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Subash Chandra's ASC ties up with Zee Group for DTH

Nithya Subramanian

New Delhi , July 4

THE Subash Chandra-promoted ASC Enterprises has entered into a series of commercial agreements with some of the Zee Group companies for carrying out marketing, sales and subscriber management of its direct-to-home (DTH) venture - Dish TV.

According to sources, New Era Entertainment Network Ltd, a 100 per cent subsidiary of Siticable, has been appointed for sales and marketing of the business. This company has also been assigned the responsibility of undertaking customer subscription contracts and billing. Similarly, another subsidiary of Siticable, Integrated Subscriber Management Services Ltd, provides subscriber management and call centre services. Incidentally Siticable, a subsidiary of Zee Telefilms Ltd and the Dish TV brand, is registered by this entity.

Besides this, Zee has leased some of its broadcasting equipment to the DTH project and has licensed four speciality news channels to the DTH venture. Investments made by ASC Enterprises are also being financed through loans from Zee Telefilms.

However, questions are being raised on whether DTH license holders are allowed to outsource any of its other business. While industry sources point out that under the DTH regulations, outsourcing is not permitted, Mr Jawahar Goel, Vice Chairman, Zee Telefilms, who is also in charge of the DTH venture, had a contrary view. He said, "We appointed companies that have expertise in these areas. I do not think that there is any violation of DTH norms."

The DTH rules state: "Except with prior approval of licensor, the licensee shall not either directly or indirectly assign or transfer its right in any manner whatsoever under this Agreement to any other party or enter into any Agreement for sub-license and/ or partnership relating to any subject matter of the license to any third party either in whole or in part. Any violation of the terms shall be construed as breach of the license agreement and license of the licensee shall be terminated immediately."

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