JAINHITS COVERAGE REPORT
SEPTEMBER - OCTOBER, 2012
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PRINT AND ONLINE COVERAGES
S.No.
Media
Date
PRINT
1
Kaajal Magazine
JAINHITS DIRECT TO
NETWORK
1-Sep-12
2
Jansatta
Jain TV to start with the
services of DTN
5-Oct-12
3
The Economic Times
FDI Ceiling Raised to 74% in
DTH Biz
15-Sep-12
4
Hindustan Express
5
VARIndia
Jain TV to start with the
services of DTN
Are Our Deadlines Logical?
22-Oct-12
30-Oct-12
ONLINE
6
7
Broadcast & Cable Sat
Scat Mag
HITS Is Arriving
JAIN HITS PLATFORM SOON
8
Nex TV Asia
Motorola, KIT digital and
Intelsat selected for India´s
JAINHITS
3-Sep-12
9
Value Notes
HITS: Will DTH/MSOs be
impacted?
24-Sep-12
10
My Iris
HITS not to have immediate
impact on MSOs/DTH players:
Edelweiss Sec
24-Sep-12
The Economic Times
FDI ceiling raised to 74% in
DTH business: Full text of
government policy approval
15-Sep-12
11
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1-Sep-12
1-Sep-12
PRINT COVERAGE
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Headline: JAINHITS DIRECT TO NETWORK
Media: Kaajal Magazine
Date: 1st September, 2012
Edition: Delhi
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Headline: Jain TV to start with the services of DTN
Media: Jansatta
Date: 5th October, 2012
Edition: Delhi
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Headline: FDI Ceiling Raised to 74% in DTH Biz
Media: The Economic Times
Date: 15th September, 2012
Edition: Delhi
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Headline: Jain TV to start with the services of DTN
Media: Hindustan Express
Date: 22nd October, 2012
Edition: Delhi
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Headline: Are Our Deadlines Logical?
Media: VARIndia
Date: 30th October, 2012
Edition: Delhi
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ONLINE COVERAGE
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Headline: HITS Is Arriving
Media: Broadcast & Cable Sat
Date: 1st September, 2012
Edition: Online
Link: http://www.broadcastandcablesat.co.in/hits-is-arriving.html
"HITS is the best and the most affordable delivery mechanism in digital broadcast space, making it an
easily manageable digital cable delivery platform."
Every crisis is an opportunity. The new Cable Law mandates that the entire distribution of TV signals on
cable TV networks shall be permitted only in the digital mode. Digitization is certainly a good news for
broadcasters and tax authorities because subscriber numbers will be reported accurately and
transparently. Even the subscribers shall benefit from itemized billing details so that they will be charged
only for the channels that they wish to subscribe. DTH players are looking to grab the vast business
opportunity of transferring earnings from cable networks to DTH platforms. Big MSOs are riding the
markets with multiple types of offers to small- and medium-size cable operators so that they are either
bought out or pushed out of the market. Cable operators today are worried a lot. They are keen to
understand whether digitization is a crisis or an opportunity.
The government's massive media campaign on digitization should also inform about the alternate
technology options, which may be adopted by the subscribers and distributors of satellite TV channels.
DTH is the delivery of bundled satellite TV channels in digital mode, direct from the satellite to
subscribers' homes. Subscribers are unhappy with DTH services because DTH signals either disappear or
deteriorate in cloudy climatic conditions. The costs of DTH services are also higher than those charged
by cable networks. It is indeed surprising that the entire publicity buzz on digitization has been silent on
DTN (direct to network), or headend-in-the-sky (HITS) services. DTN or HITS is much less expensive and
provides much better quality of service than DTH because the digital signals of HITS remain unaffected
by rain or any other disturbances in the sky, which certainly destroy DTH signals.
