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Tag: Telecom Regulatory Authority of India

  • NTO 2.0: MSOs asks Trai to reject new RIOs published by broadcasters

    NTO 2.0: MSOs asks Trai to reject new RIOs published by broadcasters

    Mumbai: The Tamil Nadu Digital Cable TV Operators Association has  sent a legal notice to the Telecom Regulatory Authority of India (Trai) asking it to reject the new reference interconnection offers (RIO) published by broadcasters. The Association has also sought Trai’s intervention in asking broadcasters to reduce channel prices as it “will cause irreparable loss to the entire industry”.

    Major broadcasters including Disney Star India, Zee Entertainment Enterprises Ltd, Sony Pictures Networks India, and TV18 Broadcast Ltd, had published their new RIOs over the weekend starting from 15 October (Dussehra) with the new a-la-carte pay channel and bouquet pricing that adheres to Trai’s new tariff order (NTO) 2.0.

    The broadcasters had hiked the prices of their driver channels and pulled them from all their bouquets as Trai’s NTO 2.0 provisions mandated an MRP cap of Rs 12 for any pay channel to be included in a bouquet. The broadcasters are currently battling the Trai order in the Supreme Court stating that some of its provisions are arbitrary and outside the purview of the regulator. The final hearing is on 30 November.

    In its notice to Trai, the Association has stated that “major broadcasters have issued their RIOs where it can be calculated that majorly subscribed channels by the consumers will be inflated by 100 per cent to 200 per cent.”

    It added, “It is pertinent to mention here that during the situation when over-the-top service providers are trying to make their services more affordable to increase their subscriber base, the service providers of this industry will have to increase their rates substantially which will certainly cause loss of subscriber base of the local cable operators (LCOs) and multi-system operators (MSO).”

    These “excessive prices” will undoubtedly hurt the subscriber base of cable operators whose subscribers come from the rural areas of the country where income levels are comparatively lower. The MSO mentioned that any regulation/direction/order implemented by Trai should lead to the growth and development of service providers and consumers.

    “It is the contention of the Tamil Nadu Digital Cable TV Operators Association that the RIO published by Disney Star India has an illegal clause that requires MSOs to “continue the channels on the old LCNs and they cannot change it”. If new RIO is being asked to be implemented, then all its terms are liable to be renegotiated and the broadcaster cannot favourably keep the clauses of the old RIOs,” it said.

  • Trai may relax criteria to set up satellite earth station gateways

    Trai may relax criteria to set up satellite earth station gateways

    Mumbai: The Telecom Regulatory Authority of India (Trai) is expected to release a consultation paper on licensing and framework of satellite earth station gateways, said Trai chairman PD Vaghela, according to a report by PTI.

    The regulator is also planning a consultation paper on developing a comprehensive, single window, online common portal, having inter-departmental linkages for transfer of application and information for parallel processing.  

    Vaghela was addressing a virtual event organised by the newly formed Indian Space Association on Monday.  

    Currently, only service licences are permitted to set up earth stations and Trai believes that there is a need to allow multiple stakeholders to set up earth stations which will attract investment and increase satellite capacities.

    According to the report by PTI, Vaghela emphasised the need for the convergence of laws and governance to address the rapid technological convergence happening in the communications and space sector. Trai will form inter-departmental linkages between the telecom department, ministry of information and broadcasting, and department of space, to create a common online portal that will be engaged in granting approval, permission, allocation, renewal, cancellation, and revocation as well as facilitate transfer of application and information for parallel processing

  • Twin conditions ensure broadcasters do not engage in ‘perverse’ pricing: TRAI

    Twin conditions ensure broadcasters do not engage in ‘perverse’ pricing: TRAI

    Mumbai: The twin conditions introduced in the New Tariff Order (NTO) 2.0 seek to ensure that broadcasters do not engage in “perverse pricing”; that consumers do not get a raw deal; and that choices offered by and to all market participants remain real. Both conditions are important in their own ways, observed Telecom Regulatory Authority of India (TRAI).

