All you need to know about TRAI?s new tariff regime for TV channels

The Telecom Regulatory Authority of India (TRAI) has given users time till January 31 to opt for channels of their choice under the new framework for broadcasting and cable services.

“We had a meeting of broadcasters, DTH operators, and MSOs (multi-system operators) today [Thursday]. Everyone confirmed their readiness to implement new regulations. However, they requested that some more time may be given to seek options from subscribers for smooth and interruption free migrations,” TRAI secretary S.K. Gupta told PTI.

Distribution platform operators (DPOs) have also been permitted to seek options from consumers till January 31, and customers will be migrated as per their choice from February 1, Gupta added.

TRAI’s new framework allows consumers to select and pay only for those channels they wish to view, and requires TV broadcasters to disclose the maximum retail price (MRP) of each channel and that of bouquets.

TRAI Chairman R.S. Sharma had, earlier in December, said the regulator was working to ensure a smooth transition to the new framework without causing any disruption for consumers.

What’s the new tariff regime?

Under the new tariff regime, users will get 100 free to air (FTA) channels for Rs 130 plus taxes. Viewers can then select and pay only for those channels that they want to watch regularly.

The new tariff order has done way with the practice adopted by broadcasters wherein channels would be clubbed into a bouquet, and the viewer would have to pay for all those channels, which were either free or ones that they do not wish to watch.

To help consumers make a smooth transition to the new regulatory framework, TRAI held a series of meetings and consultations with all the stakeholders over the last four to six weeks.

From the discussions, it emerged that most of the stakeholders are largely prepared for the implementation of the new regulatory framework. However, the progress in collecting the choice of subscribers for migration to new regulations seems to be moving slow.

Industry representatives highlighted that there are about 150 million TV subscribers in India. Making all subscribers aware about the new framework and seeking fresh choice of TV channels will require some more time and resources.

What consumers need to do to continue enjoying their favourite channels?

Each consumer must ask their local cable service provider about the new rates. The cable operator will share the channel’s price list, as decided by the broadcasters, with the consumers.

The consumers will have to pay the fixed fee of Rs 130 and taxes for the primary set of 100 channels. All 100 channels in this set will be free, but won’t include popular ones offered by major broadcasters.

For the popular channels, the consumer will have to refer to the price list. The cable operators will provide a form to the consumer, wherein they will have to indicate their preferences. They will then be billed as per their preferences.

For every additional 25 channels selected, the consumer will have to pay an additional Rs 20 as a network capacity fee. For example, if a consumer views most of Star channels then they can opt for the bundle pack of Star channels. If the viewer also wants to add other channels in addition to Star channels, they can select it from à la carte pricing.

The new tariff regime does not provide the option of quarterly, half-yearly, and annual subscription. Consumers will be billed monthly. The new regime however offers consumers freedom to change or swap the channels every month.

How will this affect consumers?

The new regime has been implemented keeping in mind the “affordability’” aspect. Keeping in mind the current pricing, it seems like consumers might have to shell out quite a bit. Consumers might end up paying for each channel from different broadcasters.

Broadcasters are offering bundle packs, wherein each of them has its own rates that differ according to markets. The consumer will need to spend extra for adding each channel.

Major broadcasters have formed their own bouquets of channels, which are categorized into HD and SD channels. The base bouquet comprises popular channels along with less-performing channels.

Consumers can opt for either these bouquets or they can choose single channels on the a la carte (MRP) basis. The regulators have capped the price range at Re1 to Rs19. Broadcasters are offering popular channels at Rs 19, while niche and less popular channels range between Re 1 and Rs 10.

No blackout: TRAI assures customers

Amid speculation that there could be a blackout of subscribed channels after TRAI’s tariff regime came into affect, the regulatory body, on Wednesday, assured consumers that there will be no disruption of TV services due to the order’s implementation.

In March, 2017, TRAI had notified the new regulatory framework for Broadcasting and Cable services and re-notified it on July 3, 2018, prescribing the implementation schedule.

The regulatory body has noticed that there were messages in the media that there may be a black-out of existing subscribed channels on TV screens after December 29, when the new order came into effect, TRAI said in a statement.


Elton Gomes is a staff writer at Qrius .

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