Tag: Commercial Subscribers

TRAI issues separate tariff for commercial subscribers under DAS & non-DAS areas

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) today issued separate tariff orders for commercial subscribers under digital addressable systems (DAS) and non-DAS areas.

TRAI described a “commercial subscriber” as one “who causes the signals of TV channels to be heard or seen by any person for a specific sum of money to be paid by such person.”

The definition is contained in two Tariff Amendment Orders (TAO) relating to TV services for commercial subscribers, one applicable for TV services being provided through analogue cable TV systems (Non-CAS areas) and the other one applicable for TV services being provided through Digital Addressable cable TV systems were notified today.

The amendments are to the Telecommunication (Broadcasting and Cable) Services (Second) tariff (Twelfth Amendment) order & the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Fourth Amendment) order.

For definition of ordinary subscriber, the notification simply says anyone who is not a commercial subscriber under its definition is an ordinary subscriber.

Total forbearance has been prescribed both at the wholesale and retail level with respect to tariffs for commercial subscribers and broadcasters have the option to enter into tripartite agreements with the Distribution Platform Operators (DPOs) and the commercial subscribers, if so desired.

The order says that a broadcaster will offer all its pay channels, for commercial subscribers on a-la-carte basis to distributors of TV channels, and may specify separate a-la-carte rate for each pay channel.

This is provided the broadcaster may also offer all its pay channels as part of bouquet consisting of pay channels or both pay and free to air (FTA) channels and specify the rate for each such bouquet of channels offered by it; and a broadcaster may enter into a tripartite agreement with the distributors of TV channels and the commercial subscribers for supply of signals of TV channels to the commercial subscribers.

Broadcasters have been mandated to offer their channels or bouquet of channels for commercial subscribers on non-discriminatory terms and conditions.

Broadcasters have also been mandated to file their tripartite agreements, if such agreement is done with commercial subscribers, with TRAI within 30 days of entering into such agreement.

TV signals to commercial subscribers have to be provided by DPOs only in accordance with policy guidelines for up-linking and down-linking of television channels.

Following directions by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) on 9 March that there was need for a fresh look at tariff orders, TRAI had issued a new paper on “Tariff issues related to Commercial Subscribers.” Stakeholders had been asked to give their comments by 31 July and counter-comments by 7 August and had then held an Open House on 18 August.

The case in TDSAT had been filed by Indian Broadcasting Foundation (IBF) and others last year. The tariff orders challenged by IBF were issued on 16 July last year following the Supreme Court’s order of 16 April, 2014.

TRAI said in a press release that it “expected that with the coming into force of these changes in the regulatory framework for commercial subscribers, distribution of TV services to commercial subscribers would be streamlined and would be available to them at competitive rates. It is also envisaged that it would balance the interests of all the stakeholders in the value chain and bring in complete transparency in the business transactions.”

In the consultation paper, TRAI had asked commercial subscribers whether there is need to define and differentiate between domestic and commercial subscribers for provision of TV signals and the basis for such classification. TRAI wanted to know how it can be ensured that TV signal feed is not misused for commercial purposes wherein the signal has been provided for non-commercial purpose.

It had also asked if there is a need to have a different tariff framework for commercial subscribers (both at wholesale and retail levels) and what should be the suggested tariff framework for commercial subscribers (both at wholesale and retail levels).

September 8, 2015
TRAI plans open house before finalising tariff recos for commercial subs

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) will be holding an Open House meeting relating to tariff issues for commercial subscribers on 18 August.

Following directions by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) earlier this year that there was need for a fresh look at tariff orders, TRAI had issued a new paper on “Tariff issues related to Commercial Subscribers” exactly a month earlier. Stakeholders were asked to give their comments by 31 July and counter-comments by 7 August.

The Open House is the final stage before TRAI makes recommendations on the issue.

In the paper, TRAI asked commercial subscribers whether there is need to define and differentiate between domestic subscribers and commercial subscribers for provision of TV signals and the basis for such classification.

The regulator had also asked if there was a need to enable engagement of broadcasters in the determination of retail tariffs for commercial subscribers on a case-to-case basis.

TRAI wanted to know how it can be ensured that TV signal feed is not misused for commercial purposes wherein the signal has been provided for non-commercial purpose.

