TRAI intervenes in tariff hike tussle between DPOs and pay-TV broadcasters

There is growing tussle between distribution platform operators (DPOs) and pay-TV broadcasters over the former complying with the tariff rate hikes. As per industry sources, pay-TV broadcasters are mulling over switching off signals to DPOs in case they fail to comply with the tariff hikes.

Industry sources further said that the Telecom Regulatory Authority of India (TRAI) has stepped in to intervene in this matter, with new TRAI Chairman Anil Kumar Lahoti and TRAI Secretary V Raghunandan meeting with leading broadcasters and urging them not to switch off signals to DPOs in case they fail to comply with the tariff hikes.

Ever since taking charge in January this year, Lahoti has been meeting with various stakeholders in broadcasting to take stock of various issues.

TRAI had put an embargo on tariff rate hike, which was lifted in November 2022, and the implementation of the new tariff rates was expected to start from February. However, the rate hike has been opposed by cable TV service providers under the aegis of All India Digital Cable Federation (AIDCF) as they fear that this could result in losing TV subscribers, who could move to DD Freedish or OTT platforms.

Meanwhile, leading broadcasters have increased the rates of their base bouquets by up to 25% in January, which has been attributed to growing cost of investment in new content such as TV serials, movie acquisitions and sports properties.

Industry sources said that TRAI has asked pay-TV broadcasters to put on hold switching off signals and increasing the tariffs until the Lok Sabha elections 2024 are over. Instead, the regulatory has asked the broadcasters to directly engage with the DPOs in this matter.