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Category: TRAI

  • TRAI may look at “finetuning” new tariff order

    TRAI may look at “finetuning” new tariff order

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) may look at “finetuning” the new tariff order for cable and broadcasting sector to address any “aberrations”, as per a news report by Economic Times. However, the regulatory body won’t rush into this without adequate data backup.

    “When a new thing is put in place, you always notice that in some areas, things are not working out the way you had imagined, or in some areas some finetuning is required,” TRAI chairman RS Sharma told ET. Sharma also added that the new regime marked a “paradigm shift,” giving customers transparency and choice as well as providing a level playing field for operators.

    “Finetuning will require some data and we don’t want to get into that on the basis of anecdotes, ARPU (average revenue per user), number of litigations, etc. We’re looking at this carefully and collecting data and will finetune (the regulation) at the right time,” Sharma said. He said that the regulatory body is looking at if there are any aberrations in the implementation of the tariff order and they would rectify accordingly.

    However, it was not clear if the finetuning will also consider looking at ways to reduce monthly cable and DTH (direct-to-home) bills of consumers. The new tariff order reduced the cable bill for users who use fewer channels but it increased it for many. Even, some subscribers found the new regime complicated.

    He also clarified that subscribers will have the freedom to select separate channels on their second set-top box like they can do for their first box. He also noted that the industry agreed to give discounts for the second box.  While he acknowledged that adapting to the new regime is taking time with people learning along the way, he said consumers need to have complete control over choosing and paying for channels.

    “We’ve issued show-cause notices, etc. So, we’re very proactive to ensure that aberrations that take place are set right before they become the regular practice,” Sharma said while mentioning that in some places broadcasters are not doing it.

  • Tata Sky vs TRAI: Discovery concludes arguments, Delhi High Court lists matter for 11 April

    Tata Sky vs TRAI: Discovery concludes arguments, Delhi High Court lists matter for 11 April

    MUMBAI: The Delhi High Court has adjourned the petition of top DTH operators Tata Sky, Discovery India Communication, Airtel Digital TV and Sun Direct challenging Telecom Regulatory Authority of India (TRAI) and its new tariff regime to 11 April. According to a source close to the development, Discovery India concluded its arguments, which commenced on 4 February, on Thursday. The long-running court battle is likely to conclude by the end of this month, as TRAI and all interveners in support of the regulatory body will commence their arguments during the next hearing. The matter is being heard by Chief Justice Rajendra Menon and Justice V Kameswar Rao.

    Notably, the extended deadline for consumer migration under the new regime expired on 31 March. While the TRAI has repeatedly said most consumers have moved to the new regulatory framework, with a reduction in cable bills, several reports have claimed otherwise.

    Earlier, the regulatory body in February extended the deadline to pick new channels under new regime till 31 March as well as gave a directive of Best Fit Plans. The subscribers that don’t opt for new channels would be moved to ‘Best Fit Plans’, which would be developed as per usage pattern, language and channel popularity, the sector regulator said in its statement.

    Chief Justice of Delhi High Court Rajendra Menon on 13 February questioned TRAI for altering the implementation process of its new tariff regime without informing the court. The chairperson of the sector regulator had also been directed to file an affidavit within a week explaining these changes.

    While the regulatory body has continuously declined that cable bills would go up under the new regime, several reports, as well as surveys, have indicated the hike in the monthly bill. Due to the change in pricing, many experts predicted that consumers would shift to OTT platforms eventually. To decrease the churn rate, some of the DTH players have removed network capacity fee for long duration packs.

    In 2017, Bharti Telemedia, Tata Sky and Discovery Communication India had filed petitions against TRAI, challenging its tariff order and the interconnect regulations. Unlike the position adopted by Star India wherein it questioned the regulatory powers of TRAI, the matter in the Delhi HC questions the regulator’s power to wipe out deals that operators enter into to fix commissions and rates for customers.

  • In TRAI-BARC India stand-off, flashes of regulatory overreach

    In TRAI-BARC India stand-off, flashes of regulatory overreach

    MUMBAI: One of the most intriguing side acts during the implementation of the Telecom Regulatory Authority of India's (TRAI) new tariff order has been the sector regulator's face-off with TV audience measurement firm BARC. The latest flashpoint in this impasse involved TRAI issuing a show-cause notice to BARC.

