Broadcasters misused freedom to fix channel rates: TRAI on tariff revision

Broadcasters have misused the freedom given to them in fixing rates of a-la-carte channels and bouquets, the Telecom Regulatory Authority of India (TRAI) has stated

Broadcasters have misused the freedom given to them in fixing rates of a-la-carte channels and bouquets, the Telecom Regulatory Authority of India (TRAI) has stated in an affidavit filed before the Bombay high court.

HT Image

The affidavit states that TRAI had in 2017 given flexibility to broadcasters to decide the price of their channels on an a-la-carte basis. The regulatory authority prescribed a condition that only the channels having maximum retail price (MRP) equal to or less than ₹19 could be included in a bouquet and it was expected that channels would consider the requirements of consumers and make bouquets accordingly.

“However, post-implementation analysis of the regulatory framework indicates that freedom given to broadcasters has been misused,” said the affidavit.

Prices have been either increased or decreased to make the channels a part of the bouquets, it said. “Even some free-to-air channels were converted into pay channels so that they could be part of the pay channel bouquet,” the affidavit said.

The affidavit was filed in response to a bunch of petitions filed mostly by broadcasters, challenging the recent amendment to the regulations.

New rules permit only those channels which have an MRP of ₹12 or less to be a part of the bouquet.