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Monthly cable bills set to go up

Our Bureau

New Delhi , Aug. 13

MONTHLY cable bills could go up with the Telecom Regulatory Authority of India (TRAI) allowing the broadcasting industry to recover the increase in service tax and the education cess announced in Budget 2004.

TRAI had frozen cable rates on December 26, 2003 till the issue of Conditional Access System (CAS) was resolved and channels have not been allowed to increase the rates since them. Clarifications had been sought by the industry on whether the cable rates could be increased or not due to the change in tax structure.

"Since the rates of taxes are decided by the Central and State Governments, it would not be appropriate for the Authority to put a ceiling on such charges. Generally the regulated prices are exclusive of taxes and in this case also the ceiling is on the charges payable exclusive of taxes. To amply clarify the issue, the Authority has decided to amend the tariff order," said a statement.

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