    The regulator made these statements in its counter-affidavit submitted to the Supreme Court quashing the writ petitions by the Indian Broadcasting Foundation (IBF) and other broadcasters to halt the implementation of NTO 2.0.

    The twin conditions introduced in the NTO 2.0 seek to discourage unfair bundling, stated TRAI. The first condition prescribes that the aggregate a-la-carte (MRP) prices of channels in a bouquet must not be more than 1.5 times the bouquet price, hereafter referred to as the “Aggregate Test”. So, if a bouquet has five channels A, B, C, D, and E (with their individual a-la-carte) and a bouquet price of X, the total/aggregate of A+B+C+D+E should not be more than 1.5 times X.

    The second condition, which alone has been struck down by the Bombay high court judgement, states that the MRP of any individual channel in a bouquet, i.e., its a-la-carte price, should not exceed three times the average MRP of a pay channel in that bouquet, hereafter referred to as the “Average Test”.

    TRAI alleges that broadcasters want to maximize their advertising revenue and hence are bundling their popular channels along with less popular channels to claim higher subscription and advertising revenues. The high-demand channels that do not need to be pushed, henceforth called driver channels, are bundled with those channels in which consumers otherwise have no interest.

    “In a large number of cases bouquet prices are the same as the a-la-carte price of the driver/popular channel. In many cases, the bouquet price artificially has reached such perversity that the bouquet price is cheaper than the driver channel in it,” observed TRAI.

    This perverse pricing compels the consumer to pick a bouquet over a-la-carte channel not by choice but out of compulsion, it alleged. 

    In a prior hearing, SC expressed three concerns with NTO 2.0 order: a) Whether the “Average Test” in the twin conditions formed a part of the pre-consultation process b) Are broadcasters and DPOs being treated equally c) Is “Average Test” severable from “Aggregate Test”.

    Referring to a) TRAI responded, “Both twin conditions were fully deliberated on prior to making of the 2020 framework. There is ample correspondence between TRAI and the broadcasters concerning the implementation of the twin conditions. Even the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has found broadcasters to be in violation of such twin conditions prescribed by TRAI in the past, and held that all reference interconnect offers had to be in consonance with those conditions.”

    TRAI denied discriminating between broadcasters and DPOs stating that there are exhaustive notes on the subject matter that point to the contrary.

    Referring to c) TRAI responded, “The 2020 framework seeks to address two major issues arising out of the formation of the bouquet by broadcasters. The first concerned heavy discounting of bouquet prices, and the second related to ‘pushing’ of unwanted channels to consumers.”

    “TRAI is duty-bound to resolve both issues, in order to safeguard the interest of all service providers and consumers,” it said. 

    The next hearing will be held on Tuesday 7 September.

  • TSPs accountable for discriminatory MNP specific tariff offers: TRAI

    TSPs accountable for discriminatory MNP specific tariff offers: TRAI

    Mumbai: The Telecom Regulatory Authority of India (TRAI) has received complaints lodged by telecom service providers (TSPs) that rival TSPs are offering discriminatory tariff benefits to customers who want to switch telcos via mobile number portability (MNP).

    As per the Telecommunication Tariff Order (TTO), 1999, clause 10 on non-discrimination: No service provider shall, in any manner, discriminate between subscribers of the same class and such classification of the subscribers shall not be arbitrary.

    Provided that every classification between subscribers shall be based on intelligible eligibility criteria where such criteria shall have a rational nexus to the purpose of the said classification, it added.

    In 2011 letter, TRAI had clarified that: “The offering of differential tariffs to the subscribers porting from the network of other service provider is not valid and reasonable classification as the motive behind such classification is apparently to induce churn from the competitors’ network and which is discriminatory and contravenes the provisions of clause 10 of TTO, 1999.”

    “While TSPs have generally denied allegations of discriminatory MNP-specific tariff offers, in some cases, they have stated that their channel partners may have given some MNP specific benefits to the customers on their own without the consent and authorization of TSP”.

