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Presentation By. Mrs. Roop Sharma President. Cable Operators Federation of India (COFI) We need to Review the DAS Law and Regulations TDSAT Seminar, Gangtok (Sikkim) 17 September 2014, Hotel Mayfair, Gangtok. Mobile: 9810069272 roopsharma21@gmail.com.

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  1. Presentation By Mrs. Roop SharmaPresident Cable Operators Federation of India (COFI) We need to Review the DAS Law and Regulations TDSAT Seminar, Gangtok (Sikkim) 17 September 2014, Hotel Mayfair, Gangtok Mobile: 9810069272roopsharma21@gmail.com

  2. Digitalisation Law Introduced for - Transparency a) Revenue to Government. b) Pay Broadcasters to get full revenue. c) Correct TRPs. Consumers to get good quality cable service, Broadband, Internet at reasonable rates. A-la-carte choice and lowered billing to consumers. LCO/ LMO not to go out of business. Increase in ARPUs through VAS like VoD, Games, e-Services.

  3. Digitalisation has happened But Here Digitalisation means Seeding of STBs seeding of imported old technology based STBs without BIS standards, no BEE rating, no Interoperability, MPEG2 old technology, No guarantee and warrantee; forced on consumers with billions of foreign exchange going outside the country without achieving the above. No promotion to Indigenous Manufacturers No Right of Way given to operators by States NO ADDRESSABILITY Minimum Guarantee Deals, Gross Billing, Default Packages Still CONTINUE

  4. NEW ERA- NAYA DIGITAL ZAMANA Digitalisation is good but ….. Regulations are biased in favour of broadcasters & large MSOs Method of implementation is WRONG. Time lines are not practical/ Prerequisite not done. REVENUE SHARE NOT FAIR FOR LMOS- TOO LESS TO SUSTAIN BUSINESS EVEN.

  5. TRAI’s Draconian Regulations that are Dangerous to Cable Operator’s Business Tariff Order :dt. 30.04.12 (No 3 of 2012) Interconnect regulation: dt: 30.04.12 (No 9 of 2012) Quality of Service regulations: dt:14.05.2012 ( No 12 of 2012) Consumer Complaint Redressal (DAS) Regulations dt:14.05.2012 (No.13 of 2012) Infringement of Fundamental Rights (LCO’s Business Rights on consumer data, billing, CAF/ SAF Forms, activation/ deactivation of STBs etc. have been given to MSOs.He has been made only a service and collection agent by TRAI without a fixed salary)

  6. TRAI’s Draconian Regulations that are Dangerous to Cable Operator’s Business Revenue share of LCO to be decided by MSO after mutual negotiations. LCO needs a barest minimum fixed revenue to build, upgrade, maintain and operate his network to provide prescribed standards of service to consumers. This minimum not defined and not assured. CAS regulations had assured him this. Clause 4(a) of Tariff Order : FTA & Bouquet of FTA Channels, Revenue share of MSO-55%, LCO-45% as a fallback arrangement. Clause 4(b) of Tariff Order: Pay Channels and their Bouquet. Revenue Share of MSO- 65%, LCO- 35% as fallback arrangement.

  7. DAS :-Disputed Addressable Systems Tariff Order No. 3 of 2012 Dt. 30 Apr 2012 (Contd) Clause 6(1) (B) of Tariff Order: MSO to decide rate of BST Bouquet- Not to exceed Rs 100, can be lower than this, thus revenue share of LCO can also go down lower than Rs 45. Clause 6(1) (D)Tariff Order: subscriber of DAS to subscribe a basic service tier or basic service tier and one or more pay channel or only free to air channels or only pay channels or pay channels and free to air channels. (Note: If subscriber subscribes only a few pay channels, LCO share will further go down). Clause 6(1) (E) Tariff Order: MSO will decide rate of Pay channels or their bouquet with a minimum monthly subscription, not exceeding Rs 150 (exclusive of taxes) per month.

  8. Definition of MSO Definition of MSO as given in Cable TV Rules 2012 MSO can do direct networking in the last mile. Thus he is a competitor to his own LCOs. This is also against Supreme Court judgment of 2007 in the case of Star TV v/s Sea TV (Appeal (civil) 5524 of 2005. “Multi-System Operator” means a cable operator who has been granted registration under rule 11C of the  Cable Television Networks Rules, 1994, and who receives a programming service from a broadcaster or its authorised agencies and re-transmits the same or transmits his own programming service for simultaneous reception either by multiple subscribers directly or through one or more local cable operators and includes his authorised distribution agencies, by whatever name called”

