Mr.Ashok Mansukhani

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Explosive Growth of MediaExplosive Growth of Media

Enhanced Consumer Choice-Enhanced Consumer Choice- need for convergent regulationneed for convergent regulation

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Explosive Growth of MediaExplosive Growth of Media need for convergent need for convergent

regulationregulation ““Today as we enter the second digital Today as we enter the second digital

revolution, the long heralded revolution has revolution, the long heralded revolution has begun aided to the altar by the rise of the begun aided to the altar by the rise of the ever faster broadband connections and more ever faster broadband connections and more efficient compression technologies and driven efficient compression technologies and driven by powerful competitive forces that are now by powerful competitive forces that are now reshaping the communication landscape.reshaping the communication landscape.

““The telecommunication network is the The telecommunication network is the nexusnexus for convergence of TV with the for convergence of TV with the internet and the next generation of digital internet and the next generation of digital video service.video service.

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regulationregulation ““Telephone lines that once carried merely voice Telephone lines that once carried merely voice

communications are now able to provide communications are now able to provide broadband, data services capable of delivering broadband, data services capable of delivering both live and on demand television programmes both live and on demand television programmes in standard and high definition formats through in standard and high definition formats through set top boxes connected to TV screen as well as set top boxes connected to TV screen as well as PC and other devices.PC and other devices.

““Exploiting the full potential of digital delivery Exploiting the full potential of digital delivery this new form of distribution will fundamentally this new form of distribution will fundamentally affect the way TV is viewed change channels of affect the way TV is viewed change channels of distribution and distribution and disruptdisrupt the traditional the traditional broadcasting business as the broadcasting business as the

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regulationregulation Conventional boundaries of Conventional boundaries of

telecommunications and television industries telecommunications and television industries collide and collapse. collide and collapse.

““The choice of channels and programmes will The choice of channels and programmes will further explode as viewers roam beyond their further explode as viewers roam beyond their national borders of broadcast TV and access national borders of broadcast TV and access live and recorded programes around the live and recorded programes around the world reflecting their interestworld reflecting their interest

““Viewers will further benefit from increasing Viewers will further benefit from increasing control watching what they want, when they control watching what they want, when they want, where they want and on a device of want, where they want and on a device of their choice.” –their choice.” –Informitv Consulting. 2006.Informitv Consulting. 2006.

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regulationregulation The FICCI-Frames Report by Price Waterhouse The FICCI-Frames Report by Price Waterhouse

Coopers for 2007 expects the Indian media and Coopers for 2007 expects the Indian media and entertainment industry to grow at 18% CAGR to entertainment industry to grow at 18% CAGR to reach Rs. 1 trillion by 2011reach Rs. 1 trillion by 2011

Television segment will grow by 22 per cent from Rs Television segment will grow by 22 per cent from Rs 191 billion to Rs 519 billion by 2011191 billion to Rs 519 billion by 2011

With CAS/DTH/IPTV making an entry in metros in With CAS/DTH/IPTV making an entry in metros in 2007,subscription revenues will be the 2007,subscription revenues will be the keykey driverdriver of of TV revenues benefiting from increased number of TV revenues benefiting from increased number of pay TV homes as well as increased subscription rates.pay TV homes as well as increased subscription rates.

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regulationregulation “ “ The dawn of digital TV broadcasting will enable The dawn of digital TV broadcasting will enable

optimization of scarce spectrumoptimization of scarce spectrum

This will lead to provision of additional forms of This will lead to provision of additional forms of distribution like new TV channels; enhancements distribution like new TV channels; enhancements like mobile TV reception/HDTV/IP based TV and like mobile TV reception/HDTV/IP based TV and introduction of new convergent multimedia introduction of new convergent multimedia services and new applications such as 3Gservices and new applications such as 3G

““With digitization of content and entertainment it With digitization of content and entertainment it is now possible to bridge the digital divide is now possible to bridge the digital divide effectively bringing in triple play and using the effectively bringing in triple play and using the home TV or mobile phone as the bridging home TV or mobile phone as the bridging device.”-device.”-SubgroupSubgroup onon G Goingoing Digital-PlanningDigital-Planning CommissionCommission. 2006.. 2006.

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regulationregulation The last ten months have seen intensive The last ten months have seen intensive

competition between digital CAS and DTH. IPTV competition between digital CAS and DTH. IPTV has made a slow start .Most importantly customers has made a slow start .Most importantly customers have finally got choice of different digital platformshave finally got choice of different digital platforms

Reduced ARPU of telecom companies has led them Reduced ARPU of telecom companies has led them to look to providing video content on telephone to look to providing video content on telephone lines and mobiles to customerslines and mobiles to customers

The next three years will see a tectonic shift in the The next three years will see a tectonic shift in the manner in which distribution and broadcast of manner in which distribution and broadcast of electronic video content is accessed by customers. electronic video content is accessed by customers.

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regulationregulation Current regulations ensure non- Current regulations ensure non-

discriminatory access to all technology discriminatory access to all technology platforms for video content. platforms for video content.

Two recent bold decisions of TRAI to allow a la Two recent bold decisions of TRAI to allow a la carte choice of TV channels to network service carte choice of TV channels to network service providers in DTH/analogue non CAS areas has providers in DTH/analogue non CAS areas has ensured a balanced level playing field. ensured a balanced level playing field.

The tight price controls are intended to The tight price controls are intended to empower customers to pick and choose empower customers to pick and choose premium content without compulsion of hard premium content without compulsion of hard bundling by broadcasters.bundling by broadcasters.

