TRAI Introduces Amendments In Broadcasting And Cable Service Regulation Framework

What Are The New Amendments By TRAI

The amendments introduced by TRAI have major changes to the status quo, including change in policy related to network capacity fees and discounts offered by distribution platform operators. Let us have a look at each of these amendments individually!

• Ceiling on Network Capacity fees

While announcing that the Network Capacity Fees (NCF) will be decided by the interplay of market forces, the Regulator removed ceilings of Rs 130 for 200 channels and Rs 160 imposed on over 200 channels.

TRAI further clarified that NCF can be charged by the operators by considering various combinations such as channels, region, customer class, etc. This will provide for a reasonable revenue generation for service providers.

• Publication of Charges

The Publication of charges by the channel and service providers has been made mandatory. To disseminate information and awareness about change in charges, the charges must be published for the use of consumers. They must be communicated to consumers according to this new govt policy.

• Percentage of Discount

The TRAI, in a bid to increase benefits for both the stakeholders, i.e., consumers and Distribution Platform Operators (DPOs), has increased the percentage of discounts that can be offered to the consumers.

The discount which was previously limited to 15%, has now been increased up to 45%. The discount rate can be set by the operators according to the channel bouquets being offered to the consumers.

• Declaration of Free-To-Air Channels

A paid channel being offered for free by a Direct-To-Home (DTH) service provider must be declared ‘free-to-air’. This would create a competitive field for other DTH operators as well and in turn, benefit the consumers.

The declaration of tariffs by DPOs has also been mandatory.

• Distinction Between HD and SD channels

The distinction between Higher Definition or HD channels and Standard Definition (SD) channels has been removed. Since HD channels have become common now and to further encourage the delivery of HD content to the audiences, the difference has been removed by this government scheme.

A maximum carriage fee or a ceiling has been prescribed for charging the carriage fee and operators are free to choose to charge the consumers below the ceiling.

• Service Charges

The service charges for installation, activation, relocation and other such activities have been kept for reconsideration by TRAI. However, the Regulator has asked all DTH providers to mandatorily publish all such charges following this govt policy.

• Term of Prepaid Subscriptions

The term of prepaid subscriptions must mandatorily be published in a number of days for clarity of the consumers. This change has been introduced to enhance transparency with the consumer base.

The TRAI also issued guidelines for the Information and Broadcasting Ministry to prevent retransmission of channels and combat privacy. Consumer Facilitation has been prioritised by recent TRAI Amendments.