HITS is the best and the most affordable delivery mechanism in digital broadcast space, making it the
easily manageable digital cable delivery platform. HITS is the only technology that can implement digital
addressable cable TV system (DAS) in one stroke all over India, meeting all regulatory and licensing
requirements at the same time. HITS technology with the help of subscriber management system (SMS)
and conditional access system (CAS) can monitor and control all accounting, billing, and cabledistribution-related business functions of all subscribers across the country. Today, there are about
60,000 cable operators and about 6000 head-end operators who feed millions of cable homes. HITS is
the only technology that can transform the cable distribution business into a trouble-free, dispute-free,
and crime-free enterprise.
HITS is a New Generation Network (NGN) that consists of satellite transponders in the outer space,
spectrums on the airwaves, and teleports equipped with a dish farm that can downlink all satellite
channels, decrypt each channel, bundle them together, encrypt the aggregated signal in digital form,
aggregate multi-program streams, and uplink the satellite in the outer space so that cable operators can
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receive all the 200 to 500 channels on a single dish. The HITS operator would have already negotiated
and got the permission from various broadcasters for using their content and settling pricing issues. This
efficient technology is also moving to integrate broadcasting and broadband Internet services. As a
result, cable operators in very near future will be offering a number of value-added services to enhance
their income from existing cable networks.
The HITS platform is being widely used across the globe in developed countries like the United States. In
India, HITS will provide a platform to usher an era of digital revolution. HITS provides a unique
opportunity to Indian cable operators to be a part of Indian digital revolution.
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Headline: JAIN HITS PLATFORM SOON
Media: Scat Mag
Date: 1st September, 2012
Edition: Online
Link: http://www.scatmag.com/focus.htm
Jain TV Group-owned NSTPL (Noida Software Technology Park Limited) has declared that it will soon
launch a Headend-In-The-Sky (HITS) platform - Jain HITS.
NSTPL
NSTPL provides a comprehensive range of quality services such as TV Broadcasting, News Gathering &
Video uplinking etc.
NSTPL's teleport is located at Greater Noida (NCR), spread over 12 acres of area. NSTPL currently serves
more than 50 National and International Broadcasters. NSTPL is also Indian partner of SINGTEL to carry
signals of Indian broadcasters to rest of world through Fiber.
NSTPL also acts as a System Integrator for Broadcast & Media segment to provide end to end solution
and now aggressively entering into Market as full fledged System Integrator in Indian sub continent.
JAIN HITS @ 62 E
NSTPL already has a multi-year, multi-transponder agreement for C-band capacity on Intelsat 902 at 62
degree East. The company will use the capacity to create a HITS platform that can be distributed by
Local Cable Operators (LCOs) throughout the country. NSTPL says the Jain HITS platform will a "Connect
and Collaborate approach".
Jain HITS says it believes in the reach and power of the LCOs to provide Digital CATV throughout India.
INTERNATIONAL QUALITY
For Jain HITS, Motorola mobility is the End- To-End partner and KIT Digital the solution architect and
managed services partner.
SECOND INDIAN HITS
WWIL, the CATV operation of the Zee Group had in 2008, launched its HITS service. The service was
discontinued 2010 citing lack of clarity in the regulations. The withdrawal had caused considerable
problems for partnering LCOs who were pulled up by consumers on then defunct STBs. They were
offered an exchange of HITS STBs with DTH STBs, and option that was against the interest of continued
Cable TV operations. In an exclusive interview with Satellite & Cable TV Magazine, Dr J.K. Jain - Chairman
Jain Group, provided details of the proposed JAIN HITS platform:
SCaT: When will Jain HITS commence transmissions?
Dr. Jain: The JAIN HITS signal will be available for integration with downlinking Headends of Cable
Operators in November 2012.
SCaT: Can you provide a brief sketch of your commercial proposal & terms and conditions for partnering
LCOs?
Dr. Jain: The commercial proposal of JAIN HITS has been designed with a focus on the needs of the Cable
Operators. Some of the benefits offered to the Cable Operator are as follows:
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1.
