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HomeArticlesEditorialsAt last, a regulatory regime begins
Friday, 01 March 2019 13:34

At last, a regulatory regime begins

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Finally, we have started implementing the new tariff schemes as per TRAI directions. It is commendable for the TRAI chairman not to get bowed down to the pressures from some stakeholders who were trying to delay the process once again by going to the court. Few court cases are still pending in the Delhi High Court but the Apex court has given very clear verdict earlier upholding TRAI’s right to frame regulations including tariff fixation for the cable and broadcasting industry keeping public interest in mind.

Although the 15% discount cap on the a-la-carte price of pay channels for making bouquets has not being included in the present notification, TRAI feels that within a few months, once the market forces come in action, Broadcasters will have to align their prices accordingly. TRAI is doing its best making new tariff regime successful through its specially designed mobile app for the television consumers and through print medium. Market is too large to be reached in a short span of time. Keeping this in mind, the TRAI has further extended the compliance period till 31st March so that all consumers are brought under the tariff regime after exercising their choice of content. To ensure that no inconvenience is caused to the consumers till they exercise their choice and their pay TV signals are not blocked, TRAI has asked the DPOs to provide a ‘best fit package’ to them whereby within the existing subscription paid by them, they get most of their choice content. Although this has also been challenged in the Delhi High Court, TRAI is confident that considering the public interest, the court will rule in its favor. 

I wonder why the LCOs are protesting against the tariff order as first time in the history they are getting an opportunity to work in an organized sector. I have noticed that they want a bigger share of subscription revenue of FTA (Network capacity fee) as well as pay channels. At present the FTA subscription of Rs 130 has a fallback share of 45% for the LCO and it is on the discretion of the MSO to give him more. Of the pay channel subscription, the broadcasters get a major share of 80% whereas it is left to the MSOs to share the 20% with the LCOs. 

TV viewership measurement is undergoing a paradigm shift with Digital media and OTT spreading all over. Today, content is available on all devices and viewership measurement has become very complicated. TRAI has taken the initiative to issue a consultation paper on the subject which is very commendable. 

Elections are coming and present government is going all out, capturing the media attention to reach to the people. However, there are many economic issues yet to be resolved which are creating resentment among the masses. These issues will keep the media busy in lengthy debates between the ruling and the opposition parties. 

Convergence India exhibitions has just concluded and saw an overwhelming response from the industry. Conference sessions focused on the latest issues including TRAI’s Tariff Order and Digital Media. Many new technologies were showcased for the first time. Cyber security and IoT segments were also added to this expo.

We wish a very happy Holi to all readers.


—— Lt. Col. (Retd.) K K Sharma


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