MxMIndia

Tag: STB

  • The industry would need proper incentives to boost set top boxes manufacturing in the country, writes Anirudh Dhoot, Director, Videocon and President, Consumer Electronics and Appliances Manufacturers Association (CEAMA)

    BudgetSpeak #12: Anirudh Dhoot: Need for incentives for set top boxes

    By Anirudh Dhoot

     

    The consumer durables industry is all set to ride high with the emergence of the new government, as new policies and initiatives will pave the way for growth and advancement. The newly formed government has already indicated a clear tax policy and interest rate rationalization which would help in the growth of manufacturing industries. With the ensuing Budget aiming to stabilize the economy, we expect a turnaround in the consumer sentiments.  The reduction of excise duty in the Interim Budget from 12% to 10% on products, inputs and parts had come as a great relief for the industry and helped the sector. CEAMA welcomes the Finance Ministry’s move to extend the concise duty concession till December 2014. CEAMA would request for this continued support even beyond December 2014 as the industry is still struggling and Index of industrial production has not shown a healthy growth. CEAMA further foresees an improvement in the industry standards, eradication of grey markets and an overall boost to the sector from the new government.

     

    The digitization of cable TV has created huge demand for set top boxes in the country and it is likely to reach 75 million units for next one to two years. Thus it is very important to manufacture set top boxes in the country. However, industry would need proper incentives to boost set top boxes manufacturing in the country. CEAMA recommends that the provision of ‘C’ form waver should be applicable to set top boxes. Currently, Indian manufacturers have to pay 12.5 to 14% VAT as Cable and DTH operators do not provide them ‘C’ Form, since they are leasing out boxes. However, DTH operators do not pay any VAT when they import the boxes. Set Top Box industry provides huge potential for economic activity, employment generation and saving valuable foreign exchange and increased revenue for the Govt.

     

    Recently, CEAMA delegation had a meeting with the Information & Broadcasting Minister and apprised him about the status of DTH industry. We are encouraged on his positive response and expecting a favourable action from the government soon.

     

    1. Steps should the government take to revive the manufacturing sector, in general, and consumer electronics industry, in particular

    The consumer electronics industry is currently struggling due to sluggish market and bleak weather conditions.  In order for the industry to bounce back, CEAMA has proposed recommendations keeping in mind the twin objectives of manufacturing growth and also increasing demand of the products.

     

    We strongly propose removal of the Inverted Duty structure on consumer electronics and home appliances, arising due to implementation of free trade agreements.  We also recommend reviewing the existing FTAs. The government should also accelerate implementation of uniform Goods & Service Tax (GST) that will lower transaction costs.

     

    The government also needs to provide same incentives to Home Appliances Industry which are available to Consumer Electronics Industry under ESDM policy, as Home Appliances contribute substantially to Current Account Deficit of the country. Therefore, there is an urgent need to promote manufacturing of these products and their components within the country.

     

    FTAs have gravely affected manufacturing in our sector. It has also resulted in loss of revenue to the government. CEAMA strongly recommend review of existing FTAs. We urge speedy implementation of Goods & Service Tax that will ultimately lower transaction costs.

     

    There is a general consensus in the country on speedy implementation of GST. Introduction of GST is expected to decrease compliance burden for businesses and will bring down the total incidence of taxes by eliminating cascading of taxes on goods and services. We urge that GST should be implemented soon and the tax system should be made simpler and transparent, so that the honest tax payer is not harassed.

     

    Small TV manufacturers who are making CRT TVs are facing very difficult situation due to demand shrinking rapidly. At present, smaller size LCD/LED TVs are not viable to manufacture due to 10% duty on the panels below 19”.  Therefore we recommended that on smaller size panels, Customs duty should be brought down to 0%, to help TV manufacturers who are SMEs.

     

    The production of indigenous Colour Picture Tube (CPT) has stopped and TV manufacturers in the country have no option but to import CPTs by paying 10% Customs Duty, we have  recommended that import duty on CPT be brought down to 0%.

     

    Anirudh Dhoot is Director, Videocon and President, Consumer Electronics and Appliances Manufacturers Association (CEAMA)

     

  • 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).