The move might lead subscribers to pay a higher monthly cable bill if they subscribe to sports or other premium channels.
Under the proposed formula, currently being worked out by the Telecom Regulatory Authority of India (Trai), the five-rupee pay channel cap may get replaced with the genre-based differential pricing.
CAS was enforced in parts of the three metros from January 1 this year. But due to the cap of Rs 5 per pay channel, it came under severe criticism from the broadcasters. CAS allows consumers to watch cable via a set-top box while paying only for the content subscribed.
According to the genre-based differential pricing formula, the price of sports channels, that are most expensive to produce due to high input costs, may become three-four times the base price of channels on genres like music or a news where the input cost is much less. The entertainment channels could be priced at twice the base price, sources said.
Currently, the base price (Rs 5) is also the maximum retail price for pay channels in CAS areas. The biggest impact of price revision will be on the forthcoming 55-city roll out of CAS, as proposed by Trai, and also the extension of CAS in rest of the three metros.
An industry official said: "If we assume that the base price of pay channels remains Rs 5, then a sports channel may be priced at say Rs 15-20, while an entertainment channel like Star Plus or Zee TV may be priced at Rs 10. But the big question is if the consumers did not take these pay channel when they were priced at Rs 5, why will they take it at a higher price."
But according to a Trai source, the regulator has firmed up its mind on the review. The base price, which is currently Rs 5 per pay channel, may also move upwards, the source said.
According to the current directive, the cable operators can not charge more than Rs 5 per pay channel, of which 35 per cent goes to the broadcasters, 20 per cent to the multi system operators (MSOs) and 15 per cent to the local cable operator.
Additionally, cable operators have to provide free-to-air channels at Rs 77 per subscriber. "The free channels will continue to come at Rs 77 while the prices of pay channels may move up," the source said.
But broadcasters like Star India and MSOs are sceptical of an upward revision.
A senior Star TV executive said: "Of course, we will be happy if the prices for pay channels in CAS areas go up. But considering Trai's non-CAS tariff order where the price per pay channels actually have come down to Rs 4.10 per pay channel, we do not know how an upward revision is possible."
Trai recently came out with a new tariff order for non-CAS areas where the consumers will get 20 pay channels and 30 free channels at Rs 160 per month in Delhi, Mumbai and Kolkata.