It has asked if there was a need to have a different tariff framework for commercial subscribers (both at wholesale and retail levels) and what should be the suggested tariff framework for commercial subscribers (both at wholesale and retail levels).

Following the Supreme Court’s order of 16 April, 2014, TRAI had notified the Telecommunication (Broadcasting and Cable) Services (Second) tariff (Twelfth Amendment) order & the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Fourth Amendment) order on 16 July, 2014.

These two tariff amendment orders prescribing the tariff framework for commercial subscribers were challenged before TDSAT, which in its order of 9 March, 2015 had set aside these Tariff Amendment Orders. TRAI was asked to examine the issue afresh and come out with a new tariff dispensation for commercial subscribers within six months from the date of its order.

August 14, 2015
Post TDSAT order, TRAI issues fresh paper on tariff for commercial subscribers

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has asked commercial subscribers whether there is need to define and differentiate between domestic subscribers and commercial subscribers for provision of TV signals and the basis for such classification.

In a paper on “Tariff issues related to Commercial Subscribers”, the regulator has also asked if there is a need to enable engagement of broadcasters in the determination of retail tariffs for commercial subscribers on a case-to-case basis.

The paper has been issued following the directions by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) earlier this year that there was need for a fresh look at tariff orders. Stakeholders have been asked to give their comments by 31 July and counter-comments by 7 August.

TRAI has sought information on how it can be ensured that TV signal feed is not misused for commercial purposes wherein the signal has been provided for non-commercial purpose.

It has also asked if there is a need to have a different tariff framework for commercial subscribers (both at wholesale and retail levels) and what should be the suggested tariff framework for commercial subscribers (both at wholesale and retail levels).

It wants to know if the present framework is adequate to ensure transparency and accountability in the value chain to effectively minimise disputes and conflicts among stakeholders, and what should the practical and implementable mechanism be to ensure transparency and accountability in the value chain.

Following the Supreme Court’s order of 16 April, 2014, TRAI had notified the Telecommunication (Broadcasting and Cable) Services (Second) tariff (Twelfth Amendment) order & the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Fourth Amendment) order on 16 July, 2014. These two tariff amendment orders prescribing the tariff framework for commercial subscribers were challenged before TDSAT, which in its order of 9 March, 2015 had set aside these Tariff Amendment Orders. TRAI was asked to examine the issue afresh and come out with a new tariff dispensation for commercial subscribers within six months from the date of its order.

July 14, 2015
Commercial and non-commercial subscribers should have different tariff under DAS: IBF

NEW DELHI: The Indian Broadcasting Foundation (IBF) has said that the Digital Addressable System (DAS) tariff order was violative of Article 14 of the Constitution as it equated ‘equals with unequals.’

Abhishek Malhotra told the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that the stand taken by the Telecom Regulatory Authority of India (TRAI) was also contrary to the stand taken by it over the last 10 years.
He said that commercial subscribers could not be charged at the same rate as other subscribers who received television signals in their homes.

The bench was hearing the petition by IBF challenging the DAS tariff order issued in July by TRAI relating to commercial subscribers.

In the tariff order, TRAI had said that commercial establishments who do not specifically charge its clients/guests on account of providing/showing television programmes and offer such services as part of amenities are to be treated like ordinary subscribers wherein the charges would be on per television basis.

In cases where commercial subscribers specifically charge its clients/guests on account of providing/showing television programmes the tariff would be as mutually agreed between the broadcaster and the commercial subscriber.

TRAI had also said that the commercial subscriber was to obtain television service only from a distribution platform operator (MSO/DTH Operator/IPTV operator/HITS operator).

The tariff order amendment has been brought out as per the directions of the Supreme Court. It is expected that with the coming into force of these changes in the regulatory framework, the distribution of TV services to the commercial subscribers would be streamlined and the services would be available to them at competitive rates.

December 11, 2014
JAINHITS welcomes TRAI’s new tariff order for commercial subscribers

MUMBAI: Headend in the Sky (HITS) player JAINHITS has welcomed Telecom Regulatory Authority of India’s (TRAI) newly announced tariff order pertaining to commercial subscribers, subscribing to cable TV services in the country.

