| From the desk
of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address: 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India. |
| Volume: XVII |  |
August, 2008 |
In these hyper charged times where news comes in as fast as it becomes
outdated, we need a source that can keep track of what matters to us. At
ZenithOptimedia we have created Wavelength to apprise all of us of the happenings
in three areas i.e. 1. Trends in Digital, Retail, OOH, Consumers and
the International Advertising 2. Media & Advertising Research 3. Environment
Also included here are innovations and news that ZenithOptimedia is making
across its network globally, under three sections 1. ZO Zone 2. Fast Forward
3. Touchpoints.
Simply click on any of the sections on our snazzy control panel and you
will have the latest updates at your fingertips. Wavelength will reach you
in the first week of every month so that you have information that leads
to insights.
Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions
and comments.
Environment Watch: Advertising & Media
Regulation
16. Internet telephony opens wide avenues for India – Aug 18
TRAI has
recommended the complete opening up of Internet telephony in India. This
would mean that the internet service providers (ISPs) offer unrestricted
internet telephony services, a move that will further boost competition in
the domestic long distance telephonic calls segment. TRAI is envisaging that
this will prove to be beneficial for the customers, as it would be more cost
effective. The ISPs have been permitted to provide unrestricted internet
telephony which means they can terminate internet telephony calls on PSTN
(public switched telecom network) and vice-versa. TRAI has recommended the
national long distance (NLD) operators to connect to ISPs through public
internet (internet cloud) for unrestricted internet telephony. The move
will permit calls from personal computers to fixed line and mobile phones.
Currently, a voice call can travel between two computers but not from a
mobile or a fixed phone. This is expected to open huge channels of revenues
for ISPs.
Source:
Indiantelevision
17. Government’s approval of the 3G spectrum spells hope for subscribers – Aug 01
Unveiling
its policy on 3G, the government allowed overseas players to bid for the 3G
spectrum.
The floor
price has been set at Rs 20.20 bn for pan India 3G auctions. With the
introduction of these services, the quality of voice telephony will be
improved as the 3G spectrum would enable service providers to provide
quality services to a larger number of subscribers. Further, additional
value added services will become widely available to the public. It will
facilitate availability of e-governance services such as tele-medicine,
e-medicine, e-ticketing and e-education through broadband to the large
section of rural population.
Source:
Indiantelevision
TV
18. TAM rolled out weekly digital TV viewing data – Aug 27
Television
ratings agency TAM rolled out weekly digital TV viewing data, filling a gap
in the industry that was expected to have a combine of nine million
direct-to-home (DTH) and digital cable TV subscribers by 2008-end.
This has
enabled broadcasters
to
monetise their upscale viewers. Television channels who did not find prime
space on analogue cable also benefited, as preliminary data from TAM showed
that their viewership is higher in digital platforms than what is being
captured from the rating system's regular format.
Source:
Indiantelevision
Radio
19. FM becomes more interactive – July 28
In an
attempt to establish an enhanced interactive level with the audience, FM
stations have now opted for a phenomenon known as “outdoor broadcasting”,
with RJs moving out of radio stations to interact with the audiences.
Outdoor broadcasting has
now become an integral part of the programming of practically every radio
station in the country. According to advertisers, outdoor broadcasting
increases brand recall, which is certainly a deciding factor for radio
stations, in these days of clutter and identical content. Besides, FM
radio jockeys are semi-celebrities and such initiatives provide them an
opportunity to interact with the listeners and further boost their
popularity.
Source: Agencyfaqs
This tracker has been compiled from external sources and
does not necessarily reflect the views of the company.
Links provided will take you to the full articles appended at the end of
the file.
© 2008 Zenith Optimedia.
Full Articles
16. TRAI allows Internet telephony
Indiantelevision
August 18, 2008
The Telecom regulatory authority of India (TRAI) has recommended complete opening up of Internet telephony in India. As per the recommendations, TRAI wants internet service providers (ISPs) to offer unrestricted internet telephony services, a move that will further boost competition in the domestic long distance segment.
TRAI said, "It is envisaged that customers will ultimately benefit from cost effective and innovative internet telephony service. These recommendations will put Indian telecom sector in tune with global trends. The grey market tendencies shall be curtailed."
