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Zee: MobileTV Recommendations Are Operator Skewed

By Rafat Ali - Mon 14 Jan 2008 03:25 PM PST

[by Cerius Shah] Zee is apparently annoyed at the TRAI for giving MobileTV recommendations that are operator skewed. This is not the first time they have been at disagreement with TRAI’s recommendations. While broadcaster’s are being slapped with content codes, the existing recommendations allow telco’s with an Unified access service license to jump the line and broadcast through existing spectrum while broadcasters await clearance on spectrum and license.

According to Zee the recommendations are unclear on the scope of content regulation and clarity on if or not telco’s can be broadcasters is suspect.

Zee’s recommendation that Mobile TV be allowed only on 3g networks is confusing. If they are looking at enriching operator controlled networks with content, they are effectively giving up the war even before the fight. As they stand, the recommendations are indeed operator skewed, wonder why only one broadcaster keeps piping up though?

Nikhil adds: These appear to be delaying tactics...as explained in this article, telcos will get a clear head start: the entire licensing process for mobile TV operators will take at least a year, while telcos can begin offering TV services over 2G networks immediately. 3G networks are yet to be auctioned, so they’re looking to buy time.

Posted in: Companies, Zee, Policy, Mobile TV



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3 Responses:
  • From Amitabh Kumar Mon 14 Jan 2008 11:02 PM

    Are the recommendations skewed in favour of mobile operators or not? The facts need to speak for themselves. Cutting out a lot of crap, here are the facts straight:
    (i) TRAI has allowed Mobile operators to commence Tv services on thier own spectrum, even though they are well aware that the only spectrum given to them is subscriber linked based on voice services. As per TRAI’s own recommendation the extra spectrum is liable for return. Can they return the spectrum and also commence services on the same at the same time?
    (ii) If mobile TV services are provided on 2.5G ( GSM, GPRS, Edge and CDMA 2000) networks, in violation of spetcrum grant rules, the mobile operators are liable for revenue share of 4% as per their license. For other operators it is 6% or 5% of the highest entry fee which ever is higher. If the highest entry bid is Rs 100 Crore, they need to pay Rs 5 crores per annum, which may exceed the revenues.
    (iii) Mobile operators can commmence services immediately but there is no time frame for others. The 2005 recommendations of TRAI for terrestrial broadcasting are yet to see the light of day in the form of policies.
    (iV) All broadcasters are required to share tower infrastructure by giving a reference colocation offer, but the same is not the case for cellular operators who have hundreds of thousands of towers.
    (v) Broadcasters are required to adhere to all media guidelines, uplink licenses et al, nothing of the kind has been said about mobile operators. can they have their own channel of mobile TV? If so on what basis when others are required to get uplink license?
    (vi) Mobile operators “own” all customers, but there has been no directive that a reference interconnect offer be provided by them to broadcasters for return path which is an essential component of mobile Tv operation.
    (vii) There are rollout obligations and performance guarantees ( Rs 20 crores for all India) for broadcasters, but none for mobile operators.
    (viii) In all countries, there are attempts to avoid complete monopolies. From this criteria, mobile operators who can provide services based on 3G in the near future, should not also hoard the terrestrial spectrum creating complete monopoly.

    Do we need more ?

  • From MobStir Tue 15 Jan 2008 06:35 AM

    You forgot the fact that Broadcasters are not allowed to own more than 20% of the platform. However, what about the telecome operators who run their own vas services and give out their own content. Dont they become broadcasters as well?

    TRAI is funded by the operators, run for the operators and perpetually manipulated by them as well time and again....yet they keep strengthening them and creating a vicious circle.

    I am waiting for a proposal from the Operators which will ask that the TRAI chairman be selected in consultation with them as well. grin

  • From Amitabh Kumar Tue 29 Jan 2008 01:29 AM

    Indian regulator TRAI Announces Mobile TV Licensing Recommendations for India

    The Indian regulator for the broadcasting and telecommunications sectors has issued recommendations for licensing of Mobile TV services in India. This completes the process of consultation on the Mobile TV and places the onus of announcing the License Policy on the ministry of information and broadcasting ( MIB).

