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  1. 1. To All Aggregators (Distribution agent of Broadcasters) Subject: Tariff issues for cable TV services in non-CAS Areas- Format for submission of information to facilitate the consultation process Sir, The Hon’ble Supreme Court vide its order dated 13th May, 2009 has directed The Telecom Regulatory Authority of India (TRAI) to carry out a de novo tariff exercise for cable TV services in non-CAS areas. 2. In order to carry out this exercise, TRAI solicits your cooperation in supplying the information requested in the format attached to this letter. You are requested to download the format and provide information to TRAI on or before 1700 hours on Monday 17th August, 2009. Please use extra sheets where requested (or if required by you) to submit the information. The duly filled format should be submitted by email to bcs@trai.gov.in. Please provide the required information in two copies. The first copy should be provided in Acrobat PDF or any other un-editable format. The second copy should be submitted in an editable Microsoft Word or Microsoft Excel format to enable us to process this information in electronic form. The Hon’ble Supreme court in the said order has also directed all the stakeholders to co-operate with TRAI in this exercise. We request your cooperation in providing this information in time. 3. TRAI understands that some of the information to be supplied could be sensitive in nature. Such data as you desire will be kept confidential and will be used for the purpose of this exercise by TRAI. You may please indicate the data that is to be kept confidential. 4. TRAI has appointed M/s Ernst & Young to assist TRAI in this exercise. Ms. Chanpreet Arora, Manager, M/s Ernst & Young (EY) may contact you in this regard. Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 1 of 12
  2. 2. 5. If you require any help or clarification regarding any item in the format, please do not hesitate to contact us at the following: Phone: +91 11 23218918/23237922 Fax: +91 11 2322 0442 Email: bcs@trai.gov.in or trai.noncas@gmail.com (please indicate “Information regarding Tariff issues for Cable TV Services in Non-CAS Areas” in the subject line of your email) 6. Given the limited time frame to complete this exercise, we look forward to your prompt reply. Thanking You, Yours faithfully, (Subodh Kumar Gupta) Advisor (B&CS) August 07, 2009 Format for submission of information: Aggregators (Distribution Agent of Broadcasters) Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 2 of 12
  3. 3. Name of the Aggregator: ___________________________ Name of Contact Person: ___________________________ Designation: ___________________________ Date of filling questionnaire: ___________________________ I. Business Model 1. General Information # Information Area 2006-07 2007-08 2008-09 1.1 Number of channels part of your alliance 1.2 Number of bouquets part of your alliance 1.3 Name of channel: Genre1 (please Broadcasting Year the channel see footnote 1) Network entered your alliance (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) 1.4 Name of bouquet Year of Constituent channels, please indicate any Commencement changes in the composition of the bouquet since 2003. Use additional sheets if required (i) (ii) (iii) (iv) (v) (vi) (vii) 2. Audited Results and Annual Reports for the company’s distribution/ content aggregation operations for FY2006-07, FY 2007-08 and FY 2008-09 or from the year of existence (if less than three years). This applies for both listed and non-listed companies. 1 Please select one of the following genres: GEC Hindi, GEC English, GEC Regional Language, Music (any language), Sport (any language), Movies (any language), News (any language), Kids (any language), Infotainment (any language), Lifestyle (any language), Religious (any language). Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 3 of 12
  4. 4. 3. Ownership Structure 3.1 Please provide details of the owners of the company/firm: Name/Entities and their addresses; Percentage Stake of each owner _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________ 3.2 Do you have 20% or more stake in the following sectors? Please tick as applicable and specify the name of the entities owned, % stake and other relevant details. □ Television Broadcast__________________________________ Please specify the total number of channels operated by the parent___________________ □ Distribution – MSO_________________________________________________________ Please specify reach of MSO network (number of connections2)______________________ Please specify markets of presence ______________________ □ Distribution – LCO _______________________________________________ Please specify reach of LCO network (number of connections)_______________________ Please specify markets of presence ______________________ □ Distribution – DTH__________________________________________________________ Please specify reach of DTH network (number of connections) ______________________ Please specify markets of presence ______________________ □ Distribution – IPTV_________________________________________________________ Please specify reach of IPTV network (number of connections) ______________________ Please specify markets of presence ______________________ □ Any other broadcasting and distribution related sectors_____________________________ Please specify ______________________ 3.3 Do any of your share holders having 20% or more