The ISPs have been permitted to provide unrestricted Internet telephony which means they can terminate Internet telephony calls on PSTN (public switched telecom network) and vice-versa. TRAI has recommended the national long distance (NLD) operators to connect to ISPs through public Internet (Internet cloud) for unrestricted Internet telephony. But for that to take place, ISPs and NLDs will have to thrash out mutual agreements for unrestricted Internet telephony, said TRAI.
The move will permit calls from personal computers to fixed line and mobile phones. Currently, a voice call can travel between two computers but not from a mobile or a fixed phone. This is expected to open huge channels of revenues for ISPs. NLD shall make suitable commercial and technical arrangements with access providers i.e PSTN/PLMN (public landline and mobile network lines) for unrestricted Internet telephony, said the regulator in a statement.
However, there will be no change in the existing IUC regime. According to TRAI, TEC (Telecommunication Engineering Centre) will identify distinct number resources for Internet telephony subscribers. Telephone numbers from the identified blocks will be allocated to ISPs, UASPs (unified access service providers), BSOs (basic service operators) and CMSPs (cellular mobile service providers) for Internet telephony.
Even as the regulator emphasized that overall licensing framework has been protected while permitting unrestricted Internet telephony to ISPs, the decision is likely to cause rancor among the existing telcos while bringing a huge cheer to the handful surviving standalone ISPs. With a view to make internet telephony secure, all ISPs interested to provide unrestricted internet telephony would install "Lawful Interception" equipments.
The telecom regulator stressed that it had given due importance to ensure the level playing field among various service providers, interconnection mechanism, inter-connect usage charges (IUC), and other important issues such as numbering, lawful interception, emergency number dialing, inter-operability and quality of service.
"Our subscribers are denied advanced value-added services in contrast to global scenario where such Internet-based services are popular. ISPs are not permitted to provide unrestricted Internet Telephony though they have IP-based infrastructure. Such regulatory restrictions discourage technological advancements and result is grey market activities to provide these services to common masses," TRAI said.
However, emergency number dialing has not been mandated to ISPs. Also, all ISPs interested in providing unrestricted Internet telephony will have to invest in installing lawful interception equipment. Besides, TRAI has not, at this point, mandated quality of service (QoS) norms for unrestricted Internet telephony.
Industry body NASSCOM has welcomed the TRAI's recommendations. "Voice transmission over internet was permitted 'from PC to PC’ and 'from PC to a phone' internationally. As a direct implication, this move will now allow voice transmission over internet for a ‘PC to phone in India’, which will benefit the BPO industry to a large extent," says an official release.
17. Govt allows foreign players for 3G spectrum
Indiantelevision
August 01, 2008
The government has allowed overseas players to bid for 3G spectrum. Unveiling its policy on 3G, the government has also said that five players would initially be permitted per circle for 3G rollout. The floor price has been set at Rs 20.20 bn for pan India 3G auctions.
The reserve price for a 2x5 MHz block of spectrum for Mumbai, Delhi Metro and Category ‘A’ cities would be Rs 1.60 billion, which is twice the price recommended by the Telecom Regulatory Authority of India.
Announcing the detailed guidelines for 3G and BWA (Broadband Wireless Access) services laying down the road map for rolling out these services in the country, Communications and Information Technology Minister A Raja said the price for Kolkata Metro and Category ‘B’ would be Rs 800 million while for ‘C’ service areas shall be Rs 300 million.
The Minister said the 3G spectrum would be allocated through a simultaneous, ascending e-auction process, which shall be conducted by a specialized agency. A separate auction would be done for each telecom service area. The announcement was made at a press conference here in the presence of Minister of State Jyotiraditya M. Scindia.
With the introduction of these services, the quality of voice telephony will be improved as 3G spectrum would enable service providers to provide good quality services to a larger number of subscribers. Further, additional value added services will become widely available to the public. BWA services will ensure quick roll out and enhanced penetration of broadband especially in rural areas, where there is problem of last mile connectivity. It will facilitate availability of e-governance services like tele-medicine, e-medicine, e-ticketing, e-education etc, through broadband to the large section of rural population. Auctioning of 3G and
Broadband spectrum will be done through e- auctioning by a specialized agency separately. New players would also be able to bid thus leading to technology innovation, more competition, faster roll out and ultimately greater choice for customers at competitive tariffs.
