines issues, TRAI has also addressed issues pertaining to revenue sharing between MSOs and LCOs, carriage fee paid by broadcasters, channel pricing and so on.

     

    Mr Sahil Gupta, Senior Manager, Tax and Regulatory Services, PwCIndia shared his analysis of the recent order with MxMIndia’s Shruti Pushkarna and how he sees digitization as a win-win for all.

     

    What is your view on TRAI’s Tariff Order? 

    It’s a pro-consumer directive. Consumers can now pay for what they want to see, unlike in today’s time when they purchase a bouquet which has unwanted channels as well. Hence a la carte selection works more cost-efficient for consumers.

     

    So do you see digitization as a win-win for all?

    Digitization per se is good for the industry – consumers get better quality reception, broadcasters can know their exact consumer base, which will help them realise full value from MSOscable operators (which gets under-reported in current times based on what subscription base the intermediaries disclose to broadcasters). Moreover, it helps in bringing addressability in the system.

     

    Do you think the government is serious about the July 1 deadline?

    The government is taking a lot of initiatives to push digitization – it has a stakeholders’ meeting every week or two weeks and is helping stakeholders migrate to the new system. They are thus doing their bit for helping meet the deadline of July 1.

     

    But on the ground we hear that there is much to be achieved?

    The infrastructure is what is taking time. The digital/upgraded set top boxes need to be procured and be ready for installation at the consumer’s end. Some MSOs/cable operators are looking at funding mechanisms for meeting these procurement needs, while others are working towards building a right procurement strategy for the same. All in all, the industry is gearing up for it and all stakeholders doing their bit.

     

    Your view on the guidelines for carriage fees in the Order?

    Carriage fee is what MSOs charge broadcasters for carrying their channels to viewers. Some element of arbitrariness gets reduced from this Order as it needs to be uniform and non-discriminatory across all broadcasters. The TRAI will step in if it’s unreasonable and this will help.

     

    And on pricing of channels?

    The limits on pricing mentioned in the order is aimed mainly at ensuring that channels, especially popular ones, are not priced high.

     

    There’s also a mention on the revenue sharing between MSOs and cable operators…

    There seems to have been certain disputes between MSOs and cable operators in regard to sharing of distribution revenues. Prescribing the revenue sharing formula, in absence of an agreement between them, will help and bring in transparency…