Fastway to withdraw its appeal against NTO 1.0 from TDSAT

Multi system operator (MSO) Fastway Transmissions is withdrawing its appeal against the new tariff order (NTO) 1.0 from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Advocate Varun Mathur, who appeared for Fastway counsel GS Oberoi, stated on instructions that this matter has now become infructuous on account of notification of a new tariff order by Telecom Regulatory Authority of India (TRAI).

He, therefore, prayed for withdrawal of the appeal. The tribunal listed the matter on 2nd March for directions. At a later stage, TRAI counsel Arjun Natarajan was apprised of the order passed in the matter.

TRAI had on 1st January 2020 issued amended tariff order, interconnection regulation, and quality of services (QoS) regulations. The amended regulatory framework is known as NTO 2.0.

Through NTO 2.0, the TRAI had reduced MRP cap to Rs 12 from Rs 19. It has imposed twin conditions on bouquet pricing. It has also restricted incentives only to a la carte.

The regulator has also capped the network capacity fee (NCF) at Rs 160. Further, the distribution platform operators (DPOs) can charge a maximum of 40% of declared NCF for second and additional TV connections.

A cap of Rs 4 lakh per month has been prescribed on carriage fee payable by a broadcaster to a DPO in a month for carrying a channel in the country.

In December 2018, Fastway had moved TDSAT arguing that the regulator should wait for the Supreme Court judgement since it has appealed against the dissenting judgement of the Madras High Court’s Chief Justice of India setting aside the clause which states that broadcasters cannot offer more than 15% discount on the bouquet price.

The MSO had argued that the authority should have enforced the tariff order 2017, as well as Quality of Service Regulations, 2017 in toto without deciding to prefer a belated appeal before the apex court against what it calls, was a mere observation in the dissenting judgment of the then Chief Justice of Madras High Court.

Fastway counsel Meet Malhotra had argued that there was no clear-cut finding that any part of tariff order or the Regulation was ultra vires, rather final outcome was total dismissal of the writ petition by the then Chief Justice and to that judgement, the third Judge expressed his total concurrence.

In January 2019, the TRAI’s appeal on 15% bouquet discount cap was dismissed as withdrawn in the Supreme Court. TRAI had filed an appeal before the apex court for upholding the clause that caps discounts that can be offered by broadcasters on bouquets to 15%.

The bench of Justice Rohinton Fali Nariman and Justice Vineet Saran had noted that the regulator has delayed in seeking clarification on the said clause. It had also stated that the apex court has given its judgement in the matter by upholding the TRAI’s jurisdiction to frame tariff and regulation for the broadcasting sector.