No annual spectrum charge shall be payable for 3G Telecom services in the first year from the date of allotment of spectrum. The licensee will have to pay annual spectrum charge of 1 per cent of AGR after a period of one year. There will be roll out obligations to avoid spectrum hoarding. If licensee does not achieve its roll out obligations, it shall be given one year to comply on payment of 2.5 per cent of its successful auction bid (i.e. spectrum acquisition price) per quarter or part thereof. If licensee does not complete its roll out obligations even within this one-year, the spectrum assignment shall stand withdrawn.
Spectrum for the 3G Policy will be auctioned in blocks of 2x5 MHz in 2.1 GHz band (1920-1980 MHz paired with 2110-2170 MHz).
The number of blocks to be auctioned would vary subject to the availability of spectrum in different telecom service areas. In exceptional cases of non-availability, the number of blocks may be less than 5 in a telecom service area. The actual number of blocks to be auctioned in each telecom service area will be announced well before the auction.
In the 450 MHz band, in 800 MHz band for EVDO services and in 1900 MHz band (1900 – 1910 paired with 1980-1990 MHz) shall be auctioned when it becomes available. UASL CDMA telecom service providers may have the option to seek 2x1.25 MHz in 800 MHz band subject to availability at a price equivalent to the highest winning bid in 2.1 GHz auction prorated to a per 2x1.25 MHz price.
The seniority for allotment shall be the subscriber base in a telecom service area. One block shall be allocated to MTNL in Delhi and Mumbai/Metro service Areas and BSNL in other Service Areas at a price equal to the highest bid in the respective service area. The BW licenses would be granted through an e-auction, process, which shall be conducted by a specialized agency. Auction of 3G and BWA services would be done separately.
Any person who holds a UAS license or who fulfils the eligibility criteria for obtaining a Unified Access Service License (UASL) under the Department of Telecommunications guidelines of 14 December, 2005, and has previous experience of running 3G telecom services can bid for 3G spectrum.
With regard to the BWA guidelines, the government said The BW licenses would be granted through an e-auction, process, which shall be conducted by a specialized agency. Auction of 3G and BWA services would be done separately.
Any person who holds a UAS license or any person who fulfils the criteria for obtaining a UAS license according to the DoT guidelines of 14 December 2005 and has previous experience; apart from ‘A’ and ‘B’ category Internet Service Providers (ISPs) can participate in the auction.
Spectrum shall be auctioned in the 2.5 GHz, and 2.3 GHz bands for data services. Each successful bidder can get 20 MHz in 2.3 and 2.5 GHz bands in a telecom service area. The number of blocks shall be two in 2.3 GHz band and two in 2.5 GHz band. The reserve price per MHz in 2.3 GHz and 2.5 GHz bands shall be 25% of the 3G reserve price. Spectrum in 700 MHz and 3.3-3.6 GHz bands shall be auctioned as and when it becomes available.
FICCI welcomed the 3G auction policy as a positive step and said these auctions will be watched by investors all over in terms of addressing of many years of controversies in license and spectrum allocation.
This would also provide
help for building of a Greenfield pan -India state-of-the-art communications
infrastructure and services in the country and bring in fresh investments to
the tune of $8–10 billion over the next 2-3 years. FICCI President Rajeev
Chandrashekhar said the 3G policy and auction guidelines would allow for an
open, global and transparent auction process consistent with international
best practices.
18. Tam rolls out digital TV viewing data
Indiantelevision
August 27, 2008
Television ratings agency Tam is rolling out weekly digital TV viewing data from today, filling a gap in the industry that is expected to have a combine of nine million direct-to-home (DTH) and digital cable TV subscribers by 2008-end.
Broadcasters, particularly in the niche genres, will be able to monetize their upscale viewers better with the data drawn from a larger panel of a growing digital universe. Television channels who do not find prime space on analogue cable also stand to benefit, as preliminary data from Tam shows that their viewership is higher in digital platforms than what is being captured from the rating system's regular format.
