Tag: MIB

COMMENTS AND SUGGESTIONS ON THE PROPOSED AMENDMENT OF The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007.

COMMENTS AND SUGGESTIONS OF -CONSUMER OF TELEVISION SERVICES, LAST MILE SERVICE PROVIDERS AND THE DISTRIBUTION PLATFORM OPERATORS DPOs ON THE PROPOSED AMENDMENT OF The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007. 

The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007 has been enacted with the objective to provide free access of events of national importance to 100 + crore citizens as reflected in the Parliamentary debate to the bill. The Government of India has power under Sec. 2(1) (s) of this 2007 Act, to declare any sporting event as event of national importance, which can be accessed on a free to air basis by citizen to protect citizens’ cultural right to have unhindered access to such events. Since, every citizen cannot be physically present in the stadium to watch sports events or can afford the payment of exorbitant subscription fee being charged on a monthly basis, towards the Pay TV Channel(s) subscription telecasting these events of national importance.

The union parliament, passed this law in 2007 to provide free to air basis access to them. The 2007 act, has been made in the line of ‘Listed events’ of UK and ‘anti- siphoning list’ of Australia, whereby these events are protected for free to air access to the citizens. In UK and Australia, these are protected events as part of cultural rights of the citizens and recognized in European Union also. Objective is to curb commercial monopoly and exploitation, and to facilitate and protect the cultural rights of citizens.

The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007 is nothing but the adoption of well-established global regulation and practices adopted by all civilized nations, to protect the interest of its citizen’s with respect to, cultural rights, sporting events, etc. of national or international importance and use of airwaves in public good.

Since August 2017 Indian citizens have been deprived from watching sports events of national and international importance on Prasar Bharti DD channels , such as , Commonwealth Games , French Open, ODI World Cup of Women, South East Asian Games, Australia Open, Winter Olympics , FIFA World Cup, Wimbledon, Asian Games, Summer Youth Olympics, US Open, Women Hockey World Cup, Indian Premiere League Cricket etc. The top 10 popular sports in India are :- Cricket including IPL, Football, Kabaddi , Badminton, Hockey, Tennis, Wrestling, Boxing, Motorsports and Basketball.

Whereas Prasar Bharati Doordarshan services are being operated on Indian tax payers’ contribution made to the public exchequer where the government provides a budgetary support to Prasar Bharati. Since there is tax payers’ money flowing into this Prasar Bharati Corporation, the government is equally answerable to the Parliament and as well to the citizens of this country especially the tax payers and the underprivileged.

The analogue terrestrial network and mode of transmission have become completely obsolete and redundant during the past one decade, that have been adequately replaced by the mandatory Digitalization of Television services. Whereas there aren’t any manufacturers or suppliers of the aluminum rod element based terrestrial Yagi Antenna that is necessarily required for tuning in towards terrestrial television transmission towers and thereafter receiving the analogue terrestrial transmissions signals of Prasar Bharati DD Channel (s)

Moreover if the consumers of TV services, have to compulsorily also get a DD FreeDish (DTH) installed for only watching the events of national and international importance in free-to-air mode, then why do they also have to pay a basic service charge of Rs. 130 plus GST each month to a Cable TV service provider or DTH service provider or an IPTV service provider, under the new TRAI notified tariff regulation of 2017   where the DPO (Distribution Platform Operator ) is also compulsorily carrying all the Prasar Bharti- DD channels under the mandated must carry provisions and notifications made by the Ministry of Information & Broadcasting, Government of India from time to time.

Whereas enumerated below are the few salient features of “The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007 (Act 11 of 2007) and rules made there under :

……5. Responsibility of a television or radio channel broadcasting the sporting event—If the television or radio broadcasting service provider is different from the content rights owner or holder, it shall be its duty to ensure that adequate arrangements for compliance with the provisions of the Act and the rules are made at the time of acquisition of the rights from the content rights owner or holder.

  1. Manner of declaration of sporting events of national importance— (1) The list of sporting events of national importance shall be determined and notified by the Ministry of Information and Broadcasting in consultation with the Ministry of Youth Affairs and Sports and the Prasar Bharti.

(2) An event of national importance once included in the list shall remain a sporting event as such for a period of four years from the date of its inclusion unless deleted or withdrawn earlier.

(3) The Ministry of Information and Broadcasting may, review the list of sporting events of national importance at any time and at least once in the month of February of each calendar year as per sub-rule (1), and consider new proposals for inclusion or deletion and notify amendments, if any” ……….

