Channels go off air over tariff row with cable operators
In keeping with a new order by the Telecom Regulatory Authority of India (TRAI), referred to as NTO 3.0, the broadcasters had effected a hike of 10-15 per cent on channel offerings, which didn’t sit well with a group of cable operators, who contended that this will impact consumers as well as their own business.
The new pricing, as per NTO 3.0, is effective from February 1.
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The stand-off between television broadcasters and cable operators over tariff hike has intensified, with big broadcasters such as Disney Star, Zee Entertainment and Sony Pictures Networks India, deciding to switch off signals for several big cable operators, who account for over four crore subscribers in the country.
In keeping with a new order by the Telecom Regulatory Authority of India (TRAI), referred to as NTO 3.0, the broadcasters had effected a hike of 10-15 per cent on channel offerings, which didn’t sit well with a group of cable operators, who contended that this will impact consumers as well as their own business.
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An industry insider, who didn’t wish to be named, said, “Even as all DTH (direct to home) operators, which include Airtel and Tata Play, and most cable operators across India, have signed agreements with broadcasters as per the new TRAI guidelines, a handful of cable operators with a sizeable subscriber base are refusing to come on board.”
In fact, under the umbrella of All India Digital Cable Federation (AIDCF), nine of them had gone to the Kerala High Court, claiming that TRAI has failed to regulate the pricing of TV channels or cap their prices. On its part, TRAI contended that the federation has not shown how it is affected by the regulation or tariff order and therefore, has no locus standi to challenge it. The regulator also claimed that AIDCF had consented to the price cap of Rs 19 per channel.
The Kerala HC after hearing the petition filed by AIDCF against TRAI posted the matter for hearing on Wednesday, after the arguments in the matter remained inconclusive on Tuesday.
While Sony, Zee and Disney Star switched off their services to these operators on Friday, Viacom18 Media (owned by Reliance Industries) has kept out. Interestingly, Reliance owns cable TV distribution companies such as DEN Networks and Hathway Cable and Datacom, that have gone to court against these broadcasters.
On the broadcasters’ move to switch off signals for these specific cable operators, the IBDF (Indian Broadcasting and Digital Foundation) had stated that most DTH and cable operators have already started implementing the new prices, for which, they had to increase consumer prices by approximately five per cent after four years.
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Some cable operators did not sign fresh agreements, forcing broadcasters to disconnect their services after serving due notice, it said.
Under the new amendments, broadcasters were allowed to increase the prices of channels, which are part of a bouquet, to Rs 19, from the earlier Rs 12, as per NTO 2.0 in 2018. The new pricing, as per NTO 3.0, is effective from February 1.
Divya A reports on travel, tourism, culture and social issues - not necessarily in that order - for The Indian Express. She's been a journalist for over a decade now, working with Khaleej Times and The Times of India, before settling down at Express. Besides writing/ editing news reports, she indulges her pen to write short stories. As Sanskriti Prabha Dutt Fellow for Excellence in Journalism, she is researching on the lives of the children of sex workers in India. ... Read More