NTO 2.0 is the outcome of strong collaboration between industry & TRAI: K Madhavan

The Telecom Regulatory Authority of India has notified amendments to the regulatory framework for broadcasting and cable services.

A Stakeholders Committee, constituted under the aegis of the Telecom Regulatory Authority of India (TRAI) and consisting of members from the Indian Broadcasting & Digital Foundation (IBDF), All India Digital Cable Federation (AIDCF) and DTH Association, has suggested some critical issues to avoid inconvenience to consumers while implementing the Tariff Amendment Order 2020.

The purpose of the Stakeholders Committee was to facilitate discussions among various stakeholders to come out on a common agreed path for smooth implementation of Tariff Amendment Order 2020. The Committee listed several issues related to New Regulatory Framework 2020 for consideration. The stakeholders, however, requested TRAI to immediately address critical issued which could create impediments for smooth implementation of Tariff Amendment Order 2020.

In order to address the issued as identified by the Stakeholders Committee, TRAI issued a Consultation Paper for seeking stakeholders’ comments. The Authority analysed these comments and to protect the interests of the consumers has notified amendments to the Tariff Order 2017 and Interconnection Regulations 2017.

The main features of the amendments are as follows:

• Continuance of forbearance on MRP of TV channels
• Only those channels which are having MRP of Rs 19 or less will be permitted to be part of a bouquet
• A broadcaster can offer a maximum discount of 45% while pricing its bouquet of pay channels over the sum of MRPs of all the pay channels in that bouquet
• Discount offered as an incentive by a broadcaster on the maximum retail price of a pay channel shall be based on combined subscription of that channel, both in a-la-carte as well as in bouquets

Broadcasters are required to report to TRAI any change in name, nature, language, MRP per month of channels and composition and MRP of bouquets of channels by December 16, 2022, and simultaneously publish such information on their websites. The broadcasters who have already submitted their RIOs incompliance of the New Regulatory Framework 2020, can also revise their RIOs by December 16, 2022.

All the distributors of TV channels shall report to the Authority, DRP of pay channels, bouquets of pay channels, and composition of bouquets of pay and FTA channels by January 1, 2023, and simultaneously publish such information on their website.

All distributors of TV channels are required to ensure that services to the subscribers, with effect from February 1, 2023, are provided as per the bouquets or channels opted by them.

Meanwhile, commenting on the new TRAI amendments, K Madhavan, President, Indian Broadcasting & Digital Foundation, and Country Manager and President of Disney Star, said, “NTO 2.0 is the outcome of the strong collaboration between industry and TRAI under the leadership of Dr Vaghela. Rather than pursue a litigative approach to address pending demands, our approach of engaging in constructive dialogue has allowed us to make strong progress in creating a more conducive environment for the industry on the pricing front. We remain confident of moving to an environment of regulatory forbearance.”