Cable television charges across the country will go up by 4 per cent from January 1, 2006 with broadcast regulator TRAI allowing operators and broadcasters to hike prices on account of inflation.
"As almost a year has passed, another review has become due for the period beginning from January 1, 2006. An exercise was undertaken to determine the inflation adjustment rate. On the basis of analysis done by the Telecom Regulatory Authority of India, the inflation adjustment works out to 4 per cent," TRAI said in its order.
Cable TV charges had last moved up by 7 per cent from January 1 this year when the regulator had allowed a 7 per cent increase, again in view of inflation.
TRAI said for the purpose of calculation, the wholesale price index (WPI) has been used.
"An amendment order has been issued to give effect to the inflation adjustment and will come into effect from January 1, 2006. The new rates will be applicable for the payments to be made by consumers, cable operators, MSOs for the month of January, 2006," the broadcast regulator said.
The total percentage increase on account of inflation (taking into account both the 7 per cent increase permitted from January 1, 2005 and the proposed increase of 4 per cent) would work out to 11.28 per cent when calculated with reference to ceiling cable charges (exclusive of taxes) prevailing on December 26, 2003.
As per a tariff order issued on October 1, 2004, TRAI had frozen cable charges (excluding taxes) at the level prevailing as on December 26, 2003, in respect of both free to air and pay channels.