SC stays TDSAT's order on cable tariffs for luxury hotels

The Supreme Court today stayed broadcast tribunal the Telecom Disputes Settlement and Appellate Tribunal's (TDSAT) order that set aside a directive by the Telecom Regulatory Authority of India (Trai) to keep commercial establishments outside the purview of cable price regulation.

A Bench comprising Chief Justice S H Kapadia and Justice K S Radhakrishnan stayed the orders of the TDSAT, which had directed Trai to have a relook of its policy.

"You can not treat every one on par... Until further direction TDSAT order is stayed," said the apex court.

On May 28 this year, TDSAT had set aside Trai's November 2006 notification that kept luxury and heritage hotels out of the purview of price regulations for cable tariffs.

The tribunal had also directed Trai to have a relook at the case of commercial establishments in a broad-based manner instead of leaving establishments to negotiate on their own with respective broadcasters for their cable tariff.

Hotel Association of India and Federation of Hotel and Restaurant Associations of India had challenged Trai's directive, which let broadcasters charge them tariffs that were higher than the regulator's ceiling for general consumers.

Today, ESPN Software India has moved the apex court against TDSAT's order that effectively prevents them from charging higher tariffs from commercial establishments.

In its petition filed by advocate Nanju Ganpathy, ESPN Software India -- the distributor of ESPN and STAR Sports, contended that although TDSAT set aside the Trai's regulation asking it to relook its policy, it did not give any timeframe to complete the process.

It requested the apex court to give a timeframe to Trai for finishing consultations with the industry and frame new rules.

ESPN further contended that during of hearing of the matter before TDSAT, Trai had made a statement before the tribunal that the regulator was going into the question of tariff for hotels and commercial establishments and has initiated a consultation process.

"According to the appellant and other broadcasters, once the consultation process had begun, the hotels and commercial establishments could have ventilated their grievances before the Trai itself," ESPN said in its petition.

It said "TDSAT ought not to have entertained the appeal once it became aware that the consultation process for tariffs pertaining to hotels and commercial establishments had begun."