Reduce wholesale tariff for DTH players: Assn to Trai

The DTH association of India today asked telecom regulator Trai to bring down the wholesale tariff for direct-to-home operators to 10-20 per cent of non-CAS cable tariff from the existing 35 per cent.

Welcoming the new tariff order announced by Trai, the Association noted that the telecom regulator has pointed out that the effective wholesale tariff for a DTH operator was 2.47 times that of non-CAS cable tariff.

"In order to create a level-playing field, we strongly recommend that the ceiling of 35 per cent be brought down to a realistic level of 10-20 per cent of the non-CAS cable tariff," a statement from DTH association said here.

The association also demanded the intervention of Trai in regulating the HD channel distribution as the absence of regulations governing the wholesale tariff for HD channels could make negotiations between the DTH operators and broadcasters "very difficult".

They also opposed the proposed nine per cent increase in the wholesale tariff for cable platform.

"The DTH platforms have to compete with the cable platform in the market and the DTH wholesale tariff is linked to the non-CAS cable tariff, so the proposed increase would directly impact the DTH industry," they said.

On July 22, Trai had announced subscribers of DTH services would be able to pick and choose the channels they want to watch but have to pay a minimum of Rs 150 per month for a bouquet of channels of their choice.

In its tariff order for 2010, the broadcast regulator also included provisions to protect the consumers from rise in rates, like no increase in subscription charges in the first six months of enrolling.

The rates can, however, be decreased in those six months and the consumer can opt for any other service provided by the DTH operators.

With a view to provide some relief to the operators, the order has fixed Rs 150 as the minimum monthly subscription that a consumer will need to shell out for any number of channels. The channels of Doordarshan should be a compulsory part of each bouquet, it said.