TRAI has released a consultation paper on revenue sharing formula for service providers in CAS notified areas. The issues raised in the consultation paper arise from the order of TDSAT on January 8, 2007 on an appeal filed by Siti Cable Network Ltd challenging the standard interconnection agreement between multi system operators (MSOs) and cable operators for CAS areas.
Siti Cable had filed the appeal against Telecom Regulatory Authority of India (TRAI) for the following relief – to quash and set aside the regulation dated August 24, 2006 of the TRAI to the extent it provides/ stipulates that the entire basic service tier fee is to be retained by the cable operator and that no share from that fee is payable by the cable operator to the MSO; and to direct TRAI to undertake a specific exercise of determining the ratio of revenue share for the basic service tier fee – to be divided/ shared between the MSO and the affiliate cable operators – having regard to the relevant factors such as infrastructural and running costs etc. being deployed by the MSOs for providing signals of basic tier channels to the affiliate cable operators.
Apart from the relief mentioned above. Siti Cable also sought interim relief by way of an order staying the operation of the relevant portion of the Regulations/ direction dated August 24, 2006 during the pendency of the appeal.
The issues posed for consultation include: What should be the share of MSOs and cable operators out of subscription charges for basic service tier? The basis for arriving at the distribution proposed should also be given. What should be the share of MSOs and cable operators out of carriage fee? The basis for arriving at the distribution proposed should also be given.