Trai issues consultation paper on regulatory framework for broadcast sector

Seeks discussion on whether DTH operators should mandatorily provide free-to-air channels

The Telecom Regulatory Authority of India (Trai) on Tuesday issued a new consultation paper for the broadcasting sector, seeking to discuss customer fees and whether Direct To Home (DTH) operators should mandatorily provide free-to-air channels.

The paper will also look at issues like tariff, interconnection and service quality, such as revenue sharing between multi-system operators (MSO) and local cable operators (LCO). These issues were not covered under Trai's third amendment of the new tariff order issued in November 2022, said the regulator.

The new paper asks stakeholders if the Rs 130 ceiling on Network Capacity Fee (NCF) – levied by DTH operators on television (TV) subscribers – should be raised. It also asks whether DTH operators should be allowed to have variable NCF for different channel plans in states and cities.

It has sought views on whether Trai should revise the current provision that NCF for a second TV connection or more in multi-TV homes should not be more than 40 per cent of declared NCF per additional TV. For such homes, Trai has asked whether pay television channels for each additional TV connection should also be made available at a discount.

It has also proposed a model whereby Trai may follow economic indices like the Consumer Price Index, Wholesale Price Index and GDP Deflator for revising the NCF on a periodic basis.

TRAI asked stakeholders if there is a need to review the ceiling on discounts given by DTH operators on the sum of the maximum retail price of a-la-carte channels in a bouquet.

It asked if revenue sharing between DTH and local cable operators should be reviewed and if there should be a review of the cap on carriage fee. The paper also covers a review of installation and activation charges and financial disincentives to be levied in case a service provider is found violating provisions of tariff order.

Industry's views

The consultation paper was issued as DTH players and local cable operators (LCOs) have raised issues with TRAI's earlier directions. Key among these was Trai's decision to put a ceiling of Rs 19 per TV channel for inclusion in a bouquet among other provisions, up from Rs 12 earlier.

This had led to a face-off between television broadcasters and local cable operators. with the latter arguing they would lose customers if customers shift to DTH or OTT due to the ceiling. As cable operators refused to roll out the hikes, major industry players had switched off signals to operators.

Broadcasters Disney-Star, Zee Entertainment, Viacom-18, Sun TV and Sony Pictures Networks India have repeatedly petitioned Trai to deregulate broadcast tariff and remove restrictions on channel bundling. Submitting their recommendations under the aegis of the Indian Broadcasters and Digital Foundation (IBDF), the companies have said they should be allowed to offer discounts on both a-la-carte and bouquet offerings rather than operating under a price cap on channels.

In a move that impacts broadcasters, Trai on Tuesday sought stakeholder comments on whether there should be a provision to mandatorily provide free-to-air news, non-news or newly launched channels available on the platform of a DTH operator to all subscribers.

Fresh call
 

Trai will again discuss tariff, interconnection & quality of services 
 

Paper seeks views on whether Network Capacity Fee of Rs 130 should rise
 

The regulator has recommended that the Centre creates new permits for digital infrastructure service providers but no licence fee is imposed on the firms