Transcript CATV - Basic Information

COST OF DELIVERING
CABLE TV SERVICES
VIKKI CHOUDHRY
National Cable & Telecommunications Association
CATV - Basic Information
 Approx. 6,800 head-ends all over the country
 Today a CATV head-end has 54-76 +Channels
 CATV Bandwidth: 450-750 MHz
 Available Free to Air Channels : 38-46
 Available Pay TV Channels : 32
 Local Channels (VCR,VCD,Local News etc): 2
 Radius of Operation – 5Kms [Co-Axial] 10+ Kms [OFC]
 Homes Passed per Km : 350 Homes (approx)
 All India C&S Homes: 38 M (source.NRS)
 Percentage of C&S Homes: Metros – 60% Towns- 40%
 Average Subscriber Homes /Head-end: *4,000 + Homes
 Average CATV Distributors / Head-end: 10
 Annual Rate of Depreciation- 33% [On Capital Investment]
CABLE TV SYSTEM – Head End
 Dish Farm
– Dish Antennas, LNBC, Dish Platform, TI Shielding and Grounding etc.
 IF Distribution Network
– Cables and Connectors, IF Amps, Conduits, IF Splitters (Power Dividers) etc.
 Signal Reception & Processing Unit
–
–
–
–
–
–
–
Satellite receivers: Analogue/Digital FTA/Digital Pay IRD
RF Modulators: [One Modulator for Each Channel], Processors
Local Video: VCR/VCD/DVD
A/V, Switcher/Mixers and Text generators
Combiners, Tap Off, Splitters and Power Inserters
Post Amplifier,
Integration Cables, Connectors and Accessories
 Test and Infrastructure Equipments
– Spectrum Analyzer/ Field Strength Meters, Cable Preparation Tools
– UPS, Power Generators and Cable Plant Power Supplies
– Aircon, 19” Modular Racks, TV Monitors etc.
* Estimated life of Head End Equipment / Capital Expenditure - Max. 6 Yrs
COST SHEET FOR INDEPENDENT CABLE TV NETWORKS
CE-A
Head-End Fixed Capital Expenditure
Ser.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
*
*
*
19
20
21
22
23
*
*
*
24
25
26
27
**
28
29
Basic Information
Unit
Rate
Quantity Amount
Civil Works
(Dish Antenna errection/cable tray etc.)
96000
Electrical Works
( Including earthing conductors etc.)
85000
Parabolic Dish Antenna 12 ft. Prof. Grade
Nos.
22000
8
176000
Dual LNBF 17 Degree K
Nos.
2600
16
41600
Flexible Conduit for Feeder Wire-RG-11
Mtr.
28
560
15680
RG-11 Connectors
Nos.
85
64
5440
Feed Horns
Nos.
500
8
4000
Power Dividers 2/4/6 Way (assorted)
Nos.
800
28
22400
Launch Amplifier
Nos.
38000
1
38000
Equipment 19" Rack
Nos.
28000
12
336000
RG-6 Coaxial Cable
Mtr.
17
300
5100
Crimp Connectors RG-6
Nos.
26
385
10010
RCA Male to Female
Nos.
60
82
4920
F Type RF Terminator
Nos.
10
100
1000
Cable Tie Various Sizes
Nos.
2
800
1600
UPS 7.5 KVA with Bttrs. For one hour back-up
Nos.
260000
1
260000
Generator Set 15 KVA
Nos.
85000
1
85000
Testing and Measuring Instruments
Nos.
(a) Spectrum Analyser
Nos.
120000
1
120000
(b) Leader Field Strength DB Meter
Nos.
72000
1
72000
(d) Deviser DB Meters
Nos.
17800
5
89000
Air Conditioners 2 Tons
Nos.
40000
2
80000
Analog/Digital Receivers ( Free to Air Channels)
Nos.
7000
44
308000
Combiners ( one per 16 Channels)
Nos.
3400
5
17000
IRD Decoder For (Pay Channels)
Nos.
24000
32
768000
Modulators ( Professional Grade RF Modulator being used) Nos.
