DTH operators and tariff model at the wholesale and retail level


30 Aug 2013
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Three of the six private direct-to-home (DTH) operators have batted in favour of cost-based model in determining wholesale tariff, the price at which the broadcasters offer their content to distribution platform operators (DPOs).

Airtel Digital TV, Dish TV and Sun Direct have suggested that the Telecom Regulator Authority of India (TRAI) adopt a cost-based model for determining wholesale tariff.

Videocon d2h and Reliance Digital TV have urged the regulator to go for a regulated RIO (reference interconnection offer) model.

Tata Sky is the only DTH operator to propose a complete forbearance at the wholesale level.

Dish TV and Sun Direct have suggested that the authority should consider regulated RIO model in case it is not in favour of a cost-based model.

Airtel Digital TV has altogether opposed universal and flexible RIO models, as these are other forms of the forbearance regime.

As far as the regulated RIO model is concerned, the DTH operator said that it is only workable if the price cap of channel is based strictly on its cost.

When it comes to retail tariff, all the DTH operators have spoken in unison urging the regulator to maintain forbearance at the retail level as there is enough competition in the TV distribution space with six DTH platforms, thousands of multi-system operators (MSOs), including the big six at the national level, and two headend-in-the-sky (HITS) platforms.

TRAI had floated a consultation paper in January titled ‘Tariff Issues related to TV Services’ seeking stakeholders views on different issues including the tariff model to be adopted at the wholesale and retail level.

The regulator had suggested various models in the consultation paper at the wholesale as well as retail level.

At the wholesale level, it had suggested three models, namely price forbearance model, cost-based model, and RIO-based models.

Under the RIO models, it had proposed three models—universal RIO, flexible RIO and regulated RIO.

TRAI also suggested three integrated models, namely conventional MRP model, flexible MRP model and distribution network model.

At the retail level, it suggested two models—price forbearance model and exclusive a la carte model.

Read more at: http://www.televisionpost.com/dth/dth-operators-and-tariff-model-at-the-wholesale-and-retail-level/ | TelevisionPost.com
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