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Go digital and comply with all legal, regulatory and content requirements with investments as
low as Rs. 12 - 15 lakhs within Legal timelines.
Offer 200 to 500 TV services in MPEG4 quality.
Offer High Definition services.
Offer more consistent quality than DTH.
Provide far superior service that is not affected by rains and other climate conditions
Offer Broadband Services and enhance their revenue.
Sell consumer hardware and utility products such as smart devices, Tele-shopping etc.
Increase revenues by 5 times per subscriber.
A Cable Operator by pursuing a "connect and collaborate" policy with JAIN HITS, can meet the
statutory requirements of QoS (Quality Of Service) parameters as set by TRAI without risking big
investments and Free themselves of all technology, regulatory and content concerns and focus
on market share.
Most importantly, Cable Operators will continue to own their networks and will not be required
to give up controls over their clients, neither partial nor total, to the MSOs.
High quality and dependable STB, which offers high saving in the long run.
JAIN HITS is currently engaged in setting up a Super Headend at their Greater Noida teleport.
This facility has been designed, built and shall also be maintained by the best technology providers in
the satellite and cable industry. Some of the names include Intelsat, Motorola Mobility which is now a
Google company and Kit Digital, a leading integrator of digital headend projects.
This will enable implementation of DAS (Digital Access System) in one stroke all over India. The
Subscriber Management System (SMS) and Conditional Access System (CAS) can monitor and control all
accounting, billing and cable distribution related business functions of all the Subscribers all over the
country.
There is no justification for individual Cable Operator to set up their own digital headend if all these
services can be obtained from JAIN HITS headend at affordable costs by setting up a "Mini Downlink
Headend" consisting of a set of a professional IRDs, C-Band downlink antenna, transmodulators,
combiners, amplifiers and few more accessories. The end viewer on the Cable network will be
connected to receive desired TV channels through an addressable Set Top Box (STB).
The Regular Annual Income Of A Cable Operator Under JAIN HITS Scheme Can Vary From Rs. 30 Lac To
Rs. 2.2 Crore Per Annum At A Subscriber Base Ranging From 3000 To 20000. - Dr. J. K. Jain
SCaT: What will be the approximate investment required by the LCO to procure suitable
Transmodulators and other headend equipment from Jain HITS.
Dr. Jain: In the JAIN HITS scheme, a cable operator will be able to go digital with a total investment that
does not exceed R 15 lakhs for 200 channels including HD channels.
SCaT: What is the budgetary price of the STB to the LCO and his MRP to the consumer.
Dr. Jain: JAIN HITS is not in the business of selling STBs. In partnership with Cable Operators, JAIN HITS
shall offer different levels of digital services to suit all pockets.
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The entry point shall be as low as R 1000 for each subscriber and depending on the choice of menu, the
subscription could go as high as R 5,500.
An elaborate service order form is being designed so that a subscriber can place the order for the quality
and quantity of services they wish to buy. Even the minimum charge for the service at the level of
Rs.1000 shall be superior to other DTH and MSO services, because JAIN HITS service has been built on
the latest MPEG-4 standard.
SCaT: What is the approx. price point for consumer pay TV packages that you will offer.
Dr. Jain: Consumer packs will start from R 100 for FTA. JAIN HITS will offer full a-la-carte pre paid model
as well. Our Pay packages will start from R 150 and go till R 1000 incase of High Definition (HD) TV etc.
SCaT: Any unique features / facilities planned on Jain HITS.
Dr. Jain: Table-1 summarises the services that JAIN HITS will offer, compared to that from MSOs and DTH
platforms.
SCaT: You indicate that Jain HITS will also provide broadband Internet. Please provide details of how this
will be delivered by the LCO? Does he have to buy bulk bandwidth independently or will it be delivered
by Jain HITS to his local headend?
Dr. Jain: JAINHITS will provision bulk-bandwidth at the doorstep of the LCO/MSO.
JAINHITS will provide all the equipment to upgrade the network of operator to provide Broadband as
well as Internet on TV.