40,000
76 3040000
- Low Grade - RF Modulator = Rs. 9000*
Per Channel
- Semi Proff. Grade-RF Modulator = Rs. 72000*
Per Channel
- Proffesional Grade - RF Modulator = Rs. 175000*
Per Channel
VHS/VCR/VCD Players
Nos.
10000
4
40000
Amiga Logo and Text Generator with Gen Lock
Nos.
24000
1
24000
TV Monitors
Nos.
9000
4
36000
Tools, Coring Tools and Crimping Tools
Nos.
6400
5
32000
Total Cost
5813750
Per Channel Cost
76,497
Total Cost for 46 Free to Air Channels ( as calculated x per channel cost)
3518849
CABLE TV SYSTEM - Distribution









Trunk and Distribution Cables
Drop Cables and Accessories
Mini Bridger, Line Extenders & Home Amplifiers
Amp Accessories-Eq-pads, filters, Attenuators
Tap-offs & Splitters- Outdoor/Indoor
Co-Axial Connectors and adapters
Power Ins., Line Power Supplies, UPS Backup
Messenger wire, Ties, Ground Blocks etc.
Clamps, Poles, Amp Boxes etc.
* Estimated life Max. 4 Years [ Due to weather Exposed Installation & Constant Up gradation]
CATV
HEADEND
Home - Cable Network
CE-B
*Rs. 2.5 Lacs Per Km. Of CATV Distribution
Cable Distribution Network Capital Expenditure
(covering Trunk, Sub Trunk , Feeder & Drop Cable)
Average * Rs. 1750/- per subscriber installation cost
Unit
1
2
3
4
5
6
7
8
9
10
13
14
15
16
17
18
19
20
21
22
23
23
24
Cable 500 Series Coaxial
860/750/550 MHz Minibridgers
860/750/550 MHz Line Extenders
90 V 10 A Power Supplies (one per 2 Kms)
1.2 KVA UPS (one per 2 Kms) - Offline UPS
Power Inserters
Batteries * Average Life Less than 2 years
KS-KS Connectors
500 Series Connectors ( Gillbert or PPC)
Splicers - Jointer
Splitters Outdoors
Outdoor Tap-offs
Splitters Indoor * Average Life is about 12 months
Indoor - Tap-offs *Average Life is about 12 months
Messenger Wire for supporting > Cable 500 Series, RG-11
Miscellaneous Items ( Per Km)
Feeder Cable - RG 11 Coaxial Cable
RG 11 Crimp Connectors* Not re-usable once Crimped
Drop Cable RG-6/ 59BU (Subscribers Premises 20 mtr/ sub)
RG-6 / 59 BU Crimp Connectors * Not re-usable once Crimped
TV Socket / Ground Block *Subscriber Premises Connection
Amplifier Equalisers pads and Attenutors
Installation and Commissioning cost per Kms
Mtr.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Mtr.
Mtr.
Nos.
Mtr.
Nos.
Nos.
Nos.
Kms.
