The regulator has lifted the cap on network capacity fee (NCF) and brought it under forbearance to allow DPOs the ability to charge customers based on their paying capacity. Earlier, the cap on NCF was Rs 130 for 200 channels and Rs 160 for over 200 channels.
A cable TV company’s top executive argued that an NCF forbearance would enable DPOs to charge more NCF from high-end consumers while charging less from low-income customers.
The new tariff order (NTO) regime requires TV consumers to pay subscription fees for TV channels to broadcasters and NCF, also called an infrastructure fee, to DPOs like Tata Play, Dish TV, Hathway, and DEN.
The regulator has also mandated that free-to-air (FTA) channels on Prasar Bharati-owned DD Free Dish will also be free on DPOs that charge subscription fees.
Broadcasters previously offered certain pay channels on DD Free Dish for free to expand their audience, while charging subscription fees for the same channels from pay DPOs.The TRAI has also brought DPOs on par with broadcasters by allowing them to offer a 45% discount on a-la-carte channels while creating bouquets for customers.A senior executive from a leading media firm stated that despite the TRAI’s enabling provision, DPOs are hardly in a position to offer a 45% discount on a la carte channels.
The existing regulatory framework permits broadcasters to provide a 45% discount on a la carte channels while limiting the discount on bouquets to 15%.
The regulator has also hiked the monthly carriage fee per channel to Rs 5 lakh from Rs 4 lakh while removing the distinction between standard definition (SD) and high definition (HD) channels.
Previously, the monthly carriage fee for an SD channel was Rs 4 lakh, while that for an HD channel was Rs 8 lakh.
In order to allow DPOs to arrange channels based on language and genre, the TRAI, in separate recommendations to the Ministry of Information and Broadcasting (MIB), stated that the latter should gather information from broadcasters about the primary language and sub-genre of channels before granting permission.
It also suggested that the MIB should upgrade DD Free Dish in a phased manner to an addressable system within a specified timeframe to prevent piracy and maintain subscriber records.
