Monthly cable bills in areas with conditional access system are likely to come down by 40 per cent, thanks to the Telecom Regulatory Authority of India order that has fixed the price of a pay channel at Rs 5.
This will mean that a consumer who watches 12 channels, priced at Rs 5 per channel, including four general entertainment, three sports, three film and two news channels, will now be required to pay a little over Rs 150, inclusive of taxes, compared to the present Rs 250. This would also include 30 free-to-air (FTA) channels at a basic service charge of Rs 77 per month, as specified by Trai.
CAS, which will be rolled out by January 1, 2007 in Delhi, Mumbai, Kolkata and Chennai, will cover 5 to 7 million cable and satellite homes.
Although Trai's pricing order will be a respite for consumers and a big money spinner for cable operators, it would end up bleeding broadcasters.
Trai said the order on pay channel pricing was aimed at reducing consumers' monthly cable bills and making television viewing affordable.
Trai was of the view that the present pay channel prices fixed by broadcasters were very high, making the regulator's intervention necessary. It said price regulation was justified when the market forces failed to give competitive prices.
However, Trai is also looking at the possibility of allowing market forces to decide the pricing of channels after a year.
"The regulator will watch the developments in terms of competition and choice of channels. We will revisit the regulations and see if it is necessary to regulate the tariff or give forbearance to operations depending on market competitions," a Trai official said.
Broadcasters will also have an option to price channels lower than Rs 5 and offer bouquets with discounts. All pay channels would have to be offered separately and the minimum period of subscription would be four months.
"This is precisely what we have been asking for. We are happy with the regulation as it will benefit consumers greatly," Vikki Chowdhary, president, National Cable TV Association, said.