Rate
65
28000
8000
3000
22500
1500
2800
450
235
300
990
430
130
120
6
2000
28
85
17
16
5
300
6000
Quantity Amount
12000
36
96
6
5
6
10
300
350
25
130
240
800
1800
24000
12
11000
720
80000
4500
4200
30
12
780,000
1,008,000
768,000
18,000
112,500
9,000
28,000
135,000
82,250
7,500
128,700
103,200
104,000
216,000
144,000
24,000
308,000
61,200
1,360,000
72,000
21,000
9,000
72,000
Total Cost of Entire CATV Distribution Network
Total Cost of Head End Fixed Capital Expenditure
5,571,350
5,813,750
Total Capital Expenditure in Cable TV Network **
Cost of One Channel ( 76 Channels)
Total Cost of Free to Air Channels( 44 Channels)
11,385,100
149,804
6,591,374
Manpower Per Head End Centre
C
Including Manpower to Service the Distribution Network
Remuneration P.M
1
2
3
4
5
6
7
8
Headend
Headend Manager
Technichal Manager
HeadEnd Operator (3 shifts/24 hrs)
Customer Call Centre / Front Desk Executive (3 shifts/24 hrs)
Accounts Officer
Helpers / Peon / Office boy
Security Guard - Headend (3 shifts/24 hrs)
Store keeper
1
2
3
Distribution
CATV Line Technicians (1 per 500 sub-homes)
Asst. Line Technicians (1 per 500 sub-homes)
Money Collectors
( 2 per 500 sub-homes)
TOTALD
No.s
Amount
17500
15000
6500
5200
6500
3600
3600
4800
1
1
3
3
2
5
3
1
17500
15000
19500
10400
13000
18000
10800
4800
109000
7500
5000
3800
9
14
12
67500
80000
45600
193100
ManPower Cost Per Month :
Operating Expenditure Per Month
302100
Unit
Rate
Quantity
Amount
Per Month
1
2
3
4
6
7
8
9
11
12
13
14
1
2
3
4
5
Headend
Building Rents / Terrace Rent / Office Rent / Service Centre's
Electricity & Water Charges
Telephone/ Mobile / Pager / Wireless communication etc.
Advertisement & Publicity Cost - Programme guide etc.
Manpower Cost / Salary and Wages
Repair & Maintenance - General / Machinery/ Preventive
Diesel Cost for Gen set for 4 hrs/day
Cassette's & VCD's Hire Rental
Staff Welfare
Printing & Stationary > Complaint Slips/ Material Slips/ Bills
Audit Fee
Office Maintenance
Total
Distribution - Plant
Manpower Cost / Salary and Wages
Annual Network Upgradation / Service Upgradation Cost
Miscellaneous Expenditure
Local Transportation Cost/ Conveyance
Annual Pole Hire Charges Paid for supporting cab les on poles
Per Pole.
Total
TOTAL OPERATING EXPENDITURE PER MONTH
18000
730
2
36000
32000
14000
16000
109000
62000
7500
4500
12000
10500
2500
5000
311000
193100
20833
5000
18000
250
15208
252141.67
563141.67
Cost Of Pay TV Channel Bouquet, Copyright FEE & Entertainment Tax
E
PAY CHANNEL FEE/ CHARGES
Rate D** Subs
Amount
Per Month
4000
162000
a
b
STAR TV- Star Plus, Star Movies, Star World, Star Gold,NGC, Star News,Channel-V
40.5
ZEE-TURNER- Zee TV, HBO, Cartoon, Zee News, Zee English, Zee MGM, CNN,
c
d
e
SONY DISCOVERY- Sony TV, AXN, SETMAX, CNBC, Discovery,Animal Planet
ESS - ESPN and Star Sports
MEN- DD- Sports, Hallmark, Fashion TV, TEN Sports
Total Pay Channel Cost per sub per month
42
40
24
24
170.5
F
COPYRIGHT FEE CHARGED by Cable Video,Ultra Movies, T-Series
Pay Channel Fee if Paid on 100 % Declaration** of Subs :
14
184.5
4000
56000
738000
G
ENTERTAINMENT TAX > as charged by Respective State Govt. Delhi-Rs.20/-
20
4000
80000
Nicklodeon , Alfa Bangla , Marathi, Gujrati, Punjabi, Zee Music, Zee Cinema
Total (E+F+G)
204.5
4000
4000
4000
4000
168000
160000
96000
96000
Details of Income for Cable TV Service Providers per month
Total Initial Installation Charges Collected from 1991 till March 2002
Less - Installation charges received from 1991 till 1998
1246000 ( Details below) (Deferred for 4 yrs)
1036500 ( Details below)
=======
Installation Charges Collected from 1999 till March 2002
209500
=======
YEAR 1991
No. Of Subscribers Paid Initial Cable TV Installation Charges
Amount Charged as Initial Installation Charges Rs.