    Channel partners such as distributors, retailers and third-party apps are non-licensed entities that are appointed by TSPs for the purpose of offering telecom services. However, it remains the responsibility of the TSPs to adhere to regulatory provisions and guidelines with respect to tariff offerings.

    Considering all aspects and with the objective to ensure transparency, uniformity, and protection to its subscribers, TRAI has directed telecom services to ensure:

    1.     Only the tariffs reported to TRAI are offered through their channel partners, distributors, third-party apps etc.

    2.     All tariff orders comply with extant TRAI regulations/directions/orders issued in this regard as, where the TSPs name/brand is used for marketing/offering/selling products and services, the responsibility of ensuring compliance of TRAI’s regulatory guidelines/provisions shall remain with TSP.

    At the end of June, TRAI reported that telcos Reliance Jio and Bharti Airtel had added 5.4 million and 3.8 million mobile subscribers whereas Vodafone Idea has lost 4.2 million mobile subscribers.

  • TRAI releases recommendations to promote broadband connectivity

    TRAI releases recommendations to promote broadband connectivity

    Mumbai: The Telecom Regulatory Authority of India (TRAI) has released its recommendations on ‘Roadmap to Promote Broadband Connectivity and Enhanced Broadband Speed’.

    The Department of Telecommunications (DoT) as per the objectives of the National Digital Communications Policy 2018 sought recommendations of TRAI on issues relating to broadband speed and its categorisations, infrastructure creation, and promoting broadband connectivity.

    TRAI issued a consultation paper on 20 August seeking comments and counter comments from stakeholders. The DoT vide another reference letter dated 12 March sought consolidated and updated recommendations on the proliferation of fixed-line broadband services in the country. This included reference to additional issues relating to licence fee exemption and direct benefit to consumers. A supplementary consultation paper was issued on 19 May followed by an open house discussion.

    Based on inputs received by stakeholders and its own analysis, TRAI has finalised its recommendation shared below.

    1. Definition of broadband has been reviewed and the minimum download speed for broadband connectivity revised upward from the present 512 Kbps to 2 Mbps. Based on download speed, fixed broadband has been categorised into three different categories – basic, fast, and super-fast.

    2. To encourage lakhs of cable operators to provide broadband services, TRAI’s past recommendation on ‘Definition of Revenue Base (AGR) for the Reckoning of Licence Fee and Spectrum Usage Charges’ has been reiterated.

    3. To enhance mobile broadband speed in rural and remote areas by fiberisation of the cellular networks, backhaul connectivity on optical fiber using the BharatNet network with Service Level Agreements (SLA) should be made available to service providers.

    4. To incentivise investment in the last-mile linkage for fixed-line broadband, notify a skill development plan and an interest subvention scheme for cable operators registered as micro and small size companies.

    5. To enhance mobile broadband speed, the radio spectrum used for backhauling connectivity of cellular networks should be assigned to service providers on-demand and in a time-bound manner.

    6. Creation of national portal for RoW permissions to facilitate the expeditious rollout of telecom and other essential utilities infrastructure.

    7. Incentivise establishment of common ducts and posts for fiberisation of networks. In line with BharatNet Project, exempt RoW charges for the next five years of expeditious laying of common ducts and posts.

    8. A centrally sponsored scheme (CSS) to incentivise states/UTs for RoW reforms. Incentives to be linked to the net improvement in the Broadband Readiness Index (BRI) score of a state/UT.

    9. Mandates co-deployment of common ducts during the construction of any roadway, railway, and water and gas pipelines receiving public funding.

    10. To facilitate the sharing of passive infrastructure such as ducts, optical fibers, posts, etc., all the passive infrastructure available in the country should be mapped by each service provider and infrastructure provider using a Geographic Information System (GIS). The Telecom Engineering Center (TEC) should notify the standards for this purpose. Establishment of e-marketplace on a common GIS platform to facilitate leasing and trading of passive infrastructure.  

