NCF is paid to DTH/ Cable operators to carry free channels. This is one of the main revenue to operators. I'm sure they must have had this in another form even before NTO 1. We didn't know as we didn't get the breakup in invoice. In fact, normal viewers like us didn't even know which one was paid and which one was a free channel.
Don't blame TRAI guys for price hikes. Broadcasters are the one to be blamed for price hikes. Broadcasters seems to be more comfortable with the earlier revenue model and hence want to price the bouquets high and blame TRAI for that. They (not all) need a bite of revenue in everything that they possibly can. TRAI doesn't want us to pay more. They have a good intention of bringing transperency and choice. When broadcasters exploit NTO 1 they bring NTO 2 and will also bring NTO 3 and so on. These are beneficial in the long run to the end customers. TRAI is working only for the benefit of us. Just don't lose hopes and have some patience.
PS: I'm not a person from TRAI. Just expressing my view.