In a bid to reduce regulatory mandates and enable consumers to get more attractive offerings, the Telecom Regulatory Authority of India (TRAI) has brought in amendments in the regulatory framework for broadcasting and cable sector. Under the amendments in the tarrif order for the sector, the regulator has allowed Distribution Platform Operators (DPOs) to offer higher discounts for TV channel bouquets to consumers, has done away with the ceiling on Network Capacity Fee (NCF) and has made it mandatory to declare Free-to-Air channels.

DPOs include Direct-to-Home players, Multi-System operators and cable TV operators. They had been urging the regulator to make changes in the regulatory framework for some relief amidst intensifying competition.

The regulator said that DPOs will be permitted to offer discounts upto 45 per cent while forming bouquets of TV channels, in a bid to give service provider flexibility to offer more attractive deals to consumers. Earlier this discount was capped at 15 per cent. It also said that ceiling of ₹130 for 200 channels and ₹160 on more than 200 channels have been removed on Network Capacity Fee (NCF) and is “kept under forbearance” to make it market forces driven.

Free-to-air

This will enable DPOs to potentially be able to charge lower NCF to woo consumers. “Service provider may now charge different NCF based on number of channels, different regions, different customer classes or any such combination,” TRAI stated. At the same time, it said that DPOs will need to ensure all such charges are published, communicated to the consumers as well as reported to TRAI.

In a bid to ensure level-playing field, TRAI also said that a pay channel available at no subscription fee on the DTH platform of the public service broadcaster has to be declared as “free-to-air” for all the addressable distribution platforms. DPOs have also been mandated to declare tariff of their platform services.

In terms of quality of service regulations, TRAI has also decided to keep charges of services such as installation, activation, relocation, temporary suspension among others under “forbearance”. “DPOs have to publish the charges of their services for clarity and transparency to consumers. Duration, Term and Validity of all prepaid subscriptions will need to be specified in number of days for greater clarity to the consumers,” TRAI added. It also said service providers can display Distributor Retail Price (DRP) in the electronic programme guide (EPG) along with MRP for channels among other amendements.

Trai said all these amendements in the regulatory framework will “provide flexibility to the service providers to adopt a market driven approach while safeguarding the interest of the consumers and small players through transparency, accountability and equitability.”

 For interconnection regulations that determine revenue-share deals signed between DPOs and broadcasters, the regulator said that single ceiling for carriage fee has been prescribed to remove any distinctions between HD and SD channels. It said this is expected to “not only simplify the offerings of the service providers to the consumers but also promote the availability of high-quality channels. It has also introduced “financial disincentives” to ensure accountability of service providers, in case they violate provisons of Tariff Order, Interconnection Regulation and QoS Regulation.

Meanwhile, TRAI has also issued recommendations to I&B Ministry on certain other issues including “listing of channels in Electronic Programme Guide” and transition of ‘DD Free Dish’ to an addressable system.