Trai moves SC on cable tariff ceiling issue

The broadcast regulator Telecom Regulatory Authority of India (Trai) has moved the Supreme Court challenging a sectoral tribunal ruling that rejected its tariff order proposing to put a ceiling on cable services charges across the country.

A bench headed by Chief Justice K G Balakrishnan refused to stay the order by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) but directed the parties to maintain the status quo till February 27, the notified date of hearing.

TDSAT while setting aside the Telecommunications (Broadcasting & Cable) Services (Second) Tariff (Eighth Amendment) Order 2007 had observed that the regulator had violated principles of transparency.

Stating that the tribunal's verdict will have tremendous impact on consumers and the broadcasting and the Cable TV services industry, Trai said that the tariff order which had been in existence for more than a year should be continued as it had been successfully implemented.

The tariff order had provided protection to about 80 million households in a very transparent and reasonable manner by stipulating ceilings on the monthly cable TV charges, senior counsel Harish Salve stated.

Around 30 million new households would be deprived of tariff protection and would be at the mercy of service providers and "there is a strong likelihood of arbitrary hikes in cable TV charges", the regulator submitted.