The Telecom Regulatory Authority of India (Trai), which also serves as the broadcast regulator will be floating a consultation paper on tariff-regulation and other relevant issues related to the content distributors in the non-CAS areas within a month. Although Trai already regulates these areas, it will visit the space with a fresh approach following a Supreme Court direction, through this consultation paper. Among other issues the paper will look at the methodology of fixing tariff in non-CAS areas at three levels?how and at what rates broadcasters charge the multi system operators (MSOs) or cable operators for channels, how MSOs charge the cable operator and how MSOs and cable operators charge the end point subscribers.
The paper to be floated is also expected to throw open questions on whether the tariff charged in the non-CAS areas should in any way be linked to the tariff charged in case of the DTH operators. At present, as per the Trai directions broadcasters are required to charge the DTH broadcasters at 50% of what they charge analogue cable operators in non-CAS areas. However, DTH operators have been asking the regulator to review the current arrangement and have been pleading with the regulator for a lower content rate vis-a-vis their counterparts on analogue mode.
Additionally, response would also be invited on issues like subscriber declaration, carriage fee, and placement fees among others. The regulator could also want stakeholders to elicit their views on the existing ?must provide? clause, which puts an obligation on broadcasters to offer their channels on a non-discriminatory manner to all carriage platforms. However, broadcasters need not compulsorily provide their channels to content distributors like DTH, IPTV or cable operators any more, if they are being forced to pay carriage fee for the same, Trai has held earlier this year.
?The consultation paper plans to touch upon all facets of content distribution in the non-CAS areas as all factors operating in a non-CAS area are interlinked and touching one would automatically affect other issues. We are also approaching the process with no presumptions regarding what existed before,? said Trai officials. The Supreme Court has asked Trai to consider all the aspects related to the matter of cable tariff in non-CAS areas de novo (afresh). Trai had challenged a TDSAT judgment in the Supreme Court, which had struck down Trai?s October 2007 non-CAS-area tariff order.
Trai?s concerned order had put a ceiling on cable pricing (different for various categories of cities) and had said that broadcasters would have to allow MSO/cable operators to buy their channels on an ? la carte basis. The Supreme Court had stayed the TDSAT judgment.