Unlike any existing broadband or DTH service, the Jio GigaFiber will enable high definition videos, voice calls, video calls, virtual gaming, online shopping and even smart-home services. If this is not intriguing enough, it also has the feature of voice-activated commands and can be connected to any mobile or GigaTV across the country. The customer will be provided with a GigaFiber router and a set-top box and a fixed line phone, which will be installed free of cost.

Jio GigaFiber – A Threat to Cable TV Business?

Though the ambitious target that Ambani has set for Jio GigaFiber looks threatening to the existing broadband and DTH services and GigaFiber has the ability to outbid both these sectors. It’s unlikely to impact the traditional cable TV business. Because tier 2 and tier 3 cities are still using cable tv extensively and the base cable TV feature is more enticing and essential to them than the other services such as broadband or high-speed internet for that matter.

Biggies in Damage Control Mode

In an attempt to minimize the upcoming damage, companies such as Airtel and MTNL are attempting to prevent the loss of clients. Bharti Airtel has already reduced its prices for broadband services and is even offering customers unlimited data by removing its fair usage policy (FUP) limits for its broadband customers. Mahanagar Telephone Nigam Limited (MTNL) is now offering free 3G connection and data up to 10 GB with its broadband connection. But these offers will be in vain if Jio GigaFiber has more reasonable or enticing offers.

Also, Read –> BSNL Revises FTTH Broadband Plans to Offer Up to 3TB Data at 100Mbps to Combat Jio GigaFiber

With its 600 channels, high-definition quality and high-speed network, GigaFiber will also look to take a big bite in the online entertainment business and might become a probably the largest multi-system operator and television distributor. Some online entertainment companies are announcing a partnership with Jio for a win-win deal.

The real question is whether the customer will take the leap of faith and give up their previous services for the promising Jio GigaFiber. Though Reliance was successful in bagging customers when it came to its mobile services, it will be more challenging in this case.

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There have been multiple debates on whether the Goods and Service Tax or GST is advantageous or not in the various sectors that it has been implemented on, since its commencement. Needless to say, in the sector of cable TV and DTH, it has certainly come as a boon. Prior to GST, cable TV operators had to pay numerous indirect taxes such as entertainment tax, service tax, VAT, etc. The tax rates levied by the states ranged from 10-30 percent.

Additionally, they had to pay a service tax of 15 percent to the Central government. DTH companies were also required to pay 10 percent of their gross revenue as a license fee to the government. The service tax on Local TV Operators or LCO’s was also 15 percent before.

GST amalgamated the indirect taxes, making it a single Entertainment tax that was to be levied. The additional charges under ITC (Input tax credits) like channels subscription fee by MSO (Multi-system operators), STB (Set-top box) purchase from Vendors, STB activation charges paid to MSO, STB repair charges paid to vendor, cable network items, components purchased from vendors and office rent paid to the owner of the premise, etc. is to be incurred by the customers and non-inclusive in the GST.

These were not available under the pre-GST regime. So, the input GST paid when renting a premise can be adjusted with the output GST from selling cable TV broadcasting service by the local cable operator. Every cable operator has to mandatorily register under GST, including LCO’s with an annual turnover of fewer than 20 lakhs.

Though GST has resulted in being more profitable to cable TV operator than the previous taxes that they had to pay, they are still not satisfied with the 18 percent rate and have bid for it to be reduced further. They have sought to revise the GST to five percent from 18 percent.

Firhad Hakim, the state municipal affairs minister was quoted by the Cable TV Equipment Traders & Manufacturers Association (CTMA) saying that cable television services are essential services and should not have 18 percent GST which is in effect at present. As of now, their request has come to no avail and the chances of the same happening are bleak.

Just in => Are You a Cable TV Operator and Want to Easily Implement TRAI’s new Rule 29 December? Read this article

The post GST or Service Tax for Cable Operators – Is it Applicable? appeared first on Mobiezy.

CRUCIAL ROLE FOR BILLING / COLLECTION SYSTEMS

The new TRAI rules state that cable operators shall periodically submit a report to the Central Government which contain the information regarding the number of total subscribers, the subscription rates and the number of subscribers receiving programs etc.

TRAI is trying to get transparency in the figures of viewership and in revenue collection by the cable operators. In the coming days, TRAI will also ensure that the subscribers pay only for those channels, which he chooses to view. This is where billing systems can play a crucial role.

The billing system should support every aspect of the customer management and billing operation, such as:

• Single view of the customer
• Billing
• Monthly Collections by Agents
• Inventory management(tracking Set top box)
• Online payments
• Single bill for multiple services
• Part payments
• Financial reporting
• Complaints management/ Service requests
• Reminders for bill payment

Billing/Collection solutions chosen by operators need to be flexible to accommodate differences in billing operations like pre-paid and post-paid, and local business practices as this varies in every district in India. CableGuy Application, supplied by MobiCollector, is used in more than 50 cities in India and providing collection services to more than 150000 customers.

By utilizing the latest technology like Cloud/ Mobility with a systematic billing and collection, all type of leakages can be stopped and revenues can be increased by 30%. Customers will be more serious in making payments and the whole system will become transparent.

SUSTAINANING THE FUTURE

As the services offered by cable operators are increasing, a solid billing engine is essential. This will allow differing tariffs to be applied for individual services. As most of the MSOs working towards package system, the operator may choose to charge differently for these services and it is essential that a billing system has the technology inherent in it to cope with this development. A sophisticated billing system will not only be able to provide these sets of figures but will also provide a basis for the development of new services as and when operators choose to introduce them.

There are many potential new services and new directions for operators to take, but it is the ability to bill the customer as a primary point of regular contact that opens up a way for customer management and customer care options. Use of a flexible billing and collection application will provide the way forward for innovative cable operators and it will certainly improve their business efficiency.

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