Update Im DTH
Update Im DTH
Update Im DTH
REGULATORY AUTHORITY
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TABLE OF CONTENTS
INTRODUCTION .................................................................................................................... 3
1 Preamble............................................................................................................................. 3
2 Definitions .......................................................................................................................... 4
3 Disclaimer .......................................................................................................................... 6
4 Scope of the DTH Licences ............................................................................................... 7
5 Licences to be issued & Fees ............................................................................................. 8
6 Overview of the award process .......................................................................................... 9
7 Winners losing access to the licence ................................................................................ 11
8 Timeline for the DTH Licensing Process ........................................................................ 12
9 Instructions for applying .................................................................................................. 13
10 Supplementary information ............................................................................................. 14
11 Commercial Interoperability…………………………………………………………….14
12 Encryption………………………………………………………………………………17
13 Satellite capacity ……………………………………………………………………….. 17
14 Eligibility criteria………………………………………………………………………..17
15 Shortlisting of Applicant Companies ............................................................................... 20
16 Bidding process................................................................................................................ 21
17 Payments .......................................................................................................................... 24
18 Special provisions ............................................................................................................ 25
19 Confidentiality of applications......................................................................................... 26
AUTHORITY LETTER ........................................................................................................ 27
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INTRODUCTION
Pakistan Electronic Media Regulatory Authority (PEMRA), established under the PEMRA
Ordinance 2002, as amended by the PEMRA Amendment Act 2007 (the PEMRA Ordinance
thereafter), has the mandate to regulate, inter alia, the establishment and operation of all
broadcast media (Satellite TV, Radio) and distribution services (Cable TV, IPTV, Mobile TV,
DTH, etc.) in Pakistan.
To promote, extend and provide a wider choice to the people of Pakistan, PEMRA intends to
grant up to three non-exclusive Direct-to-Home (DTH) Distribution Service Licences to
companies incorporated in Pakistan.
The present Information Memorandum (IM) sets out the rules, process, planned timetable and
other background information to help prospective applicants decide if they wish to apply to
participate in DTH Licensing. It provides all the relevant information for potential applicants
of the licences to apply.
1 Preamble
1.1 PEMRA’s primary objectives for the introduction of DTH service in Pakistan are:
i. To promote the Electronic Media in Pakistan
ii. To make available more options to the public with dynamic programming
packages and to encourage private sector participation
iii. To provide interactive services to the people of Pakistan
iv. To increase the coverageof electronic media, satellite TV, and FM radio
services, making them available to more people.
v. To make available to the people superior quality audio and videoprogrammes
vi. To promote Pakistani culture and ideology
vii. To promote Pakistani programming content
viii. To achieve the Digitalization objective as per roadmap of PEMRA
ix. To provide quality television service, on a non-discriminatory basis, to every
citizen
x. To introduce healthy competition in the Distribution Service sector
xi. To provide a wider range of Entertainment, News, Information and
Education
xii. To curb the illegal penetration of foreign DTH
1.5 The PEMRA (Eligibility Criteria & Bidding Process for DTH Distribution Service
Licensing) Regulations-2016 &terms and conditions of the DTH licence shall
prevail if there is a discrepancy between the IM and the terms & conditions or the
regulations. The expressions used but not defined herein shall have the same
meaning as are assigned to them under the PEMRA Ordinance, the Rules and
DTH Regulations and other relevant PEMRA regulations.
1.6 All correspondence related to this IM, queries regarding the licensing process, the
pre-bid conference, submission of application, bidding procedure etc. should be
addressed in writing through letter, fax or email to:
Director General (Licensing)
4th Floor PEMRA HQ Building
Mauve Area Sector G-8/1 Islamabad
Phone: 051-9107114
Fax: 051-9107140
Email: dth@pemra.gov.pk
2 Definitions
“ApplicableLicence Fee” means the licence fee prescribed by the Authority or where
applicable determined through bidding by the Authority;
“Broadcaster” means a person engaged in broadcast media, except broadcast journalists not
actively involved in the operation, ownership, management or control of the broadcast media;
“Broadcast station” means physical, technical and software infrastructure for the operation
of radio and television and also include satellite uplinking from ground, repeaters and all such
other accessories;
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“bundled scheme” means a scheme offered by a DTH operator for CPE at specified rate
which include the charges for TV channels or bouquets of TV channels for specified period.
“Channel” means the set of frequencies that a broadcast station occupies for broadcasting;
“Copyright” means copyright as defined in the Copyright Ordinance 1962 (XXXIV of 1962);
“DTH Service” means Direct to Home distribution of audio-visual signals received via
satellite to small dish antennas across the footprint of the satellite to subscribers;
“Frequency” means the frequency of the electromagnetic wave number measured in Hertz
and used for transmission;
“Gross revenue” means the total revenue receipts (except for sales and rentals of set-top
boxes, if any) calculated before realizing the expenses or liabilities;
“Licence” means the licence issued by the Authority to establish and operate a broadcast
media or distribution service; unless noted otherwise, this refers to the DTH licence governed
by the present terms and conditions.
“Licensee” means a person or company to whom the Authority has issued a Licence; unless
noted otherwise, this refers to the company that was awarded the DTH licence governed by
the present terms and conditions.
“Lock-in-period” means minimum period for which a subscriber shall be obliged to take the
service from DTH operator.
“Ordinance” means the Pakistan Electronic Media Regulatory Authority Ordinance, 2002, as
amended by the PEMRA (Amendment) Act 2007;
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“Regulations” mean the regulations made under the Ordinance;
“Set-Top Box” means a device for selectively receiving and decoding channels through DTH
service whose output is connected to a television receiver;
“Subscription fee” means the fee prescribed for receiving a broadcast or distribution (e.g.
DTH) service by a subscriber;
“thematic channel” means channels carried by the DTH Licensee and transmitted
exclusively through its DTH service;
“Value-added service” means any service provided by the DTH Licensee in addition to
subscriptions to a set of TV channels.
Words and phrases used but not defined herein, unless the context otherwise requires, shall
have the meanings assigned to them in the Ordinance, the rules and regulations made
thereunder.
3 Disclaimer
3.1 PEMRA does not warrant the accuracy of the information herein, and it reserves
the right to update, amend, modify, or add or omit any information or any part of
this IM before the start of the bidding process. Any such change, alteration,
modification, amendment, addition, omission, supplement, replacement or any
deletion will be communicated before the start of the bidding process to the
prospective applicants, via the PEMRA website or any other mode of
communication, and shall become an integral part of the IM and thelicensing
process.
3.2 PEMRA reserves the right, in its sole discretion, to take any action, including
amendment of this IM it considers necessary, to ensure that the award process is
carried out in a fair, open and transparent manner, in accordance with law and in a
manner that discourages and strongly penalizes any attempted collusion or
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predatory bidding that may block the entry of potential applicants into the bidding
process or otherwise inhibit an efficient outcome.
3.3 Applicants are warned not to indulge in collusion. In case there is any evidence of
collusion, PEMRA reserves the right to disqualify that applicant from the licensing
process. If PEMRA confirms evidence of collusive bidding before or during the
bidding process, PEMRA has the right to postpone or cancel the bidding process
and for all colluding applicants to forfeit their Pre-Bid Deposits, and claim
damages from them.
3.4 PEMRA reserves the right to add, modify, amend, supplement, cancel, annul or
replace any or all of the bidding / award process at any stage without incurring any
liability to the affected bidders or any obligations thereunder. PEMRA further
reserves the right to modify or terminate the bidding / award process at any time in
its sole discretion. In such an event,the bid security deposit, defined in section 17
of this IM, will be returned to the applicant within thirty (30) working days
without bearing any liability, unless the amount is otherwise required to be
forfeited.
3.5 If any difficulty or ambiguity arises regarding any provision of the Information
Memorandum, including the eligibility criteria, the decision of PEMRA shall be
final.
3.6 Any representation or warranty, express or implied, including the accuracy or
completeness of the information contained in this IM or any other written
information and any liability in respect of such information or accuracy in this IM
or omission from this IM is disclaimed.
3.7 The IM is for informational purposes only. It does not form part of any contract,
whether explicit or implied.
3.8 The DTH Regulations-2016 &terms and condition of the Licence shall have
precedence over the present Information Memorandum.
4.1 The Licensees shall be authorized to establish and operate a DTH Distribution
Service by uplinkinga single beam from within Pakistan.
4.2 The Licensee shall be authorized under the Licence to uplink eligible television
channels / FM radio transmissions to a designated satellite for direct distribution to
individual subscribers in the whole of Pakistan.
i. The Licenseewill be allowed to relayuptofive (5)thematic channels.
ii. The content to be aired over the thematic channels shall be copyrighted pre-
recorded local or international content including movies, dramas, educational
programmes, entertainment programmes, recorded sports
content,kidsprogrammes, weather update etc. The content shall be in
accordance with the code of conduct given in the Rules. There shall be no live
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coverage of any event. There shall be no content related to news & current
affairs, talk show, religion, speeches or sermons etc. The breakup of 24 hours
broadcast/content with repeat(s) to be relayed over each thematic channel shall
be as follows:
i. Indigenous &locally produced Pakistani content in Urdu, any other local
or English language; minimum limit: 45%
ii. Indian content; maximum limit: 6%
iii. Public service messages; in each hour; mandatory: 2% (1minute&12
seconds/hour)
iv. Advertisement; maximum limit: 20%
v. Foreign content (other than Indian): 21%
vi. Children content (local or foreign content; other than Indian):
Minimum limit: 6%
4.3 The thematic channels shall not be regular satellite television channels.
4.4 The Licensee shall offer a DTH service that covers the whole of Pakistan and
provide access to every citizen without discrimination.
4.5 The Licences shall be valid for a period of fifteen (15) years, on a non-exclusive
basis, starting from the date of issuance by the Authority, unless terminated earlier
for default, insolvency, non-compliance or violations of PEMRA Laws.
4.6 The Licenses can apply for renewal thirty six (36) months before the end of the
Licence validity, which shall be considered by the Authority as per law.
4.7 The detailed terms and conditions of the Licence are set in a separate document
“DTH LICENCE TERMS & CONDTITION” that is an integral part of the present
Information Memorandum.
5.1 Three (3) licences on non-exclusive basis for Direct-To-Home distribution service
(DTH Licence), provided that there are enough eligible applicants, shall be
awarded after completion of all legal requirements, approval of authority and
payment of requisite fees. A single DTH Licence shall be awarded to any single
applicant company.
5.2 The Base Price for DTH Distribution Service Licence shall be Pakistani
Rs.200million (two hundred million rupees).
5.3 An annual variable licence fee of 2% of the gross revenue generated from DTH
service excluding any STB sales related receipt& fixed annual fee of PKR 10
million will be paid to PEMRA by DTH Licensee, as defined in the terms
&conditions of the licence. The variable fee shall be waived of for initial three
years.
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6 Overview of the award process
6.1 The Licences for DTH Distribution Service shall be awarded through anopen and
transparent bidding process under Section 19 of the PEMRA Ordinance 2002
(Amendment Act 2007).
6.2 Open queries
i. From the day of publication/uploading of this information memorandum and
related documentsuntil the pre-bid conference, prospective applicants are
allowed to submit comments and ask questions for any clarification in
connection with DTH licensing process.
ii. PEMRA shallrespond to queries preferably on a daily basisor as soon as
possible, by publishing the answers with the questions online on the website
(www.pemra.gov.pk).
iii. The name of the party making the question or comment will not be disclosed.
iv. No prospective applicant will receive special treatment or special information
from PEMRA.
v. Questions and comments can be submitted,in writing with an envelope labelled
“DTH Licensing Queries” and sent to (Director General (Licensing) 4th Floor,
PERMA HQ Building, Mauve Area, Sector G-8/1 Islamabad), by Fax to fax
number (051-9107140),or by email with subject as “DTH Licensing Queries”
to: (dth@pemra.gov.pk)
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ii. PEMRA reserves the right to determine which of the comments and questions
received are relevant and may require clarifications and accordingly uploaded
on website.
