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Excel methodology to set up Mathematical Equations

  1. #1
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    Excel methodology to set up Mathematical Equations

    Hello,
    Can you suggest an Excel methodology to set up Mathematical Equations for the following Twin Conditions (as mandated by the Indian Regulatory Authority for the Cable TV Business).

    Twin Condition I for TV Broadcasters for 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 (Details on Page 700, Link -http://www.tdsat.nic.in/New%20Compendium19.11.2008/TD%20SET%20VOL-2-PDF/4th%20October-2007(696-738).pdf)

    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/...20sept2013.pdf )

    Twin Condition I is the MSO's content purchase and Twin Condition II is the MSO's content sale.
    Using Excel to formulate these Twin Conditions into Mathematical equations can help in determining the profit margin which the Regulatory Authority’s Mandate entails for the Cable TV service Provider
    Thanks

  2. #2
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    Re: Excel methodology to set up Mathematical Equations

    Looks like 2 inequalities with multiple variables. You would likely need to use linear programming.

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