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HomeNewsDTH News‘Allow discounts on NCF’, DTH platforms urge TRAI
Monday, 07 October 2019 05:01

‘Allow discounts on NCF’, DTH platforms urge TRAI

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In its submission to the Telecom Regulatory Authority of India’s (TRAI) consultation paper on tariff-related issues, the DTH operators said they want discounts on network capacity fee (NCF) and distributor retail price (DRP) in the new tariff framework.

Dish TV wrote that discounted NCF and DRP for the multiple TV connections, being in the consumer interest, should definitely be allowed.  It added that provision should accordingly be made in the regulation that the broadcasters should also extend discounted price for its channels/bouquets provided for such multiple connections in their RIOs.

The leading DTH platform Tata Sky wrote in its submission that the discounts on multi-TV were made possible by the distribution platform operators (DPOs), in the previous regulatory regime, because of the ability to negotiate a mutually beneficial agreement with the broadcaster.

It added that the subscribers are served best when free-market principles come into play on the bedrock of mutually negotiated agreements between the stakeholders. The concerns being raised by the subscribers on Multi-TV pricing is a direct consequence of the new regulatory regime which prohibits mutually negotiated agreements.

Tata Sky said: “We, therefore, believe that this consultation process should review the strait-jacketed approach of the NTO and make way for negotiated agreements.”

They said that existing regulation is narrow in its interpretation, that DPOs were unable to even provide voluntary discounts to their subscribers — be it Long Term or Multi-TV etc. In this regard, TRAI had set-up a multi-stakeholder committee which has recommended that DPOs should be allowed the flexibility of giving discounts on the NCF for Multi-TV.

Tata Sky said: “We are in agreement, to the limited extent, that this consultation process and the regulatory amendment thereafter should allow for a provision to DPOs to enable discounts on the NCF to their subscribers.”

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