6.6 Shortlisting
i. The applications and the documents required will be examined to evaluate the
technical, financial, managerial and other capabilities of the applicants.
ii. PEMRA shall shortlist the applicants based on the eligibility criteria, strictly in
accordance with PEMRA Laws.
iii. Only those companies who fulfil the eligibility criteria shall be considered for
shortlisting.
iv. PEMRA may ask for supplementary information or clarifications from the
applicants on specific points, as specified in section 10 of this IM.
v. Applicants having been already shortlisted in pursuance to advertisement dated
10.9.2015will remain shortlisted and need not apply afresh. However, they will
be required to furnish additional documents to meet the revised eligibility
criteria given in section 13 of this IM.
vi. Only the shortlisted applicants shall be invited to participate in the bidding
process.
7.1 A successful bidder shall be considered ineligible and lose all rights to a DTH
licence:
i. If the approval under clause 6.9of this IMis refused by the Authority. The
deposited bid security shall be refunded by the Authority.
ii. If it fails to fulfil any of the legal requirements including the security
clearance, provincial consultation, public hearing etc. The deposited bid
security shall be refunded by the Authority.
iii. If it fails to make the payments required in clause 6.11within the stipulated
time period. The deposited bid security and any other amount paid with
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regard to DTH license shall be forfeited. The Company and its Directors
shall be blacklisted for future licensing.
iv. If, for any reason, it is not awarded the licence within three years from the
date of bidding, the successful bidder shall remain entitled, on request, to a
refund by the Authority of the deposited bid security and any other
amounts paid in this regard except license application processing fee.
v. In case any of the information provided along with the application turns
out to be incorrect or false.
vi. If a licensee fails to commercially launch DTH service within one year of
the award of the licence as per terms & conditions of licence, except for
force majeure. The bid security deposit and any other amounts paid to the
Authority in relation to the licence shall be forfeited.
7.2 In any of the cases above, no claim whatsoever shall be maintainable by the
former successful bidder.
7.3 The Authority may reissue the corresponding licence in a separate process within a
timeline to be advertised accordingly.
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Within 15 calendar days after
conditions set in section 6.12 are
Award of the licence
satisfied and the relevant part of the
licence fee has been paid.
8.2 The Authority reserves the right to amend the overall timetable of the licensing
process, and to amend this schedule from time to time, as circumstances require.
Any such change shall be uploaded on PEMRA website.
9.1 The applicant shall submit all the duly filled application form &required
documents, specified in Annex A, in original with two copies&soft / scanned copy
of the application & allied documents on or before 15.9.2016 (15th September,
2016), 16:00 hrs Pakistan Standard Time, at the following address:
Director General (Licensing)
4th Floor, PEMRA HQ Building
Mauve Area, Sector G-8/1
Islamabad
Telephone: 051-9107114
Fax: 051-9107140
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9.7 Applicant companies shall immediately report to PEMRA in writing any material
change in the information provided in its application (including any information
relevant to any Director or Shareholder of the company) prior to the bidding date,
or as and when required by PEMRA. Failure to report such material change shall
constitute grounds for disqualification. The material change itself may also lead to
disqualification of the company.
9.8 The applicant companies that are pre-qualified or shortlisted shall be informed in
writing or via fax, email and/or courier at their specified addresses within an
appropriate time.
9.9 PEMRA shall be under no obligation to return any application or supporting
materials submitted by an applicant company.
10 Supplementary information
10.1 At any time, in particular during the shortlisting process, but also thereafter,
PEMRA reserves the right to require any supplementary information,
documentation and clarification for evaluating the application. This may include
information of the applicant company and any Director or shareholder of the
applicant company, its shareholding or holding/ parent company, subsidiary etc.
10.2 Whenever such request is made, the applicant company shall respond within
such time as PEMRA may require. If the applicant company fails to provide
such information, documentation and clarification within the stipulated time
period, its application may be rejected without any further processing.
11 Commercial Interoperability
ii. DTH Licensee may specify a lock-in period which shall not exceed twelve
months.
iv. There shall be no obligation on DTH operator to accept return of the Set
Top Box if it is tampered with or is not in working condition at the time of
return.
v. On return of the STB by the subscriber, DTH Licensee shall refund,-
(a) if the STB has been acquired under the standard scheme or any
other scheme, the total depreciated value of the said equipment;
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(b) if the STB has been acquired under rental scheme, subscriber will
get back the security deposit.
(c)if the STB has been acquired under bundled scheme, in addition to
the refund towards STB specified in para v (a), the balance amount
for the bundled programmes after deducting the charges for the
number of completed month(s) and part thereof for which DTH
services were availed by the subscriber by applying average
monthly charge for such programmes:
Provided that DTH Licensee may deduct additional one month average
charge for surrender of connection before the expiry of the specified
period for the bundled scheme:
vi. The depreciation on the price of the STB specified by DTH Licensee shall
be calculated using straight line method at the rate of 2.7778% for every
completed month or part thereof.
vii. Every DTH Licensee shall provide facility for registration of request of the
subscribers for surrender of the connection through its call center.
viii. Every DTH Licensee shall, within fifteen days of receipt of request from
the subscriber, collect the STB from the premises of the subscriber.
ix. Every DTH Licensee shall, within fifteen days of receipt of the STB,
ensure payment of the refund amount.
x. The subscriber may surrender the STB at the designated center of the
service provider and in that case DTH Licensee shall not charge any
collection charge.
xi. DTH Licensee shall not deduct any other charge from the amount
refundable to the subscriber on return of the STB.
xii. There shall be no obligation on DTH Licensee to make any payment on
return of STB after it has been used by the subscriber for three years.
11.2 Publication
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i. DTH Licensee shall, before entering into subscription agreement with the
subscriber, explain to the subscriber details of all the schemes for acquisition of
STB and take the declaration of the subscriber on subscription agreement
acknowledging that details of the schemes have been explained to him.
ii. DTH Licensee shall display the refund table along with corresponding scheme on
its brochure and also make the same available on its website.
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12 Encryption
Encryption used by DTH Licensee shall be different from any other local or foreign
DTH operator and must be unique to the Licensee for its DTH service in Pakistan. Set
Top Boxes or any other devices used for receiving foreign DTH services shall not be
used by Licensee.
13 Satellite Capacity:
14 Eligibility criteria
14.1 Each applicant must be a company that has been registered with the Securities and
Exchange Commission of Pakistan (SECP).
14.2 An applicant company shall not control, directly or indirectly, more than one DTH
licence.
14.3 Applicants must have a minimum paid-up capital of Rs. 100 Million.
14.4 The applicant company shall demonstrate that it has sufficient financial and
technical resources to launch, establish and operate the DTH Distribution Service.
14.5 Applicants shall have less than 50% of the shares owned or controlled by foreign
nationals/companies, if any, with or without management or control vested in
foreign nationals or companies. The Chief Executive Officer of the applicant
company shall be resident Pakistani.
14.6 The object clause in the Memorandum & Article of Association of the applicant
company shall allow entry into the business of electronic media / DTH.
14.7 The applicant company or any of its directors/shareholders must not be defaulter
of PEMRA, any financial institution, tax authorities or any organization of the
Government of Pakistan or any provincial/regional government.
14.8 Applicants shall not be funded or sponsored by a foreign government or
organization, in accordance with Section 25 (d) of the PEMRA Ordinance.
14.9 The applicant, directly or indirectly, already holding any licence(s) issued by the
Authority, shall not be eligible for grant of licence unless all outstanding dues in
respect of such licence(s) have been paid.
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14.10Any director or shareholder of one applicant company shall not be a director or
shareholder in any other applicant company for DTH Distribution Service Licence.
14.11The applicants must not already be a licensee who owns, controls or operates
directly or indirectly any broadcast media licence or landing rights permission, in
compliance with Rule 13 of the PEMRA Rules 2009.
14.12The applicant company must comply with the relevant provisions of the PEMRA
Ordinance 2002 (Amendment Act 2007), PEMRA Rules 2009, DTH Regulations-
2016 and terms & conditions of licence as amended from time to time except the
exemptions granted by the Authority including, inter alia, the one in clause 14.5 of
this IM.
14.13The Applicant shall demonstrate that it will contribute to the economic and social
objectives such as promoting Pakistani culture and ideology, local programming
content, generating economic activity and direct and indirect employment,
attracting private sector investment and foreign direct investment (FDI) in
electronic media and growth of relevant manufacturing sector.
14.14The applicant company shall undertake to abide by the bidding procedure.
14.15The applicant shall demonstrate prospects of technical progress & new technology.
14.16The applicant shall demonstrate market advancement such as improved service
feature or market concepts.
14.17The applicant shall demonstrate universal service objectives.
Documents required:
The applicant company shall submit the following documents:
14.18The applicant company shall submit the duly filled application form (Annex-A)
along with all information required therein; any missing information may lead to
disqualification. The information shall include, but not be limited to the following:
i. Board Resolution of the applicant company authorizing filing of the
application for grant of DTH licence
ii. True attested Certificate of Incorporation, Statutory Returns, Memorandum &
Articles of Association and Forms from SECP regarding
ownership/management of the applicant company, the holding company, any
shareholding company in the applicant e.g. FormA, Form 29, Form 3, etc.
iii. Copy of NTN certificate of the applicant company, where applicable that of its
holding company, of any shareholding company etc.
iv. A description of the applicant company’s ownership and control structure,
including its holding company, any shareholding company etc.
v. Names, detailed CVs& their NTN /filer certificates of the Directors and
shareholders of the applicant company&where applicable, those of the holding
company, any shareholding company etc.
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vi. Attested copies of CNICs of Directors and shareholders or Passports of the
Directors (in case of foreigner)
vii. A description of the broadcast /distribution experience of the company if any
or any of its shareholding company etc.
viii. Summary of other businesses of the applicant company, if any.
ix. Audited accounts and annual reportsof last two years of the applicant company
including, where applicable, those of its holding company or any of its
shareholding company etc.
x. Income tax returns of the applicant company for last two years; if not
applicable, the tax returns filed by Directors/shareholders, shareholding
company for the last two years.
xi. Bank statement of the applicant company for the last two years or in case of
new company proof of bank account of the applicant company and bank
statements having details of last two years of the Directors / shareholders/
shareholding companies etc.
xii. A summary of the services the company intends to provide, including value-
added, interactive services other than the basic TV and Radio services.
xiii. Proposal regarding various subscription packages including proposed tariff etc.
xiv. A description of the financial capability of the company.
xv. Financial feasibility containing information as per application form.
xvi. Technical feasibility containing information as per application form.
xvii. Description / demonstration of the requirements given in Section 14.13, 14.15
to 14.17of this IM.
xviii. Demand Draft or Pay Order in favour of PEMRA amounting to rupees FIVE
HUNDRED THOUSAND(PKR 500,000/-) as application processing fee,
which shall be non-refundable.
xix. Certificate from FBR for tax clearance or & tax filer certificate or undertaking
on stamp paper for tax clearance.
xx. Affidavit of applicant company that neither the applicant company nor any of
its directors or shareholders are defaulter of PEMRA, any financial institution,
or government and tax authorities & that the company or any of its Directors /
CEO has never been blacklisted (Annex-B);
xxi. Affidavit of applicant company that it shall abide by all PEMRA Laws, the
Rules, Regulations, Code of Conduct, licence terms & conditions and
directions issued by the Authority from time to time (Annex-C);
xxii. Affidavit of the applicant company that neither the applicant company nor any
of its Directors or shareholders are directly or indirectly owning, controlling or
operating broadcast media licenses or landing rights permission in compliance
with Rule 13 of PEMRA Rules 2009 (Annex-D);
xxiii. Affidavit that the applicant company is in compliance with Section 25 of the
PEMRA Ordinance 2002 except the exemption granted by the Authority given
in section 14.5 of this IM.(Annex-E).
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xxiv. Affidavit to the effect that all information submitted along with the application
are true and nothing has been concealed or misrepresented therein. Any
concealment of facts or misrepresentation revealed subsequently may result in
disqualification of the applicant and or cancellation of licence as the case may
be (Annex-I).
xxv. Soft / scanned copy of the application form and all allied documents.
15.1 The applicant companies shall be provisionally shortlisted as per the above
criteria on the basis of the documents/information provided by them.
Incomplete applications may be rejected.
15.2 Shortlisting of the applicant company however, shall not guarantee grant of
licence. The licence shall be granted to the successful bidder only after
fulfilment of all legal requirements, approval of Authority and payment of fee,
taxes etc.
15.3 Shortlisting does not include security clearance, public hearing, content
presentation and provincial concurrence. These shall be done after completion
of the bidding process and before grant of the licence.
