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The cable and broadcast sector regulator is all set to intervene in the row between multi-service operators (MSOs) and broadcasters as it seeks to resolve outstanding issues threatening to derail the mandatory cable digitisation in the four metros from November 1.
Telecom Regulatory Authority of India (TRAI) Chairman Rahul Khullar has called a meeting of broadcasters and MSOs on Thursday to sort out the bottlenecks as well as undertake an overall review of all outstanding issues pertaining to the cable digitisation.
As mandated by the law, the 12 million cable homes in Delhi, Mumbai, Kolkata and Chennai have to turn digital before October 31.
However, after the four-month extension to the June 30 deadline, sources said, there has been a slowdown in the seeding of digital set-top boxes (STBs) in the metros. Also, broadcasters and MSOs have not entered into a commercial agreement as per the tariff order issued by TRAI in April and May.
“By law, TRAI can intervene between MSOs and broadcasters if they fail to reach a commercial agreement. Some MSOs want TRAI intervention for their own vested interests. If that happens, there may be more chaos and setback for the digitisation drive of the government,” a senior executive of a leading media house said. Sources said a section of MSOs wants TRAI to freeze the tariff rates for one year (November 1, 2012, till October 31, 2013) as existed before the new tariff order was issued by TRAI for digitisation.
If accepted by TRAI, it will mean the commercial arrangements and carriage fees deals between pay channels and various MSOs will continue in the four metros even though the new tariff order regulates carriage fees, channel rates and various other aspects. Also, as per the digitisation norms, no MSOs will have to carry a minimum of 500 channels on their network or indulge in transparent reporting of subscriber-base, revenue, carriage charges, among others.
"The purpose of digitisation was to bring order in the prevailing industry practices and make it more transparent including offering consumers better service and wider choices. Continuing old practices and hoping that digitisation will succeed is asking for impossible," said a broadcaster who will be attending the TRAI meeting. As per the industry data, the seeding of digital STBs in the four metros has touched 34% by the end of July, a gain of only seven percentage points over June-end. Of the 12 million cable homes in the four metros, now there are around 4 million digital STBs with an average weekly seeding of 52,000 boxes. Till early June, the average weekly seeding was around 90,000.
"All issues will come up for discussion when the TRAI chairman meets us," said a senior functionary of MSO Alliance, the apex body of leading MSOs.
Source: The Financial Express, 8 August 2012
Telecom Regulatory Authority of India (TRAI) Chairman Rahul Khullar has called a meeting of broadcasters and MSOs on Thursday to sort out the bottlenecks as well as undertake an overall review of all outstanding issues pertaining to the cable digitisation.
As mandated by the law, the 12 million cable homes in Delhi, Mumbai, Kolkata and Chennai have to turn digital before October 31.
However, after the four-month extension to the June 30 deadline, sources said, there has been a slowdown in the seeding of digital set-top boxes (STBs) in the metros. Also, broadcasters and MSOs have not entered into a commercial agreement as per the tariff order issued by TRAI in April and May.
“By law, TRAI can intervene between MSOs and broadcasters if they fail to reach a commercial agreement. Some MSOs want TRAI intervention for their own vested interests. If that happens, there may be more chaos and setback for the digitisation drive of the government,” a senior executive of a leading media house said. Sources said a section of MSOs wants TRAI to freeze the tariff rates for one year (November 1, 2012, till October 31, 2013) as existed before the new tariff order was issued by TRAI for digitisation.
If accepted by TRAI, it will mean the commercial arrangements and carriage fees deals between pay channels and various MSOs will continue in the four metros even though the new tariff order regulates carriage fees, channel rates and various other aspects. Also, as per the digitisation norms, no MSOs will have to carry a minimum of 500 channels on their network or indulge in transparent reporting of subscriber-base, revenue, carriage charges, among others.
"The purpose of digitisation was to bring order in the prevailing industry practices and make it more transparent including offering consumers better service and wider choices. Continuing old practices and hoping that digitisation will succeed is asking for impossible," said a broadcaster who will be attending the TRAI meeting. As per the industry data, the seeding of digital STBs in the four metros has touched 34% by the end of July, a gain of only seven percentage points over June-end. Of the 12 million cable homes in the four metros, now there are around 4 million digital STBs with an average weekly seeding of 52,000 boxes. Till early June, the average weekly seeding was around 90,000.
"All issues will come up for discussion when the TRAI chairman meets us," said a senior functionary of MSO Alliance, the apex body of leading MSOs.
Source: The Financial Express, 8 August 2012
