Trai sets new rules on channel prices, network capacity fee

The Telecom Regulatory Authority of India (Trai) has set a ₹160 price ceiling for all channels available on a distributor’s platform as a move to reduce rising costs for subscribers. This tariff norm is a fallout of its 2019 tariff order.

Trai has said that it had decided to modify certain provisions of the new tariff order (NTO) to address the issue of huge discounts offered by broadcasters when channels are sold as a bouquet vis-à-vis sum of the cost of à la carte channels.

Trai has declared that the sum of the à la carte rates of the pay channels (MRP) forming part of a bouquet shall in no case exceed one-and-a-half times the rate of the bouquet of which such pay channels are a part; and the a la carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.

Trai has decided that only those channels with MRP of ₹12 or less will be permitted to be part of the bouquet offered by broadcasters.

Trai has also mandated the provision of 200 channels in maximum NCF (network capacity fee) of ₹130 excluding taxes per month. It has also been decided that channels declared mandatory by ministry of information and broadcasting will not be counted in number of channels in the NCF. DPOs (distribution platform operators) have also been mandated that they will not charge more than ₹160 per month for giving all channels available on their platform.