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15.4 The provisionally shortlisted applicant companies shall be invited to
participate in the bidding.
15.5 Applicants having been already shortlisted, in pursuance to advertisement
dated 10.9.2015 will remain shortlisted and need not apply afresh. However,
they will be required to furnish additional documents to meet the revised
eligibility criteria given in section 14.19 of this IM.
16 Bidding process
16.1 Shortlisted companies that participate in the bidding shall provide a separate
Power of Attorney, on stamp paper and executed, notarized, witnessed,
stamped and authenticated as required by law, for the person representing the
company in the bidding process. The company shall be bound by the decisions
of that person in matters connected to the bidding /auction.
16.2 The attorneys of the companies shortlisted for participation in the bidding
process for DTH licences shall be required to sign the attendance sheet. A
maximum of two representatives per company shall be allowed to participate
in the bidding.
16.3 In case only one shortlisted bidder appears on the bidding date, the matter shall
be referred to the Authority for decision, and the Authority shall decide within
thirty (30) calendar days whether or not to award the licence. The decision of
the Authority shall be final.
16.4 The Bidding Committee, duly constituted by the Authority, shall conduct the
bidding process. In case of any dispute during the bidding process, the decision
of the Bidding Committee shall be final.
16.5 The bidding shall consist of thefollowing two rounds:
i. First Round through sealed bids.
ii. Second Round through open outcry. The second round shall start
immediately after the first round.
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along with the Sealed Bids in favour of PEMRA in the form of demand
draft or pay order.
iii. The base price for a DTH licence shall beRs. 200 million. Bids offered less
than the base price shall not be accepted.
iv. Bids shall be made in multiples of PKR2million.
v. The sealed bids shall be dropped in the box reserved for this purpose, along
with the bid security deposit, in the presence of the Bidding Committee.
vi. No addition, alteration or omission in the sealed bid shall be acceptable.
16.9 The Bidding Committee shall open sealed bids in the presence of authorized
representatives of the bidders. The bidders whose sealed bids equal or exceed
the base price set for a DTH licence shall be eligible to participate in the
second round (open outcry). The Bidding Committee shall announce:
i. The Offered price of each bidder
ii. The prices of the three highest bids
iii. The names of Qualified Bidders
16.10If there are three or less than three short-listed applicants only, the Authority
may declare the shortlisted applicants to have won the licence with Applicable
Licence Fee (ALF) equal to the base price or it may decide to re-advertise
invitation of applications.
16.11If there are more than three short-listed applicants, the second round shall be
held with a simultaneous ascending price auction.
i. The three highest bid amounts concluded in the first round shall be the
starting bid prices for the open outcry bidding in the second round. The
bidding Committee shall announce the amounts of these three bids.
ii. The amount of new bids shall be strictly higher than the current third
highest bid, and shall be different from the amounts of the two highest
bids. All bids shall be amounts that are multiples of PKR 2 million.
iii. The highest bid shall not exceed the current highest bid by more than
PKR10 million.
iv. Each eligible bidder shall raise their hand before offering the bid.
v. Each bidder shall cry-out his bid, write it on a prescribed form (Annex-H)
duly signed by the authorized representative, and hand it over to the
Bidding Committee.
vi. The Authorized Representative of a Bidder shall not be allowed to
participate in any activity on behalf of any other Bidder during the bidding
process.
vii. After every bid, the bidding Committee shall announce the amounts
corresponding to the three highest bids.
viii. The Bidding Committee shall continue the open outcry session until the
three highest prices are not further contested.
ix. Each highest bid will get a maximum time of FIVE MINUTES,
comprising of three announcements of one minute each. Each bidder shall
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be granted a timeout of fifteen minutes each, on request, only once during
the entire bidding process.
x. The Bidding Committee shall have the right to change the maximum time
defined above before the start of the bidding, with prior announcement.
xi. When there are no further bids, the Bidding Committee shall announce the
names of the three companies who offered the three highest bids and the
three respective bid amounts.
xii. The three highest bidders shall be considered successful bidders, and the
‘Applicable Licence Fee (ALF)’ shall be the lowest of the three highest
bids.
16.12Without prejudice to any other remedy that may be available to it, the
Authority reserves the right, on the recommendation of the Bidding
Committee, to disqualify any Bidder and forfeit its money for any of the
reasons given below:
i. Inaccuracy or misrepresentation of any facts in any part of theapplication
or bid.
ii. Illegal conduct, disruption during the bidding process, or indulgence in
improper attempts to influence the outcome or delay the process.
iii. Any “corrupt practice,” such as the offering, giving, receiving or soliciting
of anything of value to influence any official of the Authority in relation to
the bidding process.
iv. Any fraudulent practice or misrepresentation of facts in order to influence
the results of the bidding process.
16.13Reservation of Rights
i. The Authority reserves the right to reject any or all of the bids before
acceptance of bids as per relevant, by recording reasons in writing.
ii. The Authority reserves the right, in its sole discretion, to take any action
which it deems necessary to ensure that the Bid process occurs in a fair,
open and transparent manner, in accordance with law, and discourage
collusion and predatory bidding that may block the entry of potential
bidders into the bidding process. In this regard, the decision of the Bidding
Committee shall be final and binding on all bidders.
iii. No suit, prosecution or other legal proceeding shall lie against the
Authority or any member of the Bidding Committee or employee of the
Authority in respect of anything done or intended to be done by the
Authority in good faith in connection with the bidding process.
iv. If at any time either before grant of licence or after grant of licence, it
comes to the notice of the Authority that the applicant company or any of
its representative had provided any false or misleading
statement/information, advertently or inadvertently, the application shall be
rejected immediately and the earnest money shall be forfeited; and if the
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licence has already been issued, the licence shall be revoked and security
deposit and other dues deposited by the applicant company or licensee
shall be forfeited.
vi. The schedule for payment of applicable licence fee shall be as given in
section 6.11 & section 17 of this IM. Annual fee of the DTH licence shall
be as given in section 5 of this IM. In case of non-compliance with the
schedule of payment, the earnest money and all other sums deposited by
the applicant company shall be forfeited.
vii. The provisions of the PEMRA Ordinance 2002, PEMRA Rules 2009, and
Distribution Service Operations Regulations-2011 except the exemptions
granted by the Authority from relevant provisions of the Ordinance and
Rules as elaborated above and these regulations shall have effect
notwithstanding anything contained in this notification.
viii. In the event successful bidder fails to fulfil the legal requirements
including but not limited to security clearance from Ministry of Interior for
grant of DTH licence, the Authority may reject its application by recording
reasons in writing; and the Authority may, in its discretion, grant
opportunity of meeting the applicable licence fee to the next highest bidder
& so on or re-bid the licence.
17 Payments
17.1 A non-refundable application processing fee for a DTH licence ofRs. 500,000
shall be deposited along with the application in the form of demand draft or
pay order in favour of PEMRA.
17.2 To participate in the bidding process, shortlisted applicants/eligible bidders
shall submit, with their sealed bids, a bid security deposit equal to 15% of the
offered bid in the form of demand draft or pay order in favour of PEMRA,
valid for a minimum period of one hundred andtwenty (120) calendar days.
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17.3 If the Applicable Licence Fee for the successful bidders is higher than the base
price, the bid security deposit shall be adjusted to 15% of the Applicable
Licence Fee, with an additional payment (balance of the 15% of applicable
license fee), to be made within ten (10) calendardays of the bidding date.
17.4 After the bidding date, the bid security deposit of the unsuccessful bidders will
be reimbursed on request within sixty (60) calendar days, without bearing any
liability by the Authority towards interest, indexation, inflation, deflation, etc.
17.5 The successful bidders, after completion of all legal requirements & approval
of Authority, may choose to pay the licence fee upfront or in instalments, as
follows:
i. Upfront: 100% payment of the balance applicable licence fee as a one-time
upfront amount
OR
ii. Instalments: an upfront payment of the balance towards 50% of the
applicable licence fee, and the remaining amount in 10 years in equal
annual instalments with a cumulative mark-up rate at the KIBOR rate,
applied from the period of the date the upfront payment is due to the
payment date. A winner in the bidding process may pay the remaining
balance of the Applicable License Fee at any time in advance of the
scheduled instalment, subject to the cumulative mark-up up to such date of
payment.
18 Special provisions
18.1 Each applicant company that submits an application for the grant of a DTH
Distribution Service Licence exempts and discharges PEMRA and its
consultants, advisors,officers and personnel completely and unconditionally
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from any responsibility or liability for the decisions that may be made with
respect to its shortlisting, or otherwise, to participate in the bidding process for
a licence.
18.2 No suit, prosecution or other legal proceedings shall lie or be brought against
PEMRA, the Chairman, Members, consultants, officers or other employees of
PEMRA, in respect to anything contained in or arising from these guidelines.
19 Confidentiality of applications
19.1 By submitting its application, each applicant company agrees to maintain the
confidentiality of all information (whether written, verbal or otherwise)
supplied to it in connection with the shortlisting process and agrees to keep its
own application confidential, whether or not it is among those shortlisted by
the Authority.
19.2 The Authority shall maintain confidentiality of the information designated by
the applicant companies as confidential, shall not release such information for
any purpose other than the evaluation of the application and shall not (unless
disclosure is required by mandatory law) release any such information without
having first obtained permission of the applicant Company;however, no
permission for disclosure of information submitted by the applicant company
in connection with the application shall be required for release of information
to the Government of Pakistan.
19.3 Refusal by an applicant company to permit the Authority to make such
controlled disclosure of information as is necessary to evaluate the application,
may be sufficient grounds for the Authority, in its sole discretion, to disregard
or discount such information and may also lead to disqualification.
19.4 However, neither the Authority nor any of its employees, representatives,
advisors or consultants shall be liable in any respect whatsoever to any
applicant or any of its members or representatives for damages or harm
resulting from a failure to maintain such confidentiality.
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AUTHORITY LETTER
POWER OF ATTORNEY
_______________________________
Designation ____________________
Date:___________________
Page 27of82
ANNEX-A
NON-TRANSFERABLE
Please read the following instructions before filling the Application Form:
Give complete answers, use extra sheets if required, attach copies of any relevant
documents required to illustrate the answers.
Use the typescript or write in black ink in capital letters.
Attach documentary evidence of your authorization to act on behalf of the applicant
Company for filing of this application.
Submit the Application Form along with all the required documents & information
in triplicate.
Soft copy of complete application form along with required documents
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Yes/No
1. Company registration with SECP
a. Certificate of Incorporation
b. Memorandum & Articles of Association
c. Form-29, and Form-A / Form-3
2. Board resolution authorizing the filing of the application for DTH license
3. A clear, comprehensive and detailed view of the applicant
ownership and control structure, including sister, shareholding
and holding / parent companies.
a. Description of ownership structure
b. Description of the control structure
c. Description of all direct and indirect relationship with
companies or individuals who own, control or operate
directly or indirectly any broadcast media licence or
landing rights permission, including any common
shareholder, director or ultimate beneficiary.
d. Description of all direct and indirect relationship with
companies or individuals who own, control or operate
directly or indirectly any distribution license, including
any common shareholder, director or ultimate
beneficiary.
e. Forms provided in annex for identifying foreign
shareholding of the applicant company
f. Forms provided in annex for identifying foreign
shareholding of foreign companies that hold shares in
the applicant company.
g. List of directors and shareholders with details of their
shareholding, relations to other PEMRA licensees and
applicants for a licence.
