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To use Linear Programming for solving the following inequalities.

Following Twin Conditions (as mandated by the Indian Regulatory Authority)

Twin Condition I for TV Broadcasters selling their content to Cable TV Service Providers :-

To Sell their content (TV Channels) to MSOs (viz. Cable TV Service Providers) as a Bouquet (Packet), Broadcasters have to abide by the following Twin Conditions :- A> Bouquet Rate > = 66% of the Sum of Ala Carte Rates (Standalone) of the TV Channels

B> Average Bouquet Rate > = 33% of Each Ala Carte Rate of the TV Channel in that Bouquet

The implicit principle behind Twin Condition I is that If I buy N different things together as a packet (Bouquet), there will be a definite reduction in price. But, the reduction is in such a way that :- 1> It cannot be below a certain % (66) of the total price
AND

2> The average selling price of the TV Channels in the Bouquet will not be below a certain % (33) of their individual prices. The % (2/3 & 1/3) depend on the profit and pricing mechanism

Twin Condition II for Cable TV service Providers for reselling Content to Retail Customers (Cable TV Subscribers) :- To resell this content to the retail subscriber, MSOs have to abide by the following Twin conditions :-

A> Ala Carte Rates for end consumer (Retail) < = 2 x (Ala Carte Rates provided by the Broadcaster to the MSOs)

B> Ala Carte of a TV Channel < = 3 x Ascribed Value of a TV Channel where Ascribed Value is the Ala Carte Rate rationalised with respect to the Bouquet rate. (Details on page 8, TARIFF ORDER DATED 20TH SEPT, 2013; LINK - http://www.cablequest.org/pdfs/trai/Tariff-amendments-for-notification-english-20sept2013.pdf )

Twin Condition I is the MSO''s content purchase and Twin Condition II is the MSO''s content sale.

Need to solve inequalities with multiple variables (Sample Data) using Linear Programming.

Sample Data :- MEDIAPRO (A CHANNEL AGGREGATOR HAS THE FOLLOWING TV CHANNELS IN ONE OF ITS BOUQUETS (BOUQUET NO. 2, PAGE NO. 17 OF LINK http://www.mediapro.net.in/rate-card-pdf/Reference%20Interconnect%20Offer%20-%20DACS%20annexure%20A%20-%2029.12.13.pdf)

THIS BOUQUET HAS BEEN PRICED @ INR 43.2

AVERAGE BOUQUET RATE = INR 2.88 (PLEASE SEE NOTE BELOW)

AS CAN BE SEEN,THE BOUQUET RATE OF INR 43.2 IS GREATER THAN 66% OF SUM OF ALL ALA CARTE CHANNEL RATES WHICH IS INR 64.88

ALSO, AVERAGE BOUQUET RATE OF INR 2.88 IS GREATER THAN 33% OF EACH ALA CARTE CHANNEL RATE PRESENT IN THIS BOUQUET

THE ABOVE PRINCIPLE EXISTS FOR ALL THE BOUQUETS CREATED BY MEDIA PRO (PFA ATTACHED HEREWITH)

NOTE :- 1. A LA CARTE IMPLIES STAND ALONE RATES OF EACH TV CHANNEL AS GIVEN BY THAT BROADCASTER

AVERAGE BOUQUET PAY CHANNEL RATE = BOUQUET RATE / NUMBER OF PAY CHANNELS IN THAT BOUQUET

Applied Statistics, Statistics

  • Category:- Applied Statistics
  • Reference No.:- M9628122

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