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regulationregulation With improved digital compression, the present With improved digital compression, the present

regime of a 100 TV channels is going to get regime of a 100 TV channels is going to get replaced by a million customized choices especially replaced by a million customized choices especially through IPTVthrough IPTV

Broadcasting in its generic shape will convert to Broadcasting in its generic shape will convert to narrowcasting of localized interactive content and narrowcasting of localized interactive content and finally niche-casting of consumer selected finally niche-casting of consumer selected programmesprogrammes

Live-casts of sports and news will continue. The Live-casts of sports and news will continue. The rest of content will shift to the time and choice rest of content will shift to the time and choice individual to each customer. This throws many individual to each customer. This throws many regulatory challenges which need to be seen regulatory challenges which need to be seen holistically.holistically.

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regulationregulation The International Telecommunication The International Telecommunication

Union defines convergence as Union defines convergence as technological,market or legal/regulatory technological,market or legal/regulatory capability to integrate across previously capability to integrate across previously separated technologiesseparated technologies

This implies the creation of a single This implies the creation of a single regulatory authority which will regulate regulatory authority which will regulate convergence be it digital broadcast convergence be it digital broadcast through Cable/DTH/IPTV/mobile TV or through Cable/DTH/IPTV/mobile TV or live streaming or video on demand or live streaming or video on demand or VOIP.VOIP.

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regulationregulation The International Telecommunication The International Telecommunication

Union defines convergence as Union defines convergence as technological,market or legal/regulatory technological,market or legal/regulatory capability to integrate across previously capability to integrate across previously separated technologiesseparated technologies

This implies the creation of a single This implies the creation of a single regulatory authority which will regulate regulatory authority which will regulate convergence be it digital broadcast convergence be it digital broadcast through Cable/DTH/IPTV/mobile TV or through Cable/DTH/IPTV/mobile TV or live streaming or video on demand or live streaming or video on demand or VOIP.VOIP.

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regulationregulation The World Bank observes that convergence The World Bank observes that convergence allows new entrants to enter into protected allows new entrants to enter into protected markets. Telecom companies are providing markets. Telecom companies are providing IPTV and cable companies will provide IPTV and cable companies will provide telephonytelephony

Convergence ‘opens up possibility of greater Convergence ‘opens up possibility of greater competition that will benefit consumers with competition that will benefit consumers with aggressive pricing,increased availability and aggressive pricing,increased availability and competitive service packages.’competitive service packages.’

‘‘The challenge is to offer both service The challenge is to offer both service providers and users flexibility to deploy and providers and users flexibility to deploy and enjoy new technologies.’ enjoy new technologies.’

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regulationregulation Very few countries have a converged regulator. Very few countries have a converged regulator.

Some examples are Malaysia,UK and USASome examples are Malaysia,UK and USA

India had planned a converged regulator in India had planned a converged regulator in 2001 with technology neutral licensing and an 2001 with technology neutral licensing and an Appellate TribunalAppellate Tribunal

The Bill was a revolutionary effort to regulate all The Bill was a revolutionary effort to regulate all converged media/telecom even though it fell converged media/telecom even though it fell short of the Supreme Court directive of 1995 in short of the Supreme Court directive of 1995 in terms of setting up an independent autonomous terms of setting up an independent autonomous authority.authority.

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regulationregulation Today we do have a Universal Access Service Today we do have a Universal Access Service

Licence for 22 circles costing 1680 crores but Licence for 22 circles costing 1680 crores but many issues relating to content control and many issues relating to content control and level playing field between telecom and cable level playing field between telecom and cable need urgent settlementneed urgent settlement

TRAI has recently launched a series of TRAI has recently launched a series of consultations on IPTV/HITS/Mobile TVconsultations on IPTV/HITS/Mobile TV

The UASL license deserves a complete The UASL license deserves a complete overhaul as technology is always outstripping overhaul as technology is always outstripping any licensing regimeany licensing regime

The time has come to revive a Convergence The time has come to revive a Convergence Authority/Tribunal.Authority/Tribunal.

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regulationregulation The challenge for the immediate near The challenge for the immediate near

future is to create a level playing regulatory future is to create a level playing regulatory environment with clear cut ‘light’ environment with clear cut ‘light’ facilitative but transparent technology facilitative but transparent technology neutral consumer friendly regulationneutral consumer friendly regulation

This will enable both existing incumbents This will enable both existing incumbents and new entrants to compete equitably to and new entrants to compete equitably to provide all forms of content/services that provide all forms of content/services that appeals to individual customers rather than appeals to individual customers rather than mass bundled content to customers at mass bundled content to customers at attractive rates.attractive rates.

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regulationregulation In conclusion Indian media is on the cusp of In conclusion Indian media is on the cusp of

tectonic changes in the way customers will tectonic changes in the way customers will access video and gaming contentaccess video and gaming content

The current growth estimates show that this The current growth estimates show that this sector will easily double the annual GDP sector will easily double the annual GDP National growth figuresNational growth figures

The challenge lies in creating a legal and The challenge lies in creating a legal and regulatory framework enabling creation of a regulatory framework enabling creation of a viable business model while maximizing viable business model while maximizing consumer choice serving various demographic consumer choice serving various demographic and economic price points. and economic price points.

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Explosive Growth of Explosive Growth of MediaMedia

Thank YouThank You

Ashok MansukhaniPresident – Corporate Affairs

President

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Mr.Ashok Mansukhani