Tribunals and CommissionsDivision Bench

Seven Star Dot Com Pvt Ltd vs Zee Entertainment Enterprise Ltd

Telecom Disputes Settlement And Appellate Tribunal · Decided on 18 November 2022 · Citation: (2022) 11 TDSAT CK 0052

HON’BLE JUDGES
Dhirubhai Naranbhai Patel, Chairperson · Subodh Kumar Gupta, Member
ACTS & SECTIONS REFERRED
Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017 — Regulation 15(2)
CASE NUMBER
Broadcasting Petition No. 312 Of 2022
Ask AI about this case

AI Structured Summary

Not yet generated for this judgment

No AI summary yet

Generate an eight-section analysis of this judgment — facts, issues, reasoning, ratio and a plain-language gist.

Judgment

131 paragraphs · 1,906 words
1.

Mr. Chandresh Mehta who is present in the court and who has submitted that he is the Authorized Representative of the petitioner, resolution to that effect has also been presented before this Tribunal. Photocopy of this authority letter has been given to the counsel for the respondent. It is submitted by the representative of the petitioner that initially they had engaged a lawyer and now today they want to engage another counsel and, therefore, petitioner is seeking time.

2.

This prayer is vehemently objected by the counsel for the respondent.

3.

It is submitted by the counsel for the respondent that the petitioner is enjoying an ad-interim relief granted by this Tribunal vide order dated 14. 6.2022 which was granted in favour of the petitioner upon deposition of Rs. 2 Crore out of the total dues payable by the petitioner to the respondent, which is about Rs.16.33 Crores along with interest accrued thereupon. The total amount as per the respondent comes approximately Rs. 18 Crores and by the virtue of the ad-interim relief the petitioner is enjoying the supply of signals of the channels of the respondent otherwise respondent has already given a notice of disconnection of supply of their channels which is at Annexure P-1 to the memo of this petition. The notice given by the respondent is dated 26.5.2022. The lethargic approach of the petitioner is because of the ad-interim relief granted to the petitioner and, therefore, it is submitted by the counsel for the respondent that let the stay granted by this Tribunal be vacated especially in light of the audit report given by the auditor who is empanelled by TRAI. The said report of the auditor is at Annexure P-9 to the memo of the reply filed by the respondent. The audit report is dated 2.4.2022. The audit has been conducted under Regulation 15(2) of the Interconnection Regulations, 2017. This audit has been conducted for the period running from February 2019 to February 2022.

4.

Counsel for the respondent has taken this Tribunal to various annexures annexed with the memo of the reply including Annexure P-9 and especially page no. 329 onwards which is a conclusion arrived at after the audit is conducted by the auditor of digital addressable systems installed by the petitioner at their end. Counsel for the respondent has also taken this Tribunal in detail about various non-compliances pointed out by the empanelled auditor for the CAS as well as SMS and it is submitted by the counsel to the respondent that there is a 97% under-declaration by the petitioner of the total number of subscribers. More the subscribers more the amount is payable by the petitioner to the respondent and, therefore, there are all endeavours, illegally by the petitioner to reveal minimum number of subscribers, as far as possible by adopting all types of tactics which have been pointed out by the auditor in the report. Counsel for the respondent has also pointed out varieties of non-compliances of the provisions/ requirements pointed out under Scheduled III Appended to the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017 [for the sake of brevity referred to as Interconnection Regulations, 2017].

5.

Having heard the counsel for the respondent and looking to the audit conducted by the empanelled auditor under Regulation 15 (2) of the Regulations, 2017 which is at Annexure P-9 to the memo of the petition given by the respondent. It appears that there are following types of non-compliances of the requirements by the petitioner .

Page No. 329

“Compliance Report for CAS & amp; SMS

The compliance status as enumerated in below table is for currently deployed 3 CAS (Irdeto, ABV & amp; NSTV) and 1 SMS (Media Nucleus) however the same cannot be confirmed for the SMS used by DPO till 31st August, 2021 as the said system is found to be not connected with the network. The IRDETO CAS certificate(s) provided by DPO are undated and not contemporary therefore, non-compliant with the provisions of Schedule III.

Page No. 332

Sl.

No.

Regulation Requirement

Compliance Status

15.

The  CAS  shall  be  able  to  tag and  blacklist  VC  numbers  and STB  numbers  that  have  been involved  in  piracy  in  the  past to  ensure  that  such  VC  or  the STB cannot be re-deployed. (Schedule III – C 15)

Checked  and  found  to  be  partially compliant  as  IRDETO  CAS  has  no option  for  Blacklisting  the  STB  or VC   but   ABV   and   NSTV   do   have Screenshot    confirming    same    is attached   herewith   &   marked   as Annexure-33

Sample report is attached herewith

& marked as Annexure-33

16.

It shall be possible to generate the following reports from the logs of the CAS:

Checked  and  found  to  be  partially compliant  for  (c)  &  (d)  as  IRDETO CAS   has   no   option   to   generate

these reports from frontend except

STB-VC Pairing/De-Pairing

a.  STB Activation/De- activation

b.  Channels Assignment to STB

c. Report of the activations or the deactivations of a particular channel for a given period.

for  (a) as IRDETO CAS has cardless boxes only.

a.          Annexure-34

b.          Annexure-35

c.          Annexure-36

d.          Annexure-36

(Schedule III – C 16)

Page No. 334

Sl.

No.

Regulation Requirement

Compliance Status

3.

The  fingerprinting  should  not get  invalidated  by  use  of  any device or software.

(Ref. Schedule III – D 3)

Checked  &  found  to  be  partially compliant    as    in    IRDETO    boxes Finger  print  disappear  on  Reboot Annexure-40

5.

The  finger  printing  should  be on  the  top  most  layer  of  the video.

(Ref. Schedule III – D 5)

Checked  &  found  to  be  partially compliant  as  in  IRDETO  CAS  boxes finger  printing  is  not  on  Top  Most

Layer.

Page No. 335

Sl.

No.

Regulation Requirement

Compliance Status

12.

Scroll    messaging    should    be    only available   in   the   lower   part   of   the screen.

(Ref. Schedule III – D 12)

Checked   &   found   to   be Partially compliant as scroll is not supported in IRDETO Boxes.

Annexure-43

13.

The  STB  should  have  a  provision  that fingerprinting is never disabled.

(Ref. Schedule III – D 13)

Checked   &   found   to   be Partially compliant  as after reboot   of   IRDETO   Boxes

finger print disappeared.

Page No. 336

Sl.

No.

Regulation Requirement

Compliance Status

3.

The  STB should  be  capable  of doing fingerprinting.     The     STB     should support   both   Entitlement   Control Message    (ECM)    and    Entitlement Management Message (EMM) based fingerprinting.

(Ref. Schedule III – E 3)

Checked    &    found    to    be partially compliant as IRDETO Box   could   not   display   the ECM    Command    on    Boxes Screen  Shot  is  attached  and marked as Annexure-44

5.

The  STB  should  be  able  to  receive messages from the Head-end.

(Ref. Schedule III – E 5)

Checked    &    found    to    be partially compliant as IRDETO CAS     has     no     option     for

messaging.

6.

Messaging  character  length  should be minimal 120 characters.

(Ref. Schedule III – E 6)

Checked    &    found    to    be partially compliant as IRDETO CAS     has     no     option     for messaging.

Page No. 337

Sl.

No.

Regulation Requirement

Compliance Status

7.

There should be provision for global messaging, group messaging and the individual STB messaging.

(Ref. Schedule III – E 7)

Checked    &    found    to    be partially compliant as IRDETO CAS     has     no     option     for messaging and NSTV and ABV

has    no    option    for    Group Messaging.

8.

The     STB     should     have     forced messaging       capability       including forced finger printing display.

(Ref. Schedule III – E 8)

Checked    &    found    to    be partially compliant as IRDETO CAS     has     no     option     for messaging  and  NSTV  has  no option for Force messaging.

Annexure-45

9.

The  STB  must  be  compliant  to  the applicable       Bureau       of       Indian Standards.

(Ref. Schedule III – E 9)

Checked    &    found    to    be partially   compliant   as   DPO did not provide BIS Certificate

for  6  out  of  10  STB  models declared by it. Annexure-8

11.

The STBs with facilities for recording the   programs   shall   have   a   copy protection system.

(Ref. Schedule III – E 11)

Checked    &    found    to    be partially compliant  as in  case of     IRDETO     related     STBs, recording   was   playing   even after deactivation.

Page 339-340

Sl.

No.

Regulation Requirement

Compliance Status

8.

Compliance  Status  of  the  CAS  and SMS

The SMS used by DPO till 31st August, 2021 was found to be not     connected     with     the network           hence           the compliance   status   for   same cannot be confirmed.

The  IRDETO CAS  certificate(s) provided by DPO are undated

and        not        contemporary

therefore,          non-compliant with  the  provisions  of  Clause

C of Schedule III.

9.

Compliance Status of Fingerprinting

In case of IRDETO CAS related STBs  finger  print  disappears on      Reboot      hence      non- compliant to clause D (3) and D(13) of Schedule III.

Incase of IRDETO CAS related STBs   finger   print   does   not appear   on   top   most   layer hence       non-compliant       to clause D(5) of Schedule III.

In case of IRDETO CAS related STBS, the colour and position of  fingerprint  is  fixed  hence non-compliant  to  clause  D(8) of Schedule III.

In case of IRDETO CAS related STBS   individual   finger   print appears as global hence non- compliant  to  clause  D  (10)  of Schedule III.

Scroll   is   not   supported   by IRDETO    CAS    related    STBS hence       non-compliant       to clause D (12) of Schedule III.

Page no. 314

AUDITOR’S OPINION & CONCLUSION

The Digital Addressable System (CAS, SMS and STB) available and installed at M/s. Seven Star Dot Com Pvt. Ltd., Versova during the compliance audit (14th February 2022 to 26th February 2022), except reported otherwise in the previous sections of this report, meets the minimum requirements as specified by TRAI under DAS Schedule-III of Telecommunication (Broadcasting and Cable) Services Interconnection (Digital Addressable System) Regulations, No. 1 of 2017, dated March 3, 2017 issued by TRAI.

In view of our observations regarding the SMS which was in use for substantial audit period (31 out of 36 months) and IRDETO CAS Servers having major subscriber data, the compliance status cannot be confirmed for the entire audit period.”

6.

In view of the aforesaid observations by the empanelled auditor of TRAI and looking to the non-compliances of the requirements as enumerated Scheduled-III appended with the Interconnection Regulations, 2017, prima facie it appears that looking to 3rd Proviso to Regulation 15(2) of the Regulations, 2017 the respondent who is a broadcaster may disconnect the supply of signals of their channels to the petitioner. Prima facie, looking to the report given by the empanelled auditor, there are substantial non-compliances of the requirement of Scheduled-III appended with the Interconnection Regulations, 2017. The resultant effect of the non-compliances and the methodology adopted by the petitioner, prima facie, leads to a fact that there is a substantial under-declaration by the petitioner of the number of subscribers. More the subscribers, more the amount is payable by the petitioner to the respondent. Petitioner is a MSO and, therefore, it is submitted by the counsel for the respondent that this petitioner-MSO is always in attempt of under-declaration of the number of subscribers by adopting varieties of methods and, therefore, audit by empanelled auditor has to be done as per the Interconnection Regulation, 2017 and looking to this auditor’s

report and looking to the substantial non-compliances, prima facie respondent has all power, jurisdiction and authority to disconnect the supply of signals of their channels which are given to the petitioner.

7.

We, therefore, vacate the stay granted by this Tribunal vide our earlier order dated 14.6.2022.

8.

The matter is adjourned for further hearing on 23.3.2023.

9.

The party-in-person who is Authorized representative has understood the next date of hearing as 23.3.2023. He shall remain present on the next date of hearing.