JAINHITS will also offer CMTS and or GPON based solutions as most suitable to network along will full
billing and customer service support.
JAINHITS will also provide Broadband modems and Broadband TV STBs which will enable surfing on TV.
SCaT: What monthly revenues can LCOs expect after partnering with JAIN HITS ?
Dr. Jain: The regular annual income of a Cable Operator under JAIN HITS scheme can vary from R 30 lakh
to R 2.2 Crore per annum at a subscriber base ranging from 3,000 to 20,000. His income shall depend on
his efforts. He will certainly earn much more revenues than he currently earns. Moreover, he is required
to put less investment while he provides much wider range of services with better quality experience to
their customers.
SCaT: Is there any specific (regional) area where Jain HITS proposes to focus its efforts? Or will the
platform be offered throughout India?
Dr. Jain: JAIN HITS will be providing services throughout India and that too in one go. Selection of
regional channels will be determined purely on professional considerations. The selection of other
channels shall also take into account the subscriber's choices. The product offerings is in the process of
finalization
JAIN HITS have taken a prominent pavilion in Hall D at the SCaT 2012 India Tradeshow, which will be
held at the World Trade Centre Mumbai, from 3rd to 5th November. Be there to directly meet the JAIN
HITS team, and consider partnering with them.
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Headline: Motorola, KIT digital and Intelsat selected for India´s JAINHITS
Media: Nex TV Asia
Date: 3rd September, 2012
Edition: Online
Link: http://articles.economictimes.indiatimes.com/2012-09-15/news/33845809_1_fdi-limit-currentaffairs-tv-foreign-direct-investment
Noida Software Technology Park(NSTPL) ,India based Jain TV group firm that aids TV broadcasting and
production announces indenture with Motorola, KIT digital and Intelsat for their pan-India head end in
the sky(HITS) operations branded as JAINHITS. Motorola will provide end-end technology support by
provisioning network hardware and supplying STB’s. NSTPL has pre-ordered 30 million STB´s so far to
avoid supply demands in future. KIT digital is tied up for providing 24/7 managed services; solution
architecture and for supplying E2E solutions for multiplexing services for the JAINHITS platform.This
service will be available for MSO´s and LCO´s from November 2012.
Initially the platform will support 200 SD,HD channels which will be scaled up to 500 channels. The
platform is designed to aid seamless expansion in future for provisioning OTT/IPTV and multi-screen
services. The company is also planning for a post-paid based subscription model. Current subscription
fee for the service is fixed as USD 17 and the monthly fee will vary between USD 1.8 to USD 12.6
depending on the package opted for.
Previously NSTPL has signed a multi-year, multi-transponder agreement with Intelsat for C-band
capacity on their 902 satellite (at 62 degree East). This will enable the NSTPL for creating a white label
turney package (JAINHITS) that can be received and distributed by MSO´s and LCO´s across the country.
JAINHITS will adopt DVB -S2 technology for satellites and will follow DVB-C for cable transmission.
Ankur Jain, Managing Director, Jain HITS, said, “The major problem that LCOs are facing is of revenue
and shortage of set top boxes (STBs). In order to make a robust connection with the LCOs and MSOs in
the initial stage, we are sharing our carriage fees with the LCOs. The percentage of carriage fees to be
shared with the LCOs will depend on their size and will start from 10% going up to 50 %.” The company
is investing USD 45 million for their phase-I HITS roll out. NSTPL claims that the operator will benefit
from reduced Capex using this direct to network platform.
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Headline: MSOs should focus on basic packaging
Media: Indiantelevision.com
Date: 21st September, 2012
Edition: Online
Link: http://www.indiantelevision.com/headlines/y2k12/sep/sep213.php
Multi-system operators (MSOs) should concentrate on basic packaging and consumers will be ready to
pay only if they get good packages, according to Hathway Cable & Datacom MD & CEO K Jayaraman.
