Cable TV rate freeze lifted

Basic cable tariff, excluding taxes, will go up by 7% from january 1, 2005

Cable television rates are set to go up from January 1 next year, with the Telecom Regulatory Authority of India (Trai) today lifting the freeze on them.

After the lifting of the freeze, imposed by the regulator on December 26, 2003, basic cable tariff, excluding taxes, will go up by 7 per cent.

This upward revision had been done taking into account inflation, the regulator said today. On the basis of analysis done by the regulator, the rate adjustment for inflation works out to 7 per cent.

Accordingly, it has been decided that an amendment order be issued that provides for revision in the ceiling on account of inflationary adjustments.

Cable operators and cable network companies are, however, demanding a higher increase in rates.

They say many pay channels have been launched, while many have increased subscription rates. They want these developments to be factored in.

"A mere 7 per cent increase in not right. It should be higher," said Virendra Gaur, head of the Cable Operators United Front.

Cable operators also wanted the regulator to take a fresh look at the issue. "There is no clarity on the issue. It has not taken into consideration the recent increase in charges and new channels," said Roop Sharma, president, Cable Operators Federation of India.

The new rates will apply for payments to be made by consumers, cable operators, multi-system operators for the month of January 2005.

The 7 per cent increase will apply to the charges, excluding taxes, payable as on December 26, 2003.

Thus, if the payment was Rs 220 a month as on 26 December, 2003 of which Rs 20 was on account of taxes, the 7 per cent increase will be applied on Rs 200 and an increase of Rs14 per month will be the maximum permissible increase to the basic charges, excluding taxes.

Cable operators have been petitioning the regulator to lift the ban on the cable rate increase on account of television channels increasing rates and increase in other charges of transmission.

Rates to go north

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• The upward revision in cable TV tariffs has been done taking into account inflation
• Cable operators and cable network companies, however, want rates to be increased more
• The freeze on cable TV rates was imposed by the regulator on December 26, 2003