Technology

WWIL: Trai order defies revenue projection, obsolescence of carriage fees















NEW DELHI: WWIL is all set to file its rejoinder, to TDSAT, over the Trai decision to keep MSOs out of sharing the basic tier (FTA) revenue.


The Zee Group cable franchise has drawn up a three-year revenue model which shows that after investing of Rs 713.4 million, MSOs would earn Rs 55.3 million, whereas LCOs, making nil investments, would walk away with Rs 500 million (Click here for details).


The case will come up for hearing on 30 April, and WWIL is determined to get the order reversed. A WWIL official told indiantelevision.com that if TDSAT had once sent back the original regulation for review by Trai, it must have felt that it was inadequate or something was wrong with it.


Meanwhile, Roop Sharma, president of the Cable Operators Federation of India told indiantelevision.com: "If needed we shall take the issue up with the court giving our version, but if Trai has sent back the original model intact, it has made up its mind that that model was correct."


The MSO has also said, in a document made available to indiantelevision.com, that Trai itself had said that "carriage fee" is a temporary and nebulous feature and may vanish under a digital, addressable regime such as exists in Cas.

 

Interestingly, Hinduja Group cable company InCableNet has also filed a three-year projection of revenue with Trai. InCable, in its response to the Trai consultation paper on revenue sharing, had supported WWIL and demanded a 40 per cent share from the basic tier.


While issuing its order last week, Trai had said that under its original revenue sharing formula, MSOs have the benefit of 100 per cent of the money coming from ‘carriage fees‘, but WWIL had in its response to the consultation paper on revenue sharing held that carriage fee is a temporary issue.

 

WWIL has said: "It is submitted that against an apparent Zero investment by cable operators, they will take approx. 80 per cent of the revenue share (approx. 50.16 crore out of approximately 62.61 crore).


"Broadcasters with Zero investments will get approx. 11.5 per cent of the revenue share (approximately Rs 7 crore) and MSOs with an investment of Rs 71 crore i.e. Rs 6-7 crore more than the total revenue, are to get only aproximately 8.5 per cent of the revenue share."


WWIL‘s revenue model assumptions have been made on the premise that a subscriber on an average would opt for about 15 pay channels in the CAS notified areas.


The assumption, in fact, is in conformity with the actual choice made by the consumers in CAS notified areas of Delhi, Mumbai and Kolkata, where the average subscriber is choosing only about 15-16 pay channels.


Accordingly, it says, the revenue projections submitted by the company reflect the actual potential earning from pay channels revenue stream as well as the basic tier revenue stream by the multi system operators / cable operators.


The MSOs has sought to do away with the misgiving, as it put to indiantelevision.com, that it would be getting additional revenue from carriage fees. In fact, it has shown that Trai itself has said it is a temporary phenomenon.


The presentation by WWIL has quoted the Trai amendments effected by TRAI to the Interconnect Regulation on 4th September 2006:


"Regulation of carriage fee in the present circumstances is very difficult as it also implies regulation of positioning. In different parts of the country, there are different viewership patterns. The capacities of cable networks also vary a great deal. Thus, the levels of carriage fee are different in different parts of the country depending upon demand and supply gap.


"Presently, there are more than 6000 multi system operators, which follow different systems of accounting. Payment of carriage fee is very often done in cash or in kind. Thus, it is not possible to find out the actual payments being made towards carriage fees. The carriage fee is a temporary phenomenon and is likely to disappear with the advent of digital cable systems."


Reiterating that carriage fees were a phenomenon of the analogue mode, as there was limited carrying capacity (roughly 60 to 70 channels)


Hence, it says "It is very well known in this industry that it is only when a new channel is launched that its broadcaster makes efforts for the carriage / placement of the channels on the analogue non-addressable system by making certain payments to the networks which carry those channels."


Besides, it echoes Trai‘s own statement that There is no standard or yardstick for the charges which are paid by the broadcasters for carriage of their new channels by the cable networks.


