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Pointing out that the IBF has prepared a draft paper for TRAI,
as part of a consultation and views-exchanging process, Foundation
sources indicated that the matter of freezing of cable prices as
on 26 December by the regulator too came up for discussion.
Not saying directly that some broadcasters had floated a proposal
on challenging the TRAI order on prices, the sources did admit that
“various options were talked about, but no final view has been taken
yet as the president of the organisation (Prasar Bharati CEO K.S.
Sarma) was not present at today’s meeting.” Sarma is scheduled to
return to India after an official tour of the UK and the US early
Tuesday.
IBF is an apex body of foreign and domestic broadcasting companies
operating in India. In the past, members of the organisation have
had different stand on contentious issues and there have been instances
when during industry presentations, the president and others have
publicly differed on matters like CAS.
However, an IBF member said that as an “individual (broadcaster),
people are free to take decisions whether a TRAI order should be
legally challenged or a more friendly approach has to be adopted
vis-à-vis the new regulator.”
Technically, a TRAI order has to be first challenged in TDSAT,
a tribunal set up for this purpose, before moving the courts.
The price freeze issue has thrown up a unique situation where one
of the pay broadcasters, ESPN-Star Sports, does not get affected
by the TRAI order, while others do. Since ESPN and Star Sports had
increased its prices early December, on the cut-off day, it’s new
price (varying between Rs. 32 and Rs. 37.90, depending on the deal
agreed upon with the cable industry) would be technically taken
as prevalent.
The draft paper prepared by IBF, which is likely to be submitted
to TRAI after some more fine-tuning, dwells on various matters related
to the industry, including the controversial and contentious issue
of conditional access system (CAS).
One of the main concerns of IBF members is that though technically
TRAI has not put a stop to the rollout of CAS in South Delhi, in
deference to the Delhi high court that has said till 5 April the
situation should be reviewed, the cable fraternity is half-heartedly
pushing the boxes in Delhi.
If the MSOs and cable ops gets aggressive, things may become tricky.
Since no agreements for CAS-enabled zone(s) has been signed by MSOs
or cable operators with most broadcasters yet, the latter has to
decide what would be their move if the cable fraternity gets aggressive
on CAS front again.
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