TRAI to deactivate cable TV services from today; MSOs default entertainment duty

Non-submission of CAF: TRAI to deactivate cable TV services from today

* Extended deadline for submission of Consumer Application Forms ends today

Staff Reporter
If your local cable operator (LCO) did not get Consumer Application Form (CAF) filled up from you and submit the same to the Revenue Department, your television set may go blank as set top box (STB) at your household will be disabled from Wednesday.
Telecom Regulatory Authority of India (TRAI), which had extended the deadline for submission of CAF from June 25 to July 10, will deactivate cable TV services on expiry of extended deadline today. According to S G Gautam, Deputy Commissioner (Entertainment Duty), TRAI will deactivate services of multi-system operators (MSOs) who did not submit CAF. ‘The Hitavada’ had first published the report in this regard on June 12, when TRAI had first issued the directive with June 25 as deadline.
As per the TRAI directive, it was made mandatory for all cable TV subscribers to submit CAF to respective to cable operator/multi-system operator (MSO). CAF must carry all required details including choice of channels/services. However, LCOs in most of the areas of the city did not make available CAF to consumers. MSOs also did not show keen interest in getting CAF filled up from consumers through LCOs.
As the CAF required information about consumer, STB number, proof of identity and residence of consumer, etc, cable operators feared that exact number of consumers and STBs installed would be available to the Revenue Department. Accordingly, they would have to pay entertainment duty to the Government. Besides, the broadcasters also would have to be paid requisite amount as per the record generated after compilation of CAF data. Currently, LCOs are telling consumers in many areas that there is no need to worry as TRAI will extend the deadline again.
However, according to Gautam, TRAI has ruled out any further extension of the deadline. “If cable TV services are deactivated, the MSOs will be responsible for the same,” he stated in an official press release issued here on Tuesday. Services will be restored only after submission of duly filled in CAF, with all relevant proofs attached to the same. The details in CAF will be incorporated in subscriber management system of respective MSO. TRAI has taken this decision as it observed that ‘there is substantial pendency with respect to the availability of complete consumer details with the cable operators/MSOs’.
TRAI has directed MSOs in cities including Nagpur to strictly ensure that cable TV services are provided only to subscribers whose complete details have been incorporated in their subscriber management system. The broadcasters and cable TV service providers have been running scrolls on TV channels for last few months asking subscribers to submit duly filled in CAF.

MSOs default entertainment duty

* MSOs in city have not paid entertainment duty to the tune of Rs 5.87 crore since digitisation of cable TV

Staff Reporter
Shocking information has come to fore that the cable television multi-system operators (MSOs) have not paid entertainment duty to the tune of Rs 5,87,22,300 since digitisation of cable TV from April 1. The administration had issued notices to these MSOs, but to no avail so far.
According to Revenue Department sources, there were a total of 88,000 cable TV connections reported by MSOs prior to digitisation of cable TV services. However, as the data regarding installation of set top box (STB) started coming in, the number of reported cable TV connections in the city rose tremendously. As on date, there are 4,34,980 STBs installed in Nagpur city alone. Apart from this, there are 13,205 cable TV connections in rural areas.
There are four MSOs in Nagpur district. These include UCN, BCN, InCable, and GTPL. As per the Government norms, they were required to pay Rs 45 per month as entertainment duty per STB. If one considers total number of STBs installed in the city, MSOs were required to pay Rs 1,95,74,100 as entertainment duty per month. They were asked to abide by Telecom Regulatory Authority of India (TRAI) norms that mandated them to make the payment of entertainment duty to the Government by 10th date of every month. However, since April 1, it is over three months and MSOs have not paid entertainment duty to the tune of Rs 5,87,22,300 so far.
The administration sent notices to MSOs for payment of entertainment duty. However, an official, MSOs did not respond to notices so far.

-------------------------------------------------------------------------
MSOs     Cable TV connections     Tax (per month)
                      City     Rural    
-------------------------------------------------------------------------
UCN        2,60,000      5,000             Rs 1,17,00,000
BCN           46,521         205             Rs 20,93,445
InCable      85,459           --               Rs 38,45,655
GTPL         43,000      8,000              Rs 19,35,000
-------------------------------------------------------------------------
Total         4,34,980    13,205             Rs 1,95,74,100
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