Wednesday 13 August 2014

LCOs, MSO, and DTH Operators Challenge 27.5 % hike in pay Channels

Post June 11 meeting of all India Cable Operators Associations in New Delhi and as a result of presentation given by COFI President, Mrs Roop Sharma on DAS regulation, their impact on the business of an LCO, in particular regarding infringement of their fundamental rights, awareness of legal and regulatory issues in the cable operators has gone up considerably.
This was evident when more than 15 cable operator associations across the nation intervened in the appeal challenging the legality of Telecom Regulatory Authority of India’s (TRAI) 27.5 per cent inflation-linked tariff hike for non-addressable system.  

The associations have become interveners in the case that has Centre for Transforming India (CTI) and Home Cable Network as principal petitioners.
The main issue of the local cable operators (LCO) is that TRAI has unilaterally hiked the non-addressable tariff without consulting the stakeholders. The tariff hike will have an impact not just on non-addressable tariff, but also on addressable tariff since the latter is 42 per cent of the former. 
Among DTH operators, Dish TV and Videocon have joined as an intervener in the matter.  
The tribunal has clubbed all the petitions and put up the matter for final disposal on 4 August. 
During the first hearing, the tribunal had stated that in case any stakeholder in the broadcasting sector including any individual broadcaster or association of broadcasters wishes to intervene in the matter, they must file a proper petition by 4 July. 
In case any intervention is allowed, all parties brought on record must complete the pleading latest by 26 July, after which no pleading may be accepted. 
The tribunal also directed all stakeholders to keep a separate account with regard to the collections on the basis of the order. 
In case the appeals are successful, the individual subscribers making any excess payment in terms of the order will be entitled to adjustments for the succeeding months from the respective LCOs/MSOs. Similarly, the LCOs will be entitled to adjustments from the MSOs and the LCOs, while the MSOs will be eligible for adjustments from the broadcasters, the tribunal stated. 
Those who have filed interventions include cable associations of Gujarat, Greater Guwahati, Uttar Pradesh, Chandigarh, All Delhi Cable Operators Association, Sai Cable Operators Association Delhi, Karnataka State Cable Operators Association, and Amritsar Cable Operators Sangharsh Samiti.
The Telecom Regulatory Authority of India (TRAI) on 31st March 2014 through a notification of the Tariff Order namely the “Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Eleventh Amendment) Order, 2014”, has allowed 27.5% inflation linked hike in the tariff ceilings. These revisions are applicable both at the wholesale and retail levels. 
Based on the rise in the wholesale price index (WPI) over the last five years and considering the other relevant factors, the Authority has brought an overall 27.5% inflation hike. However, the Authority is of the view that a hike to the tune of 27.5% in a single go would not be appropriate for the market and the consumers to adjust to. Therefore, the Authority has prescribed this hike to be implemented in two installments. The first installment of 15% shall be effective from 1st April 2014. The second installment for the remaining inflation linked increase shall be made effective from 1st January 2015 which shall be notified subsequently. This is expected to give enough and reasonable time to all the stakeholders to adjust to these hikes.
Source: http://cablequest.org/news/digitization-news/item/5692-lcos,-mso,-and-dth-operators-challenge-27-5-hike-in-pay-channels.html
Source: http://cablequest.org/news/digitization-news/item/5692-lcos,-mso,-and-dth-operators-challenge-27-5-hike-in-pay-channels.html

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