TRAI directs broadcasters, DPOs to take steps for smooth roll-out of NTO 2.0 from 1 Mar

Even as the new tariff order (NTO) 2.0 has been challenged by stakeholders in different High Courts, the Telecom Regulatory Authority of India (TRAI) has today confirmed that the 1st March deadline for implementing the Tariff Amendment Order 2020 stands and there is no change in the timelines provided by the regulator earlier.

The regulator has directed pay broadcasters and distribution platform operators (DPOs) to publish required information on their website to allow consumers to exercise their choice of channels and bouquets before 1st March.

The TRAI stated that all pay broadcasters were required to report to TRAI, and simultaneously publish on their website, any change in (a) retail prices, per month, of channels and bouquets; and (b) composition of bouquets by 15th January.

Likewise, all DPOs were required to report to TRAI, and simultaneously publish on their website, any change in (a) network capacity fee; (b) distributor retail prices of pay channels; (c) composition of bouquets of pay channels; (d) composition of bouquets of free-to-air channels; (e) network capacity fee for additional connection beyond first connection in multi TV homes; and (f) network capacity fee for long term subscriptions, as the case may be, by 30th January.

However, the TRAI observed that so far many broadcasters have neither reported nor published the requisite information in terms of the Tariff Amendment Order 2020. It also noted that from the information available on the websites of many Broadcasters that most of the existing bouquets of pay channels are not in compliance with the provisions of the Tariff Order 2017 (as amended by the Tariff Amendment Order 2020).

Similarly, quite a few DPOs have also not published the required information on their website nor composition of new bouquets compliant to Tariff Amendment Order (TAO) dated 1st January 2020 have been published.

Further, to ensure that consumers at large are kept fully appraised, all concerned are required to ensure that information about all such existing bouquets which do not conform to the provisions of Tariff Order 2020 and which shall not be available for the consumers on or after 1st March 2020 may be suitably indicated on their website, the TRAI said in a press release.

The regulator stated that the provisions of the Tariff Amendment Order 2020 are to come into force from 1st March 2020 and several preparatory activities are to be carried out by service providers in a time-bound manner. This is to ensure that sufficient time is actually available to the consumers to exercise their choice of channels and bouquets before 1st March 2020.

“Therefore, all service providers concerned may take suitable steps to ensure that the consumers have enough time to make their choices of channels so that the smooth transition takes place on 1st March 2020,” it stated.

It is pertinent to note that the amended tariff order and regulations have been challenged before Bombay High Court, Gujarat High Court, Kerala High Court, and Madras High Court. Barring Kerala, the High Courts have not granted any interim relief to any of the parties.

In the case of All India Digital Cable Federation (AIDCF), the Kerala High Court has directed TRAI that steps which will be detrimental to the interest of the petitioner (AIDCF) shall be deferred till 18th February, which is the next date of hearing.

The federation had prayed for a stay on clauses relating to placing of channels on Electronic Programme Guide (EPG), carriage fee cap of Rs 4 lakh, target market definition and calculating the discontinuation threshold for a television channel. The AIDCF prayed that these provisions limit their flexibility to do business.

The broadcasters, on the other hand, have challenged the TRAI’s new amendments stating that they infringe on their fundamental rights. Among the key amendments that the broadcasters have challenged include, 1) arbitrary reduction of MRP cap to Rs 12 from Rs 19, 2) Imposition of twin conditions on bouquet pricing, and 3) restricting incentives only to a la carte. The amended tariff order and regulations come into force from 1st March.