What does this mean:
The authority also needs to consider the smaller MSOs operating in villages and rural areas. They might be having a very fewer number of connections and their only source of revenue in the New Tariff Order is the NCF. For example, if a small MSO operating in a village is providing 20 connections, and TRAI mandates the NCF to be lower, like Rs 50 per month or variable, based on number of channels that the consumer opts for, such MSO's earning per month will take a severe beating i.e. 20*50=1000 or might even be lesser if it's variable. This slab of 130 will protect such MSOs and ensure they have a minimum revenue of 20*130=2600.
Moreover, TRAI has only set the maximum cap at Rs. 130 per month. There is no restriction on the DPOs who are having a large customer base to reduce their NCF. In fact some DPOs like Airtel, Sun Direct provide discounts on their NCF collecting around Rs. 80 per month, if the consumer opts for their curated packs. Some DPOs like Arasu have cut the NCF to just Rs. 35 for it's curated pack and Rs. 120 for customer selected packs. So, it has to be the DPOs who need to be customer friendly and reduce the NCF depending on their customer base. TRAI, as an authority, needs to be fair to every stakeholder and that's why they have set it at 130.