The stakeholders were working only for short-to-medium term gains because of the approaching
deadline whereas digitisation should be looked at with a longer vision in mind, cautioned Jayaraman.
There were some things that needed to be sorted out like the share of the local cable operator (LCO),
the security of the LCO, consumer pricing, and ascertaining whether many consumers will opt for a la
carte or just take bouquets -- either the basic service tier or the mix bouquet.
Jayaraman said MSOs can bundle the pricing for broadband and cable along with value-added services,
giving them an edge over DTH service providers.
Speakers at Indian Digital Operators Summit (IDOS) 2012 have sought the creation of a congenial
ecosystem for successful implementation of digitisation.
Ankur Jain, Managing Director of JAINHITS, the head-end-in-the-sky venture of Noida Software
Technology Park Limited (NSTPL), said what worked for the consumer was the end result of what he was
getting, the cost of operations, and simplicity or complexities involved. Referring to LCOs, he said they
would survive as they would either become small MSOs or customer service centres.
NDS Senior Director - Asia Pacific Business Development Ajmair Heer said MSOs and LCOs will have to
create value-added services to compete with DTH, but the first hurdle was changing the mindset of the
consumer.
SES Senior Vice President (Commercial, Asia Pacific and Middle East) Deeepak Mathur said additional
capacity will help give customised content. But key infrastructure such as satellite capacity would be
needed. He said SES was working to create a set top box (STB) that could help bring content on both
tablets and television sets.
In a separate session on the life of a cable operator in the wake of DAS, ACT President P Kailasam and an
MSO owner Shashikant, both from Bangalore, said they were already preparing for the second phase.
Both are LCOs turned MSOs and therefore, they said they understood the needs of the consumer as well
as the LCOs. It was clear that the LCO cannot be eliminated in the value chain.
They also claimed that they had acquired 35 to 40 per cent of the digital STBs needed by them.
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Asked about the higher rates in view of the taxes, they said these taxes will have to be passed on to the
consumer but the consumer will pay if more services are provided. Both agreed that cable would
continue to have an edge over DTH.
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Headline: HITS: Will DTH/MSOs be impacted?
Media: Value Notes
Date: 24th September, 2012
Edition: Online
Link: http://www.valuenotes.com/buy/Media-HITS-Will-DTHMSOs-be-impacted/178546/35/I
With digitisation being the most awaited development in the media space, Edelweiss dwell on a
neglected TV distribution platform ‐ HITS. Recently, Jain TV Group’s Noida Software Technology Park
(NSTPL) announced the launch of its Head‐end in the Sky service (HITS), JainHITS. It will provide
subscribers with an alternative to digital cable and DTH technology for digital TV viewing. NSTPL has
launched HITS service in collaboration with Motorola, Intelsat and KIT Digital. ZEE group’s HITS foray in
2008 came to a grinding halt in 2010 due to lack of regulation and industry support. While on paper,
HITS looks like a formidable challenge to DTH & digital cable, it has had a checkered history and hence
will have to clear many hurdles to succeed. Edelweiss believe that the success of JainHITS hinges on
effective implementation over a sustained period of 3‐4 years besides a favourable regulatory
environment. Hence, Edelweiss do not see any immediate impact of HITS on MSOs/DTH players.
NSTPL prepares grand plans for HITS
The HITS operator functions like an MSO with the only difference being that the headend is located on
the satellite instead of on the ground. NSTPL, promoted by Dr. J K Jain plans to invest Rs15bn over the
next five years in JainHITS. Motorola will be the technology partner, Intelsat will be the satellite provider
while KIT Digital is the solutions architect. Motorola, Intelsat and KIT Digital will not have any stake in
the company and will just provide the requisite backend support. JainHITS plans to seed 3mn boxes in its
first phase over the next two years and will not have any direct contact with the consumer. Cable
operators will have a choice to continue with the existing system or move over to HITS. Currently,
JainHITS does not have any plan to advertise and will depend on mouth‐to‐mouth publicity by LCOs to
attract potential customers.
