TRAI fixes Rs 5 as ceiling for pay channels

NEW DELHI: Broadcast regulator TRAI on Thursday announced a Rs five ceiling on monthly prices of individual pay channels in CAS areas, rejecting demands by broadcasters for higher rates.

Telecom Regulatory Authority of India (TRAI) also refused to review the Rs 77 cap on pricing of free-to-air (FTA) channels, apart from laying down consumer-friendly guidelines for procurement of set-top boxes which enable a subscriber to access pay channels in a CAS regime.

"In our view, these measures seek to promote fair play and justice, and are not necessarily expanding the domain of intervention," TRAI said in its order which paves the way for implementation of the CAS regime in notified areas of Delhi, Mumbai and Kolkata from January 1 next year.

TRAI said it decided to go for a ceiling on channel pricing as it found the rates reported by the broadcasters as "too high". With this order, a subscriber in a CAS area can get access to around 22 pay channels apart from the FTA bouquet within a Rs 200 package monthly.

"Accordingly, it has now fixed a general ceiling on MRP. The individual pay channel prices are to be fixed by the broadcasters within this ceiling," it said.

However, the Authority allowed broadcasters and multi-system operators to form bouquets and provide discounts for the same, apart from providing pay channels on an a-la-carte basis.

"To provide some stability to the revenues of the broadcasters, it has also been provided that the MRPs will apply only where the subscription is for a minimum period of four months," TRAI said.