In a move that is deemed to give more power to the consumers, the Telecom Regulatory Authority of India (TRAI) has changed the direct-to-home (DTH) and cable television rules which will be effective from February 1, 2019.
So far, the service providers used to design channel packages in such a way that the consumer had to pay for the channels which they wouldn't even watch.
After a series of deliberations, the telecom watchdog, TRAI, had introduced the new norms to modify the system in favour of the consumers. TRAI's new regulations came into effect from December 29, 2018, and all service providers have to fall in line by January 31, 2019. The new regulation offers a fair-pricing model for both consumers and broadcasters, and the service providers will have to comply with the needs of both parties.
What are the new regulations
Basic package
Under the new norms, the consumer will have to opt for a mandatory basic package with 100 standard definition (SD) channels.
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The service providers can charge a "maximum" network capacity fee (NCF) of Rs 130 plus 18 per cent GST for the basic package, which will only have free-to-air channels. However, the effective price of the basic package will be lower than Rs 130 since the service providers (DTH providers like Tata Sky, Airtel TV, and others, and cable operators like DEN Networks, Hathway and others) will naturally compete for higher market share. Similarly, the service providers are also expected to include channels preferred by the consumers, per se, more regional content. Airtel TV and Hathway have already announced a basic package for Rs 99 plus 18 per cent GST.
Any subscriber who opts for more than 100 channels can choose additional channels in each slab of 25 channels available at a "maximum" price of Rs 20 per slab. It means if a consumer adds 25 more channels to the list of 100 channels in the basic package, then the effective cost will be Rs 130 plus 20, plus the MRP of all paid channels in the list (if any) plus 18 per cent GST.
If a consumer is choosing a high definition (HD) channel, it will be counted as two SD channels.
À la carte
The most interesting part of the new norms is the à la carte rule which allows consumers to create their own channel packages. However, the consumers will have to pay for these channels individually (pay per channel) as most of the preferred free-to-air channels will be included in the basic package.
Bouquets
Under the new norms, broadcasters have the freedom to form and offer bouquets (a bundle of channels) subject to certain provisions. However, every channel should also be offered on an à la carte basis to the consumers.
Regulations on bouquets are as follows:
Free-to-air channel and pay channel cannot be part of the same bouquet
SD and HD variant of same channel cannot be in one bouquet
Any channel having an MRP of more than Rs 19 cannot be part of a bouquet
Consumers can subscribe to any number of bouquets as per its choice. Any combination of à la carte channels and bouquets is also permitted.
P.S.: Broadcasters have announced the prices of channels and bouquets. Most of the service providers are yet to announce the final list probably because a hearing on the TRAI regulations is on in the Delhi High Court. The High Court has adjourned the case to January 30.
