WWIL TO SHARE CARRIAGE FEES WITH CABLE OPERATORS

Wire and Wireless (India) Ltd. (WWIL) / SITI Cable, has announced path breaking initiatives to share carriage revenue with cable operators. But some people are spreading malicious facts about this initiative in the market and trying to mislead the cable operators.

WWIL is committed towards its initiative and is releasing the note in the form of questions & answer, which will clarify all misconceptions.

1. What is Carriage revenue? Carriage revenue is the fees paid by the broadcaster to the MSO for carrying the TV channels on its cable distribution network. 2. What is the announcement by WWIL?

Wire and Wireless (India) Ltd. (WWIL)/SITI Cable, has announced path breaking initiatives to share carriage revenue with cable operators.

3. How much percentage will be shared with Cable Operator? WWIL will be sharing 25% of its carriage revenue collected with Cable Operator.

4. How the carriage revenue will be calculated? The carriage revenue will be calculated on the basis of the number of STB’s booked and activated by Cable Operator on or before 31st July 2012.

5. When the Company will release revenue to Cable Operator? The company will release the carriage revenue share on quarterly basis to the Cable Operator.

6. How can Cable Operator monitor or track its carriage revenue? The Company will provide a certificate of the total carriage revenue collected and it’s sharing with cable operator duly certified by the qualified Chartered Accountant. However, in case cable operator wants to get the third party audit done, the company will extend complete support. So it’s transparent.

7. What is the earning potential for Cable Operator? The more the number of STB booked and activated on or before 31st July 2012, the more is the carriage revenue earning potential for the Cable Operator.

WWIL had filed the RIO of Rs. 1.85 per STB per month per channel as carriage fee from the broadcaster. This means that 25% of Rs. 1.85 per STB per month per channel will be shared with the cable operator. Hence the cable operator has the potential of earning up to Rs.0.46 per STB per month per Channel. However same can be lower depending on the negotiation done with the Broadcaster.

Earning Potential is illustrated as below :

Nos. of STB* Nos. Of Carriage Paying Channels* Cable Operator Carriage Revenue Share @ 25% (Rs./month/STB/Channel) Carriage Revenue Potential for Cable Operator (Rs./month) 500 100 0.46 23125 750 100 0.46 34688 1000 100 0.46 46250 2000 100 0.46 92500 3000 100 0.46 138750 4000 100 0.46 185000 5000 100 0.46 230000 *Numbers are assumed 8. What will be the revenue sharing on STB, booked after 31st July 2012?

For the STB booked and activated after 31st July 2012 the rate of sharing of carriage Revenue collected is yet to be decided by the management of the company and which could be lower than the current announced sharing rate.It is in advantage of all of us to Install maximum number of STB.

9. For how long Cable operator will continue to get the carriage revenue?

The Cable Operator will get the carriage revenue share until they are associated with WWIL / SITI Cable.

10. What about taxes?

The applicable taxes will be borne by Cable Operator and SITI Cable on their respective revenue earned.

Source: http://cablequest.org/news/cable-news/item/353-wwil-to-share-carriage-fees-with-cable-operators.html
Source: http://cablequest.org/news/cable-news/item/353-wwil-to-share-carriage-fees-with-cable-operators.html