Cable tariffs in non-CAS areas will not move to forbearance or a ceiling rate, as broadcast regulator Trai is all set to reject demands to shift to a new pricing mechanism in step with the CAS pricing mechanism.
Sources told FE that the regulator was not in favour of any new pricing mechanism for non-CAS areas but would stick to the hybrid model, which allows a minimum hike annually for taking care of inflation.
“There is no move to shift to a fixed MRP ceiling on channel pricing, as effected for channels in CAS areas,” sources said. They also said that a move to forbearance, in lines with the telecom industry, where broadcasters can fix charges based on market forces, was also not an option being seriously discussed. The reason being that recent hike in tariffs by some operators has led to a debate whether forbearance has served its purpose or not.
Currently, Trai has frozen pay channel prices in non-CAS areas as they existed in December 2003. As part of annual increments to this, the regulator has just allowed for around 7% increase in these annually to take care of inflation. On the other hand, it has fixed a Rs 5 MRP for CAS areas, within which pay channels can fix their tariff.
Roop Sharma, head of Cable Operators Federation of India (COFI), said that the Government should regulate pay channel prices in non-CAS areas too. “It will be good for the consumers and will also help in having similar pricing structures within cities. For example, while subscribers in south Delhi currently pay as per the Rs 5 MRP ceiling fixed for CAS areas, there is no such relief for those in east, west or north Delhi, which are non-CAS,” she said.
Sharma said Trai should standardise revenue share arrangements between broadcasters, multi-system opeartors and local cable operators in non-CAS areas.