TRAI’s new tariff order for DTH, Cable TV operators challenged

The first bench comprising Justice A P Sahi and Justice Subramonium Prasad before whom the plea came up for hearing granted permission to the petitioner to implead Ministry of Information and Broadcasting as a respondent in the case.

Based on this the bench held, “Having considered the submissions raised, we find that the challenge raised deserves to be answered by the Ministry of Information and Broadcasting and we haveaccordingly put the Union of India alsoon notice.”

Granting time to the Additional Solicitor General to file an affidavit on behalf of TRAI as well, the bench adjourned the case to February 4, 2020. Senior Advocate Gopal Jain appearing for Sun TV network submitted that the impugned tariff as well as the regulations cumulatively have resulted in a regulatory shock without assessing or analysing the entire foundation for bringing about the changed tariff.

He further pointed out that a decision has been hastily taken and there was absolutely no material available either scientifically or legally that could support the introduction of the tariff, which is not subscriber friendly.

It was also argued that neither the broadcaster nor the subscriber are to gain and its rather the middlemen who would be absolutely gaining out of this transaction, where they have an assured revenue without caring for any assessment of the choice or the price affordability vis-a-vis the ultimate consumer or the broadcaster.

The new rules allow broadcasters to include a channel in a pack only if it is priced at Rs 12 or less whileearlier it had allowed channels inside a bouquet if it was priced at Rs 19 or below.

While TRAI claims that the new provision has been inserted to make sure that broadcasters do not try to push channel packages down consumers throats by providing incentives to cable and DTH companies, broadcasters don’t prefer consumers purchasing channels individually and would rather have them buy bouquets or packs since if consumers start buying channels one-by-one their less popular channels will find no takers.

The bench was also informed that the Indian Broadcasting Corporation of which Sun TV is a member, had already assailed and raisedthis challenge before the Bombay High Court.