4. A company profile
a. Names of the members of the Board Directors and
theManagement, along with their detailed CVs, copy
of their passport (foreign nationals) or National
Identify Card (Pakistan nationals), their job description
and responsibility in the Company.
b. A description of the broadcast service /distribution
experience of the company, of key management
personnel and of key shareholders, including
experience relevant to managing large Pay-TV
deployments.
c. Organisation chart
d. Other business of the company
e. The official company accounts and annual reports for
last two years (where applicable)
f. List of other companies in which the Directors hold
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shares or positions
5. A summary of the services the company intends to provide,
including:
a. Channels to be offered, including any radio channels
b. Subscription packages with subscriber pricing
c. Value- Added services envisaged with subscriber
pricing
d. Thematic channels
e. Timeline for the rollout of these services
f. Set-top boxes distribution strategy (direct and/or
retail), with expected price level
6. A description of the financial capability of the company,
including:
a. Description of financial capabilities of the company for
the last two years
b. Audited financial statements for the most recent
available two years, duly certified by a firm of
chartered accountants
c. Tax return for the company for the most recent two
years
d. Similar financial and operating information for any
parent company, affiliates and associated undertaking
or companies, holding companies
e. The tax returns filed by Board Directors for the last
two years together with the tax assessment orders of
the relevant income tax authorities
7. A summary of the project financial feasibility, including:
a. Brief Description of the project
b. Capital costs with break-up
c. Forecast balance sheets, profit & loss accounts /
income statements and cash flow statements for the
first 5 years of operation showing the source of
revenues (subscriptions, advertisement, etc.)
d. Break-even analysis & payback period
e. Sources of financing, foreign and local, including
equity and long term debt and debt to equity ratio
f. Brief description of committed financial resources to
meet capital and operational expenditures of the
project for the 1st year, with relevant proofs, such as
bank statement of company’s accounts, letter of intent
or memorandum of understanding signed with the
relevant investors or banks. If such financial
commitments are from foreign company shareholders,
include evidence of the foreign shareholder board
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resolution authorising the investment for DTH
services.
8. A summary of the project technical feasibility, with the
technical equipment envisaged, including:
a. Brief description of the technical project
b. List of the main head-end equipment envisaged,
including:
i. Subscriber Management and billing System
ii. Compression systems
iii. Encryption systems
iv. Transmission systems
v. Details of monitoring equipment
c. Set-top-box specification
d. Description of the conditional access system solution,
including
i. Head-end equipment
ii. Integration in the set-top box with smart card or
cardless solutions
e. Customer premises antenna specification
f. Location of the head-end and uplink
g. Satellite(s) envisaged, including
i. The corresponding footprint
ii. The transponder capacity to be used
iii. Signal power level in dBW
h. Proposed schedule of the project including
construction, installation and commencement of
services date
9. Description of how the company will contribute to the
economic and social objectives such as:
a. Promoting Pakistani culture and ideology
b. Promoting Pakistani programming content
c. Generating economic activity
d. Generating direct and indirect employment
e. Attracting private sector investment and FDI in
electronic media
f. Growth of the manufacturing sector.
10. The applicant shall demonstrate prospects of technical
progress & new technology.
11. The applicant shall demonstrate market advancement such as
improved service feature or market concepts.
12. The applicant shall demonstrate universal service objectives.
13. The Applicant shall demonstrate that it will contribute to the
economic and social objectives, such as promoting Pakistani
culture and ideology, promoting local content, generating
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economic activity, generating direct and indirect employment,
attracting private sector investment and FDI in electronic
media, and growth of the manufacturing sector.
14. Undertakings and affidavits and Power of attorney
a. Undertaking as per annex
b. Affidavit as per annex.
c. Power of Attorney, on stamp paper and executed,
notarized, witnessed, stamped and authenticated as
required by law, as evidence for grant of authority in
individual signing the application and related
documents.
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3. ORGANIZATIONAL SET-UP
3.1 Details regarding Ownership / Control of the Company:
(Information regarding CEO, Directors and Shareholders).
Father/ Spouse
Home Address
Position in the
Nationality
Any other
Company
Extent of
details
NIC #
S. No.
Name
Share
name
3.2 Names and addresses of the ultimate beneficial ownership of the Company
3.3 Details of other applications of the company under process with the Authority
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Description City/Area/
Date of Any other
S. No. /Category/
Application details
Application for Region
Broadcast Medias
Type of shareholding
Distribution
Media Any other
Detail of
Services
S. No.
Name
(electronic/ details
Print)
Page 34of82
(a) Debt
(b) Equity
(c)Foreign Investment
(i)Foreign nationals
(ii)Foreign companies
(iii)Expatriate Pakistanis
3.7 Details of other applications of the company under process with the Authority:
S.
DESCRIPTION/CATEGORY Date of CITY / AREA / ANY OTHER
No.
/ APPLICATION FOR Application REGION DETAILS
Page 35of82
3.8 Detail of licences obtained from PTA (if any)
Licence Description Licence
S. No. Date of issuance City / Area / Region
/Category Number
___________________________________________________________________________
As on (date) ________________________________________________________________
Shareholding
1. Local individual
2. Local company*
3. Foreign individual
4. Foreign company
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5. Non-Resident Pakistani
6. Any other
* The shareholding information of any local shareholding company shall also be provided.
List here the details of the shareholding patterns of each local company shareholder who owns
shares in the applicant company. Fill this form separately for each local company shareholder.
As on (date) ________________________________________________________________
No. & % of shares held by the company in the applicant company: _____________________
Share Holding
1. Local Individual
3. Foreign individual
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4. Foreign company
5. Non-Resident Pakistani
6. Any other
(*) Fill this form again for any local company who owns shares.
6.6 In addition, the applicant shall provide details as per Annex-I subsequently.
* The satellite to be used for DTH service shall be as given in section 13 of this IM.
ANNEX- I
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2. GS Orbital location
6. Frequency band of operation: 10.95 – 11.2 GHz / 11.45 – 11.7 GHz (downlink)(circle
appropriately): 12.2 – 12.5 GHz / 12.5 – 12.75 GHz or any other
10. Details of data rate, FEC, modulation, bandwidth and specific frequency range for each
TV Channel (if possible)
________________________________________________________________________
________________________________________________________________________
11. Satellite transmit Max. & Min. EIRP over Pakistan in dBW:
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1. DTH uplink station location:_________________________________________________
2. Uplink frequency band (circle appropriately): 13.75 – 14 GHz / 14.0 – 14.25GHz / 14.25 –
14.5 GHz or any other
_________________________________________________________________________
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4. Whether the STB is interoperable with other service providers or not
D. Satellite details
(Please enclose Lease Agreement and Footprint of the satellite on which the transponders are
proposed to be hired)
** The satellite to be used for DTH service shall be as given in section 13 of this IM.
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UNDERTAKING
I/We__________________, the applicant company do hereby declare that the all facts given
herein are correct in all respects and nothing has been concealed or misrepresented therein.
I/We also undertake that:
I/we shall respect the sovereignty, security, integrity and ideology of the Islamic
Republic of Pakistan.
I/we shall respect the national, cultural, social and Islamic values and the principles of
public policy as enshrined in the Constitution of the Islamic Republic of Pakistan and
to safeguard the ideology of Pakistan.
I/we have read and understood the eligibility criteria, bidding procedure, terms &
conditions of license and shall strictly comply with the same in letter and spirit.
I/we, if granted a licence, shall comply with PEMRA Ordinance, rules and regulations
made thereunder, the Code of Conduct, licence terms & conditions and instructions as
notified by the Authority from time to time and pay licence fee, annual fee including
such percentage of annual gross advertisement revenue as may be applicable, security
deposit and all such other dues as notified by the Authority.
I/we, if granted a licence, shall broadcast programmes in the public interest specified
by the Federal Government or the Authority in the manner indicated by the
Government or, as the case may be, the Authority.
I/we shall abstain from broadcasting any programme or advertisement in violation of
copyrights or other intellectual property rights.
I/we shall obtain NOC from PEMRA before import of any transmitting apparatus for
broadcasting as required under Section 20 of the PEMRA Ordinance 2002.
I/we shall not sell, transfer or assign any of the rights conferred by the licence without
prior written permission of the Authority.
I/we have provided all documents which are required to be submitted along with the
application for DTH distribution licence and shall provide any further information if
and when required by the Authority.
M/s. ________________________
Place __________________
Dated _________________
I, ___________________________________________S/o____________________________
(Designation)___________________________ of
M/s______________________________(hereinafter referred as “the applicant company”) do
hereby solemnly state and affirm on oath that neither the applicant company nor any of its
CEO, Directors and shareholders are defaulter of PEMRA, any financial institution, tax
authorities or the Government of Pakistan or any provincial and Local Government.
M/s _________________________ do hereby solemnly state and affirm on oath that neither
the applicant company nor any of its CEO, Directors and shareholders have ever been
blacklisted by PEMRA, any organization of the Government of Pakistan or any other
government.
DEPONENT
VERIFICATION:
I, the above named deponent do hereby solemnly affirm on oath that the contents of the above
affidavit are correct and true to the best of my knowledge and nothing has been concealed
therein.
DEPONENT
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ANNEX-C
I, ___________________________________________S/o____________________________
(Designation) ______________________________ of
M/s____________________________(hereinafter referred as “the applicant company”) do
hereby solemnly state and affirm on oaththat the applicant companyand its CEO, Directors
and shareholders shall abide by the PEMRA Ordinance 2002, the Rules, Regulations, licence
terms & conditions, guidelines, eligibility criteria,bidding procedure, Code of Conduct made
thereunder and as amended from time to time as well as the directions issued by the Authority
from time to time. I also undertake to pay the applicable licence fee, annual fee including the
percentage of the gross revenue as provided in these regulations and the terms & conditions of
license, bid security and bank guarantee as amended by the Authority from time to time and
all the applicable taxes.
DEPONENT
VERIFICATION:
I, the above named deponent do hereby solemnly affirm on oath that the contents of the above
affidavit are correct and true to the best of my knowledge and nothing has been concealed
therein.
DEPONENT
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ANNEX-D
I, _______________________________________S/o____________________________
(Designation) ___________________________ of M/s____________________________
(hereinafter referred as “the company”) do hereby solemnly state and affirm on oath
thatneither the applicant company nor any of its Directors or shareholders are directly or
indirectly owning, controlling or operating broadcast media licenses or landing rights
permission in compliance with Rule 13 of PEMRA Rules 2009.
DEPONENT
VERIFICATION:
I, the above named deponent do hereby solemnly affirm on oath that the contents of the above
affidavit are correct and true to the best of my knowledge and nothing has been concealed
therein.
DEPONENT
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ANNEX-E
I, _______________________________________S/o____________________________
(Designation) ____________________________ of M/s____________________________
(hereinafter referred as “the applicant company”) do hereby solemnly state and affirm on oath
that the applicant company is not ineligible for grant of licence in terms of Section 25 of the
PEMRA Ordinance 2002 as amended from time to time except section 25 (c) of the PEMRA
Ordinance 2002 to the extent of management control of the applicant vested in foreign
nationals or companies if any as provided in the eligibility criteria.
DEPONENT
VERIFICATION:
I, the above named deponent do hereby solemnly affirm on oath that the contents of the above
affidavit are correct and true to the best of my knowledge and nothing has been concealed
therein.
DEPONENT
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SCHEDULE-F
I, ___________________________________________S/o____________________________
(Designation) ______________________________ of M/s____________________________
(hereinafter referred as “the applicant company”) do hereby solemnly state and affirm on oath
that all the information submitted along with the application and documents provided are true
and nothing has been concealed or misrepresented therein and that any concealment of facts
or misrepresentation revealed subsequently may result in our consequent disqualification and
or cancellation of our licence as the case may be.
DEPONENT
VERIFICATION:
I, the above named deponent do hereby solemnly affirm on oath that the contents of the above
affidavit are correct and true to the best of my knowledge and nothing has been concealed
therein.
DEPONENT
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ANNEX-I
AUTHORITY LETTER
(To be submitted on Stamp Paper of Rs. 500, duly attested by Oath Commissioner,
accompanied with Board Resolution)
_______________________________ _______________________________
Designation ____________________
Date:___________________
Witnesses:
Page 48of82
SCHEDULE-II
BID FORM
___________________________________________________________________________
I solemnly declare that this bid for the grant of Direct to Home (DTH) Distribution licence is
unconditional, irrecoverable and is valid for three years from the date of its submission and
the bidder/applicant company undertakes to comply with all other conditions of the bidding
process.
