NTO standoff continues in broadcasting sector

A statement from the broadcast regulator said the decision was based on requests received from stakeholders, mostly distribution platform operators (DPOs), seeking extension due to the pandemic, and their efforts to reach out to the Covid-affected areas for collection. was incapacity.

TRAI in its notification said that television broadcasters can report any change in the name, nature, language, maximum retail price (MRP) of channels or bouquet per month as per the new structure till February 28. Broadcasters who have already filed a Reference Interconnect Offer (RIO) can also modify the same by the same date.

Broadcasters, who are fighting Trai in court over NTO 2.0 and contending that the cable industry sided with the regulator against them, have filed new prices in anticipation of NTO 2.0, which is currently on hold. Cleverly, they have withdrawn their popular flagship channels from the bouquet as the cost of a channel in a bouquet cannot be high 12 As per NTO 2.0. Flagship channels now priced differently 19 more 22. Obviously, without these channels, the attractiveness of bouquets among the subscribers is reduced, causing trouble to the cable operators.

The All India Digital Cable Federation (AIDCF), the apex body for digital multi-system operators (MSOs), has written a letter to TRAI on the matter, expressing concern about the significant increase in the prices of their driver channels by broadcasters in Rio. Has been. ,

“Broadcasters continue to abuse their freedom and resort to the process of imposing arbitrary prices on their channels,” he said in his note. He called the pricing model “irrational”, causing “an undue burden on existing cable TV customers”. And this can result in “customer erosion”.

AIDCF said it has received representations from local cable operators (LCOs) stating that “implementation of NTO 2.0 in its current structure and form will result in substantial loss of LCO’s customer base and livelihood … at additional cost.” and expenditure”.

Ironically, television broadcasting companies have been arguing from the very beginning that NTO’s pressure to offer channels to subscribers on an la carte basis will lead to an increase in cable bills. While critics of broadcast companies argue that they are playing the game by overtaking their channels, TV channels claim that they risk losing subscribers and advertising revenue through this move.

Their revised pricing is not “arbitrary” as they are within the new regulatory framework. “If such a pricing model is likely to burden cable TV customers, the issue lies with the regulatory framework that has allowed such a pricing model,” it said. A TV industry executive is not being named. He said the industry reiterates its stand that channel bundling is in the best interest of the consumer, providing maximum options at very competitive rates.

Interestingly, condemning the channel price hike, cable operators have demanded for themselves an increase in the Network Capacity Fee (NCF), which they charge from subscribers for their services.

Clearly, the battle between channel vs bundling is not over yet. And there are no easy solutions either. For now, the impasse continues while the matter is soon to come to the Supreme Court. It may be recalled that the Indian Broadcasting Digital Foundation (IBDF), the representative body of television broadcasters, had approached the Supreme Court against the Bombay High Court order upholding the TRAI order.

Yet there has been some easing in the relationship between TRAI and the broadcasters. TRAI Chairman PD Vaghela publicly stated the regulator’s commitment to ensure ease of doing business for the telecom and broadcasting sectors. “The motto of TRAI is to create an equal opportunity for all stakeholders… and ensure a balance between broadcasters and distribution operators,” he said at the Big Picture Summit organized by the Confederation of Indian Industry (CII). Is there a new team in TRAI,” said K. Madhavan, chairman of CII’s National Committee on Media and Entertainment and chairman of The Walt Disney Company India and Star India Mint, “We can sit together and find a solution. We’re working on it. I don’t know how far we’ll be successful.”

Shuchi Bansal Mint Media, Marketing and Advertising Editor. The Ordinary Post will look into the pre-ssing issues related to these three. Or just fun stuff.