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In a significant order, TDSAT on Saturday directed TRAI to come out with price regulation for DTH. This comes soon after the regulatory authority had suggested that price regulation for DTH could be left to the market forces and the dynamics of competition, and till the impact of Conditional Access System (CAS) could be better assessed.

However, TDSAT had rapped the regulatory authority for not implementing it sooner and said, "Price regulation is a must for protecting consumer interest. Delay on the part of TRAI in carrying out this job is prejudicial to the DTH operators while it suits the broadcasters."

The Tribunal pointed out that it had already requested TRAI to come out with price regulation in this area. And that its judgment dated July 14, 2006, when the tribunal had fixed the price for DTH operators at 50 per cent of the broadcaster's declared rate for cable was only an interim one till price regulation was introduced.

The court pointed out that DTH was an addressable system unlike cable, and yet in the absence of regulation, broadcasters were not disclosing their agreements with other distributors on the plea of secrecy for commercial terms.

TRAI had enforced price regulation for CAS notified areas, at a maximum of Rs 5 per channel, from the beginning of this year. However, in its consultation paper issued on March 2, the regulatory body was of the view that the DTH platform was doing well, with an estimated 2.3 million subscribers against 68 million TV homes that have cable and satellite service.

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

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