_______________________________
Date: _________________________
Page 49of82
DTH LICENCE TERMS & CONDITIONS
Page 50of82
1 Definitions (for the purpose of this licence)
“ApplicableLicence Fee” means the licence fee prescribed by the Authority or where
applicable determined through bidding by the Authority;
“Authority” means the Pakistan Electronic Media Regulatory Authority (PEMRA)
established under section 3 of the Ordinance;
“Authorized officer” means Chairman or Member, or any member of staff, expert,
consultant, adviser, other officer or employee of the Authority to whom the Authority has, by
general or special order, delegated its powers, responsibilities or functions under the
Ordinance for carrying out the purposes of the Ordinance, Rules or Regulations made there
under+
“Basic Service” means the channels of national broadcasters, non-commercial educational
channels licensed by the Authority and such other free to air television channels as
determined by the Authority to be distributed by the DTH operator to its subscribers, along
with channels that the licensee may decide to include, against a monthly subscription fee at a
subscription fee not higher than maximum prescribed by the Authority;
“Broadcaster” means a person engaged in broadcast media, except broadcast journalists not
actively involved in the operation, ownership, management or control of the broadcast media;
“Broadcast station” means physical, technical and software infrastructure for the operation
of radio and television and also include satellite uplinking from ground, repeaters and all such
other accessories;
“Bundled scheme” means a scheme offered by a DTH operator for CPE at specified rate
which include the charges for TV channels or bouquets of TV channels for specified period.
“Catch-Up TV” means the enablementfor users to view programs that they missed through a
two-way connection using a hybrid set-top box connected to an interactive network;
“Chairman” means the Chairman of the Authority;
“Channel” means the set of frequencies that a broadcast station occupies for broadcasting;
“Company” means a company as defined in the Companies Ordinance 1984 (XLVII of
1984);
“Commercial Interoperability” provides for an exit option to a subscriber incase he wishes
to change the operator and avail the services from another DTH operator for any reason
without duplication of investment.
“Copyright” means copyright as defined in the Copyright Ordinance 1962 (XXXIV of 1962);
“Council” means Council of Complaints, established under section 26 of the Ordinance;
“Customer Premises Equipment (CPE)” means equipment at the subscriber’s end for
receiving the DTH service, which includes satellite dish antenna, LNB, Set-Top-Box, coaxial
cable, connectors, etc.;
“DTH Service” means Direct to Home distribution of audio-visual signals received via
satellite to small dish antennas across the footprint of the satellite to subscribers;
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“Decryption or decoder equipment” means a device used for decrypting or decoding a
television channel for carriage by the DTH operator;
“Eligible channels” means a TV channel licensed by the Authority uplinked from within
Pakistan or otherwise declared to be eligible for reception and distribution in the country;
“Encrypted” means treated electronically or otherwise for the purpose of preventing
intelligible reception by unauthorized persons;
“Foreign company” means a company or body corporate organized, and registered under the
laws of a foreign government;
“Foreign content” means the content that is produced under the direct or indirect creative
control of foreigners, foreign companies or foreign broadcasters’
“Frequency” means the frequency of the electromagnetic wave number measured in Hertz
and used for transmission;
“Genre EPG” means the enablement for users to browse the program guide by content genre.
“Gross revenue” means the total revenue receipts (except for sales and rentals of set-top
boxes, if any) calculated before realizing the expenses or liabilities;
“Head-end” means a set of equipment for receiving and retransmitting the terrestrial and
satellite TV channels for re-transmission or distribution at a specific location;
“Illegal Operation” means the broadcast or transmission or distribution of, or provision of
access to, programmes or advertisements in the form of channels without having a valid
licence from the Authority;
“Licence” means the licence issued by the Authority to establish and operate a broadcast
media or distribution service; unless noted otherwise, this refers to the DTH licence governed
by the present terms and conditions.
“Licensed Area” means the geographical area to be covered by the Licensee under this
Licence;
“Licensed Service” means the distribution service provided under this Licence by the
Licensee;
“Licensee” means a person or company to whom the Authority has issued a Licence; unless
noted otherwise, this refers to the company that was awarded the DTH licence governed by
the present terms and conditions.
“Lock-in-period” means minimum period for which a subscriber shall be obliged to take the
service from DTH operator.
“Member” means a member of the Authority;
“Must-Carry Channels” means the channels of national broadcasters, non-commercial
educational channels licensed by the Authority and such other free to air television channels
as determined by the Authority to be distributed by the DTH operator to its subscribers; there
shall not be more than 15 must-carry channels.
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“Ordinance” means the Pakistan Electronic Media Regulatory Authority Ordinance, 2002, as
amended by the PEMRA (Amendment) Act 2007;
“National broadcaster” means the Pakistan Broadcasting Corporation, the Pakistan
Television Corporation and the Shalimar Recording and Broadcasting Company;
“Pay TV channel” means a TV channel for which fee is to be paid to the broadcaster or its
authorized distributor for its reception;
“PTA” means the Pakistan Telecommunication Authority established under the Pakistan
Telecommunication (Reorganisation) Act, 1996 (XVII of 1996);
“Programme” means the systematic broadcasting of visual or sound images by a broadcast
station but does not include an advertisement;
“PushVoD” means a service whereby encrypted content is pushed in the background to the
hard drive of a set-top box when there is free bandwidth, and the content is then offered as
paid video-on-demand to the viewers / subscribers;
“Regulations” mean the regulations made under the Ordinance;
“Rules” means the rules made under the Ordinance;
“Schedule” means the schedule annexed to the rules;
“Schedule recording” means the enablement for users to get content recorded on the hard
drive of their set-top box, usually from the electronic program guide.
“Set-Top Box” means a device for selectively receiving and decoding channels through DTH
service whose output is connected to a television receiver;
“Series linking” means the enablement for users to get complete series recorded on the hard
drive of their set-top box, usually from the electronic program guide.
“Subscriber” means a person who subscribes to a service provided by a Licensee without
further transmitting it to any person;
“Subscription fee” means the fee prescribed for receiving a broadcast or distribution (e.g.
DTH) service by a subscriber;
“Uplinking”means transmission of an audio-video signal from a ground transmission facility
to a satellite, in order to transmit any programme within or outside Pakistan;
“Subscriber Management System” means a combination of hardware and software used in
DTH to control the services of a subscriber, including individual television channel;
“Transmission” means relaying of television channels to the subscribers;
“Thematic channels” means channels relayed by the DTH Licensee and transmitted
exclusively with its DTH service; the content to be aired over these channels shall be
copyrighted pre-recorded local or international content including movies, dramas, educational
programmes, entertainment programmes, recorded sports content, weather updates and kids
programmes. The content shall be in accordance with the code of conduct given in the Rules.
The thematic channels shall not be regular satellite television channels;
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“Value-added service” means any service provided by the DTH Licensee in addition to
subscriptions to a set of TV channels;
“VOD” means the capacity for users to view content on demand through a two-way
connection which requires a hybrid set-top box connected to an interactive network.
Words and phrases used, but not defined in this document, unless the context otherwise
requires, shall have the meanings assigned to them in the Ordinance, the Rules and
Regulations made thereunder. The following terms and conditions, inter alia, shall apply in
addition to other terms and conditions provided in the Ordinance, the rules and regulations
made thereunder.
2.1. The Licensee shall be authorized to establish and operate a DTH Distribution
Service by uplinkinga single beam from within Pakistan.
2.2. The Licensee shall offer DTH services that cover the whole of Pakistan and shall
provide access to every citizen without discrimination.
2.3. The Licensee shall launch the DTH service within one year of the grant of the
licence, shall inform the Authority one-month in advance of the start of the service
and shall obtain a commencement letter from the Authority before the start of
service which shall be issued after physical inspection of the technical premises of
the licensee and provision of technical information as per Annex-I to the
satisfaction of Authority.
2.4. The licensee shall install a censuring system to make sure any content aired
through the DTH services is in accordance with the code of conduct as given in the
rules.
2.5. The licensee shall ensure in-house monitoring of the content to be aired over the
thematic channels for compliance with the code of conduct prescribed in the rules.
2.6. The Licence shall be valid for a period of fifteen (15) years, on a non-exclusive
basis, from the date of its issuance, subject to compliance with PEMRA laws,
directions of Authority issued from time to time and payment of required fees.
2.7. The Licensee shall be authorized under the Licence to uplink eligible
television,FM radio channels, channels having landing rights permissions and
channels of national broadcasters to a designated satellite for direct distribution to
subscribers in the whole of Pakistan.
2.8. The Licensee shall always offer at least one Basic Service Package that includes
the must-carry channels, for which it does not charge a subscription fee at a rate
higher than the maximum fee prescribed by the Authority. The price of other
packages and services is left to the Licensee to determine.
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2.9. The Licence is non-transferable for two years. Any transfer thereafter shall require
prior approval of the Authority as per the Provisions of PEMRA Ordinance, the
rules, regulations. The Authority can exceptionally grant transfer in the first two
years if national interests are involved.
2.10. The Licence shall not enable the provision of voice or data services, Internet
services or other services prohibited under the relevant laws, unless the relevant
authority has granted a separate licence for these services.
2.11. The licensee shall not be allowed to carry as its own logo or as the logo of its
thematic channels, the logo or semblance of the logo of any broadcast licensee or
landing rights permission holder.
3 General terms
4 Obligations
4.1. The Licensee shalldistribute only the eligible TV and or FM radio channels.
4.2. The licensee shall not discriminate against any licensed TV channel, landing rights
permission holder or FM radio licensee in offering its DTH platform.
4.3. The licensee shall maintain one bouquet only for any particular genre of channels
and shall carry all licensed channels in the respective bouquet.
4.4. The Licensee shall not assign, transfer, subcontract, dispose of, or in any manner
alienate this licence or any part thereof, or any benefit or interest therein or
thereunder without prior written approval of the Authority. In any case, the
Authority shall not grant the same earlier than two (2) years after the licence was
granted, with a possible exception if national interests are involved.
4.5. The Licensee shall not provide its signal to any other entity for further distribution
to subscribers; however, the Licensee may enter into agreements with hotels and
restaurants that may redistribute the signal solely within their premises, provided
the latter have any necessary authorization from the Authority at that time.
4.6. The Licensee shall not change the location of its head-end and earth station
without prior written permission of the Authority.
4.7. The Licensee shall not use any equipment as part of its DTH platform that is
identified as unlawful by the Authority or its authorised officer or any other
applicable laws of Pakistan.
4.8. The Licensee shall not be authorised, by or under the licence, to distribute
anything other than Licensed Services and Value-Added Services.
4.9. The Licensee shall comply with the local laws of Pakistan and shall not enter into
any foreign or local agreement that is in violation of the Ordinance, the rules and
regulations made thereunder.
4.10. The Licensee shall immediately discontinue the airing of any channel that has been
suspended, cancelled or revoked by the Authority or otherwise directed by the
Authority not to be carried for reasons to be specified in writing.
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5 Must-carry channels
5.1. The Licensee shall always offer at least one package that includes the channels of
national broadcasters, non-commercial educational channels licensed by the
Authority and such other free to air television channels as determined by the
Authority from time to time (the Must-Carry Channels), for which it shall not
charge a subscription fee at a rate higher than the maximum fee prescribed by the
Authority. However, the number of channels required to be carried shall not
exceed 15.
5.2. The Licensee shall carry the Must-Carry Channels provided that the licensee gets
free of cost the right to distribute them from the corresponding TV Channels along
with any decryption equipment needed.
5.3. The Licensee shall carry the must-carry channels free of cost.
6 Renewal of licence
6.1. In the event that the Licensee intends to renew the Licence at the expiry of its
term, the Licensee shall submit to the Authority a written request for renewal at
the earliest but not earlier than thirty-six (36) months prior to the expiry of the
term of the Licence.
6.2. Within three months after the receipt of the Licensee’s request, the Authority shall
either:
i. Renew the Licence, on such terms and conditions as determined by the
Authority at that time OR
ii. Refuse to renew the licence giving reasons to be recorded in writing.
6.3. The renewal shall not be refused unless blatant violations by the Licensee of
PEMRA laws or other laws have been recorded. The reason(s) may include the
Licensee’s repeated, grave or continuing violations of PEMRA laws including the
terms and conditions of the Licence, or that the Licensee is a defaulter of PEMRA
or any organization owned or operated by the Government of Pakistan.
6.4. In case of refusal as per point ii. above, the Licensee shall within 60 days make
representations in response to the Authority’s written notice. Within 30 days after
the conclusion of such 60 day period, the Authority shall hold a hearing. The
Licensee may, as part of its representation, indicate such conditions it is prepared
to accept, to reduce the likelihood of continued violations of the terms and
conditions of licence or relevant laws. Following such hearing, the Authority shall,
within 15 days of such hearing, give its determination, either:
i. Not to renew the Licence at the expiry of the Licence term, and provide its
reasons for making such a determination, or
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ii. To renew the Licence on such terms and conditions as determined by the
Authority at that time, including such additional terms as the Authority
considers appropriate.
