IPTV: To Be or Not to Be

The Indian governments guidelines for Internet Protocol on Television (IPTV)
in the country, allowing telecom operators, Internet Service Providers (ISPs)
and cable operators to offer the service have come as relief not only to the
service providers, but also to customers. Customers will now have more choice
and that too at a cost not more than the cost of DTH or cable connection.

IPTV is television content delivered through broadband Internet rather than
the traditional wiring or satellite dishes. Mostly, IPTV is bundled with
Internet access services. Trai had submitted its recommendations for IPTV to the
information & broadcasting ministry few months back, and it was till now pending
approval from the government. The new guidelines provide a framework within
which service providers will have to operate.

The union cabinet has approved necessary changes in Indias downlinking
policy for broadcasters, enabling them to provide content to providers of
television services delivered via the Internet. Earlier, under the norms,
broadcasters were only to offer their channels for cable and direct-to-home
platforms. Experts believe this amendment has cleared the way for yet another
digital transmission technology for TV signals.

This will benefit IPTV service providers, as they can now receive content
directly from broadcasters and deliver it straight to consumers using computer
network technology rather than traditional satellite or terrestrial signals.

Trai had recommended higher FDI cap of 74% for the IPTV sector, compared to
the FDI cap of 49% in the cable sector, a move that will open the doors for
foreign investments in the sector. The new policy stipulates that foreign direct
investments to players who provide IPTV services will continue to remain as per
the existing structure.

According to the guidelines, telecom access service providers with licence to
provide triple-play services and ISPs and with net worth of more than Rs 100
crore, will be able to provide IPTV service under their licences without
requiring any further registration. They also need to be armed with permission
from the licensor to provide IPTV or any other telecom services duly authorized
by DoT

The guidelines also say that cable TV operators registered under Cable
Television Network Regulation Act, 1995 can also provide IPTV services without
any further permission.

However, telecom licencees and cable operators would be required to give
self-certified declaration to the I&B ministry, DoT and Trai indicating the
detail of license or registration under which they propose to offer IPTV
service. The date of commencement of the service, the area being covered and
details of network infrastructure will also have to be included in the
declaration. This may be a reason for the cable operators to celebrate, but
according to reports so far, no cable operator has announced its intention to
launch IPTV services.

The guidelines have also invited criticism from ISPs Association of India (ISPAI),
which has questioned the rationale of putting the net worth condition only for
the ISPs. ISPAI argues that when cable operators have been allowed without any
net worth criteria, then why are ISPs subjected to Rs 100-crore net worth, a
limit which most of them cannot meet.

Interestingly, the service allows access to interactive content on what will
be a two-way link, enabling services such as Video-on-demand, time shift TV,
group gaming and interactive advertising. They will be able to access all the
past and present television shows at the touch of a button.

With so many options available. IPTV is likely to become popular. Industry
experts say Indias 40 mn landline connections, which can deliver IPTV ensured a
bright future for the service.

Heena Jhingan

heenaj@cybermedia.co.in