CAS pay channels: TDSAT reserves order on fee

Broadcast tribunal Telecom Disputes Settlement And Appellate Tribunal has reserved its order on the Telecom Regulatory Authority of India's decision to fix Rs 5 per pay channel as fee for subscribers in conditional access system areas.

However, Telecom Disputes and Settlement Appellate Tribunal chairman Justice Arun Kumar did not stay Trai's notification issued for the purpose.

Though the appeal would be pending, this would not come in the way of rolling out the CAS, he said at a hearing yesterday. Two broadcasters -- ESPN Star Sports and SET Discovery -- had earlier approached TDSAT against the decision by Telecom Regulatory Authority of India on August 31 to fix the fee.

On December 12, the two broadcasters had argued before TDSAT that Trai's decision was 'arbitrary'. Their counsels had contended that according to Trai's own figures, tariff per channel should be between Rs 10 to Rs 14.

They had also contended that regulation was meant for Free-To-Air

channels and there was no law to regulate pay channels. However, Trai counsel Rakesh Dwivedi justified the order and said the regulator had the power to fix tariff.

He said Trai fixed the price keeping in view the interests of both subscribers and broadcasters. Dwivedi contended the broadcasters arguments that CAS was working properly in Chennai without fixing prices and said it cannot be a right example as only 3.7 per cent subscribers opted for CAS in that city.

"Subscribers are not moving towards CAS in Chennai due to high prices. It is preventive," the counsel added. Dwivedi also submitted that prices have to be reduced if CAS has to succeed. Implementation of CAS would increase revenue earnings of broadcasters, he added.

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