[Archive Blog (02/09/15)] Digital India without Internet ?

Days after Days we’re going far away from proper Internet connectivity and costly plans will corner us one day from Internet. Don’t know how many blogs I will able to write in near future but that for sure rather then spending on Internet one day I have to take a virtual world retirement.

2 days ago 2 big duos Airtel and Idea increased the prices in 3G postpaid plans, its now increased by Rs. 50 and new package price is Rs. 300 for 1 GB earlier it was Rs. 250 for 1 GB. If we get proper speed and connectivity then we can able to consume it maximum in 2 hours so for ex. if I count 12 hours per day then 300 x 12 = Rs. 3600 means for Fresher their 1/3rd salary will goes to buy 1 day’s 3G need.

If some expert say then goes towards Broadband then don’t think it’s a easiest way to become internet friendly because first you needs to pay a big signing amount (Deposit) then also its not a guarantee you will get a good economical plan anyway if not then FUP (Fair Usage Policy) will become a villian and throttle your speed like you’re using Internet for free.

Big telecos was advocating Net Neutrality and tries to prove that this will help everyone to reach towards internet or basic internet will be free. But why these companies can’t realize that we’re using basic internet only on their assigned plans and we’re not gaining anything extraordinary by subscribing it.

Many Foreign based report comes that we need some rest from internet, too much internet or addiction will make us sick but don’t worry genius our Telecos are already helping us since many years we’re buying data packs of 28 days for the month of 30 and 31 days means off for 2 – 3 days in a month.

I won’t be surprise if Telecos will bring blackout day in Data packs too in near future, means Saturday or most probably Sunday will be out from data validity because weekends are the most busy day regarding Internet is a concern so let create a new rule to generate revenue and also hide from the infrastructure failure because weekend is the most we face trouble in the connectivity.

But if Telecos gonna restrict something then Internet giants will bring something innovatory and when those become popular then Telecos will goes to Govt. Agencies. Telecos restricted SMS packs in the festival days as they want revenues from it and defined it as “Blackout Day” so that no SMS pack will work. People moved towards Messenger apps then also Telecos having problem, Why so ? we need Data packs to use it then how people having advantage ?

TRAI restricted SMS count upto 100 per day to counterpart Telly Marketing and other Spam related messages but restricting SMS are really benefiting us ? No not at all infact they’re now active in other Messenger apps busy selling their product there and by restricting Messengers also will not help.

Biggest reasons Telecos are giving is infrastructure cost means before infrastructure was available for free when we used to get cheap data packs during UPA days ? Or Telecos took a loan to buy them ? I agrees that spectrum cost reached towards the sky then what was before but they already had infrastructure then what’s the problem to pay license fee ?

Currently Digital India campaign looks good in TV and Print Media but not in reality because of not having affordable internet, we having Android Phones but no pack can help us to install apps from play store and even update those. Then for what we’re cheering for Digital India ? Whatever low level internet we having it is costlier then before and buffers a lot even 3G sometimes so we’re not buffer free tats a reason 1 DTH launched a service by the claim of “Movies without Buffering”, that DTH itself behind from other competative DTH regarding Hardware wise mocking Telecos !!!

Currently DTH looks to me is more affordable then Internet that’s why I can see lot many DTH in slums because at Rs. 250 you will get 30 days pure entertainment and 3G at Rs. 300 that for 28 days and only 1 GB. Means TV industry having more growth then Internet.

When you see towards NDA Govt. you will found almost all Ministers or Departments are present in social network and they’re quite active there too. Infact PM Narendra Modi is present in almost all platform, he not even having account in SoundCloud but also having his own customized App. So Govt. is quite active and moving towards Digital but why can’t they protect the Interest of the people ? If we can’t have affordable platform then how we come online and move towards the path of Digital India ? Restricting Internet and killing the affordability factory will push us back then forward.

