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The
Telecom Regulatory Authority of India (Trai),
will be the final word on not just pricing
of pay channels, but also in the granting
of permission to cable service providers
to offer addressable services, among a host
of other extremely restrictive conditions.
Some of the key issues the notification
covers are:
Interconnect Agreements
It is Trai that will determine the "standard
interconnection agreement to be used for
entering into commercial agreements for
distribution in the notified areas, of pay
or free-to-air channels among (i) broadcasters
and multi-system operators; and (ii) MSOs
and local cable operators."
(a) Trai will set the maximum limits of
security deposit and monthly rental for
supply, maintenance and servicing of set
top boxes of prescribed specifications to
the subscribers on rental basis by multi-system
operators in the notified areas;
(b) tariff for the basic service tier along
with the minimum number of free-to-air channels
to be provided by the multi-system operators
or local cable operators to the subscribers
in the notified areas;
(c) regulations for quality of service to
be provided by the multi- system operators
or local cable operators to the subscribers
in the notified areas.
Channel Pricing
(1) Every broadcaster will have to declare
the nature of each of its channels as 'pay'
or 'free-to-air' channel as well as the
maximum retail price of each of its 'pay'
channels to be charged by the multi-system
operators or local cable operators from
the subscribers in each of the notified
areas.
(2) Each broadcaster will have to file the
declaration of the nature and prices of
channels within 15 days of the date of notification
by the government.
(3) If Trai believes the price declared
by the broadcaster for any of its pay channels
is too high, it has the right to fix and
declare the maximum retail price of such
a pay channel or fix a general maximum retail
price for all pay channels within which
the broadcasters may declare their individual
prices for each pay channel.
(4)Any order issued in this regard by the
regulator will be binding on the broadcasters
and the multi-system operators and local
cable operators.
(5) If a broadcaster fails to declare the
price of any of its pay channels within
the prescribed time limit, or fails to comply
with the direction or refuses or fails to
enter into an interconnect agreement with
a MSO permitted by the government within
the prescribed time limit, the authority
can take interim measures to ensure supply
of
signals.
(6) If the broadcaster does not comply with
the directives issued by Trai, the government
may, if asked to do so by the regulator,
suspend permission to broadcast the channel
in the country.
(7) Every declaration on pricing filed by
the broadcaster will remain valid for one
Year. If the broadcaster wants to revise
the price of any channel or convert a pay
channel to free-to-air or a free-to-air
channel to a pay channel, it will have to
give one month's notice to the MSO and subscribers:
Govt Permission For MSOs, Cable Ops To
Operate
(1) No multi-system operator can provide
addressable cable services without permission
from the government.
(2) Every MSO has been given 30 days to
apply to the I&B ministry for permission
to operate, along with a processing fee
of Rs 10,000.
(3) After receiving the application, the
I&B ministry has 30 days to either grant
or refuse permission on the basis of information
that will include existing operational area,
actual number of subscribers and addresses
of its local cable operators in each of
the notified areas, commercial arrangements
with the broadcasters and local cable operators,
if any, financial strength, management capability,
security clearance and preparedness to supply
and maintain adequate number of set top
boxes for its subscribers, installation
of its subscriber management system and
compliance with all other quality of service
standards that may be specified by Trai.
(4) In the event of an MSO failing or refusing
to enter into interconnect agreements with
a broadcaster of a pay channel or an adequate
number of local cable operators in the notified
areas or violates the terms and conditions
laid down, Trai can take interim measures
to ensure supply of signals. Though what
these interim measures might involve is
not spelt out, it would appear to indicate
that the licence to operate would in that
particular area would be given to some other
MSO.
(5) MSOs violating the terms and conditions
laid down by Trai face revocation of their
licence.
Public Awareness Campaign About CAS
(1) Every MSO will have to adequately publicise
to its subscribers for a period of 30 days,
either through advertisements in the print
and electronic media or through other means
(e.g. leaflets, printing on the reverse
of the receipts, personal visits, group
meetings with subscribers or consumer groups
etc.) the salient features of the CAS scheme.
These will include:-
(a) A-la-carte subscription rates and the
periodic intervals at which such subscriptions
are payable for receiving the various pay
channels;
(b) The refundable security deposit and
the daily or monthly rental payable for
the set-top box and its detailed specifications
such as make, model, technical specifications,
user manuals and maintenance centres etc.;
(c) The number and names of free-to-air
channels that the multi-system operator
will provide to the subscribers and specific
placement of each channel in the prime or
non-prime bands;
(d) The prescribed monthly service charge
to be paid by each subscriber for receiving
the basic tier service and the number of
additional free-to-air channels, if any,
offered by the MSO.
(e) The quality of service standards specified
by Trai and the arrangements made by the
MSO to comply with these standards;
(f) The subscriber management system established
by the MSO to demonstrate the functioning
of the STBs and interacts with the subscribers
to explain the various financial, logistic
and technical aspects of the system for
its smooth implementation;
(g) The arrangements for resolution of disputes
between the MSO, LCOs, and subscribers in
respect of the quality of service standards,
payments and refunds etc.
(2) The Authority may also arrange public
awareness activities in the notified areas
either directly or through authorized officers
or consumer organizations etc..
