LCOs move against TRAI tariff order for cable industry
New Delhi: Local cable operators have moved a plea before the broadcast tribunal TDSAT opposing some of the clauses of a Trai notification over fixation of tariffs for the cable industry.
TRAI has issued guidelines to digitise the cable channels delivery system in all metros by June 30, 2012. It has also fixed tariff rules for cable TV, local cable operators (LCOs) and multi-system operators (MSOs).
Admitting the plea filed by United Cable Operator's Welfare Association, a local cable operators' body, TDSAT issued notice to the sectoral regulator TRAI directing it to file reply within two weeks.
It also gave two weeks time to the association to file rejoinder over it.
In the petition filed by their counsel Gaurang Kanth, local cable operators have opposed some of the clauses of the TRAI notification issued on April 30, saying their share in revenue would come down due to new guideline.
"The LCO would not get anything with respect to free-to-air channels and therefore the same (TRAI order) is irrational and arbitrary and the rates has been fixed by the Respondent (TRAI) without any application of mind," the association said in the plea.
As per the new tariff, charges collected from the subscription of channels of basic service tier, consisting free-to-air channels, shall be shared in the ratio of 55:45 between MSOs and LCOs respectively.
The charges collected from subscription of paid channels shall be shared in the ratio of 65:35 between MSOs and LCOs respectively.
The earlier tariff order of 2006 provided a revenue share model of 45 percent for broadcaster, 30 percent for MSOs and balance 25 percent for LCOs out of the said MRP, with LCOs retaining the whole of free-to-air revenue.
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