Star Den Media Services, the distribution joint venture between Star India and Digital Entertainment Network (DEN), one of the leading cable distribution companies, is locked in a legal battle with the Essel Group owned direct-to-home operator Dish TV over channel rates. Star Den has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to resolve the issue.
The contract for airing channels between Dish TV, the operator, and Star Den expired in August this year, following which Dish TV allegedly wanted to renew the contract based on old clauses. ?When the contract was signed earlier, there were no regulations for DTH operators. Now it is mandatory to renew contracts in compliance with new regulatory guidelines,? said Gurjeev Singh Kapoor, chief executive officer, Star Den.
He informed that while his company has already sealed deals with other DTH operators including Tata Sky, Sun, Reliance Big TV and is on the verge of closing a deal with Bharti DTH, it is only with Dish TV that it has hit a roadblock. In the renewed contract, Star Den is demanding new channel rates stipulated in the reference-interconnect-offer (RIO) by the Telecom Regulatory Authority of India (Trai). Dish TV is continues to avail signals of many channels even after the expiry of the agreement, and therefore, is liable to pay for the channels as per the rates stipulated in the RIO.