  • Indian broadband subscribers growth down in July 2020

    Indian broadband subscribers growth down in July 2020

    BENGALURU: Indian broadband internet subscribers growth for the month ended 31 July 2020 (Jul-20) was less than half (49.6 per cent) of the growth in Jun-20 as per the latest Telecom Regulatory Authority of India (TRAI) data. The broadband subscriber base grew by just 71.7 lakh in Jul-20 as compared to 1.447 crore in the previous month.

    Overall, in calendar year 2020, the country has seen addition of 4.347 crore broadband internet subcribers or 6.2 per cent growth until Jul-20. Apr-20, the first month of the Covid2019 lockdown, had seen broadband internet subscribers decline by 1.13 crore.

    There were 70.54 crore broadband internet subscribers in India in Jul-20 as compared to 66.194 crore in Jan-20 and 69.823 crore in Jun-20.  

    The top five service providers constituted 98.91 percent market share of the total broadband subscribers at the end of July-20. These service providers were Reliance Jio with 40.196 crore, followed by Airtel with 15.574 crore, Vodafone Idea with 11.527 crore, the public sector BSNL with 2.303 crore, and Atria Convergence Technologies with 16.9 lakh broadband internet subscribers.

    Mobile devices users (Phones and dongles)

    The largest growth driver has been through mobile devices, which include phones and dongles, with addition of 4.254 crore broadband internet subscribers or a 6.2 per cent growth in CY 2020 until Jul-20. Mobile devices are the largest platform for broadband internet in India with a more than 97 per cent share of subscribers. There were 68.464 crore broadband internet subscribers through mobile devices in Jul-20 as compared to 64.219 crore in Jan-20 and 67.779 crore in Jun-20.

    The top five wireless broadband service providers in Jul-20 were Jio with 40.08 crore, Airtel with 15.325 crore, Vodafone Idea with 11.526 crore, BSNL with 1.517 crore, and Tikona Infinet Ltd with 3 lakh subscribers.

    Wired broadband internet subscribers

    The second largest broadband internet services platform with a 28-29 per cent share of broadband internet is the wireline or wired platform. This segment has witnessed a growth of 4.9 per cent in Jul-20 as compared to the beginning of the year, with the addition of 9.9 lakh subscribers, for a total of 2.013 crore subscribers in Jul-20.

    The top five wired broadband service providers in Jul-20 were BSNL with 78.6 lakh subscribers, Airtel with 24.9 lakh, Atria Convergence Technologies with 16.9 lakh, Jio with 11.6 lakh, and Hathway Cable & Datacom at 10.1 lakh subscribers.

    Fixed wireless subscribers (Wi-Fi, Wi-Max, Point-to-Point Radio & VSAT)

    Fixed Wireless platform (Wi-Fi, Wi-Max, point-to-point radio & VSAT) is the smallest of the three with about 0.09 per cent share of the total broadband internet subscribers in the country. This platform has seen growth 0f 4.7 per cent in CY 2020 until Jul-20 to 6.4 lakh subscribers, as compared to 6.1 lakh subscribers in Jan-20.

  • NTO 2.0 update: Broadcasters conclude their argument before Bombay HC

    NTO 2.0 update: Broadcasters conclude their argument before Bombay HC

    KOLKATA:  As the ongoing legal battle between broadcasters and the Telecom Regulatory Authority of India(TRAI) in Bombay High Court nears its ending, the broadcasters have concluded their argument.

    On 18 September, the solicitor general will open for TRAI before the court. TRAI chairman R S Sharma said earlier that non-implementation of NTO 2.0 will bring back discriminatory practices and create a regulatory vacuum. He said that the tariff order has brought the perfect balance between consumer choice and industry benefits.  

    Sharma mentioned that while it has given new power to the consumers to watch channels of their own choice, it has provided broadcasters the liberty to decide the pricing of their channels, distributors to have an independent source of revenue through network capacity fees.

    Earlier during a hearing on 2 September, senior advocate Harish Salve argued that NTO 2.0 contradicts provisions of the Indian constitution that guarantees the freedom of speech and expression to all citizens.

    Amid Covid2019 pandemic, TRAI directed the broadcasters on 24 July to comply with the new amendments by 10 August, which created another round of tension and the broadcasters went back to Bombay High Court. The High Court ordered TRAI to not take any coercive action against the stakeholders until the verdict comes out.

