Tag: tariff order

  • TRAI amends tariff order for commercial subscribers

    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

  • Appeals against tariff increases of 27.5 per cent in DAS to be heard in August

    Appeals against tariff increases of 27.5 per cent in DAS to be heard in August

    NEW DELHI: The Telecom and Disputes Settlement and Appellate Tribunal (TDSAT) today directed the Telecom Regulatory Authority of India (TRAI) to respond by 4 July to a petition challenging the legality of tariff orders allowing the increase of 27.5 per cent inflationary rise in the wholesale prices prevailing as on 31 March 2004.

     

    TDSAT chairman Justice Aftab Alam and member Kuldip Singh said any other stakeholders including broadcasters could intervene by 16 July and the appeal would be heard on 4 August.

     

    Meanwhile, the broadcasters will retain in a separate account, any payments received as tariff, as this would be subject to the final order of the Tribunal.

     

    The appeals wanted TRAI to be directed to carry de-novo exercise in accordance with the statutory provision for price fixation for addressable system de-linking the same from the wholesale price of channels for non addressable system.

     

    In the appeals filed by Home Cable Network and the consumer organisation Centre for Transforming India, the legality of Tariff Order (Telecommunications (Broadcasting and Cable) Services (Second) Tariff (Eleventh Amendment) Order 2014 dated 31 March this year allowing the increase of 27.5 per cent inflationary rise in the wholesale prices prevailing as on 31 March 2004 has been challenged.

     

    The appellants have also challenged the impugned tariff order dated 31 March 2014 on the ground that the same has been passed in violation of Section 11(4) without affording any hearing opportunity to the stakeholders and without considering the relevant material and reports.

     

    Furthermore, the impugned tariff order is without jurisdiction because it still provides for adhoc measure of price freeze as on 31 March 2014 even after 10 years of second tariff order dated 1 October 2004 while abdicating it regulatory duty to fix the tariff.

     

    The impugned tariff order has adversely impacted the interest of the addressable platform because the wholesale pricing of the addressable system is based on the wholesale pricing of the non addressable platform; Fourthly that the impugned tariff is heavily tilted towards broadcasters and seriously prejudices the interest of the consumers, MSO’s and stifles orderly growth of the cable and broadcasting sector.

     

    Counsel Vivek Sareen argued that TRAI ignored the fact that the wholesale pricing of non addressable system and addressable system are inter related. The wholesale price for addressable platform is derived from the wholesale price of non addressable system. By its order, TRAI indirectly and in substance increased the wholesale price for addressable platform / DAS notified area. The said increase in the wholesale price for addressable platform is affected in violation of section 11(4) of the Act.    

     

    TRAI completely disregarded the fact that by changing the content pricing and increasing the same by 27.5 per cent with reference to the price existed immediately prior to 31 March 2014, this will immediately increase the price of content for addressable platform. The authority did not provide any hearing opportunity to the stakeholders including the appellants to represent their view as a stakeholder in the consultation process.

     

    It was stated that TRAI had rushed to issue the impugned order thereby increasing the wholesale price for addressable platform by 15 per cent with effect from 1 April 2014. Thus the impugned order failed to take into account the inputs from such stakeholders.

  • Time extended for comments on draft amendments to the Interconnection Regulations and Tariff Order

    Time extended for comments on draft amendments to the Interconnection Regulations and Tariff Order

    NEW DELHI: Stakeholders have been asked by the Telecom Regulatory Authority of India (TRAI) to file by 3 July their comments on interconnect regulations and tariff order under the digital addressable system.

    TRAI has also said no request for any further extension of time for submission of comments will be entertained.

    The “Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Second Amendment) Regulations, 2013” and the draft “Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Second Amendment) Order 2013” seek to amend some regulations that TRAI had passed earlier in relation to tariffs and interconnect agreements in earlier years. (Earlier, TRAI had notified the Interconnection Regulations for DAS dated 30 April 2012 as amended on 14 May last year and the Tariff Order applicable for the Addressable Systems dated 21 July 2010 as amended on 30 April last year).

    The amendments it has proposed state:

    Multi system operators (MSOs) cannot seeks signals of a particular TV channel from a broadcaster under ‘must provide‘ clause while at the same time demanding carriage fee for carrying that channel on its distribution platform.

    No minimum channel carrying capacity has been prescribed for the MSOs. However, the MSOs are mandated to carry the channels of broadcasters on non-discriminatory basis under the ‘must carry‘ provision.

    The service providers of the addressable systems are allowed to price and package their offering of channels, however, they are required to comply with the modified twin conditions, as proposed in the draft amendment to the tariff order. These twin conditions are (a) the a-la-carte rate of a pay channel forming part of a bouquet shall not exceed two times the a-la carte rate of the channel offered by the broadcaster at wholesale rates for addressable systems (b) the a-la-carte rate of a pay channel forming part of a bouquet shall not exceed three times the ascribed value of the pay channel in the bouquet. The TRAI says it is doing this to ensure that the a-la-carte rates offered to the subscribers are reasonable vis-? -vis the bouquet/package rates.

    As in the case of pay channels, operators can specify a minimum subscription period, not exceeding three months, for Free-to-Air (FTA) channels subscribed on a-la-carte basis by the subscribers.

    Subscribers are free to choose channels on a-la-carte basis or bouquet/package basis or any combination of a-la-carte and bouquet/package.

    Channels, such as HD or 3D, requiring special type of set top boxes are to be offered on a-la-carte basis and if such channels are also offered as a part of a bouquet(s), corresponding to each such bouquet, the operator would be required to offer bouquet(s) excluding the HD and 3D channels, at a reduced price, commensurate to the rates of these HD and 3D channels.

    Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Second Amendment) Regulations, 2013

    Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Second Amendment) Order 2013