    At the core of this issue is TRAI’s insistence on BARC publishing its weekly findings on its website and the latter's sustained inaction on that front.

    While BARC continues to supply data to advertisers, broadcasters and agencies, it has stopped publishing weekly ratings of shows and channels on its website due to vagaries linked to the rollout of the new regulatory framework for the broadcast sector. 

    The decision was taken after due and appropriate deliberations to protect the interest of trade, subscribers and consumers, BARC had said.

    TRAI’s argument, however, is that data at any given point in time reflects ground realities and there’s no valid reason for not putting it out in the public domain. TRAI, according to sources, believes consumers will use the ratings on the BARC website to make channel selection.

    With this stand-off now stretching into its third month, it’s important to understand what really is at centre of this controversy. Is TRAI right in directing BARC to publish the data or is the TV ratings agency justified in taking the position it has on the issue?

    To answer these questions, one must look at what BARC and TRAI have been entrusted to do as industry watchdog and TV audience measurement body respectively 

    Like any regulator, TRAI’s mandate is to devise and implement policies factoring in market realities for growth of the sectors it oversees. Ensuring free and fair regulation that is pro-consumer and aimed at sending positive signals to the investment community should be hallmarks of any policy it conceives. The new tariff order and consultation paper on improving BARC’s measurement system are two fine examples of responsible regulatory behaviour. These initiatives are aimed at benefiting consumers and growth of the TV broadcasting and distribution business at large.

    Encroaching into the operational domain of an independent and self-regulatory body, or even privately held entities for that matter, is a measure any regulator should try and avoid. Therefore issuing multiple directives and a show-cause notice to BARC could be categorised as a regulatory misstep by TRAI.

    BARC is a joint industry body founded by stakeholder bodies that represent broadcasters, advertisers and media agencies.

    Its job is to own and manage a transparent, accurate, and inclusive TV audience measurement system. It is mandated to ensure efficient media spends and content decisions in a highly dynamic and growing television sector. Hence, publishing weekly web data (for non-subscribers) isn’t actually a deviation from its standard operating procedures or a move away from conducting business as usual.

    In fact, publishing ratings on the website found no mention in the Amit Mitra committee’s recommendations, endorsed by TRAI post consultations with the industry, to form joint industry body (BARC) in 2013. These guidelines were then notified by the MIB in 2014, resulting in the formation of BARC.

    BARC India had registered itself with the MIB and was to conduct its operations on a self-regulatory model. Applying this fundamental tenet to the current scenario, BARC is well within its rights to not publish the weekly data on its website as long as it continues to service its subscribers.

    Based on evidence in the public domain, BARC neither seems to have flouted any norms nor hampered the seamless functioning of the broadcast or advertising sector in any manner. In short, BARC not publishing its weekly data on its website, pre or post the tariff order implementation, bears no impact on the operations of industry stakeholders. TAM, BARC’s predecessor for 15 years, too, did not follow the practice of publishing web data.

    Prima facie, BARC’s stance on the matter cannot be termed as a violation of the guidelines and/or the TRAI Act as the former does not come under the purview of the said act.

    BARC is yet to confirm the date from when it intends to publish the weekly data. In both its statements so far, the company has cited reasons behind applying restrictions to public consumption of its data without offering a clarification as to how it intends to tackle the regulator’s constant questions.

    It now remains to be seen what approach both parties adopt in breaking this deadlock. With both sides not backing off at the moment, the matter could soon take a serious legal turn.

  • TRAI show-cause notice to BARC India for not publishing TV viewership data on website

    TRAI show-cause notice to BARC India for not publishing TV viewership data on website

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has reportedly issued a show-cause notice to Broadcast Audience Research Council India (BARC India) for not having adhered to the regulator’s directive of publishing weekly TV viewership data on its website during the new tariff order rollout.

