Out of focus

The Telecom Regulatory Authority of India’s (Trai’s) directive to broadcasters to implement its New Tariff Order 2.0 (NTO 2.0) by August 10 is a case of poor timing and betrays a misunderstanding of how competitive markets function. The order places such onerous restrictions on the fees which channels can charge that the broadcasting industry runs the danger of relying disproportionately on advertising rather than subscription revenue. NTO 2.0 has effectively capped channel prices at Rs 12 by decreeing that any channel above that price cannot be part of a bouquet. It has also said the sum of a la carte