Heena Sharma Blog

To protect consumer interests, the Telecom Regulatory Authority of India (Trai) on Wednesday has released amendments to the New Tariff Orde r (NTO). According to the new order, number of free-to-air channels has increased, pricing for pay channels has reduced and TRAI has capped the number of bouquets of pay channels offered by broadcasters. Analysts say this move is likely to lower the average revenue per user (ARPU) for TV operators. It had surged by 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. It will negatively impact broadcasters’ revenue, which had grown 30-40 per cent year-on-year due to the higher share and increased ARPU. At present, direct-to-home (DTH) or cable TV operators provide only 100 channels for a network capacity fee (NCF) levy of Rs 153. Now, cable operators will have to provide 200 ch...

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 mo...