The broadcasting of television services – channels to the public has undergone remarkable technological advancement with such services being directed and delivered straight to the homes of the end users/ consumers. In India, the satellite broadcasting TV services are primarily made available through several distribution platforms viz., Cable TV, Internet Protocol Television (IPTV), Direct-to-Home (DTH), and Headend-inthe-Sky (HITS) networks.
In order to be able to make available the content delivered over the satellite TV channels to the ultimate consumers, the broadcasters are required to interact with the Distribution Platform Operators (DPOs) being Multi System Operators (MSOs), IPTV operators, DTH operators and HITS operators and then via Local Cable Operators (LCOs) for providing digital TV services. The flowchart at Illustration 1, illustrates how these entities interact with one another.
As on 30th June 2020, in India, there are 1666 MSOs, 4 DTH operators and 1 HITS operator for broadcasting a total of 332 pay TV channels which were permitted for downlinking for more than 70 million active subscribers. Typically, DPOs are required to set up their complex infrastructure and obtain requisite licenses and permissions thereto for downlinking of TV signals from the broadcasters’ satellites and then further encrypting it for being transmitted to consumers through cables, antennas and/or dishes.
It was realised that since most of the content/TV channels re-transmitted by these operators were common, the possibility of better utilization of the existing infrastructure could be explored. Subsequently, the Ministry of Information & Broadcasting (MIB), after consultation with Telecom Regulatory Authority of India (TRAI) decided to amend the existing ‘Headend-in-theSky (HITS) Guidelines for Broadcasting Service in India’ dated 26.11.2009 (“HITS Guidelines”), for introduction of guidelines for Sharing of infrastructure by HITS operator (para 16 and 17) by passing an order dated 06.11.2020 (“MIB Order”). The present article discusses these recent guidelines for infrastructure sharing in HITS technology, its possible impact on broadcasting and digital network services in India and the legal approvals and pre-requisites to be fulfilled before initiating infrastructure sharing between operators.
The discussions around the scope for optimum utilization of available infrastructure started in May 2016 when TRAI came up with a PreConsultation Paper for examining technical and commercial issues in sharing of infrastructure such as satellite transponders, Earth Station facilities, Headend facilities and optical fiber networks. It was identified that, for enabling infrastructure sharing, modifications in the existing policy guidelines for various platforms are imminent.
Prior to this, as per licensing conditions, each DPO was required to establish and maintain its own infrastructure for distribution of TV channels/services to subscribers subjectively leading to inefficient use of resources. The joint utilization of resources, infrastructure has proven to be beneficial across instances where telecom companies share towers, antennas, spectrum, etc., resulting in reduced cost of operations, the effect of which is likely to trickle down to the consumers in a competitive market.
To better understand the renewed scope of the HITS Guidelines, it is vital to examine the process used by HITS operators while interacting with other DPOs. Amongst all DPOs, HITS is the most recent recognised mode of distribution technology. It is a distribution and transmission technology that enables multiple pay channels to be downlinked from broadcasters’ satellites at a central facility (hub/teleport). This downlinked content/ channels are then, on encryption, uplinked it to the HITS’ operators satellite for retransmission/ distribution through MSOs/LCOs to customers’ television homes, who can view these pay channels by using their set-top box. As compared to other DPOs, HITS provides digitally compressed programming via satellite with a uniform encryption system using a single headend server in the sky/cloud.
The MIB Order revising the existing HITS Guidelines has opened gateway for HITS operators to provide infrastructure sharing facilities to other DPOs. This will allow the operators to avoid setting up the elaborate infrastructure for broadcasting TV content and the operators can simply contract with HITS operators for downlinking the aggregated channels of the broadcasters to their HITS satellite. It is widely known that this sector requires heavy investment in terms of the infrastructure that is sought to be erected, as well as in terms of the compliance costs that are involved. The compliance costs would also mean to include any costs expended towards any import of equipment, the licenses required for maintenance, testing, working and implementation. It is presumed that where a particular DPO sets up their own installations for their purposes, the same infrastructure to the extent possible could be realigned, configured to be used by other DPOs in the ecosystem, without having to duplicate the resources which are vested in achieving a similar objective.
