Broadcasters challenge TRAI’s tariff order for commercial subscribers

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Broadcasters challenge TRAI’s tariff order for commercial subscribers

MUMBAI: The Indian Broadcasting Foundation (IBF) and Star India have challenged the Telecom Regulatory Authority of India’s (TRAI) recent tariff order for commercial subscribers. While Star India has challenged the regulation and tariff order for commercial subscribers in the Delhi High Court, the IBF has moved the TDSAT. Zee Entertainment Enterprises Ltd (ZEEL) has impleaded itself in the Star case while other broadcasters are also considering following suit in the Star matter.

The HC, while not granting a stay to Star, has asked TRAI to file its reply and posted the matter for hearing on 26 September. Meanwhile, the TDSAT on TRAI counsel Saket Singh’s request has agreed to look at the Delhi High Court order before passing an order on the IBF petition. It has posted the matter for hearing on 21 August. In its petition, Star has contended that the TRAI regulation for commercial subscribers has taken away the broadcasters’ right to provide signals directly to subscribers which was allowed in the earlier regulation. The broadcaster has also argued that while the TRAI has recognised commercial subscribers as distinct category, it has not extended that distinction in the tariff order.

It has insisted that the cost of providing television services is included in the overall experience provided by the commercial establishments. Thus, commercial establishments must not be treated on a par with domestic subscribers. The IBF has alleged that the TRAI has violated the fundamental rights of broadcasters by equating commercial subscribers with residential subscribers. It also contended that there is a separate tariff for commercial customers in other services like water and electricity.

So why single out cable TV? TRAI in its amended tariff order for commercial subscribers had stated that the end consumer, whether at his home or at any commercial establishment, gets to view the same content with the same quality of signals. In both cases, the cost to the content owner (broadcaster) and the distribution platform operator (DPO), for supplying the signals, per se, does not vary based on where the signals are supplied.

It had also said that commercial subscribers cannot obtain television service from broadcasters directly and have to do so only from a distribution platform like cable TV, direct-to-home (DTH), headend-in-the sky (HITS), or internet protocol television (IPTV).

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