    According to a report by news agency PTI, the sector regulator has, yet again, asked the TV audience measurement firm to explain why action should not be taken against it for contravention of sections of the TRAI Act. Earlier, the industry watchdog asked BARC to publish ratings and TV viewership data for the week ending 8 February and subsequent weeks with immediate effect.

    TRAI’s directive came in the wake of the latter's decision to release the weekly data only to its subscribers as opposed to publishing it on the website.

    The show-cause notice dated 29 March also noted that BARC India did not comply with TRAI’s 22 February directive seeking the release of viewership data with immediate effect.

    Following the show-cause notice, BARC issued a statement reiterating its position on the matter.

    “BARC India is a joint industry body, and operates under self-regulation model, in compliance with Ministry of I&B Guidelines. In the NTO transition period, due to distribution disruptions (which have been well documented in media reports), there is significant volatility in data.  Due to this, and the fact that data in this period does not truly reflect viewers’ choice, BARC India Technical Committee and Board took a decision to temporarily suspend placing the limited set of data our website,” a BARC spokesperson said.

    “Putting such misleading data on the website would be against public interest and could be misused by vested interests. BARC is constantly monitoring the ground situation on this.  We have made detailed submissions to TRAI and MIB, backed by data, on several occasions. Also, we would like to re-iterate that there has been no stoppage of data to our subscribers. Every week, our clients have been receiving weekly data without any disruption,” the spokesperson added. 

    An earlier TRAI directive read, "BARC India has modified its Fair and Permissible Usage Policy in February 14, 2019, even after being repeatedly asked by the authority to not stop publishing of rating data and viewership data on its website during the migration to new regulatory framework until and unless explicitly permitted by the authority and are thus, in contravention of the direction of the authority dated December 21, 2018 and January 14, 2019.”

    According to the TRAI, BARC has ignored its previous directives of publishing ratings and viewership data for television channels. The regulator said that the audience measurement company had argued that disruption due to migration to a new regulatory framework could prevent consumers from gaining access to channels of their choice, thereby running the risk of an inaccurate portrayal of TV consumption trends in the country.

    The TRAI, however, is opposed to the idea of not publishing the data, which, it feels, is a true reflection of the market changes. BARC’s decision to "withhold" the data is not justified, the regulator pointed out.

    The TRAI also highlighted that BARC "failed to furnish any cogent reason for not publishing the rating and viewership data" and that "such action on part of BARC India reflects poorly on the creditworthiness of the data published by them."

    "Now…the authority…hereby directs Broadcast Audience Research Council to immediately release and publish viewership data for the week ending February 8, 2019 and weeks subsequent to it, on its website without any further delay and not to stop it in future also without explicit instruction/direction from the authority or Ministry of Information and Broadcasting…," said the previous TRAI directive.

  • TRAI’s new tariff order has made ecosystem transparent: RS Sharma

    TRAI’s new tariff order has made ecosystem transparent: RS Sharma

    MUMBAI: The new tariff order has been rolled out aiming transparency in the cable and broadcasting sector of India. Telecom Regulatory Authority of India (TRAI) chairman RS Sharma reiterated that the new regulatory framework has brought transparency in the ecosystem along with non-discrimination and fair play. Sharma also asserted that it has reduced the bills of the average TV watcher.

    "The implementation of the new broadcast tariff regime is working out very well. The monthly bills of thousands of consumers have also been reduced. The consumer's bill is a function of how much he watches, if he or she watches hundreds of channels obviously the bills will go up. If someone watches 25 channels, the bill will come down to one-third," Sharma told as quoted by IANS.

    "The objective of the regulations is to essentially bring out a regime of transparency and allow the customers to choose channels which they want to watch, and then allow the market forces which were not in play earlier," he added.

    Earlier the market was only focused on distributors and broadcasters but consumers were not actively participating.

    He also added that the implementation of the new tariff regime has removed the difference between the small operator and a large operator, as they both get the channels at the same rate from the broadcasters. Moreover, he asserted that the basic objective of the new regime to create a buffet of channels where everyone is charged the same rather than reducing or increasing the bills.

    Sharma’s comment comes at a time when several reports, as well as surveys, have indicated that there has been a hike in the monthly bill under the new price regime. Due to the change in pricing, many experts predicted that consumers would shift to OTT platforms eventually. To decrease the churn rate, some of the DTH players have removed network capacity fee for long duration packs.

