HomeNewsTRAI Seeks to Relook at Caps on Channel Discounts

TRAI Seeks to Relook at Caps on Channel Discounts

TRAI’s new regulations/orders for tv|the tv} and broadcasting sector gave freedom to customers to pick out television channels they require to look at. Analysis reveals that whereas the new restrictive framework has brought transparency in TV channel valuation, consonant business processes within the sector and reduced disputes among stakeholders. However, an adequate option to choose TV channels has not been given to the customers. It more aforesaid that altogether fairness, a great deal was expected from the broadcasters and therefore the Distribution Platform Operators ( DPO) to use flexibility given beneath the new restrictive framework to handle the issues and aspirations of the customers. However, given flexibility was exploited to throttle the market discovery of TV channel costs by giving vast discounts on the bouquets. Earlier this year,

the Supreme Court had laid-off a petition by TRAI for reinstatement of a cap of fifteen % on discounting of channel bouquets. In its initial tariff order, the regulator has aforesaid that channel bouquets shouldn’t be priced under eighty-five % of the addition of the utmost Retail value (MRP) of all the channels within the pack. On Friday, the medium and broadcast regulator conjointly pointed to the challenge of getting too several bouquets with constant quite channel combine, being offered by each broadcaster and distributors. The regulator aforesaid this creates confusion among customers, forcing them to prefer recommended packs rather than selecting channels in line with their preference. TRAI is seeking the views of stakeholders on numerous problems within the consultation paper, which incorporates the ceiling value of channels for inclusion in an exceedingly bouquet, want for the formation of a bouquet by broadcasters and DPOs, variable Network capability Fee (NCF) and discount on semipermanent setup. The medium regulatory agency of the Republic of India (TRAI) has issued a consultation paper to re-look at imposing restrictions on discounts offered by broadcasters on channel bouquets when the implementation of the new restrictive framework for cable and broadcasting services. The regulator on Fri hit out at the broadcasters and aforesaid the shortage of any caps on discounts offered on bouquets, compared to a-la-carte channel valuation, is being “misused to throttle market discovery of TV channel costs, by giving vast discounts on the bouquets.” “The tariff declared by the broadcasters beneath the new restrictive framework shows that bouquets square measure being offered at a reduction of up to seventy % of the addition of the a-la-carte rates of pay channels constituting those bouquets. It indicates that in absence of any restriction on the discount on the providing of bouquets, broadcasters square measure creating costs of a-la-carte channels unreal thereby impacting the a-la-carte alternative of channels by customers,” TRAI aforesaid in an exceeding statement.



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