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New Trai formula to spark off DTH,cable pricing war
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#1
A major tariff war is about to break out between cable operators and the direct-to-home (DTH) operators with the Telecom Regulatory Authority of India (Trai) considering a reduction of the existing pricing formula for broadcasters on DTH, which is likely to bring down DTH bills by half.

Trai met broadcasters, cable operators and DTH companies last week to discuss the new formula. The regulator is involved in the tariff revision as directed by the Supreme Court over a legal battle between cable operators, broadcasters and DTH firms. Trai has to recommend the revised tariffs to the court before June 30. Sources said that Trai is set to meet again to chalk out the revised tariffs.

According to experts, the new formula means cheaper content on DTH platforms compared to cable services, triggering a price war between cable and DTH operators. As per the current formula, DTH operators have to pay broadcasters at the rate of 50 per cent of the tariff fixed for cable homes by Trai. Sources said that Trai is now looking at a revised formula, to be fixed at 30 per cent of cable tariffs.

Full Story: Indian DTH Blog

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#2
Pricing is the only advantage of cable providers price war between dth and cable will intensify pressure on the cable industry.
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