stake in your company have 20% or more stake in the following sectors? Please tick as applicable and specify the name of the entities owned, % stake and other relevant details. □ Television Broadcast __________________________________ Please specify the total number of channels operated by the parent___________________ □ Distribution – MSO_________________________________________________________ Please specify reach of MSO network (number of connections)______________________ Please specify markets of presence ______________________ □ Distribution – LCO ___________________________________________________ Please specify reach of LCO network (number of connections)_______________________ Please specify markets of presence ______________________ □ Distribution – DTH__________________________________________________________ Please specify reach of DTH network (number of connections) ______________________ Please specify markets of presence ______________________ □ Distribution – IPTV_________________________________________________________ Please specify reach of IPTV network (number of connections) ______________________ Please specify markets of presence ______________________ □ Any other broadcasting and distribution related sectors_____________________________ Please specify 2 Connections = subscribers Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 4 of 12
  5. 5. Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 5 of 12
  6. 6. 4. Pricing Please indicate the price of various channels that you distribute. If the channel is part of a bouquet, please indicate the price paid by you to the broadcaster for that channel. If the channel is also a la carte, please indicate the a la carte price in a separate column. # Name of Bouquet/ A la 2006-07 2007-08 2008-09 2006-07 2007-08 2008-09 Channel carte Effective Effective Effective Effective price Effective Effective price price price paid to price paid to price paid to 3 charged to charged to charged to broadcaster broadcaster broadcaster MSO MSO MSO 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 Please use extra sheets if required 5. Revenue # Information Area 2006-07 2007-08 2008-09 5.1 Total Collections – all India for all channels distributed 5.2 Average commission (%) 5.3 Total Revenue (commissions) Please provide further details as requested in Appendix A and Appendix B 5.4 Any other sources of revenue 6. Operating Costs # Information Area 2006-07 2007-08 2008-09 6.1 Total Operating Costs 6.2 Manpower Costs 6.3 Travel Costs 6.4 Other Costs, please specify 3 Effective price is defined as (Total value collected)/ (Total number of connections) where connections = subscribers Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 6 of 12
  7. 7. II. Factors Affecting Key Receivables/ Pay-outs from the Distribution Supply Chain Pricing and Collection Decisions 1. How do you determine the wholesale pricing of a channel to be charged to the MSO? Please describe the various components of this price and the methodology used for calculation. ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 2. Do you adopt a differential pricing strategy for different MSOs? Please elaborate on why or why not. ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 3. How do you manage the issue of pricing the same channel in a bouquet and a la carte? What should be the relationship between bouquet price and a la carte to prevent the perverse pricing of any channel? ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 4. Are there any problems faced by the channels in switching from Pay to FTA and vice versa? ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 5. What is the usual mechanism of selling different channels to the MSO? Please tick all that apply and elaborate on the key benefits of that mechanism. □ Minimum guarantee _____________________________________ □ Lump sum payment _____________________________________ □ Revenue share _____________________________________ □ Per Negotiated Subscriber basis _____________________________________ □ Any other, please specify _____________________________________ 6. What is the extent of control that you can exert on any of the key businesses levers listed below or others while negotiating subscription revenues? Why? Please tick as applicable and elaborate □ Wholesale price to be charged to the MSO/ DTH operator ___________________________________________________________ □ Number of connections/ subscribers declared by the operators ___________________________________________________________ □ Visibility of number of connections/ subscribers serviced by the MSO network ___________________________________________________________ □ Access to data on the actual LCO collections from connections/ subscribers ___________________________________________________________ Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 7 of 12
