Question : Monthly Subscription Fees

(a) whether it is true that the reason behind the increase in monthly subscription fees of domestic cable and Direct-to-Home (DTH) consumers is the fixed Network Capacity Fee (NCF) as prescribed by the Telecom Regulatory Authority of India (TRAI) and if so, the reaction of the Government thereto;

(b) the rationale behind increasing the NCF twice in the span of an year for delivering Free-to-Air (FTA) channels;

(c) the methodology adopted to ascertain from the consumers their willingness to pay higher NCF for more FTA channels;

(d) whether TRAI has conducted an assessment of how regulations issued on 01 January, 2020 impact the growth and popularity of Doordarshan’s Freedish DTH platform and if so, the details thereof; and

(e) the steps taken by TRAI to reduce disputes in broadcasting sector?

Answer given by the minister

THE MINISTER OF ENVIRONMENT, FOREST AND CLIMATE CHANGE; MINISTER OF INFORMATION AND BROADCASTING; AND MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI PRAKASH JAVADEKAR)
(a) to (c): Telecom Regulatory Authority of India (TRAI) notified the regulatory framework on 3rd March, 2017 for Broadcasting and Cable Services after due consultation with the stakeholders.
In order to address the issues faced by the consumers, while balancing the interest of broadcasters as well as the Distribution Platform Operators (DPOs) to create a level playing field, TRAI, after due consultation with the stakeholders, issued amendments to the regulatory framework for Broadcasting and Cable Services Sector on 01.01.2020. TRAI has informed that Network Capacity Fee (NCF) has been rationalized. Prior to 1.1.2020, the NCF was Rs.130.00 p.m. for 100 SD Channels. By the 1.1.2020 amendment, for the same amount (Rs.130.00), a subscriber is eligible for 200 SD Channels. If the subscriber intends to subscribe for more than 200 SD Channels, the NCF would be a maximum of Rs.160.00.
(d): No such assessment has been conducted by TRAI.
(e): The main objectives of the regulatory framework are to establish harmonized business process in the sector, ensure level-playing-field, bring in transparency in TV channel pricing, reduce litigations among stakeholders and provide equal opportunities to smaller Multi System Operators (MSOs).
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