Good News TRAI wins the tariff order case against Star in Supreme Court

[Digital Mastermind]

Can anyone planning explain in layman's terms what Siti has published ?

Also Don't they have normal packages or only a la carte?

 

[Choco7905]

This is from the TRAI site: https://trai.gov.in/sites/default/files/Tariff_Order_English_3 March_2017.pdf

They said that customers have to subscribe 130 basepack + either Ala-Carte channels or bouquets & then they also said that after choosing 130 basepack cost of 25 SD channels will be 20.
Now, what's this? If we can get 25 channels of our choice then what's the benefit of basic bouquet or Ala-Carte?

 

[iphifi]

Impact Magazine Infographics (Link shared by @Basil bro)

1. Transparency of price across all distribution platforms.
2. Separate payment for content (pack cost) and infrastructure (network capacity fee)
3. Price capped at Rs.19. SD and HD channels cannot be treated as same.
4. 15% rule has been stayed by courts. Bouquets will now be cheap like in old tariff.
5. Minimum network capacity fee chargeable is capped at Rs.130 with additional Rs.20 for 25 channel capacity.
6. Pay channel costs are additional to network capacity fee for those channels. Operator can get 20% distribution fee from MRP.
7. Carriage fee waiver if channel has 20% subscription
8. LCN fee is unregulated. Operator can use it to get discounts from MRP.
9. MSO:LCO (local franchise) share of network capacity fee is 55:45. Can be negotiated.
10. Fixed rate deals between operators and broadcasters are not allowed.

 

[Choco7905]

It is not mentioned that 100 channels will be FTA only does that means we can select 100 channels of our own choice?

 

[iphifi]

It is not mentioned that 100 channels will be FTA only does that means we can select 100 channels of our own choice?

100 FTA channels is one of the options that operator has to offer. We can chose pay channels by additionally paying its content cost. If we take 100 FTA and take a pay bouqets then we have to again buy additional capacity from operator. So better to take a mix of pay and free channels in the 100 channel infrastructure that every user has to pay the operator. 130 is actually the cost of infrastructure and is mandatory. Basic Tier pack is just a gimmick to hide this fee as a pack.

 

[Gopi27]

It is not mentioned that 100 channels will be FTA only does that means we can select 100 channels of our own choice?

As per my understanding there are two cases.

1. If Subcriber choose Basic Tier Pack of 100FTA channels then the cost will be Rs.130 +taxes

2. If Subcriber Choose 100 Pay Channels then cost of Al-la-carte or bouquets of pay channels is calculated then total cost is-

Network Capacity Fee for 100 SD Channels Rs.130 + Cost of Al-la-carte or bouquets of pay channels + Taxes = Monthly Cost

 

[Choco7905]

2. If Subcriber Choose 100 Pay Channels then cost of Al-la-carte or bouquets of pay channels is calculated then total cost is-

Network Capacity Fee for 100 SD Channels Rs.130 + Cost of Al-la-carte or bouquets of pay channels + Taxes = Monthly Cost

No, if we'll select 100 pay channels also then also we have to pay only 130 + taxes. If we want only HD channels in basepack then we can take only 50 HD channels in 130 as 1 HD channel is equivalent to 2 SD channels.

So better to take a mix of pay and free channels in the 100 channel infrastructure that every user has to pay the operator. 130 is actually the cost of infrastructure and is mandatory.

 

[Gopi27]

@Choco7905 bro

“Network Capacity Fee” means the amount, excluding taxes, payable by a subscriber to
the DTH/CableTV so as subscriber to receive the signals of subscribed television channels and it doesn't include subscription fee for pay channel or bouquet of pay channels.

So, basically Rs.130 is for Infrastructure and maintenance cost for Distributors.

 

[iphifi]

No, if we'll select 100 pay channels also then also we have to pay only 130 + taxes. If we want only HD channels in basepack then we can take only 50 HD channels in 130 as 1 HD channel is equivalent to 2 SD channels.

No. If we take 100 pay channels we have to pay both 130 to the DTH and also pay channel cost to broadcaster.
If we take mix of pay and free also we have to pay additional amount for pay channel cost. This network capacity fee is the main income of DTH companies.

 

[Gopi27]

This network capacity fee is the main income of DTH companies.

In addition to Network Capacity Fee of Rs.130 DTHs will take Commission of 2% and 3% for each SD, HD Channels from the money we pay to Broadcasters.