#Demonetization cleaning the chunk from TV, hit the local brand

After 50 days where Aam Aadmi yet to get a relief from the effect of Demonetization. There a certain things from which we got relief, first from increasing a number of Television Shopping Channels, second from local brands. In last 4 - 5 years ever since Cable era changed from Analog to Digital the number of News Channels increased like nothing. During this timeline business of Online Shopping too flourished because its quite convenient, you will get everything in one place, and also for small business owner its a platform to sold the product and spread the reach into Nationwide. Sale of local brands as well which are assembling from the Chinese hardware are too increased in this time being. From online shopping quality may be compromised but we trust it because of its return policy as we can return the product in the first instance.

When First PVT. TV channel started it became a place for ESSEL Group to promote their "Asian Sky Shop" on their own ZEE TV. Later shops like Telebrands, TVC captured the slot of our Television screens with imported products and surely few played a gambled by ordering it. But the legacy continues till at this moment of time and now entire scenario is divided into 2. One is foreign backed total online shopping portals and another are domestic backed TV shopping based companies. When you compare companies like Flipkart, Snapdeal they gets a big amount of chunks as a support from outside at the same time Amazon and Ebay are itself a American major. Snapdeal also partnered with DEN Network to own "TV Shop" as a part of it they're selling economical product as their Local venture. In this following list ShopClues may be sharing the spot with Ebay in terms of popularity and sale, but figure can differs !!

Lots of companies emerged and revamped during this era like Planet M Shopping became Shop Direct, After the exit of Star India Network, South Korean Home Shopping major CJ O Shopping partnered with P5 Asia Holding Investments (Mauritius) to continue its footprint in India as Shop CJ Network both in TV and Website. Among all HomeShop 18 and Naaptol expanded during this period and didn't shaken up, with growing Digitization HomeShop 18 and Naaptol found buying slots in both Cable and DTH, Naaptol has maximum reach in TV not only partnered with Home Channels of different operators but also own two Hindi shopping channels as Naaptol Blue and Green respectively along with regional language channels as well as first HD shopping channel in India. 

Meanwhile couple of groups too are in business but as the market is not a guarantee for success. Groups like Times Shopping, Anand India was trying to spread their wings but couldn't reached into that height. India Today Group even sold their 80% stakes of their thirsty shopping venture to ZEE Media.  Akshay Kumar and Shilpa Shetty too jumped in a shopping venture named Best Deal TV partnering together after a split in a romance between two decade back, they even partnered with South Star Vikram to expand the business as in Tamil Market. There is no word to deny is that in India whether startup business are getting enough space to grow or not Shopping business are definitely a idea on which business houses are working and trying our level best according to the opportunity to grab.

Its a quite a debate to make that after demonetization when big online shops got hit and impacted then what would have the faith of the 2nd league companies ? Flipkart CEO himself admitted the hammer in business and criticizes the implementation of demonetization, The biggest boom for online shopping was Cash on Delivery (COD) and when the existing cash gone illegal then how people will buy and how company got to do business ? Companies like HBN, Akshay - Shilpa's Best Deal TV decided to rap the business for the moment because of their concentration in only COD mode. ZEE Media may be supporting Demonetization and may be as of now keeping the shopping brand in cold bag but have to be accountable for the purchases they made. India Mobile brand Micromax also decline sale either from their own Web channel or via different portals. Another Mobile manufacturer Jivi Mobile stop financing a slot of a promo channel for their mobile.

Carriage fee is a big revenue maker for the operators and for the shopping brands digitization boosted a lot as now more slots are created and competition is also increased in which operators are forced to provide more channels from starter pack itself. For operators and shopping brands its a win - win situation also to fulfill the alleged demand of people from digitization. After demonetization people stood in a queue and exchanged the note to fulfilled their daily needs and for many days luxurious life was like over for them. Indeed shopping is too like luxury to live, after online shopping came few people got the hobby to buy number of back cover for their fav. mobile so that they change it in a week time, some people has some other, indeed few writer termed shopping as hobby and not  a need and thats why it matters in the Country's economy when demonetization kind of moment impact the individual and local vendors and who're a part of some online portal. 

