TRAI Announces New Rules On Tariff Framework, Puts Rs 160 Price Ceiling For All Channels Available On Distributor's Platform

Telecom Regulatory Authority of India (TRAI) has set Rs 160 price ceiling for all channels available on a distributor's platform in order to reduce rising costs for subscribers. TRAI analysed the comments of the stakeholders to protect the interests of consumers and accordingly modified certain provision of new regulatory framework. Channel pricing is capped at Rs12 vs. Rs19 earlier. Further, to narrow the discounting between bouquet and a-la-carte pricing, the regulator has recommended implementing 'twin conditions' for bouquet pricing: 1) the sum of maximum retail prices per month of the a-la-carte pay channels forming part of a bouquet shall in no case exceed one-and-half times of the maximum retail price per month of such bouquet; and 2) the maximum retail price per month of any a-la-carte pay channel, forming part of such a bouquet, shall in no case exceed three times the average maximum retail price per month of a pay channel of that bouquet.

For distribution platforms (DPO), TRAI notified increasing the number of SD channels that can be provided within the NCF (network capacity fee) of Rs 130 per month from 100 to 200 and capping the NCF for more than 200 SD channels at Rs160 per month. DPOs should also be allowed to offer promotional schemes with a duration of any such scheme shall not be more than 90 days at a time and such scheme shall not be offered by a DPO more than two times in a calendar year. TRAI offered flexibility to declare different NCFs for different geographical regions/areas within its service area.

There is a provision of discounts on NCFs for multi-TV homes by not charging more than 40% of the declared NCF per additional TV for 2nd TV connection and onward in a multi-TV home. TRAI noted that carriage fee is capped at 0.4mn per month per channel while the same might get offset by higher placement revenue as it is kept out of regulatory purview and DPOs are allowed to offer discounts on long-term subscriptions that are of more than six months.

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