Opinion | Trai’s new DTH rules has caused disruption

Some call it the demonetization of the television industry in its scope and impact. The new tariff order (NTO) by the Telecom Regulatory Authority of India (Trai) has far-reaching implications for all stakeholders—broadcasters, advertisers, consumers and distribution platform owners such as cable operators and direct-to-home (DTH) companies. According to the new tariff regulations, broadcasters have to specify the prices of each channel and consumers can pick and choose them based on viewing preferences. This is in contrast to the earlier fixed and bundled packages that cable operators and DTH companies offered. In a note issued on 12 February, Trai said that of the 100 million cable service TV homes, 65% have migrated to the new regime and of the 67 million DTH homes, 35% subscribers have already exercised the option. However, it also extended the deadline for consumers to choose their channels, from 1 February to 31 March.