Will TRAI’s regulatory framework help DPOs retain their customers?

The Telecom Regulatory Authority of India (TRAI) yesterday (July 8, 2024) notified amendments to the regulatory framework for Broadcasting and Cable Services. Based on the comments of the stakeholders and the discussion held during the open house discussion, as well as noting the level of competition in the market due to the presence of multiple Broadcasters, DPOs (MSO/ DTH/ HITS/ IPTV) and LCOs, TRAI has notified the amendments to Tariff Order 2017, Interconnection Regulations 2017 and QoS Regulation 2017.

The Authority has notified several measures that will benefit the Distribution Platform Operators (DPOs). This is seen as giving a boost to the cable industry, which now have greater hopes of retaining their customers, who have been migrating to digital platforms.

Ceilings of Rs 130 for 200 channels and Rs 160 on more than 200 channels have been removed on Network Capacity Fee (NCF) and is kept under forbearance to make it market driven as well as equitable. Service provider may now charge different NCF based on number of channels, different regions, different customer classes or any combination thereof. To ensure transparency, all such charges have to be mandatorily published by the service providers and communicated to the consumers besides reporting to the TRAI.

Distribution Platform Operators (DPOs) have now been permitted to offer discount up to 45% while forming their bouquets to enable flexibility for them in forming bouquets and to offer attractive deals to the consumers. Earlier this discount was permitted only up to 15%.

A pay channel available at no subscription fee on the DTH platform of the public service broadcaster has to be declared free-to-air by the broadcaster of the channel for all the addressable distribution platforms also so as to have a level-playing field.

DPOs have been mandated to declare tariff of their platform services.

With the proliferation of HD television sets and to encourage transmission of high-definition content, distinction between HD and SD channels has been removed for the purpose of carriage fee.

Carriage fee regime has been simplified and made technology neutral by prescribing only single ceiling for carriage fee, thereby, providing the DPOs with the option to charge a lesser carriage fee as deemed appropriate.

TRAI has also relaxed certain regulatory compliances for small DPOs.

DPOs may display Distributor Retail Price (DRP) in the electronic programme guide (EPG) along with MRP for channels. DPOs will have to categorise platform service channels under the genre ‘Platform Services’ in the EPG. DPOs will also have to display respective MRP of the platform service channel in the EPG against each platform service to ensure transparency.

DPOs can provide an option of activation/ deactivation of any platform service.

MIB may direct private DPOs to adopt and implement interoperable STBs.