TRAI reviews existing tariff structure of TV services

The Telecom Regulatory Authority has come out with a consultation paper on tariff issues related to TV services. Written comments on the consultation paper are invited from the stakeholders by March 4, 2016, while counter comments, if any, may be submitted by March 18, 2016.

The consultation paper reviews the existing tariff arrangements and seeks to develop a comprehensive tariff structure for addressable distribution of TV broadcasting services across digital broadcasting delivery platforms (DTH, cable TV, HITS, IPTV) at wholesale and retail levels.

The paper seeks to ensure that the tariff structure is simplified and rationalised in order to have transparency and equity across the value chain.

The paper also seeks to reduce the incidence of disputes amongst stakeholders across the value chain, encouraging healthy growth in the sector as well as encourage investment in the TV sector.

The paper will look into ways to ensure that subscribers have adequate choice in the broadcast TV services while they are also protected against irrational tariff structures and price hikes. There is also emphasis on encouraging production of good quality content across different genres.

The consultation paper addresses key issues such as:

·        Carriage fee – The quantum of carriage fee is presently under forbearance. The carriage fee demanded by different DPOs is not uniform and varies with genres and area of operation. Broadcasters have raised the issue of high carriage fee at different platforms. They have indicated that carriage fee is being charged even in cases where the channel has been asked by MSOs and not been provided by broadcasters under “Must carry” provisions.

·        Tariff models at wholesale as well as retail levels – The paper weighs the pros and cons, workability and challenges of different models like Price Forbearance model, Cost based model, Universal RIO model, Price Forbearance model, Exclusive a-la-carte-model, Conventional MRP Model, Flexible MRP model, and Distribution network model.

·        Channel pricing framework

·        Tariff orders pertaining to niche channels

·        Pricing of High Definition (HD) channels

·        Ease of channel or bouquet subscription

·        Channel visibility on Electronic Programme Guide (EPG)

·        Pay-per-program viewing and tariff options

·        Audit and reporting issues related to tariff