Initial Installation Charges ( deferred for 4 years)
350
350
1992
1993
1994
1995
1996
1997 1998 1999 2000 2001 2002
230
350
540
250
550
250
580
250
630
250
440
350
122500 80500
140
500
90
500
40
650
137500 145000 157500 154000 92000 81000 70000 45000 26000
2
125
Advertisement Income
- Per Month
- Annual
38000 (Very nominal per headend, advertiser are locally based) ( Scroll Rate:Rs 2,000/month)
480000
Subscription / Rentals Received
Advertisements Income
Subs.
4000
TOTAL OPERATING EXPENDITURE PER MONTH Rs.
Pay Channel Fee if Paid on 100 % Declaration** of Subs :
ENTERTAINMENT TAX > as charged by Respective State Govt. Delhi-Rs.20/-
6-9
125
180
450
Number Of Channels Transmitted on Cable TV
Cable TV Subscription Charged Per Month :
Rate
225
4
125
135000
230
400
16
125
32
150
42
150
48
175
54
175
58
185
65
200
67
225
76
225
900000 * Assuming all the Subs are paying at the Subscription rate of Rs. 225/- p.m.
38000
=========
938000
=========
563141.7 (Headend + Distribution Plant)
738000
80000
=======
1381142
=======
Excess of Expenditure Over Income Rs.
- 443142 (If this loss has to be recovered from the subs)
Excess of Expenditure per Sub Rs.
111
To Break Even - An additional amount of Rs. 111 per Subscriber per Month
will have to be charged, i.e. Rs. 225 + 111 = Rs. 336 CATV Subscription Rate Per SUB/MONTH.
4000
1246000
Working on Income / Expenditure / R.O.I " For Calculating the Basic Cable TV Subscription Charges"
Total Expenditure P.M Excluding Pay Channels Charges & Entertainment Tax.
563142
Operating Expenditure incurred on One [1] Subscriber Home per month Rs.
(Operating Expenditure / Total Subscribers i.e. Rs. 563142.67 / 4000)
140.79 Excluding Entertainment , Service Taxes & Pay Channel charges.
Fixed Capital Expenditure
Headend
Distribution Plant
Total Capital Expenditure Rs
5813750
5571350
11385100
If Interest recovered@24% p.a i.e -Rs. 11385100 / by No. of Subscribers. Rs
Minimum Basic Service Subscription : Per Month Rs.
57
to be charged Extra from each Subscriber / per month.
=======
197.79
======
Pay Channel Cost per Subscriber per month
Copyright fee charged @ Rs 14/sub/month
Entertainment Tax - As levied by respective State Govt. (Delhi)
Total Cable TV Subscription
170.5
14
20
402.29
Excluding Taxes, Licence Fee, and Pay channel Charges
Can Customers Afford?
– To Pay Monthly Cable TV Subscription of
Cutting on Operating Expenditure to
accommodate Pay Channels and Taxes means
– Will affects QOS [ Quality of Service to Subscribers]
– Frequent Network Breakdowns and poor picture quality
– No technological up-gradation / value addition in service
– Inferior quality Head end & Distribution Equipment used
– Customer Dissatisfaction resulting Non –payments
– Soon commercial Un-viability of Cable TV Business
– Grey market CATV equipment suppliers/ manufacturers
will flourish, while manufacturers adhering to BIS
prescribed standards will face decline in sales.
– obstruct implementation of effective CAS.
If under- declaration to PAY CHANNELS
 Affordable Cable TV Subscription Rs. 225 – 250 per





month Max.
Offer to give better picture quality and efficient service
Flexibility to run the business with some commercial
viability
Scope for up gradation and value service addition for
future
Use of standardized equipment for providing better
QOS.
Sometimes disruption in pay channel services on issues
of subscriber under-declaration , pay channel rates etc.
Effective solution to this is CAS
 With CAS basic tier available at
affordable rates to the subscribers
 More transparency in business with the pay
TV broadcasters , Revenue Dept & Govt.
 Level playing field for all the players i.e
CSP, MSOs & Broadcasters.
 Additional revenue from Pay TV service
 Business becomes more viable