TRAI to remove tariff ceilings on TV channels

The Telecom Regulatory Authority of India (TRAI)  on July 8, 2024, issued several regulatory updates impacting Telecommunication (Broadcasting and Cable) Services. These include the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Fourth Amendment) Order, 2024 (1 of 2024), Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Sixth Amendment) Regulations, 2024 (4 of 2024), and the Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service and Consumer Protection (Addressable Systems) (Fourth Amendment) Regulations, 2024 (3 of 2024).

Additionally, TRAI has made recommendations to the Ministry of Information and Broadcasting (MIB) concerning the 'Listing of channels in Electronic Programme Guide' and 'Upgrading DD Free Dish platform to an Addressable System'. These amendments, with exceptions for certain clauses, will take effect 90 days from their publication in the official gazette.

In line with the complete digitization of the cable TV sector, TRAI initially introduced the Regulatory Framework for Broadcasting and Cable services on March 3, 2017. This framework has since been refined to meet the evolving needs of the broadcasting ecosystem and address stakeholder concerns through subsequent amendments in 2020 and 2022.

Stakeholders such as broadcasters, MSOs, DTH operators, and LCOs have consistently raised various issues with the Telecom Regulatory Authority of India (TRAI). In response, TRAI issued a consultation paper titled "Review of Regulatory Framework for Broadcasting and Cable Services" on August 8, 2023, inviting input from stakeholders.

The consultation paper sought feedback on several key issues, including Network Capacity Fee (NCF), limits on discounts for channel bouquets, equivalence of HD and SD channels for capacity calculations, mandatory inclusion of V1'A News Channels in DPO packs, parity with DD Free Dish, amendments to Reference Interconnect Offers, channel listing in Electronic Programme Guides (EPGs), revenue sharing between MSOs and LCOs, carriage fees, expiration of interconnection agreements, billing cycle concerns, regulation of platform service channels, review of prescribed charges, consumer protection measures, and requirements for DPO-operated websites and practices manuals.

After analyzing stakeholder feedback and open house discussions, the Telecom Regulatory Authority of India (TRAI) acknowledged the competitive landscape shaped by numerous broadcasters, DPOs (MSO/DTH/HITS/IPTV), and LCOs. Recognizing the need to accommodate dynamic market conditions while ensuring consumer and small player protection through transparency, accountability, and fairness, TRAI has introduced amendments to the Tariff Order 2017, Interconnection Regulations 2017, and Quality of Service Regulations 2017.

The amendments aim to achieve the following objectives:

1. Foster growth in the broadcasting sector by reducing regulatory mandates and compliance requirements.
2. Grant service providers flexibility to adopt market-driven approaches while safeguarding consumer and small player interests.
3. Enhance ease of doing business by streamlining regulatory provisions.

Key features of these amendments include:

Tariff Order:

1. The previous ceilings of Rs 130 for 200 channels and Rs 160 for more than 200 channels on Network Capacity Fee (NCF) have been eliminated. Instead, NCF rates are now market-driven and equitable, allowing service providers to vary charges based on factors such as channel count, regions, customer categories, or combinations thereof. Providers must transparently publish these charges, communicate them to consumers, and report them to TRAI.

2. DPOs can now offer up to a 45% discount when bundling channels into bouquets, a significant increase from the previous limit of 15%. This flexibility aims to enable DPOs to create more attractive offers for consumers.

3. Any pay channel offered free of subscription on the public service broadcaster's DTH platform must be declared as free-to-air by its broadcaster for all addressable distribution platforms, ensuring fair competition.

4. DPOs are now required to disclose tariffs for their platform services, enhancing transparency in pricing for consumers.

Interconnection Regulations:

1. The distinction between HD and SD channels for carriage fee purposes has been removed, aiming to encourage the transmission of high-definition content.

2. The carriage fee regime has been simplified and made technology-neutral, with a single ceiling prescribed for carriage fees. This allows DPOs the flexibility to charge a lower carriage fee as they see fit.

These measures aim to streamline service offerings to consumers and promote greater availability of high-quality channels.

Additionally, TRAI has issued recommendations to the Ministry of Information and Broadcasting (MIB) on several issues discussed during the consultation process. These include guidelines for 'Listing of channels in Electronic Programme Guide' and transitioning 'DD Free Dish' to an addressable system. Key recommendations include:

Listing of channels in EPG:

MIB will request broadcasters to provide information on each channel's primary language and sub-genre (for non-news channels) as per the Interconnection Regulation 2017. This information will be displayed on the Broadcast Seva portal of MIB, enabling DPOs to appropriately place channels in the EPG for easier consumer navigation in compliance with current regulations.

Upgradation of DD Free Dish platform to an addressable system:

To enhance the quality of viewing, prevent unauthorized channel re-transmissions, combat piracy, and maintain subscriber records, Prasar Bharati plans to upgrade the DD Free Dish platform from a non-addressable to an addressable system. This initiative will begin by encrypting signals of private satellite television channels at the DD Free Dish headend before transmission. Eventually, all channels on DD Free Dish will be transmitted in encrypted form.

Upon issuance of notification by the Ministry of Information and Broadcasting (MIB), the public service broadcaster will receive necessary exemptions from TRAI regulations. Prasar Bharati intends to deploy indigenous technologies for implementing the Conditional Access System (CAS), Subscriber Management System (SMS), and interoperable Set-Top Boxes (STBs) during this transition phase.