New cable TV Tariffs to put a hole in your pocket!

Discussion in 'Latest Technology News' started by swatkats, Dec 18, 2018.

  1. swatkats

    swatkats Keeping TE Alive!
    Veteran

    Let us understand what the TRAI regulations mandate to broadcasters, distributors and last mile operators (LMO)…
    Whether Broadcaster, Distributor, Last Mile Operator (LMO)…

    • All channels should be offered on a-la carte basis.
    • Free to air channels cannot be part of bouquet.
    • The prices of bouquets and a la carte channels will be uniform on all the distribution platforms.
    • Distributor has to offer a basic service tier pack (BST) consisting of FTA channels.
    • This BST pack will have minimum 100 FTA channels.
    • In this 100 FTA channels 26 channels from Doordarshan are mandatory.
    • BST should contain minimum five channels of each genre like general entertainment channel (GEC), movies, kids, music, sports, news, infotainment, devotional, miscellaneous.

    Broadcaster’s Role

    • Every broadcaster must declare each channel as a pay channel or FTA channels.
    • The MRP must be more than Zero and shall be the same on all the platforms (MSO, DTH, HITS & IPTV)
    • Price of every pay channel shall be same throughout India, which effectively does not permit regional pricing of channels.
    • If MRP exceeds Rs19, the channel cannot be offered in any bouquet but will be stand alone on a la carte basis.
    • A broadcaster’s pay channel bouquet cannot include FTA channels.
    • Broadcaster shall offer maximum of 15% of MRP as incentive.
    • Broadcaster can give promotion offer for maximum 90 days at a time.
    • Promotional offer can be offered twice in a calendar year.

    Distributor and last mile operator (LMO)

    • All bouquets offered by broadcasters must also be offered without modification, at the price declared by each broadcaster.
    • Distributor can create bouquets by combining pay channels from different broadcasters.
    • Distributor cannot create a bouquet of pay channels plus FTA channels.
    • Package of 100 FTA channels is different. Distributor can form bouquet with a combination of FTA channels from different broadcasters.
    • All channels must also be offered a la carte basis.
    • Both of them has to sign interconnect agreement for revenue sharing on mutually agreeable percentage share.
    • If they both do not reach an agreement then recommended revenue share will be distributor at 55% and LMO at 45%.

    Network Capacity Fee (NCF)

    Distributor has to declare NCF per month for customer, conditions are-

    • Network capacity fee for first 100 channels should not exceed Rs130.
    • After these 100 channels the NCF will be Rs20 for a slot of every 25 channels.
    • For calculation of one standard definition (SD) channel is counted as one & one HD channel is counted as two SD channels.
    • Distributor cannot charge subscriber any amount other than NCF for subscribing to FTA channels or bouquet of FTA Channels.

    Quality of Service Regulation

    • Every Distributor must have a website and toll free customer care number.
    • Each consumer’s unique identification number must be mentioned in the bill.
    • Consumer must be informed about MRP, NCF, customer premised equipment (CPE), security deposit, rentals, warranty and ownership of premised equipment.
    • Must obtain a completed consumer application form.
    • Onetime installation charges for new subscribers cannot exceed Rs350.
    • Onetime activation charge cannot exceed Rs100.
    • Consumer to be refunded on a pro-rata basis in case a channel is withdrawn by the broadcaster.
    • Consumers can request temporary suspension of service up to three months, every year. Only CPE rental is applicable during this period.
    • Reactivation fee cannot exceed Rs25 for active and Rs100 for inactive subscribers.
    • Consumer must receive three days prior notice for preventive maintenance.

    BACKGROUND

    • The Regulations and the Tariff Order were notified by the Telecom Regulatory Authority of India (TRAI) on 3 March 2017.

    What were these Regulations? To quote a few,

    • It prevented the mixing of pay channels and free to air channels in a single bouquet.
    • The Regulations restricted placing high definition (HD) format and ordinary (SD) format of the same channel in the same bouquet.
    • Another restriction was that bouquet of pay channels should not contain any pay channel where the MRP is more than Rs19.
    • There are some other caps, which say that discounts of MRP of a bouquet should not exceed 15%.

    These Regulations were immediately challenged before the Madras High Court by Star India and Vijay Television. The primary basis for the challenge was the lack of authority of the TRAI to issue such regulations or orders under the TRAI Act, 1996.

    The case was that the TRAI Regulations amounted to regulation of contents of the channels. The TRAI, in exercise of powers under Sections 11 and 36 of TRAI Act, can regulate only carriage or means of transmission, but cannot regulate content. The content of their programmes/broadcast is covered and controlled solely by the Copyright Act 1957, which recognised two distinct rights, one being copyright and the other being broadcast reproduction right (BRR).

