MADURAI: The Madurai bench of the Madras high court on Thursday ordered notice to the managing director of Arasu Cable TV corporation Ltd on a petition challenging a notification stating that cable operators registered with it should charge only Rs 70 from subscribers.
When the petition filed by the Cable Operators' Guild of Madurai came up before before Justice K K Sasidharan, the government advocate KP Krishnadoss took notice on behalf of Arasu Cable TV corporation Ltd and other authorities.
The Cable Operators' Guild of Madurai in its petition said as per an announcement of Telecom Regulatory Authority of India (TRAI), cable operators were empowered to collect subscription charges for cable services not exceeding Rs 270 from each subscriber since January 1, 2009. All of a sudden, Arasu Cable TV corporation Ltd issued a notification on September 28, 2011, stating that cable TV operators registered under it should charge only Rs 70 from its subscribers and out of that, a sum of Rs 20 has to be paid to Arasu Cable TV corporation Ltd. Cable TV operators will get only Rs 50 per subscriber, out of which the operator will have to meet infrastructure costs and all other incidental expenses. With this meagre margin, cable TV operators cannot survive and provide quality cable services, the petition added.
Cable operators were collecting not less than Rs 250 till the impugned notification came out. By virtue of the notification, the revenue of cable TV operators had drastically reduced. Because of the drastic fall in revenue, operators found it difficult to meet ends. The notification was arbitrary and against the provisions of the tariff orders of TRAI in 2008, the petition said.
Contending that the statutory authority, TRAI, alone was competent to fix tariffs, the petitioner said neither the state government nor corporations formed by the state government including Arasu Cable TV corporation Ltd, had the power to interfere with the powers conferred on TRAI.
The matter has been adjourned for hearing on March 5.
Source: http://timesofindia.indiatimes.com/city/madurai/Cable-operators-contest-Arasu-TV-corporations-70-pm-order/articleshow/11919102.cms
When the petition filed by the Cable Operators' Guild of Madurai came up before before Justice K K Sasidharan, the government advocate KP Krishnadoss took notice on behalf of Arasu Cable TV corporation Ltd and other authorities.
The Cable Operators' Guild of Madurai in its petition said as per an announcement of Telecom Regulatory Authority of India (TRAI), cable operators were empowered to collect subscription charges for cable services not exceeding Rs 270 from each subscriber since January 1, 2009. All of a sudden, Arasu Cable TV corporation Ltd issued a notification on September 28, 2011, stating that cable TV operators registered under it should charge only Rs 70 from its subscribers and out of that, a sum of Rs 20 has to be paid to Arasu Cable TV corporation Ltd. Cable TV operators will get only Rs 50 per subscriber, out of which the operator will have to meet infrastructure costs and all other incidental expenses. With this meagre margin, cable TV operators cannot survive and provide quality cable services, the petition added.
Cable operators were collecting not less than Rs 250 till the impugned notification came out. By virtue of the notification, the revenue of cable TV operators had drastically reduced. Because of the drastic fall in revenue, operators found it difficult to meet ends. The notification was arbitrary and against the provisions of the tariff orders of TRAI in 2008, the petition said.
Contending that the statutory authority, TRAI, alone was competent to fix tariffs, the petitioner said neither the state government nor corporations formed by the state government including Arasu Cable TV corporation Ltd, had the power to interfere with the powers conferred on TRAI.
The matter has been adjourned for hearing on March 5.
Source: http://timesofindia.indiatimes.com/city/madurai/Cable-operators-contest-Arasu-TV-corporations-70-pm-order/articleshow/11919102.cms
