New TV channel pricing: Trai mandates provision of 200 channels at Rs 153
The
Telecom
Regulatory Authority of India
(Trai) has released amendments to the New
Tariff Order
(NTO), in which it has directed cable operators to provide 200
channels for Rs 153. It has also reviewed the pricing of channel
bouquets compared to a la carte ones.
The
regulator has now set January 15 as the deadline for broadcasters to
announce their new pricing structure.
At
present, direct-to-home (DTH) or cable TV operators provide only 100
channels for a network capacity fee (NCF) levy of Rs 153 (Rs 130
excluding taxes).
Analysts
say this move is likely to lower the average revenue per user (ARPU)
for TV operators. It had surged close to 60 per cent, on an average,
after the NTO took effect. This would mean a lower share of revenue
for broadcasters, who used to get almost 50 per cent share after the
NTO came into being in February last year. Trai said it has analysed
the comments of stakeholders, particularly to protect the interests
of consumers, and has accordingly modified certain provisions of the
new regulatory framework.
According
to the NTO that was released last year, consumers were given the
option to pay only for the channels that they chose to watch, at the
maximum retail price (MRP). Read
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