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TRAI announces regulatory changes for broadcasting and cable television

Posted on by darion

The Telecom Regulatory Authority of India (TRAI) has made a slew of changes to the regulatory framework for broadcasting and cable services and issued advisories to the Ministry of Information and Broadcasting (MIB) regarding listing of channels in the electronic programme guide (EPG) and transition of DD Free Dish to addressable system. The changes were notified in a press release on July 8, which said the changes are aimed at facilitating the growth of the sector by simplifying regulations.

What are the changes?

TRAI has removed the Network Capacity Charge (NCF) caps, previously set at Rs 130 for 200 channels and Rs 160 for more than 200 channels. This change allows service providers to set NCF based on factors like number of channels, regional considerations and customer classifications.

In order to offer consumers more attractive offers, Distribution Platform Operators (DPOs) will now be able to offer discounts of up to 45% when creating channel bundles, a significant improvement compared to the previous limit of 15%.

Paid channels available free of charge on public broadcaster platforms will now be considered free of charge on all addressable distribution platforms to ensure a level playing field in the industry.

TRAI has also simplified the transmission charges system by removing the distinction between High Definition (HD) and Standard Definition (SD) channels for calculating charges. Small DPOs will have relaxed regulatory compliance requirements.

The office has mandated that the duration of all prepaid subscriptions be expressed in days to provide greater transparency. DPOs are now required to display both the Distributor Retail Price (DRP) and Maximum Retail Price (MRP) for channels in the electronic programme guide (EPG) and must publish service charges such as installation and activation, visits, relocation and temporary suspension. These measures aim to increase transparency and clarity for consumers.

In addition, TRAI has introduced financial disincentives for violating the tariff regulation and certain provisions of the Interconnection and Quality of Service Regulations. Service providers are also required to publish all information related to tariffs and other charges on their websites and communicate these details to subscribers.

Why did this happen?

These changes are the result of consultations with industry stakeholders over several years. TRAI had issued a consultation paper in August 2023, seeking stakeholders’ views on various issues, including pricing, channel listings and operational issues. After analysing the feedback and market conditions, TRAI recognised the need for greater flexibility for service providers to adapt to dynamic market conditions.

TRAI Recommendations

Apart from the regulatory changes, TRAI has issued recommendations to the Ministry of Information and Broadcasting. These include improving channel listings in electronic programme guides and upgrading the DD Free Dish platform to an addressable system for better viewing experience and security.

Cable operators have regularly raised concerns about reducing regulation in the sector. Advocates such as the All India Digital Cable Federation (AIDCF) have asked TRAI to enforce regulation on DD Free Dish and OTT platforms, saying there is no level playing field. OTT platforms such as Netflix and Amazon Prime have comparatively fewer restrictions on the content they distribute, which cable operators feel gives them an unfair advantage. Similarly, DD free dish players, a free satellite TV service operated by Prasar Bharati, also have an unfair advantage over cable and satellite operators.

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