HITS failed to take off in the past
Back in 2009, WWIL had plans for HITS. It had also tied up with builders in Bihar to install HITS receivers
in housing complexes. As per the then CEO of WWIL, Sudhir Agarwal, WWIL was HITS‐ready across 130
towns and was waiting with a tariff plan. However, in March 2010, the ZEE group discontinued its HITS
operations owing to lack of regulatory support like tariff plans. Also, even though frequencies were
allocated to JainHITS in early 2012, the launch has happened only now.
HITS not a major threat to DTH/MSOs
Apart from the US, where it was developed, HITS does not have a worldwide presence as it is a highly
capital intensive technology. Given the previous failure of HITS in India, cable operators are likely to be
skeptical to team up with JainHITS. Effective implementation along with clarity on regulatory issues like
inter‐connect agreements and pricing is essential for the success.
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What is HITS technology?
HITS is a digital distribution platform and provides subscribers with an alternative platform to digital
cable and DTH. Unlike traditional cable technology, where the head‐ends are situated at various
locations on the ground, in HITS, the head‐end is situated on a satellite. This headend is maintained by
the HITS operator (in this case JainHITS). HITS tends to be a cheaper alternative to the existing cable
technology because operational expenses of managing multiple head‐ends on the ground are very high.
Currently, there is a one‐time entry fee of Rs100mn for HITS platform with no annual fees except the
spectrum fee (74% FDI is allowed in HITS). HITS players can operate on either C or Ku band.
Background of JainHITS
Jain TV group’s NSTPL has announced the launch of JainHITS in India. Dr. J K Jain, the founder of Jain TV
group, has been involved in the broadcasting industry since the 90s. Ankur Services, a company held by
Dr. Jain’s son Ankur, has 87% stake in JainHITS while Growth Fund with Jain Studios has 13% stake.
Though the Jain TV group had acquired HITS license in 2003, the frequencies were allocated only in early
2012. The license agreement is for 10 years with an extension clause for ten more years.
How will JainHITS work?
In the HITS technology platform, JainHITS will transmit signals through a head‐end located on a satellite,
post which the cable operator provides transmission to subscribers through a settop box. JainHITS will
downlink all channels to the earth station in Noida which will be multiplexed and uplinked to the
satellite. These channels can then be downlinked from the satellite by MSOs and LCOs using a satellite
antenna and feeded to subscribers through their existing cable lines. NSTPL plans to start its pan‐India
operations by November 2012 and will invest Rs2.5bn in the next two years in setting up the platform. In
the initial phase, Intelsat has allocated three transponders which can carry ~200 channels.
Apart from SD services, HD, interactive and broadband services will also be offered. In the second phase,
the channel offering will be scaled up to 500 channels besides introducing various other value‐added
services. Initially, to cement its relationship with LCOs, JainHITS will be sharing carriage fees with LCOs.
The initial subscription fee will be Rs950, while the monthly charges will be in the range of Rs100‐700
depending on the package chosen by the consumer. Cable operators need to make an investment of
~Rs1.2‐1.5mn for the equipment and subscriber management systems.
What are the advantages of HITS?
- Cost‐effective for MSOs/LCOs. According to Jain, HITS is the cheapest alternative for cable operators.
Instead of spending ~Rs180‐300bn during digitisation, pan‐India digitisation can be achieved in just
INR9bn with HITS service.
- HITS can also offer VoIP, broadband and telephony.
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Why did HITS fail to take off till now?
The Ministry of Information & Broadcasting (MIB) had given approval for HITS operations to the ZEE
group and NSTPL as early as 2003. However, following TRAI’s consultation paper in 2007, HITS’ policy
guidelines were issued by MIB only in 2009. Back in 2009, WWIL had grand plans for HITS and planned
to add 2mn subscribers in two years. It had also tied up with builders in Bihar to install HITS receivers in
housing complexes. As per the then CEO of WWIL, Sudhir Agarwal, it was HITS‐ready across 130 towns
and was waiting with a tariff plan exclusively. As per media reports, initially, alongwith the Essel group,
Den Networks CTV and Digicable had also applied for HITS licenses. However, in March 2010, the ZEE
group discontinued its HITS operations owing to non‐affordability and lack of regulatory support like
tariff plans.
