Broadcasters challenge Trai regulation on non-CAS areas

The October 4 regulation of the Telecom Authority of India Trai, that directs broadcasters to provide their channels on a pick-and-choose basis, has gathered wrath of the leading broadcasters. Companies like Zee-Turner, Set Discovery, Star India and ESPN have challenged broadcast regulator8217;s guidelines on pricing of cable TV charges in non-conditional access system areas in tribunal TDSAT.

In their petition, the broadcasters have alleged that the price fixation by Trai8217;s October 4 regulation is 8220;arbitrary and discriminatory8221;. 8220;The authority has exercised its power in an arbitrary and discriminatory manner which fails to serve the objective of fixing a proper/correct price though it is well settled that price fixation should be based on relevant material.8221; 8220;It should be fair and responsible and that not a minimum but a reasonable profit margin is permissible,8221; Set Discovery said in its petition submitted in TDSAT.

The broadcasters also argued that the regulator, while fixing the price, relied on 8220;erroneous premise8221; that there was not sufficient level of competition in the market to let the market forces fix the price. 8220;There is sufficient level of competition to let market forces determine the prices,8221; said the petitioners.

Accusing Trai, the companies said that the regulation was tilted in favour of cable operators and multi system operators by giving them greater leverage, while leaving the consumers on their mercy.