However It becomes imperative to also state here, that the notifications made by the Ministry of Information and Broadcasting in consultation with the Ministry of Youth Affairs and Sports and the Prasar Bharti. “In exercise of the powers conferred under clause (s) of sub-section (1) of section 2 of the Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act, 2007 (11 of 2007) read with sub-rule (1) of rule 6 of the Sports Broadcast Signals (Mandatory Sharing with Prasar Bharati ) Rules 2007   have been being issued in the most arbitrary manner without considering relevant aspects and in complete apathy to common citizens of this country and their interest in sporting events.

Where by, an individual or a few decision makers in the Government cannot decide on behalf of 125 + crore citizens of this country w.r.t what event(s) is/ are of national and international importance. This undemocratic practice in past have led to manipulations / corruption, that was easily susceptible to mal practices with a compelling reason for not doing so in order to protect some private pay TV broadcasters’ commercial interests, monopoly and exploitation of these sports broadcasting rights and they have therefore failed to exercise its powers in a fair, just and transparent manner and such notifications run contrary to the Rights Guaranteed to the Citizens of India under Part III of the Constitution in addition to it being sans objective rules, International best practices or adequate mechanism to adequately address the interest of Millions of Viewers in the country.

As now, upon finally realizing its shortcomings of past few years, the Ministry of Information and Broadcasting, Government of India, have invited comments and suggestion from the Stakeholders, industry and the public at large on its proposal to make the required amendments, due for a long time in The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007 . Wherein the DPOs and the end consumers of the television services (Public at large ) makes the following suggestions and recommendations in the 2007 Act: w.r.t inserting the relevant amendments.

  • 3. Mandatory sharing of certain sports broadcasting signals.–(1) No content rights owner or holder and no television or radio broadcasting service provider shall carry a live television broadcast on any cable or Direct-to-Home network or radio commentary broadcast in India of sporting events of national / international importance, unless it simultaneously shares the live broadcasting signal, without its advertisements, with the Prasar Bharati to enable them to re-transmit the same on its terrestrial networks and Direct-to-Home networks and also on the Prasar Bharati Channel (s) that are being mandated for carrying compulsorily by (a) “distribution platform” means distribution network of a DTH operator, multi-system operator, HITS operator or IPTV operator; in such manner and on such terms and conditions as may be specified. (2) The terms and conditions under sub-section (1) shall also provide that the advertisement revenue sharing between the content rights owner or holder and the Prasar Bharati shall be in the ratio of not less than 75:25 (Insert and replace to 50:50 ) in case of television coverage and 50:50 (Insert and replace to 35 :65) in case of radio coverage. ( The duration of advertisement / commercials shown in a clock hour, shall not exceed the permissible duration as defined in Rule 7 (11) CTNR Act. 1995 and TRAI prescribed QoS and QoE Regulations of 2012)

 

  • 6. Manner of declaration of sporting events of national importance— (1) The list of sporting events of national / international importance shall be determined and notified by the Ministry of Information and Broadcasting in consultation with the Ministry of Youth Affairs and Sports and the Prasar Bharti and the committee constituted of eminent citizens, sportspersons, Hon’ble Retd. Judges and members of civil society who only in consultation with each other decide on what event(s) is / are of national and international importance and the same shall be notified for mandatory sharing with – Prasar Bharati.

 

An Experienced Stakeholder perspective with pertinent suggestions made on this recently announced RIL-Jio foray into Cable TV Business : Oct -2018

Current state of the Cable TV distribution business :

There are around 7 -8 national MSOs (Multi System Operators) that operate DAS (Digital Addressable System) Cable TV network through a complex web of   JV partners,  Distributors, Collection Agents and Business Managers operating multiple DVB-C (Digital Video Broadcasting – Cable) Network Operating Centre (NoC ) across the country. There are also about 1100 Independent MSOs (iMSOs) operating their self owned and controlled DVB-C NoCs State wide, City wide or in Towns. ( As per Ministry of Information & Broadcasting (MIB) last updated list as on 31.10.2017 of registered MSOs to operate anywhere in India the total registration counts to 1469 ( Around 200 DAS MSO registration applications are pending approval with MIB.)