"With digital riding high in many markets across India, measuring and reporting that data at a national level to the industry was the immediate task at hand. After careful study and quality check processes, starting this week, we will now start delivering the digital viewing data along with the regular weekly data.
The last two years of measuring and studying digital TV viewing has been an interesting learning curve. Ever since we deployed TVMS Digital People meter (in Tam elite panel) and started generating digital TV viewing data from January 2007 onwards, some very interesting viewing differences started emerging," said Tam Media Research senior VP Pradeep Hejmadi.
The digital penetration in the CAS (conditional access system) belt is steadily rising. Out of the 1.63 million cable and satellite (C&S) homes in the CAS region, 38 per cent (640000) had moved to digital by 2007-end. In February of last year, 29 per cent (475000) of the CAS homes had stayed digital.
"Mumbai with 50 per cent has the highest digital penetration. The digital viewer also watches more channels and spends 20 per cent more time (186 minutes per day) than the analogue counterpart. Digitalization is also leading to greater fragmentation as 80 per cent TV viewing is coming from 10 per cent more channels," said
Digitalization, however, has to address three issues. "The individual or bouquet of pay channels pricing was not received well by audiences. The value added services, such as video-on-demand and interactivity, weren’t used frequently due to lack of education.
The quickness in service is also a crying need," said Krishnan. Tam is working on the STB return path data technology and hopes to launch it first in Mumbai. The sample size will be 10,000.
DTH scores over digital cable
Early Tam findings show that DTH is growing more rapidly than digital cable. While digital cable has deployed 1.3 million set-top boxes (till August 2007), DTH has jumped to 6.5 million subscribers (from 2.3 million in April 2006).
In urban India, DTH and digital cable have individually mopped up 0.9 million subscribers. But in the rural belt, DTH has a higher share with 5.6 million subscribers. Digital cable, on the other hand, has 0.4 million subscribers.
"We are seeing a trend where in rural India terrestrial homes are moving on to DTH. In urban areas, cable has given away to DTH," said Hejmadi.
DTH has grown across urban and rural markets while digital cable is seeing upsurge mainly in the CAS areas. "Four states account for 52 per cent of the DTH homes. In Maharshtra, DTH and digital cable have grown. But in Gujarat, cable is taken over by DTH. Another trend is that while many cable STB homes had moved to DTH, the reverse has not been true," Hejmadi said.
Digitalization to drive growth
The stakeholders across the value chain see huge growth potential in digitalization. "Digital measurement will enable us to monetize better. It will expand the business for broadcasters and they will be in a position to pay more for content," said INX Media chairman Peter Mukerjea.
Speaking at a panel discussion on "Conquering the digital frontier," Mukerjea said digitalization would make it possible for niche English channels to build business models around digital platforms. Zee's international business head Bharat Ranga emphasized on the need to up the subscription and advertising pricing. "There are lessons to be learnt from abroad. The players here have to be clear about which channels are going to be free and which pay," he said while speaking at Blink, Tam's annual educative initiative.
Star India’s Paritosh Joshi warned that it is premature to draw a cause and effect at this stage based on numbers. The industry has painted itself into a corner on the pricing issue, he added. Digicable Network (India) MD and CEO Jagjit Singh Kohli felt it would be premature to compare DTH with digital cable at this stage. "There are 5000 head ends in the country and the digital revolution has just begun,” he said.
Hathway Cable & Datacom MD and CEO K Jayaraman noted that the advent of DTH would add to consolidation in the cable sector. "The MSOs are not just buying analogue operators but are interested in digitalizing the entire business. Even in non CAS areas, the progressive MSOs are pushing STBs at just Rs 500."
Private equity funds are
getting attracted to the cable sector because of digitalization. "The MSOs
have received an investment of $400 -$500 million in form of private equity
and debt. Digitalization is the obvious attraction for them," said
Jayaraman.
19. FM radio stations win by offering a face to the voice
Agencyfaqs
July 28, 2008
Remember Jaggu, Pintu, Chunnu, Munnu, Chintu, Mintu and family from Jhumri Tallaiya? The radio jockey (then called the announcer) often announced these names as those desirous of hearing a particular song and read out their letters. In fact, till a few years ago, this was the only interaction between the radio jockey and his listeners.
