TDSAT asks Nimbus to follow Trai order

Broadcast tribunal Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today declined to stay the direction of sector regulator Telecom Regulatory Authority of India (Trai) asking sports channel broadcaster Nimbus to reduce price of its two channels in CAS and non-CAS areas.

TDSAT, however, accepted the petition filed by Nimbus Sports Broadcast, and issued a notice to Trai directing it to file its reply in two weeks.

Trai, on January 12, directed Nimbus to reduce its price to Rs 21.25 in non-CAS areas and follow the ceiling of Rs 5 in notified CAS areas.

Nimbus, which bagged the four-year BCCI cricket telecast rights in a $650 million deal last year, had in late September, priced its channels  - Neo Sports and Neo Sports Plus - at Rs 49.50 per month and bouquet price as Rs 58.50.

In comparison, Trai found rival channels like ESPN Star Sports charging Rs 42, Ten Sports Rs 32 and Zee Sports Rs 10.

During the proceedings today, the broadcaster contended it was very difficult for them to operate at such a low price. "Cricket telecast right is the most expensive. We paid $650 million to acquire telecast rights. It is equivalent to the telecast rights of international football matches," the Nimbus counsel said.

On this, the tribunal asked why the channel was focused on cricket. The counsel replied cricket was the most popular sport and nobody would pay them as much for any other sport.

Asking the tribunal to extend the date of compliance, the Nimbus counsel said: "In sports telecast, advertising contributes less than 50% cost, and the rest is recovered from the subscribers."

Opposing this, the Trai counsel contended that if other rival channels were able to compensate their cost by advertisement, why should Nimbus be given any special treatment. "Cricket is full of advertisers," the Trai counsel said.

TDSAT also rejected the Nimbus request to extend the date of compliance, and directed to list the matter for next hearing in February.