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Headline: HITS not to have immediate impact on MSOs/DTH players: Edelweiss Sec
Media: My Iris
Date: 24th September, 2012
Edition: Online
Link:http://www.myiris.com/newsCentre/storyShow.php?fileR=20120924180010718&dir=2012/09/24
With digitisation being the most awaited development in the media space, Edelweiss Securities dwells
on a neglected TV distribution platform - HITS. Recently, Jain TV Group`s Noida Software Technology
Park (NSTPL) announced the launch of its Head end in the Sky service (HITS), JainHITS.
It will provide subscribers with an alternative to digital cable and DTH technology for digital TV viewing.
NSTPL has launched HITS service in collaboration with Motorola, Intelsat and KIT Digital. ZEE group’s
HITS foray in 2008 came to a grinding halt in 2010 due to lack of regulation and industry support.
``While on paper, HITS looks like a formidable challenge to DTH & digital cable, it has had a checkered
history and hence will have to clear many hurdles to succeed. We believe that the success of JainHITS
hinges on effective implementation over a sustained period of 3-4 years besides a favourable regulatory
environment. Hence, we do not see any immediate impact of HITS on MSOs/DTH players,`` said
Edelweiss Securities.
The HITS operator functions like an MSO with the only difference being that the head end is located on
the satellite instead of on the ground.
Back in 2009, WWIL had plans for HITS. It had also tied up with builders in Bihar to install HITS receivers
in housing complexes. As per the then CEO of WWIL, Sudhir Agarwal, WWIL was HITS―ready across
130 towns and was waiting with a tariff plan.
However, in March 2010, the ZEE group discontinued its HITS operations owing to lack of regulatory
support like tariff plans. Also, even though frequencies were allocated to JainHITS in early 2012, the
launch has happened only now.
HITS is a digital distribution platform and provides subscribers with an alternative platform to digital
cable and DTH. Unlike traditional cable technology, where the head―ends are situated at various
locations on the ground, in HITS, the head―end is situated on a satellite.
Jain TV group`s NSTPL has announced the launch of Jain HITS in India. J K Jain, the founder of Jain TV
group, has been involved in the broadcasting industry since the 90s. Ankur Services, a company held by
Jain`s son Ankur, has 87% stake in JainHITS while Growth Fund with Jain Studios has 13% stake.
Though the Jain TV group had acquired HITS license in 2003, the frequencies were allocated only in early
2012. The license agreement is for 10 years with an extension clause for ten more years.
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Headline: FDI ceiling raised to 74% in DTH business: Full text of government policy approval
Media: The Economic Times
Date: 15th September, 2012
Edition: Online
Link: http://articles.economictimes.indiatimes.com/2012-09-15/news/33845809_1_fdi-limit-currentaffairs-tv-foreign-direct-investment
The government on Friday relaxed the FDI limit in direct-to-home (DTH), Cable Networks and teleports
to 74% from the earlier 49%. The Cabinet Committee of Economic Affairs (CCEA), which approved the
proposal of the Department of Industrial Policy & Promotion, has also allowed 74% foreign direct
investment in mobile TV.
"Enhanced access to foreign investment is expected to expand the reach of broadcasting services,
thereby improving accessibility of these services, and bring in international best practices," a
government release said. FDI up to 49% will be permitted under the automatic route and FIPB clearance
will be needed only for investments beyond 49%. The government has not made any changes in the
policy for Headend-in-the Sky (HITS), News and Current Affairs' TV channels/FM Radio, for which the
existing FDI limits are 74% and 26% respectively.
