TDSAT: Hathway agrees to pay fee of Rs 14.6 crore to MSM Media Distribution

TDSAT: Hathway agrees to pay fee of Rs 14.6 crore to MSM Media Distribution
MUMBAI: Multi-system operator (MSO)
Hathway Cable & Datacom has agreed
before the Telecom Disputes
Settlement and Appellate Tribunal
(TDSAT) to pay MSM Media Distribution
(MSMMD) the subscription dues
amounting to Rs 14.56 crore (Rs
145.6 million) till 31 October 2015,
the date the agreement between the
two expires.
“The respondent (Hathway) has
assured the petitioners (MSMMD) that
it will follow the terms and conditions
of the MOU till 31.10.2015, the date
of expiry of the MOU. This satisfies
the cause of action for the petition,”
TDSAT said in its order.
Earlier, MSMMD had filed two separate
recovery petitions in the TDSAT. While
one was for Phase I cities, the other
was for Phase II and analogue cable
TV markets.
MSMMD, which distributes channels
like Sony Entertainment Television,
SAB TV, Max, Max 2, Pix, AXN, Six and
Kix, has a running deal with Hathway
in Phase I cities till 31 October 2015.
The deal between MSMMD and Hathway
for the rest of the country expired on
31 March 2015.
While the hearing for the second
recovery petition is yet to take place,
in the Phase I case Hathway’s counsel
has assured MSMMD in TDSAT that the
MSO will follow the terms and
conditions of the MoU (memorandum of
understanding) signed between the
two parties and will make payment of
Rs 14.56 crore (dues admitted by
Hathway) in three equal installments.
The amount will be payable on 31
August, 30 September and 31 October
of 2015.
MSMMD had to move the TDSAT after
not getting any response from
Hathway to the many notices it sent.
“They haven’t paid us for almost
seven months now. The total dues
outstanding is close to Rs 60 crore
(Rs 600 million). We have been waiting
patiently. While DAS Phase I contract
is still there, for Phase II the
contract expired on 31 March 2015.
This was not renewed and even the
money never came. So after waiting a
lot, we decided to switch off signals
to Hathway in Phase II,” MSMMD EVP
– sales and marketing Makarand
Palekar told
Palekar added that Hathway wanted to
move MSM channels and put them on a
la carte from 13 August. The MSO had
a fixed fee contract and is trying to
move out of it before the deal period
is over.
“TDSAT has taken a strong view that
if you have a contract, you cannot
come out of it. Whatever money has
been committed to MSMMD, Hathway
will have to pay it. So now they have
given us the undertaking that they
will give us the money for Phase I in
three instalments,” Palekar noted.
Palekar confirmed that MSM has
switched off its signals to the MSO in
Phase II and analogue areas, while in
Phase I the signals are on as the
contract is till 31 October.
It is learnt that Hathway is not
showing the MSM channels in Delhi and
multiple areas of Mumbai.
Hathway MD and CEO Jagdish Kumar
was not reachable till the filing of
this report.
all Sony channels start on Monday from Hathway.

Forum Jump:

Users browsing this thread: