Broadcaster, Cable Operators Trade Charges Over Hiked Tariff As 4.5 Cr Families Lose Access To Popular TV Channels

Around 4.5 crore cable TV families across the country are said to have lost access to watch channels transmitted by broadcasters as cable operators and broadcasters spar over hiked charges under New Tariff Order.

Under NTO 3.0, which is to be implemented in February, prices of the popular channels have been increased by 15 per cent.

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New Delhi: Leading broadcasters including Disney Star, Zee Entertainment Enterprises, and Sony Pictures Networks India Ltd have stopped providing feed to local cable/multi-system operators who refused to sign fresh agreements on increased prices under the New Tariff Order (NTO) 3.0. Both sides on Sunday exchanged barbs over the hiked rates.

The Indian Broadcasting and Digital Foundation (IBDF) in a statement on Sunday alleged that All India Digital Cable Federation (AIDCF) members of making "inaccurate remarks regarding the new price regime" and invoking "consumer sentiment", news agency PTI reported.

AIDCF, the apex body of digital cable television players, responded back charging that broadcasters have "significantly increased their channel prices and bouquet prices by approximately 18 - 35 per cent" which will affect the consumer price.

"Average price increase across different areas of the country expected to be in the range of Rs 30 to Rs100 per month depending on the channels/bouquets opted by the consumer," the AIDCF statement read, adding it "will result in a cost of close to Rs 5,000 crore to Rs 8,000 crore per annum to consumers which will largely benefit the broadcasters".

Earlier, AIDCF stated that around 4.5 crore cable TV families across the country are not able to watch channels transmitted by broadcasters.

Broadcasters Body Hits Back Over Pricing Concerns

Previously, IBDF, a body that represents broadcasters and digital streaming platforms, stated that the subscriber has the flexibility of choice on whether to pick one channel or a bouquet of channels under the new pricing regime.

Under NTO 3.0, which is to be implemented in February, prices of the popular channels have been increased by 15 per cent.

IBDF contended that the maximum monthly subscription fee for a channel to be included in a bouquet is Rs 19/- which is lesser than the price of essentials in the country.

"The attempt of the AIDCF to invoke consumer sentiment on the price increase is belied by their attempt to increase that portion of the consumer bill that goes only to the AIDCF members, i.e. Network Capacity Fees (NCF)," it stated, as per PTI.

Three leading broadcasters - Disney-Star, Sony and Zee - have switched off their channels from Saturday morning to the cable operators. 

Earlier, the broadcasters issued notices on February 15 to cable operators/Multi System Operators to sign the new Reference Interconnect Offer (RIO) for New Tariff Order (NTO) 3.0 issued by the sectoral regulator TRAI.

Nearly 45 Million Households Are Affected Who Are Unable To See The Channels: Cable Service Providers

However, cable service providers did not heed it leading to the disconnection of signals by the broadcasters.

"Nearly 45 million households are affected who are unable to see the channels from these broadcasters," it said adding "Now, broadcasters are urging consumers to go through the inconvenience of changing their service provider for their own limited benefit." However, IBDF said NTO 3.0 was brought by the Telecom Regulatory Authority of India (TRAI) after an extensive consultative process.

"AIDCF and its members also participated in the consultative process and were clearly aware of the timelines prescribed by TRAI. They understood that the law mandates that the TV channels could only be provisioned under a signed interconnect agreement," IBDF stated, as per PTI.

All DTH providers and most of the cable operators, including some AIDCF members, have implemented the amended regulatory framework.

"Consequently, more than 90 per cent of the DPOs have signed the revised interconnect agreement issued by the broadcasters, thereby choosing to comply with the law and ensuring that the service is not disrupted for the majority of the subscribers," IBDF mentioned in its statement.

The broadcasters' body further emphasised the broadcasters are under "no legal obligation to provide" any additional opportunity to the AIDCF members, they offered such DPOs additional 48 hours to sign the revised interconnect agreement in order to continue receiving TV signals without interruption, keeping in mind the interest of the subscribers.

"The broadcasters, therefore, had no legal recourse but to disconnect TV services from the DPOs that refused to comply with the regulatory framework," it stated.

While AIDCF said the association and MSOs have challenged NTO 3.0 before the High court of Kerala requesting a stay on this TRAI amendment.

"Various LCO associations have also filed their requested to put a stay on this TRAI amendment," it added, as per PTI.