After the implementation of the new tariff order (NTO 3.0), the Telecom Regulatory Authority of India (Trai) on Tuesday issued a consultation paper to further address the issues faced by the companies in the broadcasting and cable services sector.
Through the consultation, Trai aims to review the current regulatory framework of the sectors from issues like network capacity fee (NCF) charged by DTH operators, discounts on pay-TV channels, regulation of free-to-air channels, and quality of services, among other things.
Among the key issues in a 120-page consultation paper, Trai has sought inputs on whether the present cap on network capacity fee of Rs 130 comes should be revised.
NCF is the base rental that a subscriber pays to a DTH operator over and above the pricing of the channels chosen under ala-carte or bouquet.
Through the consultation, Trai is exploring whether distribution platform owners (DPOs) should be allowed to implement variable NCF rates for different bouquets or plans within a specific location. Further, for multiple TV connections, Trai has sought views on whether the NCF levied per additional TV connection should not be more than 40% of the declared NCF.
The consultation paper also aims to address the ceiling on discounts for a-la-carte channels within a bouquet. Trai is soliciting feedback on whether there’s a necessity to review this ceiling and, if so, what an appropriate limit might be.
During the discussions on the NTO 3.0 regime, many local cable operators expressed concern over the DD Free Dish being unregulated and eating into their revenues. In one of the questions, Trai has sought views on whether the regulations applicable to non-addressable distribution platforms should extend to DD Free Dish as well.
The authority is also inquiring about the potential provision of mandatory free-to-air access to news, non-news, or newly launched channels via DPO platforms for all subscribers.
In January 2020, Trai introduced NTO 2.0 which revised the maximum price of bouquet channels to Rs 12 from Rs 19. Few months back, under NTO 3.0, Trai permitted broadcasters to raise the price of bouquet channels to Rs 19, which led to an increase in TV channel prices by 15-20%.
Trai’s consultation paper also touches on aspects such as revisiting revenue sharing between MSOs (multi-system operators) and LCOs, reviewing carriage fee caps, installation and activation charges, and implementing financial disincentives for tariff order violations.