WWIL holds that at any given point of time, say if there are more than 150 channels to be carried on analogue technology in a non-addressable system, it may only be for 15 per cent to 20 per cent of the new channels that make efforts for carriage of their channels by payment of ad hoc amounts.


It says that under Cas addressable digital system, when a typical MSO headend can easily carry up to 600 channels, if not more, "no one would be fool enough to even consider paying a carriage fee, even if an MSOs is fool enough to ask for it," a senior WWIL official told indiantelevision.com.

 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/24/SONY-LG-800x800.jpg?itok=tWdfDzuo
LG, Sony to stop making 3D TV sets

MUMBAI: At one stage it was touted as the future of television. Thanks to the stupendous success that James Cameron’s 3D version of Avatar achieved at the box office with its spectacular 3D graphics and colors. A rash of manufacturers rushed in rolling out 3D TV sets which could be watched with...

Technology Hardware Distribution
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/21/CESAUTOMOTIVE800X800.jpg?itok=Xt0_daL2
CES 2017 catapults a connected world

LAS VEGA: CES 2017, the 50th anniversary of the largest global gathering of innovation and connectivity, concluded today, introducing ground-breaking products, providing opportunities for companies in every major global industry to conduct business, and shattering records.

Technology ces
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/21/fordgt800x800.jpg?itok=MRe0Tuvz
Innovation at CES 2017 transcends industries and spurs emerging markets

LAS VEGAS: The latest emerging innovation across every major industry takes center stage this week at CES® 2017, with product launches that propel global markets from automotive, sports and fitness, software, healthcare, entertainment and more. Owned and produced by the Consumer Technology...

Technology ces
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/21/cesunveiled800x800.jpg?itok=OmDFa7TZ
CES 2017 unveils game-changing innovation to the world

LAS VEGAS: The future of technology was unveiled yesterday on opening day of CES® 2017, as more than 3,800 companies debuted products across a record 2.6 million net square feet of exhibit space. Opening day featured future-focused product announcements and keynotes from the leaders of Carnival...

Technology ces
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/06/j%26j-800x800.jpg?itok=EsJOPXNm
India's startup gets J&J support for maiden device

Ray IoT is creating a non-contact wellness and sleep tracker for babies for which it has received support by Johnson & Johnson and HAX. Ray IoT will be introducing its product at the Consumer Electronics Show (CES) in Las Vegas 5-8 January. This is the first time a startup from India has been...

Technology ces
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/21/jensingnvidia800x800.jpg?itok=S9RWafBj
Whoa! CES 2017 Opens with Next-Generation Innovation

LAS VEGAS: CES® 2017 officially opened its doors today, celebrating the show’s 50th anniversary with a recording-breaking exhibit floor spanning more than 2.6 million net square feet. More than 3,800 companies will launch innovative products this week at CES, including an unprecedented 600...

Technology ces
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/05/Anita-Ganti_0.jpg?itok=hWjR3ACM
Wipro middleware powers integration-ready Hisense 4K; supports HD-PVR features

MUMBAI: Wipro Limited, a leading global information technology, consulting and business process services company, announced that its Digital TV Middleware solution has successfully enabled Hisense 4K TVs in Japan. Hisense Co. Ltd. is a multinational white goods, brown goods and electronics...

Technology Software Middleware
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/05/Richard-Weissbourd.jpg?itok=v93F_Cyu
Harvard Research on kids to kick off Kidscreen Summit 2017

TORONTO: Kidscreen is thrilled to announce that Dr. Richard Weissbourd, director of the Human Development and Psychology programme at Harvard University, will open 2017’s biggest event for leaders in children’s entertainment with the presentation of a new research study exploring why and how we...

Technology ces
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/05/TCL.jpg?itok=Mxc9zE5S
TCL reveals new TVs with top tech featuring Dolby vision

TCL reveals newLAS VEGAS: TCL®, one of the world’s largest and America’s fastest-growing television brand, today announced an innovative portfolio of new products at the 2017 International Consumer Electronics Show (CES). The latest additions feature Dolby Vision™ high-dynamic range (HDR)...

Technology ces

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories