Trai freezes cable rates

The Telecom Regulatory Authority of India (Trai) directed all cable operators to maintain the December 26 tariffs as the ceiling for both free-to-air and pay channels.

The directive will be applicable for both Conditional Access System (CAS) and non-CAS areas until the regulator conducts a detailed examination of the Conditional Access System.

In its first order since the broadcasting sector was brought under the Trai's purview, the regulator said, "Not only are there lack of standard rates and conditions at which services are provided by the cable operators to the subscribers, there are reports that there may be an increase in the cable subscription rates. To bring some standard it was considered necessary for the Trai to intervene."

On December 26, the Delhi High Court had directed to continue the implementation of CAS in Delhi on a trial basis.

The Trai has also released a consultation paper on policy issues in broadcasting and cable services. The paper raises a number of issues including the norms and underlying principles for setting and periodically revising rates for individual pay channels, bouquets and distribution of free-to-air channels in both CAS and non-CAS areas; principles governing the sharing of pay channel charges between broadcasters multi-service operators and local cable operators; and terms and conditions for sale and rental of set-top-boxes.

The regulator is also looking into the amount of compensation to be paid by cable operators to viewers in case of interruption of transmission for more than a specified period of prime time during a month. Issues relating to the quality of services to be provided by the cable operators are also being examined.

The regulator will also suggest measures to facilitate competition, promote efficiency and encourage wider consumer choice in broadcasting and cable services. It will also set the maximum advertising time to be permitted per half-an-hour on free-to-air channels.

The telecom regulator has also proposed to bring back the direct-to-home (DTH) services. "Measures to develop broadcasting and cable services technology -- including direct-to-home and broadband --- will be considered," the Trai said within one week of getting the additional responsibility of regulating the broadcasting sector.

Earlier, Trai chairman Pradip Baijal had said that like in the telecom sector, the regulator would keep the consumers interest on top.

New view

• Move from Trai comes within one week of being given the additional responsibility to regulate the broadcasting sector
• Regulator to spell out measures to remove uncertainty in the cable sector
• Proposes regulating advertisements on TV channels
• Suggests compensation to to viewers in case of interruption in transmission
• All issues relating to broadcasting and cable to be discussed with industry players