Five months have passed since Digitisation Phase IV was declared completed on 31 March 2017 and the MIB is yet to get the information on the total number of STBs seeded in the country. All registered MSOs have been sent show-cause notice for not supplying area-wise STB seeding data and other required details of their headend, middleware, mandatory channels carried etc. vide MIB’s letter dated 28 June 2017, else they may lose their registration.
This Industry Guide is to assist the Local Cable Operators (LCOs) in understanding the matters with regard to Goods and Services Tax (GST) treatment at the hands of LCOs. It also provides information pertaining to the requirement and procedure for registration under the GST.
India has made significant strides in economic growth and development of its markets for business, thus emerging as one the fastest growing economies in the world. The IMF has branded India as the brightest spot in the Global Economy. Several Global Institutions have projected India as the leading destination for FDI in the World and a number of recent global reports and assessments, show that India has considerably improved its policies, practices and economic profile. It is expected that enabling policies and determination to continue with economic reforms, various initiatives taken by the Government such as Make in India, Smart City Mission, Skill India Mission, Digital India, etc. would further spur the growth of the economy.
In spite of all efforts of the government to uplift the economy starting with demonetisation, then GST, skill development, Digital India, Cashless economy and ease of doing business, results so far are dismal. According to RBI’s own figures Demonetisation has been proved a failure as 99% demonetised notes have come back. Country’s growth rate has slumped to a three year low of 5.7%, economic growth has come down to 6%, manufacturing sector is struggling with a growth of just 1.2% compared to 10% in the same quarter last year and businesses are still trying to understand and implement the GST.
Another top level cabinet Minister is set to leave his Ministry as the BJP-led National Democratic Alliance (NDA) has nominated Information & Broadcasting (I&B) Minister M Venkaiah Naidu as its candidate for the post of Vice President of India. Naidu was picked up on July 17 by PM Modi and Amit Shah and his candidature was approved by the NDA.
With Sun Direct reporting its first full fiscal net profit in July 2017, the majority of India’s DTH industry has moved out of the red. However, ARPU has not risen substantially and remains a cause for concern. Additionally, India’s telecom regulator, TRAI numbers indicate subscriber additions have halved over the past 12 months while the inactive subscriber ratio lingers around the 40% mark. In rural Indian TV homes, Free-to-Air DTH services continue to gain ground, both in users and in carriage fees from broadcasters. Despite positive effects of GST, if subscriber additions and ARPUs remain flat, what option does that leave DTH companies to grow?
NXT Digital, the newest addition to the Hinduja Group of companies is moving ahead with the successful implementation of NXT Digital’s digital delivery platform across India in the Headend in the Sky (HITS) platform for complete cable digitalization. NXT Digital’s project ensures its viewers get uninterrupted wo rld class viewing experience at the best value for money price in the market.
Interoperability is the ability of a system or a product to work with the other systems or products without the special effort on the part of the customer. Interoperability is often achieved by either adhering to the standard interfaces between the devices or making use of intermediary services that can convert one product’s interface into another product’s interface on the go.
Cable TV Digitisation is over and digital Cable Services have mostly overcome teething problems, moving towards a stable operation, monetizing their networks, trying to recover heavy investments in building digital infrastructure. Now, they are also at par with the DTH operators and ready to compete with them.
TRAI floats Consultation Paper on ‘Ease of Doing Business in Broadcasting Sector’
It is a well known fact that DTH operators grew manifold in their business at the cost of cable operators. All the government policies have been in favour of DTH operators and big groups, while the voices of the local cable operators were never heard despite so many protests and presentations. Now the table seems to be turning, as per a new report by ICICI Securities, free-to-air (FTA) channels have been registering a strong growth in TV viewership, since rating agency Broadcast Audience Research Council (Barc) started reporting rural data in late 2015, leading to increased interest from advertisers.
On 7 July 2017, the telecom regulator TRAI issued a press release seeking proposals from interested entities to be a part of a pilot to establish nationwide, ‘pay-as-you-go PDOs’ (Public Data Offices); these ’pay-as-you-go’ PDOs will offer sachet-sized data packs, providing broadband connectivity to price-sensitive consumers at a fraction of the rates ranging from Rs 2 to Rs 20. The service will be akin to the PCOs which were in use until the emergence of cell-phones and cheap call rates. Cable Operators are also very familiar with providing broadband on CAT-5 Cables to their consumers. Only this time it is WiFi.
The Ministry of Information & Broadcasting (MIB) has a new Minister, Ms Smriti Irani, a veteran from the television industry who understands the sector well. Let’s hope she initiates some innovative steps to make the environment in the Industry better. At present, in spite of our country doing well on the economic front, our industry is mired with court battles between the stakeholders and the regulator TRAI holding up the regulatory process for which efforts were on since 2003.
The current Chairman of the Telecom Regulatory Authority of India (TRAI) R.S. Sharma is a pro-active man who has been pushing many changes; he had endeavoured and also succeeded on many occasions to bring in several much needed reforms to keep the regulatory authority in sync with time. In his latest such endeavour to achieve more transparency between the consumers and the service providers, the Telecom Regulatory Authority of India (TRAI) launched three new apps to rate quality of services, speed and performance. All three apps are available on Google Play for download. The three new apps are: Mycall app, MySpeed app and 'Do not disturb (DND 2.0)'.
Finally after 14 long years, the Goods & Services Tax (GST) has come into force on July 1. To mark the special occasion, the Parliament was all decked with coulourful lights, and it was the third time that Parliamentarians gathered there at midnight. Last time, it was 1997 to celebrate the Golden Jubilee of Independence Day. But the first such time is more famously recorded when the first Prime Minister Jawaharlal Nehru made his famous “tryst with destiny” midnight speech almost seventy years ago.
A total of 37 MSO licenses have been issued by the Ministry of Information & Broadcasting (MIB) between 9 May and 11 June. The ministry had cancelled 13 MSO registrations which had incomplete applications and missing documents. Karnataka got half a dozen licenses, followed by Andhra Pradesh and Telangana (5 each). Tamil Nadu got two licences, while four MSOs from Odisha and three from Gujarat were also issued licences. The rest of the registrations were issued to MSOs from states like Bihar, Uttar Pradesh, Maharashtra, Rajasthan, Himachal Pradesh, West Bengal and Delhi.
Of the 19 markets covered, while smartphone usage is a key driver for data traffic growth, fixed broadband still accounted for the largest share of data traffic in 2016. With much consumption still happening within the home rather than on the move, fixed broadband will continue to account for the largest share of data traffic until 2020, when smartphones will exceed fixed broadband for the first time.
Digital transformation will continue to drive IP traffic in India with the projected increase in internet users from 373 million in 2016 to 829 million or 59% of the Indian population in 2021, according to Cisco Visual Networking Index (VNI) Complete Forecast. In addition, there will be 2.0 billion networked devices in 2021, up from 1.4 billion in 2016 and the overall IP traffic is expected to grow 4-fold from 2016 to 2021, a compound annual growth rate of 30% and reach 6.5 Exabytes of data per month in 2021, up from 1.7 Exabytes per month in 2016.
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