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ESS, MSOs collide on payment in Cas areas
 
Indiantelevision.com Team

(26 June 2007 7:00 pm)

 

NEW DELHI: ESPN STAR Sports has issued a public notice to three leading multi-system operators (MSOs), saying the channel would discontinue its feed to them from 14 July, ahead of the India-England cricket series.

The MSOs are, however, unfazed, saying that the channel is demanding confidential information and they would move the TDSAT if necessary.

 

The notice has been issued within the regulated 21 days before the date of disconnecting, and has been published in a major newspaper, and the MSOs concerned are Hathway, Incablenet and Wire & Wireless India Ltd (WWIL), it is learnt.

 
Additionally, in a letter sent recently to the three MSOs, ESS has said that the MSOs "are unauthorisedly transmitting our channels in non-addressable mode."

The letter states, "Please be advised that this is a colossal breach of the Agreement, in particular clause 2.1 which allows you to distribute the channels only via the Permitted Distribution System (as defined in the Agreement), and the Company is taking a serious note of it.

"Therefore, we ask you to forthwith cease this unauthorised transmission of our channels in the non-addressable mode."

This is a charge of piracy, but the MSOs responded to the query denying this is happening. "They have alleged this without providing us any basis or evidence of that and this is no way to make such a bald statement," they said.

ESS has also said that the MSOs had been requested repeatedly to provide a subscriber report containing the total number of subscribers, including their names and addresses for the period mentioned therein in term of sub-clauses 4.5 of the standard interconnect agreement drawn up by Trai.

"In the said letter we had also requested you to make payment according to the subscription amount at the rate of Rs 2.25 for each channel, for the total number of subscribers availing the ESPN and / or Star Sports Service in terms of sub-clause 3.1.1, clause no.3.1 and Annexure A to the Agreement.

"However, despite the above referred letter and reminder and various verbal reminders, it is unfortunate that you have still not submitted the subscriber report for any of the months since January 2007.

"Also, despite being aware of your obligation, under the Agreement, to pay the subscription fee and despite our said letters you have not paid us the due…"

This has been denied by all three MSOs, and one senior MSO Alliance leader said, "ESS has not raised the invoices since January, and yet, we have paid them on account till May, with evidence sent to Trai, as the regulator had desired. So this is totally incorrect."

He added: "ESS has to raise the invoices and if they need additional information, they should ask for that and we shall provide them whatever is within the necessities of law."

However, a senior MSO spokesperson said that they have given the data on the total number of households that watch ESPN from their feed, which is what had been required of them.

ESS challenges this: "This is a gross misinformation, and the MSOs ought to check the agreement we signed with them," a spokesperson for ESS said.

Incidentally, in a discussion with Indiantelevision.com earlier this month, Trai had said that most of the SMS data has been given to the broadcasters, and that the data from boxes that have not been given were those for which the subscribers had not filled their CRF forms.

With a view to ensure that the regulation is implemented, Trai had therefore asked the MSOs to disconnect those households that had not filled their CRF forms and MSOs say they have done this.

The MSO spokesperson said, "We have given the total number of households watching ESS through us. There is no obligation upon us to show the exact name and address of the subscriber, which is confidential and revealing this would compromise on our business interests."

However, he said also that if the channel so desires, it can check the data from the offices of the MSOs, "but this cannot be given in a report form".

The relevant provision in the agreement as per Trai is (Clause 4.5.1) reads: "The Affiliate shall prepare and provide to the Broadcaster complete and accurate monthly reports ("Subscriber Report") for the Subscribed Channels within 15 days after the end of each month detailing:

1. Total number of subscribers, including their names and addresses and the Subscribed Channels on the first day and the last day of the month subscribed to;

2. Maximum Retail prices charged for the tiers that include Subscribed Channels;

3. Details of tiers that include Subscribed Channels offered to the subscribers (details such as channels in each tier and number of the subscribers subscribing to each tier); etc.

But the MSOs charge, "Ask ESS if the DTH operators give details of names and addresses of subscribers."

Reacting on the issue, ESPN STAR Sports spokesperson said, "The MSOs in question are in serious breach of the CAS interconnect agreement (refer to clause 4.5) signed by them for CAS areas.

"Despite numerous requests, we have either not received any subscriber information or in some cases, we have received incomplete subscriber information.

"CAS was implemented more than six months ago in Delhi, so how long do you think we will keep on following with the MSOs to honor the agreement that they have signed? The irregularities in question totally undermine the main objectives of CAS."

The spokesperson added, "We have abided by all Trai notifications on CAS including subsidized pricing. In fact, we have gone beyond our obligations by waiting for more than 6 months but now enough is enough. After all, we are only asking for our rights mandated by Trai in the standard interconnect agreement."

MSOs hold that they would send the reply to this letter at an appropriate time and in any case, "we shall take this up with Telecom Disputes Settlement Appellate Tribunal," suggesting a legal collision ahead if the matter is not settled amicably.

However, one MSO told Indiantelevision.com that under law, they are obliged to send the detailed data ESS is now asking for, but pointed out that the ground realities are different.

"We have been dealing with ESS in Chennai for the past few years while the metro has been under Cas, and we have always given that basic data of the number of households, and they had never asked for anything more. In fact their officials have been visiting our office from time to time and have full access to all data relevant to them."

The source, who wished not to be quoted, added: "The entire data we have for each household with name and address runs into some 4,000 pages, which I cannot imagine any broadcaster has the time to go through."

He clarified, however, that if ESS is now making these noises, "we shall send them the data they have asked for and they can decide what to do with 4,000 pages."

 
 
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