    The licensing regulations primarily address the terrestrial broadcast mode for mobile TV. No recommendations have been made for the satellite mode of mobile TV services delivery, which incidentally had found a prominent place in its draft recommendations issued on 3rd Jan 2008. It has also left the mobile TV on cellular networks ( GSM, CDMA or 3G networks) to be governed by the operators mobile telephony( CMTS) or universal services licenses( UASL).

    The salient features of the Mobile TV policy recommendations are as follows:
    - Technology Neutrality (i.e. DVB-H, DMB or FLO technologies have been permitted along with others).
    - 74% FDI permitted, but no broadcasting or Cable TV company can hold more than 20% in a mobile TV company. Likewise a mobile TV company can not hold more than 20% in a broadcasting or Cable TV company
    - Licenses to be issued for each “Circle” or for the entire country based on a bidding process for licenses.
    - Each licensee to be issued Spectrum of 8 MHz in UHF band V(585-806 MHz), only one license( or one spectrum slot) to be permitted to any one company
    - 4% of gross revenues or 5% of the highest license bid; whichever is higher; to be paid as revenue share every year
    -Net Worth requirements of $0.75 Million ( Appox.) per service area. This translates to about $15 million for the country.
    -Services to commence within 18 months; enforced by a performance bank guarantee of $0.5 million for each service area ( $11 million for the country).
    - Content to be regulated by the content code of the MIB

    Comments on the recommendations
    -The mobile TV licensing recommendations as issued are quite onerous in terms of the license fees and ongoing revenue shares. The performance bank guarantees are also very high.
    -Linking of annual revenue share to 5% of the highest bid for an area seems to lack any logic as a rouge bid would imply all operators needing to pay a very high license fees.
    - By placing equity cross holding restrictions on broadcasting companies, it virtually prohibits such operators to extend their services to the mobile screen- a natural extension.
    This means that different companies need to be formed for each screen size or mode of delivery.
    - The mobile TV services, per se, have not been defined. Does mobile TV mean delivery to mobile devices or does it mean to those with a specific screen size such as QCIF or QVGA or is it by basing it on terrestrial broadcast.

    - The recommendations are silent on the relationship pf mobile TV with standard definition terrestrial TV (such as DVB-T). In most implementations DVB-H services can be delivered on the same carrier as that used for DVB-T. The same is the case in ISDB-T technology used in Japan. In the recommendations now issued, such operation has been ruled out.
    - The recommendations make no reference to other delivery extensions such as WiMAX, another mode of delivery of mobile TV Technologies.
    - Interchangeability of handsets has been prescribed between different service provides ( if the handsets are provided by them). This is tricky with various versions of the same technology much less between different technologies. An example is the DVB-H technologies based on OMA-BCAST or DVB-CMBS implementations.
    - The recommendations are silent on audio services to be provided on the same media. At present the FM, to which parallels have been drawn throughout, does not permit news and current affairs.
    - No requirements are placed on mobile operators to give a reference interconnect offer for the return path, which may be critical in many implementations. The mobile operators providing services on their own networks have a conflict of interest with the broadcasters providing services via a terrestrial medium- the subject of current licensing policy.
    - All mobile TV licensees are required to share their infrastructure with other mobile TV licensees. This can lead to a wait and watch game in the 18 months leading to the launch of services to piggyback on the operator which launches services first, though it is expected that Doordarshan infrastructure may initially be used by all licensees. This can have serious implications if a company setting up infrastructure can not derive a competitive advantage from the same. The cellular operators however have been kept beyond the purview of such compulsory sharing.
    - The FDI of 74% is inconsistent with the current licensing policy in the media sector where 49% is the norm.

    On the whole it appears that the ministry of information and broadcasting which sought the recommendations in the first place may have a hard task to maintain a semblance of uniformity of treatment to broadcasters as against cellular operators for providing the same service.

    http://www.mobilevhome.com/

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