    A division bench of the Madras High Court delivered a split verdict, with one judge striking down a majority of the clauses in the Regulations and the Tariff Order under challenge, while the other judge upheld them as being in line with the TRAI Act. The case was referred to a third judge of the Madras High Court, who arrived at the same conclusion as the latter judge and held the Regulations and the Tariff Order to be valid. Aggrieved by the judgment of the Madras High Court, Star India preferred an appeal before the Supreme Court.

    The legal basis for this submission was that programmes aired/beamed in their television channels have content which is either created by appellants themselves or procured from third parties at a huge cost and such content is governed solely by the Copyright Act.

    After hearing a battery of Senior Advocates – Dr A M Singhvi and P Chidambaram for broadcasters, Rakesh Dwivedi and Vikas Singh for TRAI, KV Vishwanathan for Multi System Operators (MSOs), Shyam Divan for direct-to-home (DTH) operators and Krishnan Venugopal for consumers, the bench dismissed the Appeals.

    The Supreme Court adjudicated the issue in the light of the objective of the TRAI Act, which was to harmonise interests of service providers and consumers. It was held that no constricted meaning can be given to the provisions of this Act and that the power to regulate has to be construed widely to advance the objectives of the Act.

    It was also noted that one of the functions of the Authority, though recommendatory, is to “facilitate competition and promote efficiency in the operation of telecommunication services (which includes broadcasting services) so as to facilitate growth in such services”. It was also notice from Section 11(1)(b) that terms and conditions of interconnectivity between different service providers have to be fixed, which necessarily included terms that relate not only to carriage simpliciter but also to all terms and conditions of interconnectivity between broadcaster, MSO, Cable TV operator and the ultimate consumer.

    The Court expressed the view that TRAI will prevail over Copy Right Act to the extent royalties/compensation payable to the broadcasters under the Copyright Act are regulated in public interest by TRAI under the TRAI Act.


    https://www.moneylife.in/article/ho...able-tv-and-dth-from-29th-december/55964.html


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    #1 swatkats, Dec 18, 2018
    Last edited: Jan 16, 2019 at 2:41 AM
  2. Julian

    Julian om nom nom
    Veteran

    Lol, it's gonna take cable tv tariff hikes to make people wake up?
     
    ssslayer likes this.
  3. flash23

    flash23 Active Member
    Adept

    I cannot make sense of this mess, why is TRAI interfering with the rates? Atleast they should not have increased them.
    Anyone has any idea what caused this?
     
  4. adder

    adder Well-Known Member
    Adept

    So the part where we have to pay 130 minimum for 100 fta crappy channels is not entirely correct, If I read the TRAI correctly you can choose which free to air channels you want, in addition you could also populate those 100 mandatory FTA channel slots with 100 SD pay per view channels for additional price or 50 hd channels per additional price.

    So, Rs 130 fee you pay is for the DTH/cable provide as Network capacity fee, which could include 100 fta channels.( TRAI says some channels are manditory, my guess is those are DD channels, so no idea about this) or you can instead choose 100 pay per view channels by paying additional cost or get 50 HD channels for additional cost or a combination of both for additional cost.

    Network capacity fee goes to the distributor such as DTH/cable provider + Pay per view channel fee goes to broadcaster such as Star, Sony, Zee, Sun, TV18 etc.

    So Rs 130 is the Network capacity Fee (include 100FTA) or instead of FTA you can pay additionally for 100 Sd pay channels or 50 HD pay channels. If you want more then 100 SD channels, you will have to pay Rs 25 more for 20 SD channels or 10 HD channels as Network/capacity fee + what ever the cost of the respective SD or HD pay channels. 2 SD channels= 1 HD channel interms of Network capscity.

    All price above further attract 18% GST.
    Most broadcaster also offer a package price which is cheaper then Al carte price. But even if you add the price of all packages from different broadcasters, the price may be higher for the majority.

    So this TRAI verdict benefit for viewers is that you get to choose what channel you want. But it still makes it more expensive then before, except may be for Tata sky viewers. Broadcasters on the other hand will earn more.
     
  5. nRiTeCh

    nRiTeCh ╙TÉçhkⁿºwªy±iVé»╖
    Veteran

    It is definitely going to cost more than our current packages.
     
  6. rushab_rdx

    rushab_rdx Member
    Disciple

    Lol how is this costly? I pay 400 a month on videocon d2h for SD channels and it doesn't even have English channels. Let things roll out and will see about changing the governments
     
    delhiboy1 likes this.
  7. rkkaranrk

    rkkaranrk Well-Known Member
    Veteran

    I pay 1200 for 3 STB box monthly, With new plans I think I'm gonna pay farnless then what I'm currently paying.

    Like Star packages are pieced from ₹49 to ₹120 per month where as Zee had come up with packages ranging from ₹59 to ₹85 per month. Had to wait for colors and others to update their packages price.

    With above rate I'm pretty sure I'll be paying 7/800 for all the channels that I want.
     
