TRAI’s new Rule for Cable TV & DTH – What this Ruling Really Mean to Consumer?

The first change that an average consumer will notice is their monthly bill is set to be cheaper than that are now and they pay for the channels that they opt for. To keep consumers engaged with the new bundles, broadcasters will have to ensure that they push new and exciting content or suffer the wrath of a bored customer.

What does this Ruling mean to Cable TV Broadcasters?

Broadcasters Will Set MRP For Channels

In a number of ways, these regulations will ease the burden on consumers’ pockets. First and foremost, broadcasters like ZEE Network, Sony Entertainment Television, and the likes will be responsible for setting the prices of these channels and not the distributors i.e. DTH operators like Tata Sky or cable providers. Therefore, broadcasters are obligated to set maximum retail prices (MRP) for each channel and distributors will not be able to sell these channels for higher than the MRP.

Standard Free-to-Air Package For All Providers

Secondly, users will get 100 “free-to-air” channels in standard definition, which include Doordarshan, Star Bharat, and Zee Anmol. But these channels are not exactly free and users will have to pay a minimum operating fee of Rs 130 for these.

No Bundling of Free and Paid Channels

Broadcasters will provide each channel to distributors on an a-la-carte basis. Distributors will be responsible for clubbing channels into relevant bundles but the a-la-carte “pay” channels cannot be combined with free channels. Moreover, standard and high definition channels must be offered in separate bundles.

Separate SD and HD Bundles

Channels which are priced more than Rs 19 on a-la-carte basis cannot be bundled with other channels and must be offered to the user individually. This will save the user from the burden of having to buy an entire bundle or a “bouquet” of premium channels just to enjoy a single channel. Under the new rules, SD channels cannot be bundled with HD channels from the same broadcaster, so you are not paying twice for the same paid channel.

The motive behind the move is to deter DTH and cable operators from imposing such “bouquets” on consumers in an attempt to sell unpopular channels with the popular ones. This act helps the unwanted channels to get pseudo impressions and thus a modest amount of revenue from advertising. “By promoting bundles, not only can they maximize ad revenue of niche channels but the subscription revenue of distributors also goes up, and that is when consumer interest goes for a toss“, a TRAI official told The Ken.

Free Bundles With MRP

Lastly, TRAI has also instructed distributors to make bundles comprising only the free 100 channels so that users, who do not wish to pay more than Rs 130 per month can opt for this. Further, distributors must offer these bundles in multiples of 25, with the maximum rate per 25 standard definition channels capped to a maximum of Rs 20.

When this will Go Into Effect?

The new TRAI guidelines for cable tv will go effect starting from March-2019.

Challenges for Cable TV Operators

Well, with this ruling, cable TV operators will have to update their database for each customer on their channel subscription and a lot of back-office work is involved to make their system compliant to above ruling. Without having a sophisticated cable TV management CRM or Software, it would be really a pain for them to handle the changes manually.

MobiCable is Great Way to Handle the changes Like Above

Our cable TV management system and CRM is a great way to handle changes like above since we have excellent configurable options within the system and updating the customer data and subscription packages is a breeze and cable TV owners can save a substantial amount of time in updating manually.

If you are a cable TV agency or owner and haven’t taken a look at what MobiCable has to offer, please head over to our MobiCable Page to learn more

Ask for a Free Demo of MobiCable

and Learn how you can easily handle the new TRAI pricing rules using our software

Download TRAI’s announcement copy here: PRNo11219112018

References

Supreme Court Upholds TRAI’s Tariff Order

https://beebom.com/dth-cable-tv-india-rules-trai/

More news about this ruling

FULL LIST: 332 Pay Channels Declared Before Dec 29 TRAI Deadline

Most Cable, DTH Packs Will Disappear On December 29

TRAI Starts Implementing New Tariff Structure For TV Channels

DTH Customers On Long Duration Packs To Get TRAI Plans From Dec 29

TRAI Tariff Order Positive For Distributors – Hathway Cable

The post TRAI’s New Pricing Rules For DTH and Cable TV is Announced – What it Means to Cable TV Operators and Consumers? appeared first on Mobiezy.

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.

The post Will Jio GigaFiber Have an Impact on Cable TV? appeared first on Mobiezy.

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.

For the 1st time, Our Team Mobiezy and GOIVR will be attending Digital Space India 2018, an event organized by Space Electronics. Team Mobiezy and GOIVR will be in Chennai from 6th,7th, and 8th July 2018. Visit booth #E3 @Chennai Trade center to know more on Cable TV Software App. Mobiezy Team is looking forward to meeting you to discuss on more about Cable TV Operator Billing Software Mobile App. To know more, Visit https://mobiezy.com/

About Digital Space India 2018:

Digital Space is the pioneer in the field of event management concerning all the cable TV network products and Electronic products. Electronics is constantly expanding into new industries, and the IoT(Internet of Things) is also opening up many new opportunities. The only limit is your imagination. To know more, Visit http://www.spacedci.com/

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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.

The post How Cable Operators should get connected to their customers through Bill appeared first on Mobiezy.