6.5. The renewal shall be subject to renewal fee as determined by the Authority at that
time.
7.4.The fixed part of the annual fee shall be due each year with effect from the date of
issuance of licence while the variable part to be provided as per audited account
shall be due each year within three months of the closing of financial year.
7.5. The Authority reserves the right to vary the fees, including the fixed part and the
percentage of Gross Revenue, from time to time, after a due consultation process
with the Licensees.
7.6.A late payment fee at the rate of five percent per month, up to a maximum of
fifteen percent, for late payments of annual fee or licence renewal fee, as the case
may be, shall be payable.
8 Subscription rates/tariff
8.1.The Licensee shall offer access to licensed TV channels, optionally with radio
channels, for a subscription fee, grouped into various channel packages.
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8.2.The Licensee shall always offer at least one Basic Service Package that includes
the must-carry channels, for a monthly subscription fee equal to or lower than the
maximum fee prescribed by the Authority.
8.3.The Licensee shall set the rates of all other packages and services freely. The
Licensee may offer any other packaging, including, but not limited to, pay-per-
view, pay-per-day, a la carte channels, and any scheme of his choice for value-
added services. The Licensee shall be free to change the composition of the
bouquets after giving a reasonable notice in advance to the subscribers, except
when such change is made for reasons out of his control.
8.4.The Licensee may either sell, rent or provide DTH set-top boxes and other DTH
consumer premises equipment either on outright purchase basis or in instalments
to its subscribers, or may arrange a third-party retail market for the same.
8.5.The Licensee shall publish clearly on its website the prices and rates of various
packages offered by it and of the subscriber equipment in case they are sold or
rented by him.
8.6.The Licensee shall not discriminate against any consumer in offering service and
setting charges.
8.7.The Licensee shall not change the rates of higher packages without giving a
reasonable notice in advance to the subscribers. However, any such change shall
not be applicable to pre-paid subscribers during the validity period of their current
subscription for that package.
9 Commercial Interoperability:-
9.2. The DTH licensee shall, on its website, specify the price of all types of the Set Top
Boxes (STB) offered.
9.3. The DTH licensee may specify a lock-in period which shall not exceed twelve
months.
9.4. Refund on surrender of connection: The DTH licensee shall give an option to
every subscriber to return the Set Top Box in all schemes and for all types of Set
Top boxes.
9.5. There shall be no obligation on DTH licensee to take back the Set Top Box if it is
tampered with or is not in working condition at the time of return.
9.6. On return of the STB by the subscriber, DTH operator shall refund,-
(a) if the STB has been acquired under the standard scheme or any other scheme,
the total depreciated value of the said equipment;
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(b) if the STB has been acquired under rental scheme, subscriber will get back the
security deposit.
(c) if the STB has been acquired in a scheme other than the standard scheme, the
amount paid by the subscriber for the STB after deducting the amount of
depreciation of the value of the said equipment applied for the same type of STB
under the standard scheme;
(d) if the STB has been acquired under bundled scheme, in addition to the refund
towards STB specified in para (a), the balance amount for the bundled
programmes after deducting the charges for the number of completed month or
part thereof for which DTH services were availed by the subscriber by applying
average monthly charge for such programmes:
Provided that DTH operator may deduct additional one month average charge for
surrender of connection before the expiry of the specified period for the bundled
scheme:
Provided further that if a subscriber surrenders his connection within the lock-in
period, DTH operator may deduct the amount of depreciation of the value of the
STB and the average monthly charge for the bundled programmes for the entire
lock-in period.
9.7. The depreciation on the price of the STB specified by DTH operator shall be
calculated using straight line method at the rate of 2.7778% for every completed
month or part thereof.
9.8. The DTH licensee shall provide facility for registration of request of the
subscribers for surrender of the connection through its call center.
9.9. Every DTH operator shall, within fifteen days of receipt of request from the
subscriber collect the STB from the premises of the subscriber.
9.10. Every DTH operator shall, within fifteen days of receipt of the STB, ensure
payment of the refund amount.
9.11. The subscriber may surrender the STB at the designated center of the service
provider and in that case DTH operator shall not charge any collection charge.
9.12. DTH operator shall not deduct any other charge from the amount refundable to the
subscriber on return of the STB.
9.13. There shall be no obligation on DTH operator to make any payment on return of
STB after it has been used by the subscriber for three years.
9.14. Publication
i. The DTH Licensee shall, before entering into subscription agreement with the
subscriber, explain to the subscriber details of all the schemes for acquisition
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of STB and take the declaration of the subscriber on subscription agreement
acknowledging that details of the schemes have been explained to him.
ii. DTH operator shall display the refund table along with corresponding scheme
on its brochure and also make the same available on its website.
Provided that DTH operator shall repair and maintain the STB for one year
without any charges from the date of activation of services to the subscriber. In
case of outright purchase, and hire purchase schemes, DTH operators may levy
visitation charges per visit after the warranty period has elapsed.
9.17. The Authority may issue detailed guidelines or make regulations in this regard in
due course of time which shall be binding on the licensee.
10 Encryption used by DTH licensee shall be different from any other local or foreign
DTH operator and must be unique to the licensee for its DTH service in Pakistan. Set
top boxes or any other devices used for receiving foreign DTH services shall not be
used by licensee.
11.1. The Licensee can provide Value-Added Services enabled by the DTH
infrastructure. These may include:
i. Licensed radio channels, including FM radio channels and the radio channels
of national broadcasters as part of any bouquet
ii. Genre EPG
iii. PushVoD
iv. Schedule recording
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v. Series linking
vi. Catch-Up TV
vii. VOD
viii. Two-way connectivity, email, Internet browsing and Internet streaming from
DTH terminals using satellite uplinks and downlinks, subject to permissions
from the relevant authorities as required in clause 11.3 of the terms &
conditions of this licence.
11.2. Value-Added Service different from the ones listed above shall be provided only
after the approval of the Authority.
11.3. The Licensee shall not use the DTH platform for the provision of other services,
including voice, fax, data, Internet, etc. unless a licence for the provision of these
services has been obtained from the relevant authorities.
12.1. The DTH Licensee will be initially allowed to relay upto five (5) thematic
channels. The content to be aired over the thematic channels shall be copyrighted
pre-recorded local or international content including movies, dramas, educational
programmes, entertainment programmes, recorded sports content, kids
programmes, weather update etc. The content shall be in accordance with the
Electronic Media (Programmes and Advertisements) Code of Conduct, 2015,
given in the Rules. The thematic channels shall not be regular satellite TV
channels. There shall be no live coverage of any event and there shall be no
content related to news & current affairs, talk show, religion, speeches or sermons
etc. The breakup of 24 hours broadcast / content with repeat(s) to be relayed over
each thematic channel shall be as follows:
i. Indigenous & locally produced Pakistani Content in Urdu, any other local or
English Language; minimum limit: 45 %
ii. Indian Content; maximum limit: 6%
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12.2. The Licensee may carry advertisement on these channels. However, the
advertisements shall be in accordance with the Ordinance, the rules, the code of
advertisement prescribed in the rules and the terms & conditions of licence as
amended from time to time.
12.3. The fees for five thematic channels shall be included in the annual DTH licence
fee. However the Authority reserves the right to charge fee separately for any
additional thematic channels at a later stage.
12.4. Every thematic channel shall be registered with PEMRA before it is launched.
i. The Licensee shall give a content presentation covering the content referred to
in clause 12.1 to PEMRA highlighting the main features and layout of the
programs to be relayed on the respective channel.
ii. PEMRA reserves the right to reject the proposed content if it is not compatible
with the type of content generally admissible in Pakistan or which is against
the code of conduct. The proposed content shall not be rejected for other
reasons such as the proposed content category.
12.5. In case of any violation by the licensee with respect to content on thematic
channels, the percentage of local & foreign content, code of conduct,
advertisement etc, the Authority shall initiate legal proceedings under PEMRA
laws which may result in imposition of fine, suspension or revocation of
permission for thematic channels and or suspension or revocation of DTH licence.
13 Copyrights
13.1. The Licensee shall be responsible for ensuring that copyright obligations, with
respect to the content in general or over the thematic channels, programmes or
channels being relayed over the system, are fulfilled.
13.2. Neither the Authority, nor any employee of the Authority, shall be liable for any
offence, damage or other injury that anyone may suffer because of the negligence
or violation of any law or code of conduct by the Licensee or ensuing from any
other source.
14.1. The Licensee and a licensed TV channel or FM radio stations may enter into a
distribution service agreement with each other without involvement of the
Authority. The agreement may provide revenue to the Licensee from the licensed
TV channel or vice versa.
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14.2. In case a broadcast media Licensee believes that the Licensee has failed to meet its
obligations or vice versa, such Licensee can request the Authority to act as a
mediator by following procedure given as under:
i. The complaining Licensee shall notify the other Licensee, in writing, of the
claimed failure and reasons in support of its claim.
ii. The other Licensee, on receipt of the notification, shall respond immediately,
but not later than five working days, in writing, and either commence to
comply with its obligations or state its reasons for believing that it is already in
compliance with its obligations.
iii. In case a complaining Licensee does not receive a response within five
working days or is not satisfied with the response, the complaining Licensee
may complain, in writing, to the concerned regional office of the Authority.
iv. The concerned regional office of the Authority, upon receipt of the complaint,
shall place the same before the Council of Complaints at the earliest but not
later than 40 days of the receipt of complaint, for appropriate recommendations
to the Authority
v. The Authority, on receipt of the recommendations of the Council, may pass
such recommendations to both parties as deemed appropriate.
15 Consumer protection
15.1 Any person desirous of obtaining a service connection may procure the required
equipment from any legal source and approach an installer or contact the Licensee
to recommend one. Installers may or may not be related to the Licensee. After the
installation is performed, and the subscription fee is paid and provisioned to the
Licensee, the subscriber shall get access to the service within three working days,
subject to following the instructions of the Licensee.
15.2 The Licensee shall maintain records of its subscribers that shall include name,
citizen ID (CNIC), addresses and contact number, and provide the same to the
Authority whenever required.
15.3. The Licensee shall publish on its website all details of the available subscriptions,
the various products & channel packages available, including value-added
services, with the associated pricing; including pricing of subscriber equipment (if
provided by the Licensee) and a list of authorized dealers or third party distributors
and installers (if provided by third-parties).
a. Complaint handling
15.4 The Licensee shall establish a call centre, open round the clock, and communicate
its telephone number to the subscribers and each regional office of the Authority.
The telephone number shall be available on the Licensee’s website.
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15.5 The licensees shall make efforts to resolve complaints of subscribers within a
reasonable time, which shall not exceed 48 hours for 95% of the complaints unless
the same is beyond the reach of the licensee due to force majeure.
15.6 Only the services and products provided by the Licensee shall be of the
responsibility of the Licensee. Licensees that do not provide installation services
and Consumer Premises Equipment, such as set-top boxes, satellite dishes and
accessories, shall not be responsible for the same.
15.7 In case the licensee fails to rectify a complaint within time specified in clause 13.6,
the subscriber will be at liberty to complain to the Authority or the concerned
regional office of the Authority for any violation of the Licensee’s contractual
obligations, under the contract that the Licensee has with its subscriber, or
violation of the code of conduct.
15.8 The regional general manager or the authorized officer may issue show cause
notice to the Licensee in order to investigate such complaint and may also
summon the Licensee to explain his position, and thereafter pass such orders as
deemed appropriate, including imposition of a fine not exceeding a maximum of
one hundred thousand rupees for each violation of relevant laws.
15.9. Provided that where violation is of a severe nature, the authorized officer may
refer the case to the Council of Complaint or the Chairman, along with appropriate
recommendations.
15.10The licensee shall keep the record of all the complaints for a period of 90 days and
provide the same to the Authority whenever so required.
b. Billing Procedure
15.11 The Licensee may choose freely to collect the revenues for its services through
pre-paid, post-paid when technically feasible, through top-ups, scratch cards, short
message service activation, electronic recharge or any other method available.
15.12 For pre-paid services, the billing shall be transparent and the licensee shall keep
record of the same for a period of at least 90 days and provide the same to the
Authority whenever so required.
