TDSAT sets aside Trai's broadcaster tariffs for DTH players

Broadcast tribunal Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today set aside sectoral regulator Telecom Regulatory Authority of India's (Trais's) attempt to cap the wholesale price of channels for DTH and IPTV service providers at 35 per cent of the rates they charge cable operators.

Earlier, broadcasters charged them half of what they got from cable operators.

Setting aside Trai's tariff order, TDSAT has asked it to fix afresh the tariffs that broadcasters can charge from DTH and IPTV players.

“Trai should start tariff fixation after taking relevant factors into consideration afresh,” TDSAT said. The tribunal also directed Trai to undertake detailed study for the purpose.

On July 21, Trai notified that a new wholesale tariff structure would be effective from September 1, whereby broadcasters can charge only 35 per cent of the rates they charged from normal cable operators, while supplying to service providers on platforms such as DTH, IPTV and HITS.

On August 23, leading broadcasters, including Zee Turner, Viacom 18 Media, Sun TV and Star Den Media Services, had moved TDSAT challenging Trai's tariff order to cap wholesale price of channels to service providers like DTH and IPTV. In separate petitions filed with TDSAT, ESPN Software India, MSM Discovery, Zee Turner and STAR Den Media Services said the Trai tariff was not commercially viable.

The broadcasters had submitted that while fixing the tariff, Trai had acted in an arbitrary and unreasonable manner and did not consider the suggestions of the stakeholders.

Broadcasters offer cheaper rates to operators like DTH and IPTV as they can ascertain the number of subscribers of these players, which is not the case with cable services where under-reporting is believed to be very high.