TRAI regulations on DTH services

DTH services:- Recently framed TRAI Regulations - Are these regulations really new or framed to enhance the financial burden on the common citizens or something behind the curtain?

 

Telecom Regulatory Authority of India recently have brought out regulations on DTH with a sole objective to reduce (being so called) the monthly expenditure bill of the common citizens and accordingly termed it as the key USP.

Is it really the sole objective or there is something beyond the curtain which may not be visible?

The rules have been framed by TRAI to be effective from 1^st February 2019 and the existing subscribers were asked to opt for the same by 31^st January 2019. However, the deadline now has been extended to 31^st March 2019.

My views to new regulations of TRAI effective from 1st February 2019 is: 

1.     First of all the deadline for opting to the new regime of DTH is not understood as to what is the objective of such a deadline. The deadline was extended till 31^st March 2019. What would happen if some new citizen gets added after 31^st March 2019?

2.     Secondly, looking at these regulations, the new regulations seem to be with a sole purpose of increase in monthly expenses onto the citizens considering subscription with the same quality and quantity of channels. This USP as being analysed itself is contradictory to the hyped USP in the new regulations and being rumoured across the media. At least for sure one can agree that the minimum impact on any citizen who subscribes just with FTA channels alone would be increased by Rs. 30/- per month and if you add GST, it would be Rs. 36/- per subscriber considering that the earlier operator was not avoiding GST else the net impact would be Rs. 53/- per subscriber per month. Referring to the previous regulations the DTH operator had to compulsorily provide 100 FTA channels at Rs. 100/- per month. As per the latest regulations, the DTH operator now also has to provide minimum of 100 channels having FTA channels, 30 DD channels and few of unpopular or rather no taker channels for which Rs. 130/- plus  GST would be charged. This is the minimum amount that anyone needs to be paid compulsorily as long as you are a subscriber of DTH whether one see 2 or 3 channels or 100 channels. So each one of us has been burdened with a minimum amount of Rs. 36 or Rs. 53/- for unpopular paid channels. Dish TV and Videocon d2h has an estimated subscriber base of around 3 crore which means it will have an additional revenue of around Rs. 100 crores or so every month. One need to appreciate that the disadvantageous or economically  backward or BPL population forms a significant higher percentage of total Indian population and hence they will be affected most and may find difficult to manage their day to day bread requirement.       

3.     Another USP of the new regulations have been stated to be as the subscriber would be having a choice to select any paid channel on a-la-carte basis keeping in view basic principle of "Pay what you want". 

4.     This seems to be incorrect as the previous regulations also stipulated the same condition. Hence there is no change. The tariff order, 2010 dtd.21^st July 2010 w.r.t a-la-carte offer of channels is quoted below:

“4. Manner of offering pay channels by broadcasters to distributors of TV channels using addressable systems.-----(1) Every broadcaster shall offer or cause to offer all its pay channels on a-la-carte basis to distributors of TV channels using addressable systems, and specify the a-la-carte rate for each pay channel “

“6. Mandatory offering of pay channels on a-la-carte basis to ordinary subscribers and charges therefor. (1) Every service provider providing broadcasting services or cable services to its subscribers using an addressable system shall, from the date of coming into force of this Order, offer or cause to offer all pay channels offered by it to its subscribers on a-la-carte basis and shall specify the maximum retail price for each pay channel, as payable by the ordinary subscriber: Provided that in the case of direct to home service, a direct to home operator who is unable to offer all its pay channels to its subscribers on a-la-carte basis on the date of coming into force of this order due to any technical reason, shall offer all its pay channels on a-la-carte basis to its subscribers with effect from a date not later than the 1st day of January, 2011. “

 source: https://main.trai.gov.in/sites/default/files/Tele_BnC_Services_4th_AS_TariffOrder_Main_21july10.pdf

  

5.     The broadcasters/ DTH operators were earlier as well as now are also allowed to form bouquet of channels. Hence there is no change.

In my view it would have been better if TRAI would have thought of charging the rates for paid channels on per hour viewership or per day basis keeping in view “pay what you are consuming”.  This would have facilitated supply of good quality content.

 

6.     TRAI has not thought of regulating advertisement content in any programme. Surprisingly, the paid entertainment channels may be having advertisement content of 30-40% and in such a scenario it is not fair to charge fee from citizens to watch advertisement. May be TRAI consider to regulate advertisement slot not more than 10% of per hour slot basis.

I have studied few of the tariff plans of the DTH and find that:

1.   A minimum increase of Rs. 53 per month if the subscriber opts for compulsorily basic packIf the prices are compared on the apple to apple basis the previous rates and the existing rates, the increase in amount  may go as high as Rs. 250-300 per month or even more.  Apple to apple comparison means comparing on the same channel packs of both previous and existing regulations