Thread Rating:
  • 8 Vote(s) - 3.13 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Help SC order on DTH tariff unlikely to impact consumers
Thumbs Down 
Submitted by Vijay Sharma on Mon, 04/18/2011 - 20:02

The Supreme Court decision to quash the order of the Telecom Tribunal which in turn quashed the a pricing order of the TRAI is unlikely to make much difference to the ordinary consumer.

In July last year, TRAI, the telecom and broadcast regulator, had stipulated that DTH operators need to pay only 35% of what cable operators as per-subscriber fees to channel-owners, raising howls of protests from both cable operators and channel-owners.

The move was seen as a compensatory mechanism to help DTH operators tide over the issue of hiding of subscribers by cable operators.

Since cable operators declared a third of third subscribers, channel owners had, over time, hiked their subscription charges by almost three times to compensate.

However, in a platform like DTH, which is digitalized end-to-end, it is not possible to hide the real subscriber numbers, leading to TRAI's intervention.

Without the intervention, each DTH customer would end up paying around Rs 1,000 per month as subscription charges for the 150-200 channels that they now get for around Rs 300.

The TRAI intervention, however, was challenged in the Telecom Disputes Settlement and Appellate Tribunal, which promptly quashed the order.

The Supreme Court on Monday, however, re-instated the TRAI order, but said the payment must be 42% of cable rates, rather than 35%.

However, industry insiders believe the move will have almost no repercussions on DTH industry or consumers. "Most of the DTH operators don't pay by subscribers at all.. They have all entered into a fixed sum model under which they pay the broadcaster a fixed amount irrespective of the number of subscribers who watch the channel," pointed out an insider.

There are, however, a few channel-owners, such as the Sun Network, which continues to insist on per-subscriber payment and net outgo to such channel-owners will be higher by a small margin, he added.
Today is the tomorrow you worried about yesterday.. for tomorrow never comes.. live today!!!
Thanks given by:

Possibly Related Threads...
Thread Author Replies Views Last Post
  DTH News: TRAI's new tariff framework: More channels at lesser subscription price nairrk 0 1,405 01-02-2020, 07:00 AM
Last Post: nairrk
  DTH News: Delhi High Court nullifies TRAI order; bans long term plans for DTH users nairrk 1 779 05-18-2019, 11:03 AM
Last Post: Hassan Syed
  General News: After Star, Tata Sky all set to challenge TRAI tariff: Harit Nagpal nairrk 0 1,010 05-02-2017, 08:57 AM
Last Post: nairrk
  DTH News: DTH operators and tariff model at the wholesale and retail level nairrk 2 1,252 05-30-2016, 05:57 PM
Last Post: Mr.Bhat
  Breaking News: Tariff orders in case of DTH operators set aside by TDSAT adithya 0 1,767 10-10-2014, 09:40 PM
Last Post: adithya
  TRAI’s new tariff order to fuel the DTH-cable war IndianDTH 0 1,186 01-04-2013, 06:40 PM
Last Post: IndianDTH
  We expect consumers to wake up on July 1 and ask for set-top boxes IndianDTH 0 810 01-04-2013, 05:35 PM
Last Post: IndianDTH
  We expect consumers to wake up on July 1 and ask for set-top boxes IndianDTH 0 1,068 06-01-2012, 08:35 PM
Last Post: IndianDTH
  TRAI’s new tariff order to fuel the DTH-cable war IndianDTH 0 1,752 05-03-2012, 10:55 AM
Last Post: IndianDTH
  Help: Dark horses disrupt DTH race order Sathish 0 1,981 08-26-2011, 10:51 AM
Last Post: Sathish

Forum Jump:

Users browsing this thread: 1 Guest(s)