    Earlier, the regulatory body in February extended the deadline to pick new channels under the new regime till 31 March as well as gave a directive of Best Fit Plans. The subscribers that don’t opt for new channels would be moved to ‘Best Fit Plans’, which would be developed as per usage pattern, language and channel popularity, the sector regulator said in its statement.

  • TRAI hands DPOs, broadcasters 2 additional months to implement landing page directive

    TRAI hands DPOs, broadcasters 2 additional months to implement landing page directive

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has extended the deadline for implementation of landing page direction from 31 March to 31 May. As per a release from the authority, the move has been taken following a request from All India Digital Cable Federation (AIDCF).

    Back in last December, the regulatory body directed all broadcasters and distributors to restrain from placing any registered satellite television channel, whose TV rating is released by TV rating agency, on the landing LCN or landing channel or the boot-up screen.

    The reason behind this order, according to TRAI, was to protect the interest of service providers and consumers while ensuring “orderly growth of the sector”.

    TRAI received a representation from AIDCF requesting the authority to extend the implementation for a further period of two months. The latter made the request in view of the appeal against the direction pending TDSAT and its hearing and pronouncement of order may go beyond the 31 March deadline.

    AIDCF also pointed out that the matter being under judicial consideration, any action on the said direction will not only be prejudicial to their right and contentions but also against the principle of natural justice. As the regulatory body of the sector found merit in the request, the deadline has been pushed further.

    Landing channel or landing page or landing logical channel number (LCN) refers to the default LCN that is displayed whenever a STB is switched on. Any TV channel placed on this page is available to all STBs connected to the network of a distributor and is regarded as a prized real estate by DPOs.

    During a consultation process on the issue, many broadcasters had admitted that placing a TV channel on the landing page could influence the audience data or TV rating points (TRPs), while MSOs and other distributors had stated there were no such influence on ratings or if any, they were minimal.

  • Arguments in DTH operators’ petition against TRAI tariff order to resume on 4 April

    Arguments in DTH operators’ petition against TRAI tariff order to resume on 4 April

    MUMBAI: The Delhi High Court on Thursday adjourned the petition of Tata Sky Discovery India Communication, Airtel Digital TV and Sun Direct challenging Telecom Regulatory Authority of India (TRAI) and its new tariff regime to 4 April. According to sources close to the development, the next date of hearing was granted after the matter was partly argued by Discovery counsel Gopal Jain. The next hearing will commenced with arguements from the broadcaster's counsel.

    It must be noted that the extended deadline for consumer migration under the new regime will expire on 31 March.

    While the TRAI has repeatedly said most consumers have moved to the new regulatory framework, with a reduction in cable bills, several reports have claimed otherwise.

    Earlier, the regulatory body in February extended the deadline to pick new channels under new regime till 31 March as well as gave a directive of Best Fit Plans. The subscribers that don’t opt for new channels would be moved to ‘Best Fit Plans’, which would be developed as per usage pattern, language and channel popularity, the sector regulator said in its statement.

    Chief Justice of Delhi High Court Rajendra Menon on 13 February questioned TRAI for altering the implementation process of its new tariff regime without informing the court. The chairperson of the sector regulator had also been directed to file an affidavit within a week explaining these changes.

    On 4 February, after senior lawyer Kapil Sibal, representing Tata Sky, concluded his arguments including legal submissions, Jain laid the foundation for his arguments.

    While the regulatory body has continuously declined that cable bills would go up under the new regime, several reports, as well as surveys, have indicated the hike in the monthly bill. Due to the change in pricing, many experts predicted that consumers would shift to OTT platforms eventually. To decrease the churn rate, some of the DTH players have removed network capacity fee for long duration packs.

    TRAI chairman RS Sharma claimed on Wednesday that almost all TV customers have been migrated to the new tariff regime. “Most of them have subscribed to the new regime or some of them have been put to a ‘best fit’ package. As the deadline of 31st March approaches, everybody will come onto the new platform,” he said as quoted by news agency IANS.

