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Department of space irregularities benefited DTH operators, says CAG report
TNN | Nov 29, 2014, 02.09AM IST
NEW DELHI: Irregularities in allocation of satellite capacity to private direct to home operators by the department of space (DOS) has been highlighted by the CAG in its report.
According to the report, Tata Sky, which was fifth in the order of preference of first-come-first-serve policy for allocation of satellite capacity, was granted precedence over the national broadcaster Doordarshan and allocated capacity on INSAT 4A satellite at the 'prime orbital slot' of 83° east. Tata Sky was also given exclusive first right of refusal for using Ku band transponders at the 83° east slot. In another case the report said there was financial mismanagement in transponder lease agreements with Sun DTH, which resulted in unintended benefits of over Rs 4 crore accruing to Sun.
The federal auditor further criticized the national space agency for keeping available capacities idle and failing to implement its decision to revise the transponder lease charges. As a result, the same prices were maintained for periods of six to ten years causing a loss of over Rs 36 crore.
In the Tata Sky case, the prime slot was advantageous in allowing it uniform access through the length and breadth of the country. DOS later launched GSAT 10 satellite at the insistence of Tata Sky in order to swap with capacity allocated to it on INSAT 4A, but Tata Sky declined the proposal. DOS did not allocate Ku band capacity on GSAT 10 to any other service provider apprehending litigation from Tata Sky due to its right of first refusal and kept all 12 Ku band transponders, capable of generating revenue of Rs 82.80 crore, unallocated.
The CAG further rapped DOS for failing to implement its decision to periodically revise the charges for transponders leased to Tata Sky, Airtel and Sun DTH, who were provided capacity on domestic satellite systems. Continuing with the same prices for six to ten years, as against operators' transponder agreements with other foreign satellite owners which were revised regularly after one to six years, resulted in pricing differential estimated at Rs 36.17 crore. The report said that the largest benefit of nearly Rs 19 crore went to Tata Sky.
http://t.co/KT2GMOCpyQ
TNN | Nov 29, 2014, 02.09AM IST
NEW DELHI: Irregularities in allocation of satellite capacity to private direct to home operators by the department of space (DOS) has been highlighted by the CAG in its report.
According to the report, Tata Sky, which was fifth in the order of preference of first-come-first-serve policy for allocation of satellite capacity, was granted precedence over the national broadcaster Doordarshan and allocated capacity on INSAT 4A satellite at the 'prime orbital slot' of 83° east. Tata Sky was also given exclusive first right of refusal for using Ku band transponders at the 83° east slot. In another case the report said there was financial mismanagement in transponder lease agreements with Sun DTH, which resulted in unintended benefits of over Rs 4 crore accruing to Sun.
The federal auditor further criticized the national space agency for keeping available capacities idle and failing to implement its decision to revise the transponder lease charges. As a result, the same prices were maintained for periods of six to ten years causing a loss of over Rs 36 crore.
In the Tata Sky case, the prime slot was advantageous in allowing it uniform access through the length and breadth of the country. DOS later launched GSAT 10 satellite at the insistence of Tata Sky in order to swap with capacity allocated to it on INSAT 4A, but Tata Sky declined the proposal. DOS did not allocate Ku band capacity on GSAT 10 to any other service provider apprehending litigation from Tata Sky due to its right of first refusal and kept all 12 Ku band transponders, capable of generating revenue of Rs 82.80 crore, unallocated.
The CAG further rapped DOS for failing to implement its decision to periodically revise the charges for transponders leased to Tata Sky, Airtel and Sun DTH, who were provided capacity on domestic satellite systems. Continuing with the same prices for six to ten years, as against operators' transponder agreements with other foreign satellite owners which were revised regularly after one to six years, resulted in pricing differential estimated at Rs 36.17 crore. The report said that the largest benefit of nearly Rs 19 crore went to Tata Sky.
http://t.co/KT2GMOCpyQ
