TRAI to reexamine CAS revenue sharing structure

New Delhi, Jan 9 (UNI) The Telecom Regulatory Authority of India (TRAI) will reexamine the revenue sharing structure of the Conditional Access System under which cable operators appropriate the full charges for basic free-to-air services.

Responding to a directive from the Telecom Disputes Settlement Tribunal (TDAST), given on an appeal by an MOS Citicable, TRAI said it would first study the argument advanced by the appellant in its appeal, and then take any decision accordingly.

Citicable had challenged the August 24 order of TRAI under which all revenue from free to air service goes to cable operators.

''We may decide in favour of no change or may even decrease the basic charges, if after examination we think it was needed,'' TRAI Member AK Sawhney told UNI.

It had already been said the working of the new system would be reviewed from time to time and changes made if needed, he said.

He, however, said the existing structure was decided after much deliberations and consultations, and it was just and balanced.

Under the present set up, 45 per cent revenue from pay channel goes to broadcasters, 35 per cent to MSOs and 20 per cent to cable operators, while the advertising revenue is totally appropriated by braodcasters and the carriage charges by MSOs. The revenue from Free to Air basic services goes fully to cable operator.

The TDSAT in its yesterday's directive had asked the regulator to consider the demand of multi-system operators for greater share in revenues out of Rs 77 charged for free-to-air channels under the Conditional Access System (CAS) - the new system for delivery of TV services.

''The issue, in our view, is of great importance and (holds) wide repercussions for MSOs and cable operators... keeping all the aspects in consideration, we think that Trai should give a hearing to the concerned parties before arriving at a decision on the issue,'' the TDSAT said.

UNI