IBF asks Trai to revisit carriage fee rule

MUMBAI: The Indian Broadcasting Foundation (IBF) welcomed the regulatory framework for Digitalised Cable TV brought out by Trai even as it raised concerns about the possible ramifications of the carriage fee.

The IBF has argued that carriage has been the biggest stumbling block in the growth of Indian broadcast business. It will seek clarity on the carriage issue from the broadcast sector regulator.

"A big area of concern for broadcasters is carriage fee. The broadcasters have taken up this issue in various discussions with the Trai and the Government in the past. Carriage fee has crippled various broadcasters, especially the smaller sized companies, and it has restricted a broadcaster?s ability to invest in content and other activities of a channel. Therefore, there is an urgent need to revisit this issue," IBF said.

Trai in its directive had decided to allow multi system operators to fix the carriage fee in view of the fact that they have to make substantial investment for implementation of cable digitisation.

In order to ensure that the broadcasters are not impacted negatively by carriage fee, the Trai had directed operators that all channels will be charged uniformly and the MSOs will have to file the fees with regulator.

The carriage as per the directive has to be published in the Reference Interconnect Offer and applied in a uniform, non-discriminatory and transparent manner. The fee cannot be revised upward for a minimum of two years.

Trai has also put in place a provision which empowers the regulator to intervene if carriage fee is found to be unreasonable.

The IBF finds the other clauses positive. "Overall the Tariff Order and the Interconnect Regulations read with the amended Cable TV Act and Rules are steps in the right direction and will help the country to make the digital transition," IBF said.

Trai has mandated multi-system operators to carry a minimum of 500 channels from 1 January 2013. The cable operators will also have to offer 100 free-to-air (FTA) channels at a maximum retail price of Rs 100, or pay a minimum Rs 150 per month for a la carte choice that may include pay as well as FTA channels.

"The IBF lauds the initiatives taken by I & B Ministry and Trai in bringing about much needed reforms in the cable sector. The Tariff amendments and the new Interconnect regulations for Digital Addressable Cable brought about by Trai will inject necessary transparency across the value chain," IBF said in a statement.

"With a slew of consumer friendly measures ? namely choice of packages and introduction of Basic Service Tier - Trai has ensured that all subscribers of varied socio-economic background are duly taken care of and provided for. IBF also welcomes the mandate to enhance the channel carrying capacity to a minimum of 200 channels w.e.f. 1st July, 2012 and 500 channels w.e.f. 1st January, 2013," the statement added.

India is on the threshold of a digital makeover. IBF trusts that this will, over a period of time, make way for more freedom to stakeholders as digitalisation acquires critical mass and the country gains more confidence in bridging the digital divide.

"The new interconnect regulations have brought within its wake the much awaited specifications for digital addressability while at the same time laying down the eligibility criteria for availing signals.

The reporting requirements will help the government in plugging leakages while the provisions on disconnection of signals will ensure that all stakeholders are aware of their rights and obligations," the IBF stated.