  8. 8. □ Others, please specify _________________________________________________ 7. How do you measure collections at the LCO level? Please tick as applicable and elaborate □ Is any information on the subscriber base provided by MSOs/LCOs □ Own monitoring and market intelligence collection team □ Any other, please specify___________________________________________ 8. How do you estimate the number of connections at the MSO/LCO level – in order to determine the best price that can be charged from a particular network? __________________________________________________________________________________ ___________________________________________________________________________________ 9. Are there any channels that the MSO purchases from you but does not carry? If yes, which are these channels? Please elaborate on the root case of this phenomenon. __________________________________________________________________________________ ___________________________________________________________________________________ III. Challenges Faced in the Current Market Conditions 1. Highlight the key businesses issues related to distribution that the business is dealing with today? Please elaborate on the perceived cause of the issue and impact on the business operations. ___________________________________________________________________________________ ___________________________________________________________________________________ 2. Specifically, please elaborate on the impact of the mandatory a la carte pricing of channels on: - Your business _________________________ - Broadcasters – existing channels _________________________ - Broadcasters – new channels _________________________ - Distributors – MSOs _________________________ - Distributors – LCOs _________________________ - Other stakeholders, if any _________________________ 3. Specifically, please elaborate on the impact of the slow pace of digitization on your business and that of other stakeholders: __________________________________________________________________________________ ___________________________________________________________________________________ 4. What are the key market constraints (outside the influence of the individual companies) that impact business operations? Please tick as applicable and elaborate □ Regulation, please give specific instances: ____________________________________________________________________________ ____________________________________________________________________________ □ Market Practices prevalent in the business amongst other stakeholders. Please provide specific actions: ____________________________________________________________________________ ____________________________________________________________________________ Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 8 of 12
  9. 9. Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 9 of 12
  10. 10. IV. Proposed Solutions 1. How do you think digitization and addressability in the system can be improved? ___________________________________________________________________________________ ___________________________________________________________________________________ 2. What is the role that other stakeholders can play in improving the current market conditions? How can this be operationalised? ___________________________________________________________________________________ ___________________________________________________________________________________ 3. What resources can you and your stakeholder group commit in the future for improving the current market conditions? ___________________________________________________________________________________ ___________________________________________________________________________________ 4. What is the desired level of intervention from the TRAI with regard to the tariff regime? Please tick as applicable and elaborate. Tariff Regime □ Case for forbearance If yes, what checks & balances do you recommend: ____________________________________________________________________________ □ Regulate carriage/placement fee- If yes, through what mechanism ____________________________________________________________________________ □ Tariff Regulation: Mechanisms for determining subscription revenue at wholesale and retail level If yes, through what mechanism ____________________________________________________________________________ Non-Tariff Related □ Digitization If yes, through what mechanism ____________________________________________________________________________ □ Any other factor ____________________________________________________________________________ Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 10 of 12
  11. 11. Appendix A: Details of Subscription Revenue by Bouquet and by Channel Please use separate sheets for the following: Commercial Subscribers, Analog Cable, Digital Cable, DTH, IPTV Name of Platform: # Name of Bouquet 2006-07 2007-08 2008-09 Total Total Total Total Total Total Collections Commission Collections Commission Collections Commission # Name of A la carte 2006-07 2007-08 2008-09 channel Total Total Total Total Total Total Collections Commission Collections Commission Collections Commission Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 11 of 12
  12. 12. Appendix B: Details of Subscription Revenue Collected by MSO # State(s) City(ies) Areas Operator Digital 2006-07 2007-08 2008-09 Covered (please or Wholesale Number of Actual Wholesale Number of Actual Wholesale Number of Actual include Analog price agreed connections number of price agreed connections number of price agreed connections number of DTH and (D/A) upon (declared) connections upon (declared) connections upon (declared) connections cable) between (estimated between (estimated between (estimated MSO and by you) MSO and by you) MSO and by you) you you you eg Delhi New South Delhi Delhi Format for supplying information: Aggregators (Distribution agent of Broadcasters) 7th August 2009 Tariff issues for cable TV services in non-CAS Areas Page 12 of 12

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