  • NTO 2.0: Ambiguity persists as arguments continue in Bombay, Kerala High Courts

    NTO 2.0: Ambiguity persists as arguments continue in Bombay, Kerala High Courts

    MUMBAI: Ambiguity continues in the ecosystem with just one day left for the implementation of new tariff order amendments (NTO 2.0).

    On Friday’s hearing in Bombay high Court, no conclusion was reached regarding interim relief. The Telecom Regulatory Authority of India (TRAI) will continue its argument on Monday.

    According to sources close to the development, TRAI has been directed not to take any coercive step. Although there is no any conclusion yet, a decision will mostly be taken on Monday.

    Earlier, broadcasters’ argument was that the entire regime is set to kick in from 1 March. Since it is around the corner, they have moved the court seeking a stay. If they implement it before hearing, the entire petition becomes infructuous.

    In response to the argument, TRAI counsel said on Thursday that it’s not the entire amended interim regime that is kicking off from 1 March. The TRAI counsel added that broadcasters’ obligation to declare new prices became effective from 15 January, but they did not make any progress on it without any stay order. If they declare prices, then only other stakeholders in the industry will be able to comply with the regime, as TRAI noted.

    The Bombay High Court also asked TRAI to take instructions on deferment of NTO 2.0 as they did for the 2017 regime before the Madras High Court on Wednesday. After TRAI expressed its unwillingness to defer NTO 2.0, the hearing on interim stay started on Thursday.

    In another case, the Kerala High Court has passed an interim order directing the TRAI not to take steps that are detrimental to the interest of the All India Digital Cable Federation (AIDCF) members. Although on Friday’s hearing no judgement was passed for interim relief, the decision of interim protection has been reserved.

    In another development, Discovery has moved its petition to Delhi High Court which was heard today. The next hearing for the petition has been scheduled for 19 March.

  • TRAI extends deadline for comments on CP ‘Transparency in Publishing of Tariff Offers’

    TRAI extends deadline for comments on CP ‘Transparency in Publishing of Tariff Offers’

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has further extended the deadline for receiving comments on Consultation Paper on "Transparency in Publishing of Tariff Offers" till 7 February and counter comments till 21 February.

    The authority had issued a Consultation Paper (CP) on "Transparency in Publishing of Tariff Offers" on 27 November 2019. The last date for receiving written comments from the stakeholders was fixed at 26 December 2019 and thereafter counter comments by 9 January 2020.

    Pursuant to the request of stakeholders, TRAI extended the last date for submission of written comments to 23 January 2020 and last date for submission of counter comments to 6 February 2020.

    Now the stakeholders have sought a further extension of time for sending their comments on the Consultation Paper on "Transparency in Publishing of Tariff Offers". The authority has decided to further extend the last date for submission of written comments to 7 February 2020 and for counter comments to 21 February 2020.

    In November, TRAI had sought public views on enhancing transparency in disclosure of phone services rates and mooted an idea of introducing tariff calculator to help customers find the best plans to suit their usage. The move came after TRAI received a significant number of complaints from individual consumers on a lack of transparency in disclosure of tariff information.

  • I&B minister says DD FreeDish has 33 million subs

    I&B minister says DD FreeDish has 33 million subs

    MUMBAI: The free to air TV sector has soared ever since the Telecom Regulatory Authority of India (TRAI) announced the New Tariff Order for India’s pay TV ecosystem. How much it has done so was answered in the Lok Sabha. 

    Currently, Doordarshan has 35 operating satellite TV channels. This includes six all India channels, 17 regional channels, 11 state networks and one international channel.

    In response to a question, Information and Broadcasting minister Prakash Javadekar said that these channels are available on DD FreeDish and “approximately 33 million households have access to DD FreeDish throughout the country”.

    Additionally, the government has allocated Rs 234.51 crore to Doordarshan for content development under the scheme “Broadcasting Infrastructure and Network Development” for the period from 2017-18 to 2019-20.