15.13 For post-paid services, the following shall apply:
i. The Licensee shall provide its subscriber the bill for the charges due and
payable by such subscriber for each month, or for such other period as agreed
upon with the subscriber.
ii. Every bill, as referred to in point i. above, shall indicate the telephone numbers
of the helpdesk of the Licensee and contain such other necessary detail,
including breakup of charges, the applicable taxes and services being provided.
iii. A subscriber shall be liable to pay such charges within ten working days from
the date of receipt of the bill.
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iv. In the event that any discrepancy has been found in the bill, the same shall be
brought to the notice of the Licensee within five days from the receipt of the
bill.
v. The Licensee shall clarify or rectify the discrepancy reported by the subscriber
within five working days.
c. Disconnection of Service
15.14. The Licensee shall not suspend its service to a subscriber except in the following
circumstances:
i. A specific request in writing, or through e-mail, has been made by the
subscriber in this regard.
ii. In case of pre-paid, the suspension can be automatic if the subscriber has not
paid his subscription in advance.
iii. In case of post-paid, if the subscriber had defaulted in payment of his dues for
which two months prior notice was served to the subscriber. On payment of
outstanding dues by the subscriber, a suspended connection shall be restored
by the Licensee within three working days.
16.1 The Licensee shall provide a service which is available at least 98% of the time,
including scheduled maintenance period.
17.1. An authorized officer may physically inspect the DTH head-end or uplink station
at any time, and if any violation of the Ordinance, rules, regulations or licence
terms and conditions is found, the officer shall direct the operator to rectify the
same, within such time as the officer may deem fit for this purpose, and may also,
after the licensee has been served a prior show cause notice, impose a fine not
exceeding one hundred thousand rupees. If the authorized officer is of the view
that the violation is of a severe nature, he may forward the case to the Council of
Complaints or the Chairman, along with appropriate recommendations.
17.2. A Licensee shall be served a prior show cause notice for such a violation, before
the seizure of equipment. Equipment seized may be returned after deposit of such
a fine as may be imposed. Equipment seized for being used for Illegal Operation,
or without having a valid licence, shall be confiscated.
17.3. The authorized officer may request assistance from the officers of the Federal
Government, Provincial Governments and Local Governments, including the
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Capital Territory Police and the Provincial Police, in the discharging of its
functions under the provisions of the Ordinance, the rules, regulations and terms
and conditions of licence made thereunder.
17.4. The licensee shall provide comprehensive monitoring facility to the Authority at
any location as directed by the Authority with access to all services & all content,
including Value-Added Services free of cost along with recurring cost for remote
monitoring purpose and shall ensure its up-gradation as and when required. The
subject requirement shall be made available to the Authority prior to the
commencement of commercial operation. In this regard, any directions/guidelines
issued by the Authority subsequently shall be binding on licensee”.
18 Reporting to theauthority
18.1. The Licensee shall maintain proper accounts, as required by the applicable laws,
and shall allow the audit of his accounts to be carried out by one or more auditors,
who are chartered accountants within the meaning of the Chartered Accountants
Ordinance, 1961 (X of 1961) and shall submit the audited financial statement to
the Authority not later than three months after the closing date of its financial year.
18.2. The auditors must be category A Chartered Accountant firm from panel of
Auditors maintained by SBP under Section 35(1) of Banking Companies
Ordinance 1962.
18.3. If deemed necessary, the Authority may itself conduct or cause to be conducted
through Chartered Accountants, audit of a licensee and the licensee shall provide
all the relevant record, information, data and assistance in this regard.
18.4. The Licenseeshall submit a report to the Authority on a quarterly basis, or at such
intervals as may be directed by the Authority. The report shall contain the
following information:
i. The number of total subscribers
ii. Subscription rates being charged for all types of services
iii. The products offered by the Licensee, with the corresponding pricing,
including content packages and value-added services
iv. Number of subscribers receiving service in the basic service tier
v. Number of subscribers receiving service in particular subscription packages
vi. Number of complaints received and actions taken for their rectification
vii. Detail of areas of the country that are not yet served by the licensee and the
reasons thereof.
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i. A copy of its Annual Return, when filed with the Securities and Exchange
Commissionof Pakistan (SECP)under the Companies Ordinance, and a copy of
its Annual Report and Accounts after they are circulated to the shareholders,
not later than three months after the closing of its financial year.
ii. The statements of Annual Gross Revenue, in respect to each accounting period
with each Licensed Service listed separately including the DTH, the revenue
earned from each segment of DTH including subscription, advertisement on
thematic channels etc, in such form as the Authority may require.
18.6. The Licensee shall inform the Authority immediately, but not later than seven
days, when a judgment is awarded against it in any court proceedings, or any
action is brought against it in a court in respect to the Licensed Service, or of any
defamatory, seditious, blasphemous, pornographic or obscene matter, or any
matter which constitutes an injurious falsehood, or slander of title, or any tort, or
an infringement of any copyright, moral right in a performance, design right,
registered design, service mark, trademark, letters patent, or other similar
monopoly right, or a contravention of the provisions of the Official Secrets Act,
violation of any security laws, or of any statutory enactment or regulation for the
time being in force, or a criminal offence, or contempt of court.
18.7. The Licensee shall inform the Authority of any change in addresses for its main
business, data centre, complaint centre, etc.
18.8. Whenever so required, the Licensee shall provide a copy of
i. Any distribution service agreement he has with licensed TV channels or FM
radio stations or content providers.
ii. Any distribution agreement with restaurants and hotels.
iii. Any agreement with a particular subscriber.
18.9. The standard contract of service for use with subscribers shall include the
following:
i. Pricing or mechanisms by which prices are determined
ii. Confidentiality of subscriber information
iii. The services being offered by the licensee to the subscriber as part of the
package
iv. Payment terms, including any overhead charges
v. Minimum contract period
vi. Right of termination by the subscriber and by the Licensee
vii. In case of post-paid services, the content and format of the billing
18.10. The Licensee shall provide a copy of the standard contract to the Authority, before
the commencement of service, for approval after verification of compliance with
the licence terms & conditions and other provisions of PEMRA laws.
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18.11. The Licensee shall provide technical details to the Authority prior to
commencement of the Licensed Service as specified by the authority, and provide
updates when there are relevant changes, including:
i. Details of satellite used, including geostationary satellite orbital location, type,
number and capacity of transponder used, frequencies used, symbol rate,
forward error correction
ii. Details of uplink service, including station location, frequency band, antenna
size and gain, EIRP
iii. Details of head-end equipment used, including CAS, SMS, compression
systems, transmission systems and monitoring equipment
iv. Details of compatible customer premise equipment, including set-top boxes
and dish specifications
v. Scheduled commencement date
18.12. The Licensee shall provide before the commencement of the service the list of the
models of set-top boxes that have been certified by the Licensee, and provide
updates of this list to the Authority within 30 calendar days whenever new set-top
box models are certified.
18.13. The licensee shall facilitate the authorized officers for quality of service
inspections on quarterly basis or at such intervals as may be determined from time
to time.
19 Technical Standards
19.1. The Licensee shall comply with the minimum technical standards as specified
(Annex-II) and updated from time to time by the Authority.
19.2. At the start of the licence, the Licensee shall comply with the following minimum
technical standards:
i. The European Telecom Standard Institute (ETSI) EN 300421 Digital Video
Broadcasting (DVB), Frame Structure, channel coding and modulation for
11/12 GHz satellite services.
ii. ETSI EN 300468 DVB, Specification for service information (SI) in DVB
systems.
iii. ETSI EN 301790 DVB interaction channel for satellite distribution systems.
iv. ETSI EN 301192 DVB; specification for data broadcasting.
v. ETR 211 Digital broadcasting systems for television; Guidelines on
implementation and usage of service information (SI) in DVB systems.
vi. ETR 289 Digital Video Broadcasting (DVB); Support for use of scrambling
and conditional access system (CAS) within digital broadcasting systems.
vii. ETSI EN 300 472 Digital Video Broadcasting (DVB); Specification for
conveying ITU-R System B Teletext in DVB Bit stream.
viii. ETSI TS 102 551-1; specifications for Satellite Earth Stations Systems (SES).
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ix. ETSI EN 302 307 Digital Video Broadcasting (DVB); specifications for
second generation framing structure, channel coding and modulation systems
for broadcasting, interactive services, News Gathering and other broadband
satellite applications (DVB-S2).
x. TR 102006 Digital Video Broadcasting (DVB); specifications for system
software update in DVB systems.
xi. IEC 6069-24 (1991) Radio frequency connectors: Part 24 Radio frequency
coaxial connectors with screw coupling, typically for use in 75 Ohm cable
distribution systems (type F).
xii. IEC 60169-2 (1965) Radio frequency connectors: Part 2 Coaxial unmatched
connectors (including Amendment No. 1(1982)).
xiii. TR 101202 Specification for data broadcasting; Guidelines for the use of EN
301 192
xiv. The Set-Top Box (STB) shall comply with ETSI EN 50221.
19.3. The Licensee shall ensure that the installed equipment and system meet the
minimum criteria defined above and the technical specifications as laid down by
ITU, ISO, ETSI and other relevant international bodies, etc.
19.4. The Licensee shall use a Subscriber Management System (SMS) for an efficient,
responsive and accurate billing and collection system. The SMS shall ensure the
security of personal subscriber information.
19.5. The content aggregated by the Licensee for the Licensed Service shall be protected
by a conditional access system, with encryption done within the head-end.
i. The conditional access system/scrambling shall provide an appropriate level of
robustness, benchmarked against accepted industry standards, from a content
owner and programming providers’ perspective.
ii. The conditional access system/scrambling shall conform to DVB-S2
(EN302307)
iii. The conditional access system shall support EMM-based fingerprint/subscriber
display functionality.
iv. The conditional access system/scrambling shall ensure uncompromised
security protection against all known types of card-sharing attacks.
v. The conditional access system/scrambling shall have the capability to secure
the network with transport stream encryption beneath the DVB-CSA layer.
vi. The conditional access system/scrambling should have provisioning of
selective control of software applications and STB functions, by using the
security system to control access rights.
vii. The conditional access system shall guarantee that the STB software is
protected, and uncertified code is not able to run in the STB.
19.6. The Licensee shall certify the set-top boxes that are compatible with its service.
Only set-top boxes that comply with the standards set in Annex-II shall be
certified.
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19.7. The Licensee shall either provide certified set-top boxes or take steps to enable
third-party companies to provide them to the subscribers.
20.1 The Licensee shall not cause interference with any other service by or through the
Licensed Service and shall not commit any act that is likely to harm the legitimate
interests of other Licensees or Licensed Services.
20.2 The Licensee shall comply with the safety and environmental standards of the
local and international bodies as adopted by the Authority from time to time.
20.3 The Licensee shall strictly follow the relevant ICNIRP (International Commission
on Non-Ionizing Radiation Protection) guidelines on limiting exposure to non-
ionizing radiation.
20.4 While installing the equipment for the Licensed Service, the Licensee shall be
responsible for obtaining any necessary permission from the relevant authorities.
20.5 The Licensee shall take all necessary steps to ensure the safety and security of its
equipment, personnel, buildings, surroundings and the public at large. The safety
measures shall include, but are not limited to, the provision of fire-fighting
equipment at the DTH headend/ re-broadcast/ uplinking facilities. Appropriate
measures shall be taken by the Licensee to prevent unauthorised access to the
aforementioned premises.
22.1. A Licensee, unless prior written permission of the Authority has been obtained,
shall not:
i. Sell, transfer or assign any of the rights conferred by the licence.
ii. Transfer a majority of the shares in the issued or paid up capital of the
company.
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iii. Transfer control of the company to persons not being the original shareholders
of the company at the time of the grant of licence.
iv. Merge or amalgamate with any other company/person.
22.2. The Authority, where it is satisfied that a proposed transaction is not contrary to
the public interest and shall not result in media ownership concentration or create a
monopoly and proposed shareholders/directors fulfil the eligibility criteria, shall
allow the same under the relevant provisions of the Ordinance, the rules and
regulations.
22.3. The transfer of a licence, or change in management, shareholding or control of a
Licensee shall not be allowed before two (2) years after the licence is granted.
Provided that changes in management before two years may be allowed by the
Authority in cases outside of the control of the Licensee.
23.1. The licensee shall not be entitled to the benefit of any monopoly or exclusivity,
and the Authority shall ensure that open and fair competition is facilitated. The
Authority may issue determinations and guidelines for this purpose, from time to
time, for compliance by the Licensees.