Supply And Installation of STBs
(1) Every subscriber who wants to receive
one or more pay channels shall, during the
public awareness campaign or within 15 days
after its expiry, apply to any one of the
MSOs granted permission either directly
or through any of his linked LCOs, to supply
and install one or more set top boxes in
his premises as per the scheme approved
by Trai and deliver the requisite channels
through the same:
Provided that every subscriber shall be
free to buy an STB of approved quality from
the open market, if available and technically
compatible with the MSO's system. No MSO
or cable operator can force any subscriber
to buy or to take on rent the STB from him
only.
(2) Every subscriber who wants to receive
one or more pay channels can either buy
an technically compatible STB from the open
market or apply to anyone of the MSOs either
directly or through any of his linked LCOs,
to supply and install one or more STBs in
his.
(3) Every MSO will have to set up and operationalise
its subscriber management system within
the determined time frame.
Dispute Resolution Mechanism
Every multi-system operator shall be obliged
to maintain the quality of service as per
the standards, including the arrangements
for handling complaints and redressal of
grievances of the subscribers, as may be
determined by regulation or order by the
Authority.
Trai may look into the efficacy of such
arrangements and issue necessary directions
to the concerned parties for compliance.
Transition To Addressable Systems
(1) Immediately on operationalisation of
the SMS and the installation of STBs, every
MSO will have to provide pay channels in
encrypted as well as unencrypted form for
a period of not less than 15 days to test
out the quality of service, remove any technical
or operational snags and enable the subscribers
to become familiar with the operation of
addressable systems at their end.
(2) Before the start of the transition period
Trai can call for progress or compliance
reports from the service providers.
(3) If Trai is of the opinion that the arrangements
made by the MSOs are not adequate and the
switchover to CAS is likely to be against
the interests of a substantial portion of
the subscribers in any notified area, it
may recommend to the government an extension
of the notified date by such period as in
its opinion is the minimum required for
the satisfactory completion of the necessary
arrangements by the MSOs.
Advertisements
No programme shall carry advertisements
exceeding 12 minutes per hour, which may
include up to ten minutes per hour of commercial
advertisements, and up to two minutes per
hour of a channel's self-promotional programmes.
The
Industry Reaction
The industry, which is already reeling under
government pressure, reacted cautiously
as the impact of the fine print was still
being studied.
A cable industry representative, who did
not want to be identified, blurted out,
“The government seems to have tightened
the screws well and proper. The norms are
very restrictive.”
Ashok Mansukhani, chief of MSO Alliance
(as apex body of MSOs in India), which had
waged a legal war against the government
on introduction of addressability, was more
liberal in approach.
“The rules are tough, but fair. Still,
it needs to be studied in detail to realize
the full impact on the industry,” Mansukhani
said.
As the quick notification of the rules caught
the industry napping, a sizeable number
of stakeholders were taken by surprise.
“We still haven’t seen the rules
in full to study the impact,” NDTV
director Narayan Rao said, but added, “We’d
do everything to adhere to government norms.”
A seemingly non-plussed joint MD of Global
News Network (managers of CNN IBN and Channel7)
Sameer Manchanda said, “Prima facie
the rules seem to be stringent, but there
should be a level playing field for everybody
and all types of platform and importance
should be given to self-regulation.”
Jawahar Goel, vice chairman of Essel Group
(the umbrella organization under which Subhash
Chandra undertakes various media and entertainment-related
businesses) was more circumspect.
“Jeena yahan , marna yahan; uske siva
jana kahan (we have to carry out our business
in India, so have little other option),”
Goel said taking off on an old Hindi film
song from the film Mera Naam Joker (My
Name is Joker).
On a more serious note, Goel opined that
the Zee Group has to conduct business in
India and has no other option but to abide
by government regulations.
He, however, did not deny that in the short
term, the business of all stakeholders are
likely to get affected.
Speaking to Indiantelevision.com over phone
from the US, Star Group India CEO Peter
Mukerjea felt that certain clauses in the
rules would “create an amount of level
playing field” as some TV channels
go overboard with advertising.
To a specific question on the government
mandating the quantum of commercial airtime,
Mukerjea said, “ Star channels do follow
the global standard of 10 minutes of advertising
per hour, which may not be true for all
channels. In that sense a level playing
field is created.”
Making it clear that he hasn’t yet
seen the full text of rules for a CAS regime
at the time of filing this report, Mukerjea
said that the government’s aim seems
to be regulating an area that had been left
totally unregulated.
“The positive fallout of such a norm
is that there is also a scope for advertising
prices to go up if the demand (for airtime)
is more and supply is less. And, all this
depends on compelling content,” he
said.
However, a more forthcoming view came from
a MSO, which said beyond the hype one should
appreciate the fact that the government
has tried to regulate the cable industry
and recognized it by “bringing it under
regulation and defining its services.”
The MSO added that the industry should have
“seen it coming” as the much touted
self-regulation was almost absent in the
Indian broadcast and cable industry.
“At a time when self regulation is
not there, the government is doing what
it should do: specify the norms of various
services,” the MSO said.
Also
Read:
HC
sets 1 Jan '07 deadline for CAS implementation
Delhi
HC orders Government to implement CAS within
four weeks
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