As per the new order, commercial establishments who do not specifically charge its clients/ guests on account of providing TV programmes and offer them as part of amenities are to be treated like ordinary subscribers, wherein charges would be on per TV basis. In cases where commercial establishments specifically charge its clients/ guests on account of providing TV programmes, the tariff would be as mutually agreed between the broadcaster and the establishment.

“NSTPL during its response to TRAI Consultation Paper also supported that rates charged from hotels etc. should be on per TV basis. We at NSTPL fully support TRAI’s announcement, as this in a sense means that rates charged from commercial establishments/ hotels etc. for their lounges/ rooms shall be same as far as a normal subscriber till such time they offer it as basic amenities. It is aimed to streamline the distribution of TV services to commercial subscribers at competitive rates, and improve the availability of content for TV viewership in hotels etc,” said Noida Software Technology Park (NSTPL) head-regulatory and corporate affairs Devinder Singh.

He added, “TRAI has clearly mentioned that in all the cases, commercial subscriber has to obtain television services only from a distribution platform operator (MSO/ DTH operator/ IPTV operator/ HITS operator/ Cable Operator). And JAINHITS is fully capable to meet the needs of the large establishments besides home consumers due to its ubiquitous reach across India. We have the ability to provide broadcast services to hotels and commercial establishments with a varied mix of content in regional, Hindi and English language across the country.”

July 25, 2014
TRAI amends tariff order for commercial subscribers

MUMBAI: After having invited comments from stakeholders regarding the imposition of tariff on commercial subscribers, the Telecom Regulatory Authority of India (TRAI) has come out with the amendment to the Telecommunication (Broadcasting and Cable) Services (Second) Tariff Order, 2004 (6 of 2004).

The twelfth amendment will come into effect from the date of its publication in the official gazette.

Going with the 24 responses to the earlier consultation pepper, there is no distinction between an ordinary and a commercial subscriber. The definition of a ‘commercial establishment’ (CE) has been included and ‘commercial subscriber’ (CS) has been amended.

Accordingly, the new definition of a CE is “any premises wherein any trade, business or any work in connection with, or incidental or ancillary thereto, is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or work in connection with, or incidental or ancillary thereto, journalistic, printing and publishing establishments, educational, healthcare or other institutions run for private gain, theatres, cinemas, restaurants, eating houses, pubs, bars, residential hotels, malls, airport lounges, clubs or other places of public amusements or entertainment”.

The definition of a CS is “any person who receives broadcasting services or cable services at a place indicated by him to a cable operator or multi system operator or direct to home operator or head end in the sky operator or Internet Protocol television service provider, as the case may be, and uses such services for the benefit of his clients, customers, members or any other class or group of persons having access to his commercial establishment.”

Abiding by a recent Supreme Court verdict, TRAI has stated that in the rates of TV services, there should be no differentiation between an ordinary subscriber and a commercial subscriber and the charges for both should be per TV set basis. This is applicable when the establishment does not specifically charge the customer for the service. In case, it does, then the broadcaster and the CS can mutually agree on the tariff.

A broadcaster cannot directly supply signals to the CS just as the same isn’t done for an ordinary subscriber. The CS can obtain signals only from a distribution platform operator such as MSO, DTH operator, cable operator, IPTV operator or a HITS operator. This is in line with the rule regarding downlinking of TV channels in India, which states that an applicant company can provide decoders only to registered distribution platforms.

This would also ensure competition to be healthy.

The point regarding sub categorisation of commercial subscribers into similarly-placed groups has been dismissed with only one distinction of those who provide it as part of their amenities to guests and those who don’t.

The regulator expects that with this amendment, the distribution of TV services to commercial subscribers will be streamlined and the services would be available at competitive rates.

Click here for the ammendment

Click here for the press release

July 16, 2014
TRAI issues consultation paper on tariff for commercial subscribers

MUMBAI: Three months ago, the Telecom Regulatory Authority of India (TRAI) revised the tariff rates for non-addressable cable TV areas which allowed a rise of 27.5 per cent in two stages. While this was for non-commercial subscribers, the regulator has now issued a consultation paper asking comments from stakeholders for the same with respect to the commercial subscribers.

