Deposit Rs 2 cr with Neo, Tata Sky told

Broadcast tribunal TDSAT today stayed the disconnection notice issued by Neo Sports to Tata Sky, a leading provider of direct-to-home (DTH) service, and asked the DTH operator to deposit Rs 2 crore with the sports broadcaster.

"The petitioner (Tata Sky) is directed to deposit Rs 2 crore within two weeks...the impugned notice of September 12, 2008 stands dismissed," said a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) bench headed by Justice Arun Kumar while passing an interim order.

After a dispute arose between the two parties over the mode of payment, Neo Sports had issued a public notice on September 12, 2008 to disconnect its signals. The cricket broadcaster has been claiming a due of around Rs 3.27 crore from Tata Sky. Industry observes said this is a major relief for Tata Sky as Neo is having the telecast rights of the India-Australia cricket series, beginning on October 9. Earlier, Tata Sky and Neo Sports Broadcast had entered into an agreement for five years and the DTH operator was to pay Rs 19.37 lakh monthly or two channels of the broadcaster — Neo Sports and Neo Sports Plus.

Later, in February 2008, following the directions of sectoral regulator Trai, Neo published its reference interconnect offer (RIO) offering channels to DTH operators at 50 per cent discount to the one offered to cable operators.

Neo Sports argued that since the DTH operator has not signed the RIO it should pay the subscription charges as per the old agreement signed by both parties.