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MIB is in talks with ISRO to resolve transponder crunch, eyes regulation on cross-media: Bimal Julka | TelevisionPost.com
MUMBAI: For long, direct-to-home (DTH) operators have been grumbling against transponder space shortage with Indian Space Research Organisation (ISRO) acting as the policeman. That complaint seems to have reached the ears of the ministry of Information and Broadcasting (MIB).
Information and Broadcasting (I&B) secretary Bimal Julka said Wednesday that the ministry is in talks with ISRO and the Department of Space (DoS) to resolve the issue of capacity crunch faced by the DTH operators.
Julka noted that the DTH operators are facing limited transponder capacity. “DTH operators have been demanding for more transponders. We are in discussions with ISRO and DoS to resolve this issue at the earliest,” he said.
On the issue of cross-media ownership, Julka said this has been engaging the ministry’s attention for a while now. “We will discuss this issue with the industry,” he added.
Julka observed that the ministry was aware that some of the companies have cross-media holdings. However, the ministry has so far not put any restrictions on vertical integration, he added.
The Telecom Regulatory Authority of India (TRAI) has been asked to give its recommendations on cross-media ownership. TRAI has completed the consultation process and is expected to come out with its recommendations.
Julka also stated that the broadcast sector could see large number of mergers and acquisitions (M&A) in future as television channels will find it difficult to survive in a fragmented market that has 800 channels and further applications for 245 TV channels pending with the ministry.
While noting that the presence of a large number of channels has posed revenue challenges to the broadcasters, Julka said that this is only going to increase manifold in times to come.
“In future, we could see a lot of mergers and acquisitions in the broadcast sector. We have granted licence to 800 TV channels and applications for 245 channels are still pending. Even as there are not enough revenues for existing broadcasters, we continue to receive new applications. We will only see proliferation of TV channels in times to come,” Julka said in his keynote speech at FICCI Frames 2014.
Julka also noted that the ministry has set up an inter-ministerial committee (IMC) to look into the issue of TV channel licence clearance. He said that the MIB had written to the Ministry of Home Affairs (MHA), Ministry of External Affairs (MEA) and Ministry of Corporate Affairs (MCA) to speed up the process of licence clearance.
The government, Julka said, has increased the security clearance period to 10 years which is the same as the tenure of broadcast licence.
The MIB secretary also revealed that the ministry was working with the Ministry of Finance to remove central sales tax and value-added tax on set-top boxes (STBs) to ensure smooth implementation of Phases III and IV of digital addressable system (DAS).
Phases III and IV of DAS, he stated, presented a huge opportunity for domestic manufacturers. The industry requires 110 million STBs for the last two phases of digitisation even as 30 million boxes have been already deployed in the first two phases.
The MIB has also urged the Ministry of Finance to rationalise taxes for DTH operators who have been bearing the brunt of multiple taxation that includes entertainment tax, service tax and licence fee.
While emphasising that the government was in favour of self-regulation on the issue of TV ratings, he urged the industry body Broadcast Audience Research Council (BARC) to speed up the process of rolling out ratings without delay.
The government, he said, had notified TV rating agency guidelines to correct the market anomalies that had cropped up in the audience measurement sector.
Julka also said that the broadcast sector is on the cusp of change. Digitisation will bring about transformation in the sector. With digitisation will come transparency and with transparency there will be more foreign investment, he noted.
While lauding the industry for completing Phases I and II of DAS in record time, he also cautioned that the full benefits of digitisation will not be realised unless the industry completes Phases III and IV.
Regarding FM radio, Julka said that the ministry’s policies had ensured vibrant growth in the sector, with 245 FM channels having been launched in 86 cities since 2005. The process for the third phase of FM auction for 839 channels is currently underway.
MUMBAI: For long, direct-to-home (DTH) operators have been grumbling against transponder space shortage with Indian Space Research Organisation (ISRO) acting as the policeman. That complaint seems to have reached the ears of the ministry of Information and Broadcasting (MIB).
Information and Broadcasting (I&B) secretary Bimal Julka said Wednesday that the ministry is in talks with ISRO and the Department of Space (DoS) to resolve the issue of capacity crunch faced by the DTH operators.
Julka noted that the DTH operators are facing limited transponder capacity. “DTH operators have been demanding for more transponders. We are in discussions with ISRO and DoS to resolve this issue at the earliest,” he said.
On the issue of cross-media ownership, Julka said this has been engaging the ministry’s attention for a while now. “We will discuss this issue with the industry,” he added.
Julka observed that the ministry was aware that some of the companies have cross-media holdings. However, the ministry has so far not put any restrictions on vertical integration, he added.
The Telecom Regulatory Authority of India (TRAI) has been asked to give its recommendations on cross-media ownership. TRAI has completed the consultation process and is expected to come out with its recommendations.
Julka also stated that the broadcast sector could see large number of mergers and acquisitions (M&A) in future as television channels will find it difficult to survive in a fragmented market that has 800 channels and further applications for 245 TV channels pending with the ministry.
While noting that the presence of a large number of channels has posed revenue challenges to the broadcasters, Julka said that this is only going to increase manifold in times to come.
“In future, we could see a lot of mergers and acquisitions in the broadcast sector. We have granted licence to 800 TV channels and applications for 245 channels are still pending. Even as there are not enough revenues for existing broadcasters, we continue to receive new applications. We will only see proliferation of TV channels in times to come,” Julka said in his keynote speech at FICCI Frames 2014.
Julka also noted that the ministry has set up an inter-ministerial committee (IMC) to look into the issue of TV channel licence clearance. He said that the MIB had written to the Ministry of Home Affairs (MHA), Ministry of External Affairs (MEA) and Ministry of Corporate Affairs (MCA) to speed up the process of licence clearance.
The government, Julka said, has increased the security clearance period to 10 years which is the same as the tenure of broadcast licence.
The MIB secretary also revealed that the ministry was working with the Ministry of Finance to remove central sales tax and value-added tax on set-top boxes (STBs) to ensure smooth implementation of Phases III and IV of digital addressable system (DAS).
Phases III and IV of DAS, he stated, presented a huge opportunity for domestic manufacturers. The industry requires 110 million STBs for the last two phases of digitisation even as 30 million boxes have been already deployed in the first two phases.
The MIB has also urged the Ministry of Finance to rationalise taxes for DTH operators who have been bearing the brunt of multiple taxation that includes entertainment tax, service tax and licence fee.
While emphasising that the government was in favour of self-regulation on the issue of TV ratings, he urged the industry body Broadcast Audience Research Council (BARC) to speed up the process of rolling out ratings without delay.
The government, he said, had notified TV rating agency guidelines to correct the market anomalies that had cropped up in the audience measurement sector.
Julka also said that the broadcast sector is on the cusp of change. Digitisation will bring about transformation in the sector. With digitisation will come transparency and with transparency there will be more foreign investment, he noted.
While lauding the industry for completing Phases I and II of DAS in record time, he also cautioned that the full benefits of digitisation will not be realised unless the industry completes Phases III and IV.
Regarding FM radio, Julka said that the ministry’s policies had ensured vibrant growth in the sector, with 245 FM channels having been launched in 86 cities since 2005. The process for the third phase of FM auction for 839 channels is currently underway.
