Stability over structural change: Industry’s big ask from TRAI’s NTO 4.0

As the television industry awaits the Telecom Regulatory Authority of India’s (TRAI) New Tariff Order (NTO 4.0), expectations are running high across the value chain. Broadcasters, distribution platform operators (DPOs), and cable players are looking for clarity, predictability and pricing fairness in what could become the most significant tariff reset since 2022.

While some stakeholders are calling for greater flexibility and simplification, others warn against yet another overhaul that could deepen uncertainty in an already fragile market.

A section of broadcasters believes the upcoming revision is an “unnecessary attempt”, arguing that TRAI’s focus on platform neutrality in content pricing is a grey area as OTT services continue unregulated.

“As far as DPOs demanding freedom to create bouquets is concerned, DPOs already have the a-la-carte option. Hence this demand is erratic and uncalled for,” one broadcaster said.

On the other hand, distribution and cable representatives argue that the current system favours large broadcasters and has constrained innovation at the platform level. They want TRAI to allow DPOs to design their own packages, reduce prescriptive caps for niche channels and ultimately move towards tariff forbearance, a lighter regulatory regime where market forces decide prices. One industry expert summed it up as the need to “simplify the entire tariff regime and gradually move towards forbearance.”

According to sources, TRAI could bring the consultation paper on NTO 4.0 next month and take up to 4-5 months to finalise a draft.

Broadcast expert Rajiv Khattar noted, “I expect that TRAI will look at how to allow DPO to make their own packages. It may not yet look at full tariff freedom, however ease the same for niche channels.”

He added, “It will be great if TRAI simplifies the whole tariff regime and moves towards tariff forbearance.”

From the cable industry side, an expert said, “The New NTO should bring reforms in the TV industry, wherein consumers can get DTH & Cable TV services at affordable prices. The linear TV regulatory ecosystem should be made flexible so that it can compete effectively with Free Dish, OTT and FAST TV.”

Also read: Cable operators to TRAI: Give us the power to unbundle channel bouquets

Cable operators write to TRAI to push for OTT regulation: Report

Another observer added that broadcasters must focus on bringing strong content back to linear television, while DPOs should be allowed to form bouquets based on consumer choice “bringing in more innovation” and “economic benefit to the consumer.”

With three major tariff orders in six years, stakeholders believe that it has created fatigue and investment hesitation. Many stakeholders are urging TRAI to prioritise stability over structural change in NTO 4.0.

Industry experts, including some broadcasters, argue that without OTT regulation, parity is impossible. Linear TV remains under price caps and compliance mandates, while OTT operates freely. A unified regime, if implemented prematurely, could hurt broadcasters more than it helps consumers.

Experts said that consumer behaviour has made the per-channel MRP model obsolete.
as consumers now follow content brands rather than channels, with pay-TV homes declining from 151 million in 2018 to 111 million in 2024. The per-channel model may not reflect today’s viewing realities.

Broadcasters believe ₹19 is too low for premium or sports channels, limiting monetisation, while distributors argue it still allows enough headroom. A tiered or category-based ceiling could balance affordability and market value.

Also read:Channel price hike: Are broadcasters and cable operators nearing a compromise?

Despite multiple tariff interventions, the industry continues to see price inflation.

Experts suggest overall channel MRPs have risen by 250–600% in the past five years. Broadcasters attribute this to rising input costs and content inflation, while DPOs blame regulatory design and bouquet rigidity.

As one expert put it, “Market forces should determine satellite channel prices,” underscoring that true stability will come only when the market, not repeated regulatory changes, drives pricing and packaging.

How the NTO has evolved

Since the first New Tariff Order (NTO 1.0) in 2017, TRAI’s aim has been to make television pricing more transparent and consumer-friendly. Yet, each revision, NTO 2.0 in 2020 and NTO 3.0 in 2022, has introduced new challenges and disagreements between broadcasters and distributors.

NTO 2.0 imposed stricter rules as channels in bouquets had to be priced below ₹12, and the network capacity fee (NCF) was fixed at ₹130 for 200 channels.

NTO 3.0 relaxed some of these restrictions by restoring the ₹19 ceiling per channel and allowing bouquet discounts of up to 45%. This gave broadcasters more pricing flexibility than under NTO 2.0’s tighter caps.

Over time, MRPs of popular channels have risen steeply, some by as much as 90% under NTO 2.0, with bouquet prices climbing from roughly ₹350 to ₹420 a month.

However, NTO 3.0 saw a rift between cable industry and broadcasters with the former taking the matter to court alleging that the new prices had led to a loss of customer base for them. Many big broadcasters had even stopped their channels as cable operators did not agree to raise channel rates under NTO 3.0.

While TRAI’s intent was to give consumers the power of choice, distributors and viewers said overall costs have increased as broadcasters raised a-la-carte prices or pushed non-driver channels through bouquets.

Broadcasters, however, argued that they operate within TRAI’s price ceilings and that content costs have escalated due to inflation, sports rights, and production investments.

However, the standoff was over after the cable operators failed to get an interim relief through the legal route and agreed to sign the fresh RIOs (reference interconnection offer) following which the channels were restored.