To All DTH Operators 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 17 th 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 [email protected]. 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. Format for submission of information: DTH Operators 7 th August 2009 Tariff issues for cable TV services in non-CAS areas Page 1 of 23
Transcript
To
All DTH Operators
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 [email protected]. 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.
Format for submission of information: DTH Operators 7th August 2009Tariff issues for cable TV services in non-CAS areas
Format for submission of information: DTH Operator
Name of the DTH Operator: ___________________________ Name of contact person: ___________________________Designation: ___________________________Date of filling in questionnaire: ___________________________
I. Business ModelPlease provide us the following information so we can understand your business better:
1. General Information
# Information Area 2006-07 2007-08 2008-091. Total number of channels that
your DTH service deals with1.1 Number of pay channels
Number of FTA channelsNumber of Active/ VOD channels
1.2 Number of digital channels1.3 Please elaborate on the Value
1.4 Total number of connectionsSingle subscriber unitsMulti-dwelling units (MDUs)
2. Audited Results and Annual Reports for the company’s operations for FY2006-07, FY 2007-08 and FY 2008-09 or from the year of existence (if less than three years).
Format for submission of information: DTH Operators 7th August 2009Tariff issues for cable TV services in non-CAS areas
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3. Revenue
# Information Area 2006-07 2007-08 2008-093. Total Revenue3.1 Subscription Revenue
Please provide further details as requested in Appendix A and Appendix B
3.2 Advertisement Revenue3.3 Revenue from Value Added
Services3.4 Carriage, Technical and
Placement feesPlease provide further details as requested in Appendix C
(i) Carriage fee collected from broadcasters
(ii) Technical fee collected from broadcasters
(iii) Placement fee collected from broadcasters
3.5 Any other sources of revenue, please specify______________________________
4. Operating Costs
# Information Area 2006-07 2007-08 2008-094. Total Operating Costs (note
please apportion manpower costs to the relevant functional cost)
4.1 Programming Costs Please provide further details as requested in Appendix D
(i) Number of pay channels purchased (iii) + (v)
(ii) Number of bouquets purchased(iii) Number of pay channels
purchased in bouquets(iv) Number of FTA channels present
in these bouquets (if any)(v) Number of pay channels
purchased a la carte(vi) Total number of pay channels
carried/transmitted on the network
(vii) Any variation between pay channels purchased and transmitted (i) and (vi)
4.2 Technology and Transmission Costs (please provide a break-up as follows)
(i) Dish farm (ii) Servers, routers, multiplexers,
Format for submission of information: DTH Operators 7th August 2009Tariff issues for cable TV services in non-CAS areas
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(v) Set Top Box (STB) + Receiving Dish- Cost Price of STB + Receiving Dish- Sale Price of STB + Receiving Dish (Use average over year and different price plans if necessary)
(vi) Subscriber Management System(vii) Any Other Major Technology
Costs that cannot be allocated in above fields, please specify__________________________
1 Connections = subscribers2 Connections = subscribersFormat for submission of information: DTH Operators 7th August 2009Tariff issues for cable TV services in non-CAS areas
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II. Factors Affecting Key Receivables/ Pay-outs from the Distribution Supply Chain
Revenue from Subscribers
1. How do you determine the pricing and packaging for various bouquets. Please explain the components of the ARPU and the methodology used for determining the price.
5. To what degree do prices vary for placement within the genre-wise catalogue of channels provided? (Please refer to Annexure C for details on what are the placement costs currently being collected)
7. Are you currently facing any capacity related or technical constraints for adding new channels to your service? Please elaborate on these challenges and how their impact may be reduced.
8. How do you determine the total programming cost (wholesale price) to be paid to different channels? Please explain which negotiation mechanism you use (tick all that apply) and the benefits of each.