The consultation paper states that the tariff for commercial subscribers has been an issue since 2005 when associations of hotels and restaurants challenged the various tariffs imposed by broadcasters in the Telecom Disputes Settlement Appellate Tribunal (TDSAT). Even though the TDSAT disposed off the petition stating that such organisations cannot be called consumers, it asked the Telecom Regulatory Authority of India (TRAI) to think about whether or not to impose a tariff regulation on them.

While the TRAI came up with two definitions for ‘ordinary cable subscriber’ and ‘commercial cable subscriber’, the appeal was challenged in the Supreme Court which then directed TRAI to frame separate tariff ceilings for non-commercial subscribers.

Even though the Regulator had come up with definitions and categories of such commercial subscribers, it was challenged by the Federation of Hotel and Restaurants Associations of India (FHRAI).

Now, TRAI has once again come up with a fresh definition for a ‘commercial subscriber’ and has asked stakeholders if they agree to it or if they have alternative suggestions. It says that a commercial subscriber means “any person, other than a multi system operator or a cable operator, who receives broadcasting service at a place indicated by him to a broadcaster or a cable operator or direct to home operator or multi system operator or head end in the sky operator or a service provider offering Internet Protocol television service , as the case may be, and uses such signals for the benefit of his clients, customers, members or any other class or group of persons having access to its commercial establishment.”

“Commercial establishment” means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or profession or work in connection with, or incidental or ancillary thereto, journalistic and printing establishments, educational, healthcare or other institutions run for private gain, theatres, cinemas, restaurants, eating houses, pubs, bars, residential hotels, malls, airport lounges, clubs or other places of public amusements or entertainment but does not include a shop or a factory registered under the Factories Act, 1948 (43 of 1948).”

“Shop” means any premises where goods are sold, either by retail or wholesale or where services are rendered to customers, and includes an office, a store room, godown, warehouse or work place, whether in the same premises or otherwise, mainly used in connection with such trade or business but does not include a factory, a commercial establishment, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment.”

TRAI says that with these definitions it is shifting its focus from how the commercial establishments use the cable connection to defining it as one who avails the service from a broadcaster or a distribution platform operator (DPO).

In the earlier definition, the regulator had also divided commercial consumers into various sub-divisions of similarly placed entities depending on their size of business, paying capacity to clients etc. These were challenged several times in the past. Therefore, it has now asked stakeholders that if such a sub-division was not the right way to proceed, what would be an alternative way of dividing them into similarly placed groups.

Furthermore, three models of dealings between the commercial user and DPO has been given by TRAI and stakeholders are expected to select any one or give their own alternative model.

The first model is that the broadcaster publishes the rates for commercial tariff as a Reference Interconnect agreement (RIO) and then commercial subscriber negotiates. The second model is that the DPO publishes the rate and negotiations shall be done on the same. In the third model, both the aforesaid models shall be available to commercial customers wherein there shall be a competition among DPOs and between DPOs and broadcaster.

Furthermore, four options as regard to what shall be the tariff price have also been given:

First, the tariff for commercial subscribers is same as that for ordinary subscribers. Second, the tariff for commercial subscribers has a linkage with tariff for ordinary subscribers. Third, the tariff for commercial subscribers has no linkage with the tariff for ordinary subscribers but there are some protective measures prescribed to protect all the stakeholders. Fourth, the tariff for commercial subscribers is kept under total forbearance.

In the case of the third option several provisions have been suggested such as – broadcasters be mandated to offer all their channels on a-la-carte and specify rates. In case a broadcaster directly makes the signal available to the subscriber then the sum of a-la-carte rates of the channels shall not exceed one and a half times the rate of the bouquet of which they are a part and the a-la-carte rate of each channel should not exceed thrice the average rate of a channel of that bouquet. In case of a DPO, apart from the earlier two provisions, a-la-carte rates for all FTA channels should be uniform. The regulator also suggested that it should receive the RIO by either the broadcaster or the DPO and that a provider shall not deny channel signals unless subject to technical feasibility.

If a stakeholder chooses the second option he/she has been asked to justify what the ceilings should be for each category of commercial subscribers.

Stakeholders have been asked to give their views by 27 June at the latest.

Click here to read full consultation paper

June 11, 2014