Digitization 2016: Big Boom for Broadcaster, DTH and MSO

New Year is just 1 week from Friday and Digitization will take 1 step forward by covering the Phase III Cities under the new Cable TV Act. Although Phase IV deadline extended till 31st Dec. 2016 but for Cable Operators and DTH that phase will automatically cover up because as of now their attention is in both Phase III and Phase IV. Question arise that whats the impact of this digitization for Viewers, A simple theory Viewers have everything to loose and Operators, Broadcasters Govt. have everything to gain. Atleast 2 - 3 years ago Rs. 150 for TV looks costly to us now base pack price for Digital Platform costing minimum of Rs. 250. Its not that Rs. 150 is gone but that Rs. 150 and now is a huge difference and we need a compulsory digital box for our entertainment too means additional expend. 

Digitization is a new way to collect Tax for the Govt. may be the new Petrol - Diesel for them which won't pollute the environment but surely will become a big dump from China made Set-top Box. Delhi Govt. already imposed 40% Tax just doubled then previous may be the new "Odd-Even" Formula will let them to add few more percentile on it. But this industry is the new hope for Govt. to make revenue as after Vehicle, Entertainment is the 2nd needless but important thing in our life. We can't run from TV whether it runs any useless program to prove it as a "Idiot Box". Govt. knows the more these broadcasters and operators expand the more it will rise the value as Tax. Already we having some 800 Private TV channels in India operating, Approx. 350 MSOs are distributing their service. 6 Private Paid DTH are beaming from different Satellites to serve peoples demand. 

In Last year Service Tax of Central Govt. and State Govt. contributed a huge revenue, States having different Tax, Central imposed 14% Tax on Service then introduction of "Swachh Bharat Cess" impacting not only in our daily life but even in our Entertainment too. Entertainment may be the right of every Civilian but considered as Luxury in a Tax Book hence its a big and bold step to make sure every household contributes. For operators its a challenging industry now as they have to pay for infrastructure to content cost. In last 2 years big broadcasters expanded well atleast by launching 10 - 12 channels on their bouquet and made it distinctive as before.

Operators new hunt is HD channels, a new era of TV viewing which is 2 times better, lighter, sharper then normal one. Sales of flat TV panel increased so does expansion of HD channels. In last 4 years we now have 50+ HD channels in the Country. Although Upgradation of a Channels or Launching of Different Feeds expanded rapidly in last 2 - 3 years. This figure will further more increase and our TV bill too as of now no operator pushing HD package hard and it is totally upto subscriber whether they wants to watch the HD ones or not. But thing is the more you demand the more it will cost. As of now all operators promoting the HD channels aggressively as people start moving towards LCD or LEDs because of 2 benefits as its not only light weight but consume less space and can be hang in the wall which increase the show of the house too.

As discussed for operators its now a challenging industry, not only they have to invest in Set-top Box, Content Cost but in infrastructure as well, upgrading on broadcasting center also to pay the Govt. imposed Tax. Cable Operators entire style of distributing service has been changed though still its lax but over the time they too are in immersed pressure from Customers demand, MSO have to make sure that its LCO will remain with them and not start pulling other MSOs Line for the area, Digitization made a Tug of War situation among MSOs - LCO - Broadcasters - DTHs and ultimately Viewers have to  live with it. DTH always considered as Premium Service and still its a Premium Service costing more then Cable contributing high in a Taxation and filling maximum bills of broadcasters. DTH is the industry where there is a very less air to survive. No to "Open Sky" scheme and ISRO's failure to fulfil the demand of needed Capacity on time are enough to increase the tension among management. Less capacity means less channels and service means loosing the attention of customers, with this sad situation they not ables to compete in a market with fulfledge, forcefully screwing their strategy and difficult financial condition letting them down and out. Thats why even after more then 1 decade we only have 6 Private DTH among 1 was even in talk to sold out.

Govt. may pushed Digitization hard but still Operators and Peoples are not ready for it, Deadlines keeps on increasing and everyone hoping for fully concluded Digital TV India one day, Policies are still twisted and platforms too which may come on track but surely will took a time to become perfect. It can't be overnight but surely 1 decade to fix something which is growing in a sudden speed.