    In 2017, Bharti Telemedia, Tata Sky and Discovery Communication India had filed petitions against TRAI, challenging its tariff order and the interconnect regulations.

    Unlike the position adopted by Star India wherein it questioned the regulatory powers of TRAI, the matter in the Delhi HC questions the regulator’s power to wipe out deals that operators enter into to fix commissions and rates for customers.

  • TRAI chairman RS Sharma says STB portability possible by yearend

    TRAI chairman RS Sharma says STB portability possible by yearend

    MUMBAI: Telecom Regulatory Authority of India (TRAI) chairman RS Sharma has said that by the end of the year, set top box interoperability’s is likely to become functional.

    Speaking to news agency PTI, Sharma said, "Since last two years we have been trying to make STBs interoperable. Large part of problem has been resolved. There are some business challenges (which) remain… we are looking at this to happen by end of this year."

    He added that interoperability in a product should not come as an "after thought" but should be in place at the product planning stage itself. “Open systems are going to be the future. The entire back-end of Aadhaar has been developed on open source software except biometric de-duplication system," he said.

    Those who want to change their provider currently have to buy a new STB but soon they will only have to change the sim card, like mobile phones, for which the government is working on standard STB features.

    He released a study on open ecosystem for devices in India, prepared by the Indian Cellular and Electronics Association (ICEA) and consultant firm KPMG, which showed that 89 per cent of mobile phones in the country work on open source operating systems.

    Sharma further cited interoperability as one of the key factors behind the success of the Indian mobile phone industry where no subscriber is required to buy a new phone if he wants to change his service provider.

    The report found that Open OS mobile operating systems have expanded the smartphone market in India by reducing barriers to entry. The regulator has been working for quite some time, to introduce a similar system in the broadcasting sector. This will provider STB ownership to the consumer.

  • TRAI tariff order has reduced monthly TV bills: RS Sharma

    TRAI tariff order has reduced monthly TV bills: RS Sharma

    MUMBAI: TRAI chairman RS Sharma has said that the implementation of the new tariff scheme has reduced monthly TV bills. This is because people have the power to choose channels of their choice. 
    Speaking to news agency ANI, Sharma said that TRAI is collating data which will demonstrate that monthly bills do not increase. "On average, 90 per cent of people watch less than 50 channels. Even my monthly TV bill has come down from Rs 700 to Rs 236 per month."

    He also said that TRAI is getting complaints against some service providers for not activating select channels for viewers, or taking too much time in doing so."We show cause defaulting service providers once we get a complaint against them. Customers can register their complaints on our call centre as well," he said.

    Viewers will get to pay only for the channels they want to watch from 1 April, as TRAI’s new rules to curb the practice of bundling unwanted channels into bouquets come into effect.

    According to new pricing regime by TRAI, broadcasters, distributors and cable television operators must price each channel separately with the rate capped at Rs 19 each. The deadline was extended thrice to create awareness among subscribers.
     

  • TRAI asks DTH operator Independent TV to explain tariff plans

    TRAI asks DTH operator Independent TV to explain tariff plans

    MUMBAI: Telecom regulatory authority of India (TRAI), in a letter, has asked direct-to-home (DTH) operator Independent TV to explain whether tariff plans offered by it are as per the new regulatory framework.

    TRAI swung into action in the matter after it received several consumer complaints about the opaque nature of the break-up of Independent TV’s monthly tariff plans.

    “…You are hereby directed to provide all the information in the prescribed format as sought by TRAI…. Further you are also required to provide detailed justification that the present tariff plans, being offered by Independent TV are in line with the new regulatory framework clearly indicating the bifurcation of the Network Capacity Fee and other charges,” TRAI wrote in a letter, according to a report by news agency Press Trust of India (PTI).

    TRAI now wants the DTH platform, which is believed to have 0.83 million subscribers, to come clean on the consumer complaints.

    Recently, TRAI extended the deadline for consumers to select television channels under its new tariff regime till 31 March.

    Subscribers that don’t opt for new channels would be moved to ‘Best Fit Plans’, which would be developed as per usage pattern, language and channel popularity, the sector regulator said in its statement.