Trai nixes Nimbus plea; affirms price cut

The Telecom Regulatory Authority of India (Trai) has asked sports company Nimbus to reduce the pricing of its two sports channels, NEO Sports and NEO Sports Plus, in accordance with the tariff order in both CAS and non-CAS compliant areas within seven days.

The matter becomes important in light of the upcoming four one day international series between India and the West Indies starting January 22 of which Nimbus is the exclusive rights holder.

In a letter sent to Nimbus, Trai has asked for reduction of bouquet price of NEO Sports and NEO Sports Plus from Rs 58.50 to Rs 37.25 as per the provisions of the Telecommunication (Broadcasting & Cable) services (Second) tariff order of 2004.

It has also asked Nimbus to price its two sports channels at Rs 5 each in the areas under the conditional access system (CAS). Trai issued the letter to Nimbus on the complaint of Cable Operators Federation of India. On its part Nimbus had contested that it should be allowed to price its two channels at Rs 49.50 each per month as the content and structure of the sports channel was different from any such existing channels.

Trai in its response has agreed that though the content and structure of the two Nimbus sports channels differ, the individual pricing remain the same. "Both said sports channels are having the same pricing of Rs 49.50 per month in spite of the fact that that two sports channels vary in composition, content and structure."

"Nimbus does not bring out facts which would justify a higher pricing being charged by them for its said sports channels as compared to other similar channels of the same genre," Trai said.