Apart from these there are approximately 65,000 Last mile Cable TV service providers (LMOs) in the country, who; own , operate, upgrade and maintain their respective one-way (forward path) last mile Cable TV distribution plants that are only provisioned for (somehow connect & receive only) Cable TV services to approximately 100 Million households in the country, by re-distributing the digital cable TV signals being aggregated, processed and provided by these 1175 NoCs established by the DAS registered MSOs. (These figures do not include HITS (Headend in the Sky ) operator(s)) providing their signals to the last mile Cable TV operators for re-distribution to its managed and serviced households.

A Distribution Value Chain; Inherently Dishonest

The stake holders in this Cable TV Distribution Value Chain have no trust in-between themselves. The reasons for conflict and dissent, in brief are analyzed and enumerated as below:

  • LMOs : Have had been the pampered lot & the weakest link in this Cable TV distribution chain, but post Digitalization (DAS implementation) they feel, they being exploited and are being forced to meet unreasonable payment demands of the MSOs to pay for all their connected households and pay TV channels been provided under forced bouquets.  As of today they are paying an average Rs. 100 /- per STB (Set Top Box) deployed by their customers, after taking them from the respective MSO’s providing DAS DVB-C signals to them for re-distribution to the end-consumers. Whereas the end consumer of Cable TV services is paying an average Rs. 250/- per STB / month. Collected by the LMO.  An average urban LMO is holding to about 750 households. (This Forward path only, hybrid last mile distribution plant laid to somehow connect is without ROW (Right of Way ) the manpower deployed, have remained unskilled with no proper training and are completely ignorant about standards and prescribed QoS regulations.  
  • Business Managers : ( Only in case of the National MSOs i.e. Hathway, DEN, Siti Cable, InCable etc. ) These were deputed to keep a check on the Distributor / JV partner activities and report pilferage of revenue collected and material issued. As of today they are taking the salary from their respective MSO company but are getting their daily allowance and perks from the Distributor / JV partner. Hence no pilferage of revenue or material is being reported. (Won’t be surprising if also holding to about 1000- 1500 Cable TV households of a LMO network made by a hostile takeover in connivance of the JV partner / Distributor.)
  • Subscription Collection Agent : Is usually the local muscleman and also a conduit of arbitration between the Business Manager and the appointed Distributor or JV partner of the MSO company. ( Gets anywhere between Rs. 2 –  Rs. 10 per STB / month as facilitation / collection fee. In addition he also manages to holds on to an average 3000 customer households)  There is no data available on the actual number of these agents existence in the present system.
  • Appointed Distributors :  are usually the past iMSOs or the Collection agents or an Ex Business Manager of some MSO company. They are also the main PoP ( Point -of -Presence ) of the transported DVB-C signals over IP on a telecom operators network / or sometimes a full-fledged DVB-C NoC owned and operated by the MSO company. The signals are further provisioned for reaching the LMOs over a hybrid UG (underground ) or OH (Overhead) Optical fiber distribution plant, using Optical Tx (Transmitters ) and Optical Rx (Nodes )  pertinent to mention here that all the material used in deploying this Distributor to LMO, OFC (Optical Fiber Cable ) distribution plant is property of the MSO (Company) and the Distributor has to maintain it upon payment of a mutually negotiated fee ( Here itself there is pilferage of material and exorbitant maintenance charged) and partly shared with the company appointed BM (Business Manager) In addition to the above, he also holds about 35000 odd or more households directly with no declaration of the same made to the MSO Company.
  • JV Partner: Are mostly the previous iMSOs who due to not having favorable interconnection regulations in place for pay TV content deals, lack of Digital Cable transmission technology know how at that time and not being inclined to put in own investments in this business due to mandatory digitalisation, had joined hands with the MSO company. Where they along with the BM and some distributors in place are maintaining and operating the NoC as a minority partner in this JV arrangement. But they are in complete control of the NoC to LMO hybrid distribution plant, These JV partners though in minority shareholding control and manage the business in their respective city of operations and around and interestingly is holding to about an average 60,000 households under a consortium of LMOs he himself got into a JV arrangement.  Interestingly DEN Networks have about 116 JV partner entities as of now and a web of appointed distributors with no data available on these distributors.

Interestingly many of these JV Partners and appointed Distributors have also got their separate DAS MSO registrations done under a separate business entity. That have either been granted or been applied for. Moreover the basic technological knowhow of DVB-C has been understood in past 6 years of DAS implementation now and cost of setting up the required DVB-C infrastructure has been reduced by about 90%. The cost of the DVB-C receiving apparatus (STB) has been reduced to mere Rs. 500 per unit and that are being now also manufactured here.

