Open To Reconsider Key Rules In Interest Of Consumers & Broadcasters: TRAI

In response to broadcasters' pricing hikes, the Telecom Regulatory Authority of India (TRAI) has stated that, in the broader interest of consumers and the broadcasting sector, it will not hesitate to reconsider key rules, including the forbearance granted to broadcasters.

The regulator emphasised in a statement that the NTO 2.0 framework is a complete code that balances the interests of service providers and customers. It went on to say that the framework should result in lower pricing for customers. It added that if executed in its whole, it will usher in an era of clear tariffs and superior channel content at the most competitive pricing.

"In addition, TRAI will also keep a strict watch over the developments and will not shy away from reviewing certain provisions including forbearance allowed to broadcasters in the larger interest of consumers and the Broadcasting Sector," the statement reads. The TRAI also stated that certain broadcasters continue to profit unduly from the 2017 regime's tolerance and flexibility.

The TRAI also stated that it may revisit the time period for implementing NTO 2.0 in order to assist consumers in making informed decisions. The regulator stated that it is aware of the time required for the necessary adjustments to be implemented in order to include the choices of 150-160 million pay television households.

The complaint also mentions a persistent deception campaign aimed at giving the impression that the anticipated price rise is related to NTO 2.0. This, according to the regulation, is a misrepresentation of the NTO 2.0. "It has been widely publicised that any/every consumer who chooses top GEC channels or sports channels would be charged an additional Rs 100."

"This is a fictitious claim because NTO 2.0 does not imply or prescribe any conditions for price increases," the regulator noted. The TRAI stated that it is aware that certain of the broadcasters' announced pricing are unsustainable since they are neither demand-driven or market-determined, and therefore are not in the best interests of consumers. "The price hike has been announced on their own in the garb of complying to NTO 2.0, which is not true and rather an attempt to defeat the purpose of NTO 2.0 which has already benefited the consumers to a large extent," it added.

The objective of the modifications, according to TRAI, was to guarantee that no service provider profiteers at the expense of customers. It's worth noting that since 2004, channel pricing has remained below the mandated ceiling for 15 years.

“However, the new framework provided the freedom to broadcasters to fix prices of their television channels with certain conditions for inclusion into a bouquet. Some broadcasters revised prices in compliance to NTO 2.0 thereby passing on certain benefits to consumers. Few other broadcasters are now exploiting freedom available for a-la-carte pricing of television channels. The new tariff announced by these leading broadcasters reflect their intention to increase prices of driver & popular channels. Driver channels include General Entertainment Channels and sports channels,” it stated.

Some service providers, according to the regulator, did not enable consumers to fully benefit from the new framework and took advantage of the flexibility provided by the Regulations and Tariff Order published in 2017. To combat such misconduct, TRAI conducted a consultation process in the fourth quarter of 2019 and released an updated framework on January 1, 2020.

"Under amended provisions which have been implemented, a consumer gets 226 televisions channels in the lowest network capacity slab, capped at Rs. 130/-. This has greatly benefitted the marginal consumers. Similarly, for a second television set one now pays only 40% of the Full Network Capacity Fee. These measures together have enabled all consumers to have choice of their own channels along with cost savings to the extent of 30 to 40% monthly," the TRAI said.

The TRAI pointed out that some broadcasters challenged the amendments in High Court of Bombay and this legal challenge delayed the implementation of certain provisions relating to pay channel prices. Both the framework in 2017 and the amended framework 2020 (NTO 2.0) have prescribed maximum benefits to the consumers.