Home >> Media-TV >> Article

TRAI holds open house over tariff issues related to commercial subscribers

19-August-2015
Font Size   16
TRAI holds open house over tariff issues related to commercial subscribers

Member channels of the Indian Broadcasting Foundation (IBF), the apex body of broadcasters in the country, presented a unanimous viewpoint during the open house discussion on “Tariff Issues related to Commercial Subscribers” conducted by the Telecom Regulatory Authority of India (TRAI) here on Tuesday.

 At the outset, the Foundation welcomed the open house initiative held under the stewardship of new TRAI Chairman Ram Sewak Sharma so as to take forward the consultation process the regulator had begun on 14 July 2015.

?? The issues discussed included the differentiation between domestic and commercial subscribers for provision of TV signals, the criteria for drawing distinction between ordinary subscribers and commercial subscribers, tariff framework both at wholesale and ? retail levels, transparency and accountability in value chain to effectively minimize disputes and conflicts among stakeholders and engagement of broadcasters in the determination of retail tariffs for commercial subscribers.

 Commenting on the deliberations, IBF President Uday Shankar said: “It is inconceivable that any sector regulator would actually equate five star hotels and commercial establishments with domestic consumers as far as tariffs are concerned. But that’s exactly what TRAI has done with rates for pay TV channels. I am not sure what exactly the regulator is trying to achieve with the present dispensation, i.e. five star hotels availing TV content at subsidized rates especially when they charge a leg and arm for a room, a meal or even a bottle of water? It appears to be a case of misguided regulatory zeal. I hope better sense prevails and the regulator does what is in the interest of its primary stakeholders, i.e. broadcasters and distribution platforms and not five star and four star hotels.”

Participating in the open house, IBF Secretary General  Girish Srivastava said: “In keeping with the priorities of the current government of improving ease of doing business in India, such fixation is not warranted and forbearance should be the way forward. We believe that the regulator will factor that putting a ceiling on tariff will not help in promoting and protecting the interests of the ordinary consumers but will serve as an aberration to the growth story of the sector. Broadcasters have been unvarying and undeviating on this front and the regulator will hopefully keep this in mind before deciding on a regulation.”

 Ashok Nambissan, General Counsel, Multiscreen Media Limited, said, “Commercial and residential subscribers are two completely different categories. The residential subscriber consumes television content for his or her own use whereas the commercial subscriber provides television content for his customers to propagate the business of his establishment. Tariff regulation in today’s age is an anomaly: in any event it should not exist for commercial subscribers as a category whether at the wholesale or retail level and should be left to the market.'

A. Mohan, President (Legal & Regulatory), Zee Entertainment, said “All along it has been TRAI’s consistent stand that there is a distinction between ordinary and commercial subscribers and the same has been recognized by various judicial forums such as the Hon’ble TDSAT and the Hon’ble Supreme Court of India.  This stand of TRAI is also reflected in various tariff orders of TRAI, except the last one, that the tariff applicable to commercial subscribers is under forbearance. Since the commercial establishments will use the television services for commercial exploitation, whether directly or indirectly, the tariff applicable for ordinary subscriber, which is frozen since the year 2004 (which is a subsidized tariff) cannot be applied to commercial subscribers.”

Deepak Jacob, President, Legal & Regulatory, STAR India, said, “Supreme Court has time and again in sectors such as oil & gas and power, clearly upheld the principles of differential tariffs for commercial and domestic subscribers. The rationale of differentiation is based on an understanding of motive and purpose i.e. commercial establishments have a clear profit motive and that the end usage is for a valuable benefit that accrues to and is built in to the charges paid by the consumer. It is also important that the regulator respects the mandate of Parliament and acts in accordance with laws laid down by the legislature by ensuring that the TRAI regulations/tariff orders are not in derogation of or repugnant to the provisions of Copyright Act, which is the principle legislation that governs content owners including broadcasters. The Copyright Act unequivocally provides for a separate dispensation in so far as commercial establishments are concerned and hence we hope that the regulator keeps the same in mind while formulating the new tariff regime.”         

Naveen Jhunjhunwala, COO, BBC India, said “We strongly advocate a distinction between ordinary and commercial subscribers as far as tariff is concerned since the place of viewing the TV signal and type of usage of TV signals is inherently different in both these categories. Having a global presence, we have seen that the regulators have left determination of tariffs to forbearance thereby ensuring dynamic competition.  With Government focus on making India an easier place to do business, leaving things to market forces will ensure growth and be in line with international scenario.” 

Representatives of the Indian Broadcasting Federation (IBF), DTH Association, MSO Alliances, All India Digital Cable Federation (AIDCF), Federation of Hotel and Restaurant Association of India (FHRAI), and individual broadcasters were present at the open house.

Tags IBF Ram Sewak Sharma Uday Shankar TRAI

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

Radio Mirchi maintained its top spot while Fever FM replaced Big FM at the second spot in Kolkata

Singh explains why marketers should focus more on maintaining the core essence of a brand and not just innovations

Venkat brings with him over 20 years of extensive experience of working in media, creative, cultural and knowledge industries on several international projects in over 30 countries.