Moreover Reliance JiO has announced its strategic investment in and partnership with Den Networks Limited and Hathway Cable and Datacom Limited. It aims to leverage on strengthening the 27,000 LCOs / LMOs that are aligned with DEN and Hathway to enable them to participate in the digital transformation of India. ( Wherein for doing so an additional investment of few thousand crores will be required to upgrade these existing last mile distribution plants for 2 way communication (bi-directional) to enable with return path data (RPD) )

This announcement comes only few days before the final verdict on the TRAI re-notified tariff and interconnection regulation which is expected from the Hon’ble Apex Court any day now. This will finally put an end to an year and half long speculations and delay in the implementation of TRAI re-notified;  Tariff, QoS and  Interconnection regulations.

That will to some large extent put an end to DPOs (Distribution Platform Operators ) that were directly or indirectly aligned to the pay TV broadcasters specially Star TV . Star TV was actually conducting this business in the background in the most unethical way. With the sole intention of Cartelization, Monopolization and thereafter its Monetization in most bizarre ways, as the parent company has now sold off its business to Disney. What we all will witness is that they won’t be inclined to carry along any previous baggage’s with them from Star TV. Whereas their remaining interests held in Sports broadcasting will soon be limited to only providing a clean feed to the public broadcaster (DD) on an advertisement revenue share basis and some subscription and advertisement collection from Sports channel(s) broadcast in HD and UHD format from its very limited takers.

Shri. Mukesh D Ambani ji comes from an engineering background and completely understands this business as well. He had once hired industry veterans like Lt. Col. V.C Khare to understand this content distribution business to its core. He was joined in by Mr. K. Jayaraman, another industry veteran who has actually built Hathway Cable and Datacom Limited starting from scratch himself. At Star TV investments made in this ground distribution cable MSO company, after its fall out with the Zee Group. The sole idea was to also have substantial presence on ground distribution to ensure its channel(s) viewership and TRPs by their compulsory carriage on prime band and to avoid any blacking out of channels when converting them to pay TV.

As per my understanding (perhaps can be wrong) Reliance Jio has made an announcement to put an investment of about Rs. 5000 Cr and more and to take complete control of DEN Networks Ltd and an management control of Hathway Cable and Datacom Ltd and that it will continue to do this for Rs.130 for BST (Basic Service Tier ) and plus 35% maximum incentive on the pay TV declared MRP. In addition to this they agreed that this revenue would be further shared with the LMOs on 55:45 or as prescribed in the regulations. Reliance Jio would do IPTV and VAS whereas this linear content distribution business is to be considered a mere 10-15 % of its much larger game plan.

Hathway Cable and Datacom Limited  has got a much better deal as it has a good base of direct subscribers and Internet users and they have continued to religiously follow the systems put in place by Mr. Jayaraman during his long tenure as the CEO / M.D  1997 – 2014.   At present there are only 2 JV partner entities, that have progressively grown and there seems no dissent as they have also been openly invited to make an offer to Reliance Jio and get their respective deals negotiated.

DEN Networks Limited ; A byproduct of Star DEN and churning out to peon level at Hathway Cable in 2007. A MSO company that was purely established to connect, get valuations and immediately sell and exit this business, it went even to the extent of swindling its investors i.e Goldman Sachs and its preferred vendor CISCO.

Whereas even Comcast and Goldman Sachs came to easily know upon conducting its due diligence on DEN Networks Limited that its books are cooked. Reliance Jio will be putting them to a much finer scrutiny and as been aforesaid I repeat here   (They have been inherently dishonest to each other in this distribution value chain ) The Promoters, The Management, The Employees, The JV Partners, Distributors, Vendors, Investors and the Last Mile Operators share an eminent discord, the foundation of its business was built upon deceit and short term gains.

This DEN Networks deal with Reliance Jio, throwing in a bait of about Rs. 2000 Crores upon it for a complete takeover which will be the bone of contention, as the Promoters would not like to pass this down to the requisite levels of its well deserving 116 JV partners and more complex web of distributors and connected LMOs thus, will lead to confrontations, legal procedures and will see litigation as an only remedy to solve differences and get the piece of the cake. where DEN claims as per its 2017 – 2018 Annual Report – 11.3 million digital subscribers it has.   

