MSOs oppose WWIL's carriage rev share offer to LCOs

MUMBAI: Subhash Chandra-promoted Wire and Wireless (India) Ltd (WWIL) has decided to share 25 per cent of its carriage income from DAS (digital addressable systems) markets with local cable operators (LCOs).

This controversial decision has angered multi-system operators (MSOs) who have reacted vehemently against such disruptive announcements, alleging that WWIL is out to spoil the market at a crucial time when the country is readying to transition from analogue to digital systems.

"Carriage fee is irrelevant in the digital era in the medium-to-long term, according to Zee network, an asociate of WWIL. The statement made by WWIL, however, implies that carriage will continue. So the two positions are conflicting," says Hathway Cable & Datacom MD & CEO K Jayaraman.

As per WWIL‘s offer, the LCOs who take the set-top boxes (STBs) before 30 June, the deadline for the first phase in the four metros of Delhi, Mumbai Kolkata and Chennai, will get a 25 per cent of the share of the carriage revenue earned by the MSO in the DAS markets. The MSO will fix the carriage income it will have to cough out to the LCOs on a per box basis.

"The LCOs who accept the offer for the digital switchover by 30 June will get 25 per cent of the carriage fee earned by us on a per box basis. We are also giving the STBs at a subsidised price of Rs 699 per box before 15 June, post which the boxes will be available for 799. We have a need of 2.5 million boxes, out of which 50 per cent is in Kolkata," WWIL COO Anil Malhotra tells Indiantelevision.

WWIL will, thus, become the first company in the cable TV space in India to announce such a step.

This was announced at the Delhi cable operator meet organised by WWIL to speed up the process of digitisation.

Jayaraman feels that this scheme is entirely confusing and will go against broadcasting, especially as it comes from a former IBF president, as even DTH distributors will demand carriage.

Will Hathway be forced to follow WWIL‘s revenue share model?

Hathway already offers schemes to the distributors who, in turn, will pass it on to the consumers, as per Trai directive and market forces.

WWIL is a major force in Kolkata but lacks sizeable base in Delhi and Mumbai.

Says Den Networks COO MG Azhar, "We are not going to share carriage revenues with LCOs. We are already subsiding the STBs."

Agrees IndusInd Media & Communications Ltd (IMCL) managing director Ravi Mansukhani, "We do not care what they do on their networks. If they try to step into our territories, we will unite with the other top MSOs and take a call".

Latest Reads
India, China to propel APAC, beat CAS Europe market share

APAC is expected to overtake the market share of Europe in future due to an increasing demand for digital TV set-up boxes in countries such as China and India. North America and Europe dominated the global CAS market in 2015. APAC region is estimated to mark a growth rate of 12.0 per cent CAGR...

Technology Hardware Set-top Boxes
India lucrative market for 4K UHD STBs: Grand View Research

Here’s a view on the demand for 4K or ultra high definition (UHD) set-top boxes (STBs) in India.

Technology Hardware Set-top Boxes
Infor appoints Dass as south Asian subcontinent V-P

Infor, a leading provider of business applications specialized by industry and built for the cloud, has appointed Ashish Dass as the vice president and managing director for the south Asian subcontinent. Infor software helps eliminate the need for costly customization through embedded deep...

Technology Software Applications
Siti & DishTV opt for Conax conditional access

The Essel group has been using Conax’s tech for sometime now for its Siti Network (earlier known as Siti Cable). Now the group has extended that partnership for another product for both Siti Network and DTH operator Dish TV India. This time it is for the cardless set top boxes that the two are...

Technology Hardware Set-top Boxes
Imagine Communications extends functionality of Selenio One unified transcoding platform to OTT

MUMBAI: Imagine Communications, empowering the media and entertainment industry through transformative innovation, today introduced a high-density adaptive bitrate (ABR) transcoding product built on Selenio One™, the company’s software-defined linear transcoding platform. Selenio One is designed...

Technology Hardware Components
DJI Makes Your Smartphone Smarter with the New Osmo Mobile

DJI, the world leader in creative camera technology, Thursday launched the Osmo Mobile, an extension for smartphones that turns them into intelligent, precision camera systems.

Technology Hardware Components
Prime Focus Tech gets funding from PE firm Ambit Pragma

MUMBAI: Prime Focus Technologies (PFT) – the technology offshoot of media services company Prime Focus - informed the Bombay stock exchange today that it had received its first round of funding from growth capital private equity fund Ambit Pragma.

Technology Software Applications
Three new products developed by C-DOT launched on its Foundation Day

Communications Minister Manoj Sinha today expressed the hope that 100,000 Gram Panchayats (GPs) will be connected through Optical Fibre Cable (OFC) by March next to set up a network infrastructure to serve the rural masses.

Technology Hardware Distribution
Genpact and BITS partner to build talent in the field of analytics

Genpact (NYSE: G), a global leader in digitally-powered business process management and services, today announced a partnership with premier technical education university Birla Institute of Technology and Science (BITS) for offering training programs in the field of analytics.

Technology Software Middleware

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories