Direct billing to enhance payment collections: Den Networks

SN Sharma, CEO of DEN Networks believes that direct billing introduced Telecom Regulatory Authority of India (TRAI) for digital cable consumer would enhance payment collections of the multiple system operators (MSOs).

In a significant step aimed at bringing in transparency in the way cable TV consumers are billed, the multiple system operators (MSOs) are rolling out a direct billing system from August. As of now, the monthly charges for cable TV connections were being collected by the local area cable operators, who were subsequently passing on the payments to the MSOs. Also read: Den Network Q1 profit declines 17% at Rs 10.15cr
“Earlier in the analog regime, there used to be a lot of discrepancies in the payments being made by the consumers. In the same colony, local cable operators (LCOs) used to charge anywhere between Rs 50 to Rs 200 but now, there will be total transparency and consumer will be happy so will be the stakeholders,” Sharma said in an interview with CNBC-TV18 Below is the verbatim transcript of the interview Q: Could you explain the dynamics of direct billing?
A: This is a great initiative. The whole process of digitalisation was for the single and foremost purpose that a consumer is able to select what he wants to watch and pay accordingly. In the whole process Telecom Regulatory Authority of India (TRAI) has laid down the guidelines of packaging and all that and now the packages are there. The Know Your Customer (KYC) forms that is know your consumer, know the details of the consumer, know his choice, the consumers in the main towns that is Delhi and Mumbai have already filled these forms and 100 percent forms are available with all the Multi System Operators (MSO) in these two metros and with the forms in place, the packages as selected, the channels as selected by the consumer, the bills are being sent to the consumers, the bills have already gone and the bills will be for the channels selected by the consumers. This is for the first time it is happening in cable industry. Q: Coming back to the direct billing issue, as compared to the earlier system of where the local companies would first get the money and then that would be collected via the multi-system operators (MSOs), now in this new format, will it improve collections, was there a lot of pilferage which took place in the previous system?
A: Yes, definitely it will help everybody. All the stakeholders in the value chain will be benefited.
If consumer wants to watch sports channel, he pays for the sports channel. So accordingly he pays and the concerned agency or the concerned MSO gets the collection.
All the collections that come as per the packages selected by the consumers will be shared properly amongst the broadcasters, MSO and the cable operators. That is how the whole value chain is going to get benefitted and also the consumer knows what he is paying.
Earlier in the analog regime, there used to be a lot of discrepancies in the payments being made by the consumers. In the same colony, local cable operators (LCOs) used to charge anywhere between Rs 50 to Rs 200 but now, there will be total transparency and consumer will be happy so will be the stakeholders.