(Updated on 3 September 2007 9:30 pm)
(3 September 2007 6:30 pm)

NEW DELHI: The Telecom Regulatory Authority of India (Trai) has made it mandatory for all broadcasters to offer channels on an a la carte basis to all direct to home (DTH) operators on a non-discriminatory basis.

Trai has given the formula for fixing the prices of the channels, which is the following:

• The sum of the a-la-carte rates of the pay channels forming part of such a bouquet shall in no case exceed one and half times of the rate of that bouquet of which such pay channels are a part; and
• The a-la-carte rates of each pay channel, forming part of such a bouquet, shall in no case exceed three times the average rate of a pay channel of that bouquet of which such pay channel is a part and
• The average rate of a pay channel of the bouquet be calculated in the following manner: if the bouquet rate is Rs 'X' per month per subscriber and the number of pay channels is 'Y' in a bouquet, then the average pay channel rate of the bouquet shall be Rs. 'X' divided by number of pay channels 'Y'.

The new regulation says that the broadcasters will have to put up the Reference Interconnection Offers on their websites and make the offers to any DTH player - existing or upcoming within 45 days of receiving a request for such an offer.

However, the regulator has issued what it terms as a 'light-touch regulation' and left the broadcasters to work out the Reference Interconnection Offers (RIO) as per their business needs but within the framework now issued.

Trai reserves the right to intervene in case things do not work out as per the regulation.

Trai says that this is why it has opted for a RIO instead of the Standard Interconnection Offer which is the case with players in the Cas (conditional access system) space.

On the issue of regulating Carriage Fee, the regulation has left it open to be worked out by the market forces.

The regulation says that broadcasters would still be free to work out bouquets and offer them to DTH operators, provided that the former do not force the operators to make such offers to the subscribers.

The broadcasters have to put up their Reference Interconnection Offers on their websites on the basis of the latest amendment and inform all DTH operators the various issues within 90 days from the commencement of the Telecommunication (Broadcasting and Cable Services) Interconnection (Fourth Amendment) Regulation, 2007.

Among the issues on which the broadcasters will have to inform DTH players are rates of the channels on a la carte basis, details of discounts, if any; payment terms; security and anti-piracy requirements; subscriber reports based on subscriber management system and audit; tenure of agreement; and termination of agreements.

Trai has said in the explanatory note to the latest amendment that since more DTH players are coming in, and after analysing the comments of all stakeholders - especially DTH operators, broadcasters and subscribers - it had been found important to have a regulatory framework.

Trai says that in view of the increasing competition between DTH and cable TV for providing pay TV services, it has become necessary to examine the issue of level playing field for Cas and DTH operators.

Referring to the Tdsat (Telecom Disputes Settlement and Appellate Tribunal) order in the TataSky Vs Zee Turner, in which Zee had strenuously argued that Trai regulations imply a 'must carry' provision, the sector regulator says that the sector tribunal had also said that it is physically impossible for any DTH player to carry all the channels of all the broadcasters.

The Tdsat () had said that Trai regulations does not seem to suggest must carry. It asked Trai to look into the transponder space crunch issue and see if there is need for a regulatory framework for the DTH sector.

The latest regulations seem a response to that, as well as persistent demand from DTH operators seeking a level playing field with Cas players.