  8. bssunilreddy

    bssunilreddy Well-Known Member
    Veteran

    I was paying 500 per month for tatasky d2h deluxe pack which consists of all south channels, english movies, sports. But later shifted to hathway and am paying 250 now for the same amount of channels offered by tatasky d2h.
     
    Emrebel, Futureized and rushab_rdx like this.
  9. RS4

    RS4 Well-Known Member
    Veteran

    This mess was done by Madras High Court by striking off the 15% clause in the TRAI order which led to Broadcasters pricing Rs. 19 per HD channel, the single most biggest consumer protection clause was struck off by the court, now what are you going to do with courts? Throw them out next year? Better be ready to go to Jail instead of throwing out or changing courts.

    And Now TRAI has gone to Supreme Court but they are having winter vacation, so it will take till Feb. to get lower pricing for individual a la carte channels. Till then you will have to bear higher prices. In my case the bills will get lower even with these higher prices as i watch few channels and pay atrocious amount of money to Tata Sky. After Feb my bills will get even lower.
     
    delhiboy1, Crazy_Eddy and rushab_rdx like this.
  10. raksrules

    raksrules Well-Known Member
    Elite

    I may have to continue using "TV" Like I use in US currently. Just need to have proper Internet connection.
     
  11. rushab_rdx

    rushab_rdx Member
    Disciple

    This!
    I don't know why this days a lot of people just want to blame the government and throw them out for everything without knowing what caused it!
    Also how does increase in prices of TV's can create a chaos like situation?
    I'm pretty sure first few months will be bad but I think dish will get cheaper.
    I hope people will do some background check before jumping the gun!
     
  12. RS4

    RS4 Well-Known Member
    Veteran

    What kind of paranoia is this? Yes Ambani and Modi have conspired in this, hopefully Mr. Raul will help you out next year, not much time, so why worry?

    Now if you are serious then read the TRAI order on this, it is a 2 pages document, it was meant to be pro-consumer directive but Madras High Court struck down the most important clause which would have kept prices of a la carte channels in check, there was this 15% rule by which the Broadcasters cannot keep more than 15% differential pricing difference between package bundle and a la carte But broadcasters got it struck down in Madras High court and Trai appealed in Supreme Court which is in vacation now, so it will take another two months for a verdict to come.

    This directive would have been pro-consumer, somewhat pro-broadcaster and totally anti-DTH, so your biggest villain Jio, Tata Sky are the biggest losers in this as they lost all the pricing power. Earlier these distributors used to bargain a set price like 2000 crore for say Sony then distribute amongst all BUT now its per subscriber fee based, so services like Tata, Jio lost all the power.

    After the Madras High Court verdict, Broadcaster got all the win but that will be shortlived as TRAI will get back at them in Supreme Court to restore the original TRAI directive with that 15% clause. So, Pro-consumer stuff will balance out the Broadcaster Bandits and the only loser will be people like Tata Sky, Airtel, Jio etc.
     
    vivek.krishnan likes this.
  13. Rockfella

    Rockfella Nordic.
    Section Mod

    I know i will be hated to say this here, but it ideally should not matter (TV tariff). We should be more concerned with broadband hoopla. Who watches TV anyway? I don't have a set top box since 2004 I AFAIR (That's just me though)

    :p
     
    #13 Rockfella, Dec 19, 2018
    Last edited: Dec 19, 2018
    vivek.krishnan, Chaos and Julian like this.
  14. Julian

    Julian om nom nom
    Veteran

    Hey i don't even have a TV !
     
  15. Rockfella

    Rockfella Nordic.
    Section Mod

    Uptil 2014 neither did I but I met a fellow geek who had 5+Tbs of classic movies in HD prints so I purchased a 3D TV :D and have rarely watched those on the TV. It is connected to my desktop. I doubt if I will ever buy a TV again.
     
  16. ayaskant12

    ayaskant12 Well-Known Member
    Adept

    There is no other institution having so many vacations as the courts!!

    Nice, they make their own rules and enjoy when you have a backlog of huge no of cases!!
    --- Post Merged, Dec 19, 2018 ---

    Are you married?
     
  17. Chaos

    Chaos Well-Known Member
    Veteran

    No cable TV here either for me. We (me & my wife) do not watch any hindi or regional stuff so streaming does the job.
     
    ayaskant12 likes this.
  18. ayaskant12

    ayaskant12 Well-Known Member
    Adept

    Even we are switched to Netflix now.

    TV is there for maid only ;)

    I also switched to local cable tv from vid d2h.
    From 600pm to 180pm
     
  19. Rockfella

    Rockfella Nordic.
    Section Mod

    No. My family youtubes/streams etc. No sat TV.
     
    ayaskant12 likes this.
  20. ayaskant12

    ayaskant12 Well-Known Member
    Adept

    With Jio giga life will be still easier
    Is Ambani preparing for his jio giga push ??

    Conspiracy theory artists may please opine here
     

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