The Hindu Business Line : Cable TV rates may go up 4 pc from Jan

COME January 1, and consumers will have to fork out more if they want to get their daily fare of television entertainment. The Telecom Regulatory Authority of India (TRAI) has proposed a four per cent increase in the monthly cable charges.

Due to the controversy surrounding the arbitrary pricing of cable channels, the regulator had frozen the rates as prevailing on December 26, 2003. Subsequently, in November 2004, the first periodical review for inflation adjustment was done leading to an increase of seven per cent over the ceiling cable charges (excluding taxes). This increase was made effective January 1, 2005.

With today's announcement, this four per cent increase would be applicable on the cable charges (exclusive of taxes) as enhanced by seven per cent earlier.

Thus, if a household was paying Rs 200 per month two years ago, the increase in absolute terms on account of inflation adjustment would work out to Rs 22.56.

A subscriber will have to pay Rs 222.56 per month under the new tariff order.

The regulator said that the new rates would be applicable for the payments to be made by consumers, cable operators and multi-system operators.

Both the broadcasters and the cable service providers felt that this kind of piece-meal approach would not help resolve the problems between the various stakeholders.

There are issues related to addressability and pricing of new channels pending.

For instance, in recent months, several new channels have been launched, but very few cable operators have been able to hike the monthly subscription rates.

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