Respected Shri. Mukesh D Ambani ji is no novice to need an advice on this, but he is very short of time so as to spend on deliberations, Therefore in all fairness and avoiding unnecessary conflicts that are yet to begin, its advised that Reliance Jio fully concentrates fulfilling its envisaged business endeavors with Hathway Cable and Datacom Limited and its JV partners. While keeping the DEN Networks deal on the side in absolute silence for at least a year – till Q1 – 2020.

As there is all likelihood of situation(s) changing on the ground, post implementation of TRAI Tariff and Interconnection Regulations 2017. Therefore it wont be incorrect to say, that taking the right decision now can save Reliance Jio and its shareholders at large, from accruing unnecessary and avoidable losses. While it can continue to consolidate and upgrade its large directly owned and indirectly controlled last mile access to consumer households for its targeted all IP play services.

Even though we do understand and have seen the fate of the previous TV-18 Promoters and management but if some right decisions made at the right hour can easily avoid foreseen loss, unnecessary confrontation and unjust enrichments for few, it is worth the effort. It has been rightly said that ;

“Nine-tenths of wisdom is being wise in time.”

Email Communication addressed to RIL top Management including investor relations : VC Email Communication to RIL 24.10.2018 and 31.10.2018

 

 

 

 

Vikki Choudhry:

An Indian, Activist, Strategist, Visionary Investor & Entrepreneur in Entertainment, Broadcast, Next Generation Telecommunication, Analytics, Technology and Make in India.

He is a life member of the prestigious BES “Broadcast Engineering Society” and SCTE India “Society of Cable Telecommunications Engineers” India, and an industry observer.

A hands on promoter and has been amongst the leading entrepreneurs in the Digital Cable and Broadband Fraternity with over 25 years of experience in the cable TV and broadband service delivery industry.

He has represented the difficulties and woes of the Broadcasting industry before the regulatory departments and ministries in the Government of India. Above all, his readiness to help and advice and agitate issues for the betterment of broadcasting and telecommunication industry in India has always been appreciated by all associated with it.

 

 

 

 

 

 

 

 

Broadcasting is a natural monopoly and governed by the principles of public utility

The airwaves or frequencies are a public property. Their use has to be controlled and regulated by a public authority in the interests of the public and to prevent the invasion of their rights. Since the electronic media involves the use of the airwaves, this factor creates an in-built restriction on its use as in the case of any other public property.

The Hon’ble Supreme Court of India has also rightly held that the right to impart and receive information is a species of the right of freedom of speech and expression guaranteed by Article 19 (1)(a) of the Constitution. A citizen has a fundamental right to use the best means of imparting and receiving information and as such to have an access to telecasting for the purpose. However, this right to have an access to telecasting has limitations on account of the use of the public property

Whereas it’s a settled law that broadcasting is a natural monopoly and governed by the principles of public utility, which deal with the public at large under the license from Government to use the airwaves in fair manner

There are relevant laws enacted to protect interest of citizen’s  such as

The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act enacted in 2007. That aims to provide access to the largest number of listeners and viewers, on a free to air basis, of sporting events, which are of national importance through mandatory sharing of sports broadcasting signals with Prasar Bharati, the public broadcaster”

This is nothing but the adoption of well-established global regulation and practices adopted by all civilized nations, to protect the interest of its citizen’s with respect to, cultural rights, sporting events, etc. of national or international importance and use of airwaves in public good.

Citizens also have to collectively ensure compliances and periodically watch,  that these laws enacted in their interest are not being violated or ignored for some vested interest.

My representation dated 28.02.2018 in #PublicInterest   addressed  to the Secretary, Ministry of Information & Broadcasting and Ministry of Youth Affairs & Sports : –

Reference: News article published in various News publications in the first week of December 2017 “IPL 2018: STAR India may be asked to share live cricket feed with Doordarshan”…..The I&B ministry is working on a proposal to make IPL available on Doordarshan and has asked the sports ministry to weigh in on the matter….

VC Letter to Secretary MIB MYAS copy to Prasar Bharati 28.02.2018

COMMENTS AND SUGGESTIONS OF END-CONSUMERS OF TELEVISION SERVICES (THE PUBLIC AT LARGE) AND THEIR RESPECTIVE DISTRIBUTION PLATFORM OPERATORS (DPO)s i.e.  (distributor of television channels” or “distributor” means any DTH operator, multi-system operator, HITS operator or an IPTV operator;) on the proposed amendment of The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007.

Comments and Suggestions on Sports Act 2007 Proposed Ammendment by VC