Industry players welcomed the increase in FDI limit for cable network and DTH. "It is a welcome step for
the sector as it will not only fulfill capital needs for digitisation, but will lead to technological
improvement in India," said Salil Kapoor, chief operating officer, Dish TV. According to Hathway Cable
and Datacom's managing director and CEO K Jayaraman, the government's decision will provide the
much needed boost for digitisation of cable network that's likely to kick off from November this year.
Full text of government reforms on: Multi brand retail | Single brand retail
"It is good news for the entire sector as well as individual companies," Jayaraman said. When asked if
Hathway will invite foreign capital into the company, he said, "We already have foreign investments, but
it has not reached the earlier 49% limit yet." "FDI increase in TV is a step in the right direction. This will
help step up the process of digitisation where investments are required to be made by the cable
industry. This timely announcement will enable the TV distribution industry meet the deadline for
mandatory digitization," said Smita Jha, leader - entertainment and media, PwC India.
Industry observers are of the view that allowing foreign companies into Indian media space is not
restricted to pure economic impact. "The government has taken a bold and big decision by further
relaxing the FDI limit. It will have a much larger political and social impact," says Ankur Jain, managing
director, Noida Software Technology Park Ltd (NSTPL).
Striking a different note, Roop Sharma, president of Cable Operators Federation of India, said it will
create vertical monopoly of international media firms in India. "This will only strengthen big
broadcasters in India who will continue to monopolise the broadcasting space in India," he said.
Here is the full text of the government notification that announced allowing 74% FDI in various
broadcasting sector:
Document prepared by Six Degrees PR
Financial Restructuring of Prasar Bharati (Broadcasting Corporation of India) based on the
Recommendations of the Group of Ministers on Prasar Bharati
The Union Cabinet today approved the proposal of the Ministry of Information and Broadcasting for
financial restructuring of Prasar Bharati (Broadcasting Corporation of India). The proposal is based on
the recommendations of the Group of Ministers (GoM) on Prasar Bharati (PB), constituted under the
chairmanship of the Home Minister, to examine various issues pertaining to the functioning of Prasar
Bharati.
On the basis of the recommendations of GoM, the Cabinet has given its approval for the following in
order to improve the overall financial management of Prasar Bharati (PB):i. During the next five years from 2012-13 to 2016-17, Government non- Plan support will be made
available to PB for meeting 100 per cent expenses towards salary and salary related expenses. All other
operating expenses to be borne by PB out of internal revenue earnings.
ii. Plan capital support by the Government to PB will be in the form of grants-in-aid only and not in the
form of loan.
iii. Accumulated interest on loan-in-perpetuity, interest on capital loan and penal interest thereon
payable by PB to Government will be waived off.
iv. Loan-in-perpetuity and capital loans provided to PB will be converted into grants-in-aid.
v. Accumulated arrears of space segment and spectrum charges accrued to PB upto 31.3.2011 of Rs.
1349.54 crore, to be waived off.
vi. Property and Assets will be transferred on book value to PB as per provisions of Section 16(a) of the
Prasar Bharati Act, 1990. Normal accounting principles will be followed to determine their future value;
and
vii. Director General of Audit, Central Revenues (DGACR) will continue to be the nodal auditor of PB and
will be assisted by qualified commercial audit staff for the audit of the annual accounts.
Background:
The Prasar Bharati (PB), the Public Broadcaster in the country, has been grappling with various financial
and human resource/employee issues since its inception, which have adversely affected its functioning as
an autonomous organization. In view of the problems being faced by PB, a GoM was constituted under
the Chairmanship of the Hon`ble Home Minister on 7th March, 2006 to examine the issues of PB. The
GoM was again reconstituted on 21.2.2011 which considered PB`s future revenue earning potential given
Document prepared by Six Degrees PR
its public service broadcasting mandate, and made a number of recommendations for making PB a
financially viable and sustainable organization.
Document prepared by Six Degrees PR