TRAI notification on tariff regulation: Cable operators cheer, broadcasters cry foul
The Telecom Regulatory Authority of India (TRAI) on Monday issued the regulatory framework for broadcasting and cable services, allowing cable operators to offer a discount of up to 45% while forming their own channel bouquets. Currently, cable operators can provide only 15% discount. The move has brought big relief for the cable industry which feels that the permission to offer discount will help them retain their customers who are now increasingly moving to digital platforms. However, while the notification has the cable industry rejoicing, broadcasters are not very pleased.
window.googletag = window.googletag || {cmd: []};
googletag.cmd.push(function() {
googletag.defineSlot('/21740140234/e4m_story_page_para3_small_horizontal_banner_3_728x90_normal', [728, 90], 'div-gpt-ad-1595331589677-0').addService(googletag.pubads());
googletag.pubads().enableSingleRequest();
googletag.enableServices();
});
In its notification, TRAI said, “DPOs have now been permitted to offer discount up to 45% while forming their bouquets to enable flexibility for them in forming bouquets and to offer attractive deals to the consumers. Earlier this discount was permitted only up to 15%.”
window.googletag = window.googletag || {cmd: []};
googletag.cmd.push(function() {
googletag.defineSlot('/21740140234/e4m_story_page_para3_small_horizontal_banner_3_728x90_normal_next', [728, 90], 'div-gpt-ad-1601359261569-0').addService(googletag.pubads());
googletag.pubads().enableSingleRequest();
googletag.enableServices();
});
Expressing happiness over TRAI’s announcement, a cable industry expert said, “It is good for the cable industry as 45% discount has been permitted. They have been demanding this for a long time. TRAI has also allowed DPOs to form their own channel bouquets and offer discounts on them, which is going to help retain customers.” “Considering that the industry has been losing out on customers due to digital players and other issues, this notification could turn things around for them,” said another industry expert. However, industry players said the tariff regulations will be more beneficial for them if they also get a flat 35% distribution fee on the MRP of TV channels. Cable operators have been demanding a flat 35% distribution fee on the MRP of TV channels, along with the freedom to create their own channel bouquets. As per the current mandate, distribution platform operators (DPOs) get a 20% distribution fee from broadcasters on the price of tv channels. They have an option to avail 15% more subject to conditions like ensuring 90-95% penetration of the broadcaster’s channels in the total customer base. Broadcast industry players meanwhile expressed their disappointment with TRAI’s Monday order saying that it is in favour of distribution platforms. According to a senior broadcast expert, the regulation is only in the interest of the distribution platform operators and makes things “unequal” for broadcasters. “The tone of TRAI has been largely in favour of distribution platforms, and if more freedom is given to cable operators in terms of choosing channel bouquets, it will get worse for broadcasters. “While the broadcasters are compelled to offer their product to all distribution service operators, there is no such obligation on the distribution operator,” he said, adding that there has always been an asymmetry in the rights that broadcasters enjoy and the rights that distribution service operators enjoy. “This makes things even more unequal for the broadcaster,” he said. The Authority has also removed ceilings of Rs 130 for 200 channels and Rs 160 on more than 200 channels on Network Capacity Fee (NCF) and has kept it under forbearance to make it market driven as well as equitable. “Service providers may now charge different NCF based on number of channels, different regions, different customer classes or any combination thereof. To ensure transparency, all such charges have to be mandatorily published by the service providers and communicated to the consumers besides reporting to the TRAI,” it said. On this, another industry expert said that broadcasters don’t get paid fairly for all the homes that consume their channels, and with channel tariff forbearance in the hands of the DPOs now, they can even override the rights of content creators and consumers too. “Broadcasters have been saying that they don't get paid fairly for all the homes that consume their content. So, if you leave forbearance for consumer pricing in the hands of the distribution platforms, but still don't remove the restriction on broadcasters, this amounts to continuing to privilege the rights of the intermediary over the rights of the content creator, and indeed over the rights of the consumer,” he said. The notified regulations are on Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Fourth Amendment) Order, 2024 (1 of 2024), Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Sixth Amendment) Regulations, 2024 (4 of 2024), the Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service and Consumer Protection (Addressable Systems) (Fourth Amendment) Regulations, 2024 (3 of 2024) and also recommendations to Ministry of Information and Broadcasting (MIB) on 'Listing of channels in Electronic Programme Guide and Upgrading DD Free Dish platform to an Addressable System'. These amendments, except for a few clauses, shall come into force after 90 days from the date of its publication in the official gazette, said TRAI notification. “In consonance with the complete digitization of the cable TV sector, TRAI on 3rd March 2017 had notified the Regulatory Framework for Broadcasting and Cable services. The framework was further tuned to the needs of the broadcasting ecosystem and to address the concerns of stakeholders through amendments issued in 2020 and 2022,” TRAI said. It noted that broadcasters, MSOs, DTH operators and LCOs had taken up further issues for the consideration of the Authority from time to time and to address such issues, the Authority issued a consultation paper on "Review of Regulatory Framework for Broadcasting and Cable services" on 8th August 2023 for seeking stakeholders' comments. “The Authority analysed the comments of the stakeholders and the discussion held during the open house discussion and noted the level of competition in the market due to the presence of multiple Broadcasters, DPOs (MSO/DTH/HITS/IPTV) and LCOs. “Accordingly, there is a need to provide flexibility to the service providers for enabling them to adapt to the dynamic market conditions while at the same time safeguarding the interest of consumers and small players through transparency, accountability and equitability,” it said.
Tags : Trai Dpos Broadcast Cable Operators