While the MIB has permitted flexible sharing of platform infrastructure, there are certain pre-requisites/ licenses that must be complied with before DPOs can share infrastructure with a view to ensure that encryption of signals, addressability and liabilities are not compromised. The MIB Order has clarified that the sharing is limited to Indian controlled satellites only and the MSOs must have valid written interconnection agreement with the concerned broadcasters for distribution of Pay TV channels to the subscribers. Subsequently, the new applicant(s) and existing licensee(s) have to jointly submit a detailed proposal to the MIB chalking down the following:
It is clarified that for sharing Indian satellite resources and up-linking infrastructure, written permissions of DoS, MIB and WPC and NOCC-DoT are prerequisites. Pertinently, sharing is only limited to infrastructure but not accountability, as each respective HITS operator, MSO/cable operator will be individually responsible and accountable for integrity and security of the data with respect to Conditional Access System (CAS) and Subscriber Management System (SMS) pertaining to the respective operator. For all practical purposes, the broadcaster, MSO/LCO and the HITS operator may enter a joint / tripartite contract for ensuring that the above compliance has been made. In other words, this paradigm of operation extends only to the utilization of common resources and does not allow the engaging entities to rely upon one another’s licences.
In our view, these guidelines i.e., MIB Order will bring a paradigm shift in the way broadcasting signals have traditionally been transmitted by DPOs by reducing the imminent need for satellites and cable wires for transmission. It will also help decrease the divide between urban and rural transmission of digitised broadcasting signals as more and more DPOs and cable operators may join the market, which prospect was earlier dreaded by many owing to the elaborate input cost.
It is expected that that these guidelines for infrastructure sharing in HITS platform will not only change the way DPOs function in India but will also encourage stakeholders for sharing infrastructure and other input resources for other services as well. Primarily, pursuant to sharing of infrastructure, requirement for heavy investment by other DPOs and cable operators will be cut down and now other DPOs will merely have to equip homes with set-top boxes and continue to act as operators, rather than opting to be franchisee.
It is expected that in a competitive market, a distinct advantage of infrastructure sharing is that the benefits, in the form of reduction in both capital and operating expenditure of operators will ultimately be passed on to the subscribers in the long run. This may also witness in fostering growth amongst the domestic players, especially in the face of such extreme reliance on foreign players as is prevalent now.
The sharing of infrastructure technology by HITS operators will allow a faster and more convenient system of distribution of broadcasting signals across vast networks, especially since multiple broadcasters will be able to transmit their content to a single HITS operator, who in turn, downlinks, encrypts and forwards these signals to MSOs and LCOs, providing alternate means to traditional modes of service providers such as DTH.
In addition to the economic and environmental benefits such as reduced duplication of radiations, optimisation of resources, etc., the encouragement of sharing will promote improved service network quality and innovation by operators rather than spending time on core operations and services. Further, since the market competition can reasonably be expected to enhance, the choice of network service provider for the customers will also improve enabling a larger outreach and more consumer-friendly prices. Additionally, from a governance standpoint even though there is a requirement for separate licenses to be sought from the concerned authorities, departments and ministries, the efforts that are made by the authorities in analyzing the efficacy of the infrastructure will not have to be duplicated for entities operating over a common infrastructure. It is a scenario where the compliance costs are not decreased drastically, but where the expectancy / chances of compliance being met with, are increased for a shared resource.
Since the Indian market is migrating to digital transmission and systems like HITS which offer cost-effective highquality signals, the MIB Order passed in consultation with TRAI is seen to be a real boon to the end-users. The existing Guidelines along with the MIB Order dated 06.11.2020 have been formulated keeping in mind the long-term potential that lies ahead if the right policies are devised about infrastructure sharing. These guidelines will cover distribution of channels of multiple broadcasters through a single source streamed through satellite to the cable operators and thereby enabling expansion of the digital content services industry. The sharing of infrastructure of HITS operators for content distribution will certainly enhance the overall customer experience and the ultimate goal of digitalization of cable television across the country also seems closer.
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