KOLKATA: Cable operators across the city have sought a bigger share of the revenue from free-to-air (FTA) channels, which, they declare is very important for them to live to tell the tale submit migration. In the former regime, they'd get 60% of all of the subscription fee. But it has come all the way down to Rs 50-60 out of Rs 130 which consumers pay for 100 FTA channels. The rest goes to the multi-system operators (MSO). Cable operators declare it will be tricky for them to take care of products and services if their source of revenue isn’t augmented.
“Our income have dwindled and it has become tricky to attend to court cases of snapped wires or poor transmission. Smaller native operators with 1,000-2,000 subscribers are discovering it specifically tricky to live to tell the tale with diminished source of revenue. We have started negotiating with MSOs for a hike in FTA price share,” stated Tapash Das of the Ideal Cable Operators Association.
Apart from a bigger share of the FTA fee, MSOs also get a share in the community capability fee — a price of Rs 20 for every 25 channels over and above the 100 FTA channels – and an equal share of the pay channel value. While 80% of the price of pay channels goes to the broadcasters, the rest is shared via operators and MSOs. Operators now earn around Rs 80 for a package deal priced at Rs 200 and above, Rs 95 for a package deal priced at Rs 300 and above and Rs 110 for a package deal that cost Rs 400 or more.
“The revenue-sharing arrangement prescribed via TRAI is unfair. It is aimed toward throwing the smaller operators into bankruptcy. Operators supply service to consumers, no longer MSOs. From maintenance to fee collection, the entirety is taken care of via them. While the bigger operators have controlled to take care of products and services, the smaller ones have became erratic. Consumers are already complaining about poor products and services and if this continues, the system will cave in in large parts of the city,” stated Mrinal Chatterjee of MSO Bengal Broadband.
Kolkata’s largest MSO SITI Cable claimed they're open to negotiations with operators. “We have had discussions with operators and we can offer them a fair proportion,” stated director Suresh Sethia. An industry insider, then again, identified that a slight increase in the community capability fee share may not be enough for small operators. “There are lots with 1,000-2,000 subscribers who must bow out. The TRAI regulations on revenue sharing are heavily in favour of bigger MSOs and operators,” he stated.
“Our income have dwindled and it has become tricky to attend to court cases of snapped wires or poor transmission. Smaller native operators with 1,000-2,000 subscribers are discovering it specifically tricky to live to tell the tale with diminished source of revenue. We have started negotiating with MSOs for a hike in FTA price share,” stated Tapash Das of the Ideal Cable Operators Association.
Apart from a bigger share of the FTA fee, MSOs also get a share in the community capability fee — a price of Rs 20 for every 25 channels over and above the 100 FTA channels – and an equal share of the pay channel value. While 80% of the price of pay channels goes to the broadcasters, the rest is shared via operators and MSOs. Operators now earn around Rs 80 for a package deal priced at Rs 200 and above, Rs 95 for a package deal priced at Rs 300 and above and Rs 110 for a package deal that cost Rs 400 or more.
“The revenue-sharing arrangement prescribed via TRAI is unfair. It is aimed toward throwing the smaller operators into bankruptcy. Operators supply service to consumers, no longer MSOs. From maintenance to fee collection, the entirety is taken care of via them. While the bigger operators have controlled to take care of products and services, the smaller ones have became erratic. Consumers are already complaining about poor products and services and if this continues, the system will cave in in large parts of the city,” stated Mrinal Chatterjee of MSO Bengal Broadband.
Kolkata’s largest MSO SITI Cable claimed they're open to negotiations with operators. “We have had discussions with operators and we can offer them a fair proportion,” stated director Suresh Sethia. An industry insider, then again, identified that a slight increase in the community capability fee share may not be enough for small operators. “There are lots with 1,000-2,000 subscribers who must bow out. The TRAI regulations on revenue sharing are heavily in favour of bigger MSOs and operators,” he stated.
Cable operators claim bigger share of revenue
![Cable operators claim bigger share of revenue]()
Reviewed by Kailash
on
April 23, 2019
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