23.2. The Licensee shall not enter into any agreement with another Licensee, or
otherwise divide the market into segments through mutual agreements, or indulge
in any unfair market practices.
24.1. The Licensee shall comply with all the directions of the Authority pursuant to any
direction of Government, under Section 5 of PEMRA Ordinance or otherwise, for
the purpose of enabling the Government to give effect to any international
obligations or in the best national interest.
25.1. The Licensee shall comply with the requirements of national security and with
other directions given by the Authority or its authorised officer, from time to
time, for the purpose, and the same shall be binding on the Licensee.
25.2. The Licensee shall ensure that the Licensed Service does not undermine
national security.
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25.3. The Licensee shall not install anything in connection with the Licensed Service
in any area that has been identified as security sensitive by the relevant
security authorities.
25.4. The Licensee shall ensure that in case of an emergency the following measures
are taken forthwith:
i. Appropriate arrangements are made to receive emergency related messages
from the Authority or the Government;
ii. Appropriate arrangements are made to be able to relay emergency-related
messages to the subscribers in the whole of Pakistan or the affected areas
iii. The Licensee shall comply with the prescribed procedure laid down by the
Authority for meeting all emergencies and national calamities.
25.5. The Licensee shall locate the headend and the uplink station within the territory of
Pakistan.
25.6. The Authority reserves the right to take over the entire services and facilities of the
Licensee or suspend, cancel or revoke the Licence, for reasons to be recorded in
writing, in the interest of national security or in the event of an emergency /war or
similar type of situations, for the duration of such circumstances only.
25.7. All foreign personnel likely to be deployed by way of appointment, contract,
consultancy etc. by the Licensee shall be notified to the Authority, along with their
complete details, including names, nationalities, passport details and nature of job.
26 Force majeure
26.1. The Licensee shall not be in any way responsible for any failure to provide the
Licensed Service directly or indirectly caused by or arising from any
circumstances beyond the control of the Licensee, including without limitation,
accident or breakdown of any equipment or apparatus (caused otherwise than by
wrongful act, neglect or default of the Licensee, its personnel or agents), war
damage, hostility, acts of enemy, civil commotion, sabotage, fire, flood, explosion,
epidemic, interference by strike, or act of God (all or any of these circumstances
are referred to as a force majeure event).
27 Revocation of licence
27.1. The licence shall be revoked if the Licensee fails to launch commercially the
distribution service within one year after the grant of the licence, for any reason
other than (a) force majeure or (b) not receiving the necessary official permissions
in due time. In such a case, any amount paid to the Authority in relation to the
DTH licence shall be forfeited.
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27.2. The Authority may revoke or suspend the licence by an order in writing on one or
more of the following grounds:
i. The Licensee has failed to pay a due instalment of the Applicable License Fee,
in case the Licensee has chosen to pay the Applicable License Fee in
instalments.
ii. The Licensee has failed to pay the annual licence fee or any other charges,
including fines, if any, according to the conditions herein.
iii. The Licensee has contravened any provision of the Ordinance, rules,
regulations or the terms and conditions made thereunder.
iv. The Licensee has failed to comply with any of the terms & condition of the
licence.
v. The Licensee’s directors or shareholders have transferred majority of the
shares in the issued or paid up capital of the company, or if control of the
company is otherwise transferred to persons not being the original
shareholders of the company at the time of grant of licence, without written
permission of the Authority.
27.3. A licence shall not be varied, suspended or revoked under the previous clause,
unless the Licensee has been given reasonable notice to show cause and a personal
hearing.
27.4. No refund of the Licence Fee, Annual Fee, Bank Guaranty, fines deposited, if any,
shall be admissible to the Licensee, in case the licence is revoked or cancelled by
the Authority.
28 Confidentiality
28.1. The Licensee shall keep all secret and security-related matters / correspondence
exchanged between the Authority and itself as confidential, and shall not disclose
any such information to any third party or to the media.
28.2. The Licensee shall keep personal subscriber information confidential, except
where required to be disclosed by the laws, the terms of the licence or if required
by the Authority.
29 Suspension of service
29.1. The Licensee shall not cease or suspend the Licensed Service, except on account
of force majeure or with the prior approval of the Authority.The Authority may
grant approval to such a request, subject to the clearance of all outstanding
liabilities by the Licensee, including but not limited to:
i. Licence fee;
ii. Annual licence fee;
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iii. Fines imposed by the Authority;
iv. National and international liabilities and obligations; and
v. Any other financial obligations.
29.2. The Licensee shall inform its subscribers about suspension of service, after
approval of the Authority as per the previous clause, at least thirty (30) days in
advance.
30 Miscellaneous provisions
30.1. Nothing in this Licence shall constitute or imply any warranty or obligation on the
part of the Authority as to the size or location of the areas actually capable of
receiving the Licensed Service in the whole or any part of the Licensed Area.
30.2. The headings and the annexes are for the convenience of references only and shall
not affect the framing or interpretation of the ‘Terms and Conditions’ of this
licence.
30.3. Where the context otherwise requires, the singular includes the plural, the
masculine includes the feminine, and vice versa.
30.4. The undertakings and ‘Terms and Conditions’ of this licence shall be binding upon
the parties hereto and their respective successors and permitted assignees.
30.5. If there is a conflict in the interpretation or otherwise in any of the ‘Terms and
Conditions’ of the licence and the Regulations, Rules and the Ordinance, the latter
shall prevail.
30.6. In the event of any question, dispute, or difference arising out of the interpretation
of any provision of the ‘Terms and Conditions’ of this licence, the decision of the
Authority shall be final and binding on the Licensee.
30.7. The Licensee shall ensure that:
i. All Rights of subscribers, as laid down in these ‘Terms and Conditions’, are
protected.
ii. Technical and Performance / Quality of service standards prescribed by the
Authority as given in the terms & conditions or as prescribed by the Authority
from time to time are complied with.
30.8. The Licensee shall comply with all the Laws prevailing in Pakistan, including
those relating to labour and employment.
30.9. The Authority may vary/ alter/ amend/ modify/add or delete any provision of the
‘Terms and Conditions’ of the licence as and when required, where it deems that
such variation is in the public interest, subject to prior consultations with the
Licensee.
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ANNEX- I
2. GS Orbital location
6. Frequency band of operation: 10.95 – 11.2 GHz / 11.45 – 11.7 GHz (downlink)(circle
appropriately): 12.2 – 12.5 GHz / 12.5 – 12.75 GHz or any other
10. Details of data rate, FEC, modulation, bandwidth and specific frequency range for each
TV Channel (if possible)
________________________________________________________________________
________________________________________________________________________
11. Satellite transmit Max. & Min. EIRP over Pakistan in dBW:
*The satellite to be used for DTH service shall be as given in section 13 of this IM.
2. Uplink frequency band (circle appropriately): 13.75 – 14 GHz / 14.0 – 14.25GHz / 14.25 –
14.5 GHz or any other
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5. Uplink EIRP (Max.): (Min.):
_________________________________________________________________________
D. Satellite details**
(Please enclose Lease Agreement and Footprint of the satellite on which the transponders are
proposed to be hired)
** The satellite to be used for DTH service shall be as given in section 13 of this IM.
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ANNEX-II
Technical Standards for DTH Set-Top Boxes (STB)
The set-top boxes certified for the licensed service shall comply with the following minimum
technical standards, in addition to those defined in the License terms or as prescribed by the
Authority from time to time.
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1.2 Conditional Access/Scrambling
i. The conditional access system/scrambling shall conform to DVB-S2 (EN302307)
ii. The conditional access system/scrambling shall provide an appropriate level of
robustness, benchmarked against accepted industry standards, from a content
owner and programming providers’ perspective.
iii. The conditional access system shall support EMM-based fingerprint/subscriber
display functionality.
iv. The conditional access system/scrambling shall ensure uncompromised security
protection against all known types of card-sharing attacks.
v. The conditional access system/scrambling shall have the capability to secure the
network with transport stream encryption beneath the DVB-CSA layer.
vi. The conditional access system/scrambling should have provisioning of selective
control of software applications and STB functions, by using the security system
to control access rights.
vii. The conditional access system shall guarantee that the STB software is protected,
and uncertified code is not able to run in the STB.
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ii. Up-sampling of sub-sampled resolutions shall be made in accordance with ETSI
TS 101 154 [28], i.e. sub-sampled luminance resolutions shall be up-converted by
the Decoder Format Converter into the full video raster of the Decoder
Composition Output.
iii. The STB’s video decoder shall fully comply with standard ISO IEC 14496-10 [8]
for decoding MPEG-4 and ISO/IEC 13818-2 [9] for decoding of MPEG-2 coded
signals. The decoder must also comply with ETSI TS 101 154 [10] and must
support VBR and CBR.
iv. The STB’s video decoder shall ensure synchronization between audio and video as
follows: audio must never lead the video program by more than 20 milliseconds,
and must never lag the video by more than 45 Ms
v. The STB’s video decoder shall be able to switch between 4:3 and 16:9 picture
aspect ratios. In case of receiving an anamorphic picture and pre-set 4:3 on TV, the
STB shall perform conversion to «16:9 letterbox»
vi. In case of RCA, or if any other analogue video output (YPbPr or RCA) is
available, the decoded HD video must be down-converted by SD format converter
to SD resolution for output via these interfaces. This will ensure compatibility of
the STB with the TV sets that do not have digital interfaces. Picture down-
conversion must be implemented from any of the incoming encoded HD full
screen luminance resolutions of 1920x1080 and 1280x720 (as an OPTION also
from 1440x1080, 1280x1080, 960x1080, 960x720 and 640x720) to 720x576 SD
resolution. The down-converted video must be displayed as 16:9 letterbox on 4:3
displays. The SD format converter should apply appropriate re-interlacing.
vii. The STB’s audio decoder shall support reception of multi-channel (up to 5.1)
audio, in addition to the mandatory SDTV audio decoder requirements. The STB
shall provide analogue audio outputs for stereo/mono, S/PDIF output and an
HDMI output for multi-channel audio.
viii. The STB’s audio decoder shall provide at least one stereo audio decoder that is
able to meet minimum decoding requirements, based on MPEG 1 Layer II
("Musicam" ISO/IEC 11172-3).
ix. The STB’s audio decoder shall also support AAC decoding according to ISO/IEC
14496-3 subpart 4.
x. The STB’s audio decoder shall fully comply with DVB Implementation
Guidelines for the use of MPEG-2 Systems, Video and Audio in satellite, cable
and terrestrial Broadcasting Applications ETSI TS 101 154.
xi. The STB’s audio decoder shall support decoding of audio in the following modes:
dual mono, stereo and joint stereo.
1.5 Marking
i. Each STB shall be legibly and indelibly marked with at least the following
information:
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a. Manufacturer's name or trade-mark (if any);
b. Model designation and serial No.;
c. Country of manufacture;
d. Input supply voltage and frequency;
e. Power consumption;
f. Satellite input terminal and satellite output terminal;
g. Sockets for audio and video output.
Parameters Requirements
1 Electrical specifications:
a) Input voltage range 170-250V AC
b) Frequency 50/60 Hz: 5 per cent
2 Connectors:
a) Satellite input 75 ohms impedance. Female connector (as per
IEC 60169-24)
b) Output video 1 X RC A type CVBS
c) Output audio 2 X RCA type
d) RF output 75 ohms impedance. Male connector (as per
IEC 60169-2)
e) Digital a/v output HDMI
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OPTIONAL 1 x USB 2.0 port1
1 x LNB Loop through
1 x USB 2.0 port
1 x S/P DIF optical
3 RF characteristics of the DTH signal
a) System DVB-S2 (compliant to EN 302307)
b) Demodulation QPSK & 8PSK
c) Input symbol rate 45Msps (QPSK)
45Msps (8PSK)
d) FEC mode DVB-S2: 1/2, 3/5, 2/3, 3/4, 4/5, 5/6, 8/9, 9/10
(QPSK) 3/5, 2/3, 3/4, 5/6, 8/9, 9/10 (8PSK)
e) Level of the input DVB-S2 signal -75dBmW to -25dBmW
4 LNB control STB shall have provisions to provide proper
power supply and switching signal for
oscillator selection and polarization selection
for LNB Diseq 1.2
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