Then came phone-ins, followed by emails and SMSes. However, there never was a face to the radio jockey (RJ) and listeners often wondered what their favorite RJ looked like. But not any more. RJs are now moving out of the studio to interact with listeners. In countries such as South Africa and the US, the trend of outdoor broadcasting is quite popular. But here in India, the trend is just catching on.
Radio Mirchi, one of the first private FM stations in the country, adopted the concept of outdoor broadcasting in 2001, but these were just one-off initiatives. Outdoor broadcasting has now become an integral part of the programming of practically every radio station in the country. Recently, during the Delhi University admissions, Radio Mirchi took Volvo buses around the campuses, counseling students and addressing their doubts and queries. Radio One’s College Radio show has been hosted from the city’s college campuses for some time now by its popular RJ, Rahul.
Outdoor broadcasting increases brand recall, which is certainly a deciding factor for radio stations in these days of clutter and identical content. Besides, FM radio jockeys are semi celebrities and such initiatives provide them an opportunity to interact with the listeners and further boost their popularity.
Tapas Sen, chief programming officer, Radio Mirchi believes that outdoor broadcasting has more to do with connecting listeners to the brand or radio station than with the RJ. But the popularity element can't be ruled out completely. RJs have a large fan following and often play a crucial role in building loyalty for the radio station among listeners.
A senior programming executive for a radio station says, “There are certain shows on radio in which the listener has intimate discussions with the radio jockey on personal issues. Such interactions help increase the trust factor with radio jockeys.”
The initiatives seem to be working for the radio stations, but the fact is that increasing brand recall and trust in RJs is just a by-product; more importantly, the radio stations are making serious money from these initiatives.
Radio Mirchi's programme, Brand on Streets (BOS), has the RJs going out to malls and residential societies in Mumbai and Delhi for breakfast meets. These breakfasts are sponsored by FMCG brands, which is a great opportunity for brand activation.
At times, special programmes are planned for advertisers. Fever 104 tied up with Nepal Tourism and the station's RJ, Lokesh, went to Nepal for live broadcast of its morning show, Balle Balle in Nepal. Lokesh visited Kathmandu, Bhakatpur and Gokarma, flew over Mount Everest and participated in adventure sports such as bungee jumping and rappelling up a mountain through a waterfall. He interviewed people on the streets of Nepal and even attended a Nepali wedding.
Gowri Satyamoorthy Kapre, national head, marketing and promotions, Fever 104, defines the Nepal initiative as an endeavor to create engaging content. Kapre says Fever is looking forward to more such opportunities to interact with listeners in an innovative manner. Such initiatives seem to work wonders for the advertisers, too. For instance, Radio City had done some brand activations in Garuda Mall in Bengaluru and City Centre Mall in Hyderabad.
Entire studios were set up for a month, which allowed listeners to experience how a radio station functions. Listeners were also allowed on air with the RJs. As a result, both malls saw a major increase in footfalls. Recently, Cadbury launched a new version of its popular brand, Eclairs, with the tagline 'Slow, Slow Mazze Lo'. Radio City did a spoof of the TV reality show, Indian Idol (Slow Mix Idol), to promote the brand. In the spoof, the RJs went out on the streets and made people sing songs slowly, but perfectly.
Such initiatives are being extended across categories and movie marketing is one of them. Radio One recently did a promotion for the soon to be released movie, Ugly Aur Pagli, in Mumbai. It chose 60 listeners from a contest to meet the film’s stars, Mallika Sherawat and Ranvir Shorey.
Raj Gopal Iyer, station head, West, Radio One, says, “OB is an experiential platform for both the stations and the listeners. It is also an experiential platform for brands to reach out to a wider audience.” Iyer feels that radio, which was an aloof medium, is getting “two-way” now. Radio executives feel that such initiatives allow them to score over their richer cousin, television. “Radio is a local medium and, with such initiatives, one can turn this quality in its favor,” says Iyer.
Television has a national reach, so local events are not featured too often on it. But radio, which is a local medium, talks to listeners in the local lingo and they can relate to it easily. And that is what radio seems to be cashing in on.