□ Revenue share
□ Minimum guarantee
□ Lump sum payment
Format for submission of information: DTH Operators 7th August 2009Tariff issues for cable TV services in non-CAS areas
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□ Other factors, please specify __________________________
9. What factors drive you to purchase channels in bouquets vs. a la carte?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
10. Are there any instances in which you have purchase a channel as part of a bouquet but not transmitted it?
□ Yes, why __________________________
□ No __________________________
III. Challenges Faced in the Current Market Conditions
1. Highlight the key businesses issues related to distribution that your company is dealing with today? Please elaborate on the perceived cause of the issue and its impact on business operations.
2. Do you believe that there is a level playing field for DTH services vis-à-vis incumbent platforms like analog cable? Why or why not? Please elaborate.
□ Market Practices prevalent in the business amongst other stakeholders. Please provide specific actions:___________________________________________________________________________
_
Format for submission of information: DTH Operators 7th August 2009Tariff issues for cable TV services in non-CAS areas
1. What are your expectations from other stakeholders in the value chain?
□ Broadcaster __________________________
□ Consumer __________________________
□ Aggregator __________________________
□ Other Distributors (MSOs, LCOs) __________________________
2. How can this be operationalised?______________________________________________________________________________________________________________________________________________________________________
3. What resources can you and your stakeholder group commit, if any in the future for improving the current market conditions?
Format for submission of information: DTH Operators 7th August 2009Tariff issues for cable TV services in non-CAS areas
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Appendix A: Details of Subscription Revenue across Different RegionsPlease provide us details of your subscriber base according to regional offices, and the revenue per subscriber collected in each region
# City / State 2006-07 2007-08 2008-09Actual Number of Connections
ARPU Actual Number of Connections
ARPU Actual Number of Connections
ARPU
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Appendix B: Details of Subscription Revenue by Bouquet/ ChannelPlease provide us details of the effective price charged to the consumer by bouquet and channel
# Name of Bouquet/ Channel
If bouquet, names of constituent channels
2006-07 2007-08 2008-09A. Total subscription revenue of collected
B. Total number of connections to whom this channel/ bouquet is delivered
C. Effective price per channel/ bouquet(A/B)
A. Total subscription revenue of collected
B. Total number of connections to whom this channel/ bouquet is delivered
C. Effective price per channel/ bouquet(A/B)
A. Total subscription revenue of collected
B. Total number of connections to whom this channel/ bouquet is delivered
C. Effective price per channel/ bouquet(A/B)
Format for submission of information: DTH Operators 7 th August 2009Tariff issues for cable TV services in non-CAS areas
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Appendix C: Carriage, placement and technical fee currently being collected from the broadcasters Please indicate the price that you are currently charging for the following channels. If possible please indicate these elements separately as C, P and T.
# Channel Number on DTH Service
Channel Name Genre – on your platform
FTA / Pay
Carriage/ Placement/ Technical Fee
# Channel Number on DTH Service
Channel Name
Genre - on your platform
FTA / Pay Carriage/ Placement/ Technical Fee
1 22
2 23
3 24
4 25
5 26
6 27
7 28
8 29
9 30
10 31
11 32
12 33
13 34
14 35
15 36
16 37
17 38
18 39
19 40
20 41
21 42
Please add more sheets if required
Format for submission of information: DTH Operators 7 th August 2009Tariff issues for cable TV services in non-CAS areas
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Appendix D: Details of Programming Costs paid to BroadcasterWe would like to understand the cost of purchasing content and the subscriber base on which the broadcaster is remunerated
# Name of Bouquet/ Channel if purchased a la carte
Name of constituent channels or N/A if purchased a la carte
Revenue Model Agreed with Broadcaster (Lump Sum or Revenue Share)
2006-07 2007-08 2008-09Total
remuneration
paid to the
broadcaster
% revenue
share
corresponding to
this amount (if
on rev share
basis)
Number of
connections
delivered
against this
remuneration
Total
remuneration
paid to the
broadcaster
% revenue
share
corresponding to
this amount (if
on rev share
basis)
Number of
connections
delivered
against this
remuneration
Total
remuneration
paid to the
broadcaster
% revenue
share
corresponding to
this amount (if
on rev share
basis)
Number of
connections
delivered
against this
remuneration
Format for submission of information: DTH Operators 7 th August 2009Tariff issues for cable TV services in non-CAS areas
