The Hindu Business Line : Pay channels @ Rs 5 per month

In a subscriber-friendly move, the Telecom Regulatory Authority of India today announced a maximum retail price (excluding taxes) of Rs 5 per month that any pay channel can charge under the Conditional Access System (CAS).

This ceiling is significantly lower than the current rates being charged by some of the channels.

In New Delhi, for instance, ESPN-Star Sports is available for Rs 48 a month, the eight-channel Star package is for Rs 60 plus 12 per cent service tax, Sony-Discovery is for Rs 110 and Zee's package of three channels is for Rs 120 a month.

While CAS is currently operational in Chennai, it will be introduced in notified areas in Delhi, Mumbai and Kolkata from December this year.

According to the tariff order, subscribers will have to go in for a minimum subscription of four months in case of pay channels and the maximum monthly rent that can be charged for free-to-air channels is Rs 77, excluding taxes.

Also, there has to be a minimum of 30 free channels, and additional channels, if provided, should also be accommodated within the monthly charges.

TRAI has also put forward two schemes to be compulsorily provided by the multi-system and cable operators as part of the standard tariff for the supply of set-top boxes."Operators can offer alternative tariff packages in addition to the mandated standard package. However, there should be no separate charges for installation, activation or reactivation, smart and viewing cards and repair and maintenance for five years," the TRAI said in a statement.

While the set-top box rental rates come into effect from October 15 , new charges for pay and free channels would come into effect from December 31.

Industry, however, has reacted strongly against the TRAI decisions but was unable to provide any ready figures of revenue fall. Also, as of now CAS is to be implemented in select areas, while operators intend to charge existing rates in non-CAS areas.

Reacting to the TRAI move, Mr Kunal Dasgupta of Sony said that the move would adversely affect revenues. "However, we feel that this is a temporary intervention by TRAI and do not think it would last for long."

However, a spokesman for Essel Group that promotes the Zee network, felt that the implementation of the price order would be beneficial. "This is first step towards 100 per cent transparency and collections," said Senior Vice-President, Essel Group, Mr Asish Kaul.

More Stories on : Regulatory Bodies & Rulings | Radio/TV

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon withdrawal disrupted

DoT sets rollout obligation for USO cellular project

New low-cost airline gets initial Govt clearance

CCEA defers decision on CBM blocks

DLF defers IPO, to refile draft prospectus soon

Infosys fines director

CCEA to refer Balco valuation to panel

Oil bonds not to get SLR status, says Chidambaram

Volatile movement in pulses, wheat prices

Markets buckle under selling pressure

Ferro Alloys: Turns weak on `delay'

Agening workforce — Healthcare, retirement costs to weigh heavily on cos: Survey

Pay channels @ Rs 5 per month