TRAI releases Consultation Paper on Non-CAS areas

New Delhi, May 21 (UNI) Telecom regulator TRAI today released a Consultation Paper on issues relating to tariff for cable television services in non-CAS areas, advancing the plea that there was a need to take stock of the efficacy of the existing tariff regime, which was more than two years old.

The Telecom Regulatory Authority of India (TRAI) has sought comments from all the stakeholders by June 4 to formulate a policy for cable TV operations in non-CAS areas.

Regulation of tariff of channels for cable television service in non-CAS areas is presently governed by the provisions contained in the Tariff Order of October one, as amended from time to time.

This principal tariff, inter alia, provided that the cable charges payable by the subscriber to the cable operator, by the cable operator to the multi system operator (MSO) and by the multi system operator to the broadcaster would be the same as prevailing as on December 26, 2003.

It also provided a window for increase or decrease in ceiling on account of introduction or deletion of new pay channels under certain conditions.

In one of the subsequent amendments to the principal tariff order, seven per cent increase in ceiling was allowed with effect from January 1, 2005 on account of inflation.

Similar amendment allowing further increase of 4 per cent with effect from January 1, 2006 was initially stayed by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

However, while finally disposing of the petition on December 22 last year, TDSAT observed that TRAI was free to consider whether rates needed to be revised for the next year.

Pointing out that this tariff regime for non-CAS areas had been there for more than two and a half years now, TRAI said there was an imperative need to take stock of the efficacy of the existing tariff structure as viewed from the perspective of various stakeholders.

''There have also been developments such as emergence of alternative platforms for delivery of TV channels such as DTH and IPTV, and implementation of CAS in parts of three metros,'' it said.

It was against this backdrop that TRAI decided to initiate a process of consultation on traiff structure for cable television services in non-CAS areas through this paper.

Among the issues raised in the consultation paper is whether the existing tariff regime providing for ceiling on cable charges continue with or without adjustment for inflation .

Another poser is whether the existing tariff regime should be replaced by a tariff regime prescribing an overall specific ceiling for monthly cable bill for the end consumers? If so, what should this ceiling be and how it should be determined? Also, whether there should be a total exemption of tariff for non-CAS area and if so, what should be the checks and balances required to protect the interests of the consumers? UNI