TDSAT to pronounce orders to resolve revenue sharing dispute!

The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) is set to pronounce its order soon which will most likely end the controversial issue of revenue sharing between MSOs and LCOs.  Both sides have been in argument since last ten days and TDSAT hopes to resolve the issue with their forthcoming order.
 
As per a petition submitted earlier by Delhi-based distribution company Indusind Media Communication and Digicable Services against TDSAT, indicates they were not in favour of the revenue sharing ratio between MSOs and LCOs as 65:35 for every Rs.100.
 
MSOs are of the view that with 35 per cent revenue share going to LCOs, it would be difficult for them to compete in the market or even sustain themselves. They also went on to argue that with the huge expenditure on infrastructure as well as downlinking, which increases their cost factor, the allocated percentage should be increased in their favour.
 
Elaborating on this CS Vaidyanathan of Indusind Media, said, “The situation is very difficult from our point of view as in Basic Service Tier we have to share our revenue with the LCOs, which is not feasible at all.”
 
TRAI’s advocate Saket Singh argued that the telecom regulatory had decided on the sharing ratio on a pro rata basis. Presently, the revenue is divided between broadcasters, MSOs and LCOs in the ratio of 40:30:25. He is of the opinion that once digitisation is implemented, the broadcaster will be out of the list and as a result the revenue sharing will become 65:35.
 
According to Navin Chawla, who represents the Delhi distribution company, carrying 500 channels will increase the cost for MSOs since enhancing their technology would also become a priority. In reply to this Saket Singh said, “TRAI has asked to build capacity for 500 channels, but it is not mandatory to carry all 500 channels.”
 
After hearing both sides TDSAT has now requested MSOs to submit their costing and investment data by September 21, 2012. Judgement from the Tribunal on the matter is expected within a week.
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