TDSAT issues notices to Trai on channel pricing

Telecom tribunal TDSAT issued notices on Thursday to sectoral regulator Trai and two multi-system operators on petitions filed by broadcasters against guidelines on pricing of cable TV channels in areas that do not have conditional access system.

Telecom Regulatory Authority of India regulation directs them to provide their channels on 'a la carte' basis.

TDSAT Chairperson Justice Arun Kumar directed the Trai and MSOs -- Hathway Cable and Indusind Media, who were later impleaded as parties, to file their replies by December 3 and counter affidavit by the leading broadcasters - Zee Turner, Set Discovery and Star India by December 10.

At the very outset of hearing, Justice Kumar asked the broadcasters: "Why there should not be a la carte (system for pricing)?"

Ramji Srinivasan, appearing for one of broadcasters, submitted that they were not opposed to a la carte basis for fixing tariff but the benefit of it must reach the consumers.

Right now, MSOs are benefiting from a la carte and not the end users.

However, the tribunal also rejected the broadcasters' plea for early hearing, before December 1, the day when Trai's guidelines on pricing of cable TV charges in areas without CAS access comes into effect.

The broadcasters further contended that there was no addressability mechanism to detect, whether consumers are availing the benefit on a la carte basis or not. In their petition, the broadcasters have alleged that the price fixation by TRAI's October 4 regulation is "arbitrary and discriminatory".

"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," the broadcasters had said.

The broadcasters have also alleged that the regulator, while fixing the price relied on "erroneous premise" that there was not sufficient level of competition in the market to let the market forces fix the price.

"It should be fair and responsible and that not a minimum but a reasonable profit margin is permissible," said Set Discovery in its petition.

According to them, Trai failed to protect their interest and the regulation was tilted in favour of cable operators and MSOs by giving them greater leverage, while leaving the consumers on their mercy.

They also alleged that the Trai failed to balance their interests and would impact the content providers (channels).

The authority has now come out with the tariff order in October, fixing rates and tariffs on the basis of the type of city and the ability of the people in a city to pay which fails to address/skirts this issue, they said.