  9. Unfair Revenue SharingOnly LCO Revenue being shared,not of MSO or Broadcaster

  10. Unfair Revenue Sharing (Contd..)

  11. Unfair Revenue Sharing (Contd..)

  12. Revenue Share BONE OF CONTENTION • LCO/LMO Builds, Operates, Maintains Network and provide Service to consumer, collect Tax but MSO DECIDES HIS REVENUE • LMO/ LMO Share - • 35% of Pay Channels • 45% OF BST (Basic Service Tier of FTA Channels) • NEGOTIATION/ OFFER OF MSO on Revenue share is Temporary, only an EYEWASH to trap and divide LMOs. • MSOs provide same CONTENT but different offers. • Payment of Taxes • TRAI should Relook on MSO/ LCO relationship & Revenue Share. NOW MSO Negotiations an Eye-Wash. If fail, only 35% for LCO/ LMO

  13. DAS:- Disputed Addressable System Quality of Service Regulations , 12 0f 2012 (Dt 14 May 2012) Even after two years of implementation and Eleven Directions ( Recent ones : 02 Dec, 13 Dec 2013 & 27 May 2014) MSOs are yet to generate bills as per SMS system. Many FIRs have been registered against LCOs Consumers are forced to pay higher subscriptions to please ‘Pay’ Broadcasters. Threatening advts are shown to consumers by TV channels, either to fill up CAF or face a blackout. DO WE CALL THIS A SUCCESS OF DIGITISATION?

  14. TRAI Adds Fuel to FireDAS :-Destructive Addressable Systems Pay channel tariff hiked by 27.5% from 01 Apr 2014. (In two steps) TRAI went to Supreme Court on its own to help Pay channels. Rates increased without consultation and open house discussion and ignoring all ground realities Who gains? Large broadcasters who control pay channel distribution through their aggregators, DTH and MSOs. Who loses? Millions of poor people living in Phase 3 & 4 areas which are not digitised suffer the most. Phase 1 & 2 subscriber also pay more for Pay channels. Media Gagged. NO Protests as Media is a partner or gagged and no news goes out. This Hike has been challenged in TDSAT by a consumer organisation , Independent MSOs and many LCO Associations.

  15. Introduce Interoperability We welcome new government ‘s stand to bring interoperability in STBs. This requires - BIS specifications for STBs be amended. TV standards be be redrafted to include CI (Common Interface) in IDTV sets( Integrated Digital TV) so that separate STB is not required. Cable TV Rules 2012 should be amended . Interconnect Regulations require amendment. This will make one sided audit requirement of Pay Broadcasters redundant. A common CAS be designed and made mandatory by the government. DOT is already in the process of creating an Indian CAS. STBs must be available in the open market as stipulated in Cable TV Rules and TRAI Regulations.

  16. Wishlist of Cable Operators DAS licence should be given to group of operators co-operative on Fast track basis. Pay channels should be made available. Licence /Registration for 10 years for Cable Operators like DTH and MSO. Review of Regulation of Tariff Order, Interconnect Regulation, QoS etc. Digitisation in Phase III & IV should be ongoing process. Broadcasters must make DAS interconnect deals.

  17. Wishlist of Cable Operators (Contd) CAS type Revenue Share model to ensure a fixed minimum revenue to LCO per subscriber. FTA-100% Pay TV-25% Retail MRP of every pay channel to be Fixed - Like Rs 5 in CAS (Conditional Access System). Encourage digital FTA networks and 30-50 unencrypted FTA channels including Doordarshan in all digital Networks, atleast for next five years to help poor consumers adopt digital technology without undergoing financial hardship. Ownership of Customer connection remain with LCO. Standard Interconnect Agreement made by TRAI for all MSOs, LCOs and consumer. Billing, Activation, deactivation of STB with LCO. Also CAF, SAF Forms with LCO.

  18. Wishlist of Cable Operators (Contd) LCO should get a share of Carriage Fee paid to MSO by Broadcasters. Carriage Fee of video channels of MSO should also be given to LCO for using his network Advertisement Revenue of Video Channels of MSO should be shared with LCO. Indigenous (Local) Set Top Box manufacturing encouraged. STBs should be available in open market as given in regulations. Uniform/ No Entertainment Tax all over India. Standard Agreement for all MSOs. Disconnection of Signal to LCO by MSO should not be resorted to in consumer interest. MSOs should treat LCOs as partners rather than always look at capturing them by unethical means.

  19. We are thankful to TDSAT What MIB and TRAI should have done, is being done by TDSAT It is Finding flaws in Regulations It is trying to create level Playing Field between all stake holders TRAI thinks once it has framed the regulations on paper, it has finished with its responsibility. MIB thinks, once a law is made, its job is finished. Both TRAI and MIB play the ball game passing the ball in each other’s court to take next step Both MIB and TRAI take shelter of Parliament passing the law and forget that it is they who drafted it .

  20. Please Don’t Let This Happen to Cable Operators

  21. Mrs. Roop Sharma Mobile: 9810069272roopsharma21@gmail.com

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