Convergence bill rakes up opposition from entertainment industry
The entertainment industry has stressed the need for its involvement in the formulation of the Communications Commiss
The entertainment industry has stressed the need for its involvement in the formulation of the Communications Commission of India (CCI), which is to be set up under the proposed Convergence Bill.
Top guns of the Indian entertainment industry strongly opposed the Bill, at the Confederation of Indian Industry‘s ICE Summit held in Kolkata recently. The bill, they said, will give the government sweeping powers to control the sector and shackle it.
The Bill, which is the government‘s response to the growing convergence of broadcasting, communications and information technology, proposes the establishment of the CCI, which will regulate both the carriage and content of the various forms of communication. The Bill gives unlimited powers and functions to the CCI, including management of the commercial uses of the frequency spectrum, licensing, tariff-setting, promotion of competition, protection of consumer interests, and formulation of programmes and advertising codes.
It will make the CCI the super regulator in the context of convergence of telecommunications, broadcasting, data communication, multi-media and other related technologies and services. A Spectrum Management Committee, headed by a cabinet secretary, will be set up under the proposed bill, to look after the frequency spectrum, and to make available for the CCI as much spectrum as possible. The Bill also proposes the establishment of a Communications Appellate Tribunal, which will entertain appeals of CCI decisions.
The bill will repeal five existing laws-The Indian Telegraph Act,1885, Cable TV Networks Act, 1995, Indian Wireless Telegraphy Act,1933, The Telegraph Wires (Unlawful Possession) Act, 1950 and the Telecom Regulatory Authority of India Act. Licenses will be provided to five categories: network infrastructure services, networking services, network application services, content application services, and value-added network application services.
However, the CCI would not work in an autonomous manner, as the bill provides for immense control of the government, says UTV Net Solutions CEO Biren Ghose. "The definition of a public service broadcaster was not clear in the bill, besides everything would be in the hands of the government." Another issue, which was raised at one of the ICE sessions was that the government would be the final authority in deciding the members of the CCI.
Says Ghose: "Another drawback is that there is no level playing field with DD, which as the official public broadcaster is given monopoly of terrestrial broadcasts. For more than a decade, the television industry has been its own rational self regulator with nothing against it, so what is the need for a super regulator today? And why should the government be the authority to decide what the content will be? "
Discussions at the summit also touched upon clause 29 of the proposed bill, which requires all agreements of broadcasters to be registered with the commission. "Agreements are confidential in nature, and no broadcaster would like to reveal the nature of the deal or revenue sharing arrangements reached with media partners, especially to a government organization. In revealing all this to a government body, one could as well publish everything in the papers, considering how accessible the Indian bureaucracy is," says Ghose.
Several participants at the summit lambasted the bill for favouring the government, which will have the right to intervene in the committee‘s functioning and the power to exempt anyone from licensing. For the rest, a license would be needed for practically any service, Ghose points out.
Among the industry‘s objections is the Bill‘s stipulation that the CCI follow all policies and other directives of the government, not allowing any real autonomy to the CCI. Speakers at the summit said that while there is total agreement that the government should have the full authority to determine spectrum management for defence and security, the rest of the spectrum should be allocated to the entertainment industry in a fair manner.
Ghose says a single body, the CCI, should be able to handle everything on its own and that there is no need for separate bodies. The industry has asked for appointments to be made to the CCI from among an open pool of competent persons and not from a panel of government secretaries, to bring in a sense of professionalism and competitiveness in the industry. The jurisdictional aspects of the CCI and the adjudicating officer are also vaguely defined and need to be clarified, industry sources say.
Says Ghose, "We are creating a Communication Convergence bill to change 200 years of legislation. Here is an opportunity for the government and the industry to reach a common proper framework; the industry‘s voice needs to be heard."
The Agrani satcom venture which is promoted by media baron Subhash Chandra is expected to close financially before the year is through, company officials say. Agrani corporate communications manager Ashish Kaul is also confident of the Rs 1,150-crore satellite project reaching the Rs 690-crore debt-financing target. There are only a few procedures which have to be followed. French satellite major Alcatel Space Industries will supply Agrani with a satellite worth $170 million. The satellite, with a life-span of 14 years, has 24 ?C? band and 14 ?ku? band transponders. For this, it has to get the re-export license for which Alcatel has already made an application to the US Congress. The license is needed because the components of the satellite which were made in the United States have to be re-exported here. Alcatel Spacecom will invest $15 million for a 9.75 per cent stake in Agrani Satellite Services Limited. Subhash Chandra and associates will hold a majority 51 per cent stake in the company. The Foreign Investment Promotion Board has given permission to ASSL to offload upto 74 per cent equity through the FDI route. Lenders for the project include IDBI and LIC. Agrani has received letters from them approving Rs 3.75 billion of loans, but the cash will be given at the time of the financial closure. In view of the Afghan conflict, however, it is difficult to estimate the time that Alacatel will take to get the license. |
It is happening again. Beleagured media major Zee Telefilms (ZTL) which has been under pressure for the last few months, is suddening gaining support - at least, on the bourse.
This time the rumour doing the rounds is that Zee‘s promoters have privately placed shares at Rs 185 with a foreign media major as against Thursday‘s closing price of Rs 118.40 on the Bombay Stock Exchange (BSE). The Zee stock had almost hit the upper circuit filter yesterday at Rs 125.40, before closing at Rs 118.
The company that is being quoted as the buyer is none other than AOL Time Warner, whom Zee is reportedly trying to rope in as a strategic partner. Talk within the company surfaced around a month and a half ago that AOL Time Warner was warming up to getting under the sheets with the network. At that time the ZTL share was trading at around Rs 71. Since then, the ZTL share has been steadily on the rise.
A ZTL press release earlier this week, however, denied the rumour of any such placement but reiterated that the promoters‘ decision announced in May 2001 to rope in a global media player as a strategic ally, is still on. ZTL has appointed investment bankers UBS Warburg as advisor in its search for a partner.
Media analysts, when contacted, say they did not believe any private placement had taken place as yet (at the time of writing), but suspect that someone is playing in the scrip.
The stock had earlier been on the decline, going down from Rs 270 at the beginning of the year, to Rs 86 on the day of its AGM in late September. The post AGM period saw the scrip hammered down to Rs 71 (9 October). The average volume, which was 10 million, came down to 4 million. But the scrip has turned around since. Today, the scrip had climbed by 4 per cent and was trading at Rs 121.
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