| Rather,
it says that the broadcasters are the ones
who seek to be given the platform for their
channels to be provided to subscribers.
Trai
says that the words in Clause 7.6 ("The
Licensee shall provide access to various
content providers/channels on a non-discriminatory
basis") does not imply a "must
carry clause" though Zee Turner, in
a case in the sector tribunal, had argued
that "must carry" is implied as
a license condition.
Trai
has pointed out the Telecom Disputes Settlement
Appellate Tribunal's (TDSAT) judgement in
the Zee Vs TataSky case has held that it
could not read a "must carry"
provision within the ambit of Clause 7.6
of the regulation.
"The
phrase 'must carry' has not been used in
the DTH license agreement," Trai has
clarified.
It
also says that "because of transponder
capacity constraints, it is technically
not feasible for the DTH service providers
to carry all the channels on the DTH platform
as there are nearly 312 TV channels permitted
under uplinking/ downlinking guidelines
by the Ministry of Information and Broadcasting."
In
the recommendation, Trai has quoted TDSAT
as saying that a "must carry"
provision is "anti consumer."
The
TDSAT had held, "If a DTH operator
has to take all the channels of every broadcaster,
it may not be physically possible to do
so. Moreover, if every channel has to be
taken it means that it will have to be paid
for.
"This
will increase the cost for the DTH operator.
Ultimately, the cost will get passed on
to the consumer.
"If
DTH becomes expensive consumers will keep
away from it. It will not be able to compete
with CAS or cable. Thus, such an interpretation
of clause 7.6 may be anti consumer."
Trai
says that the market forces and competition
will ensure that the DTH platforms will
select the channels in a non-discriminatory
manner so as to maximise satisfaction for
the viewers.
"The
commercial terms will be accordingly determined
by the DTH service provider. The DTH platform
has to carry the popular content of competing
broadcasters also so as to ensure non-discriminatory
and transparent treatment," Trai says.
It
argues that if a DTH platform is not sensitive
to its subscribers in terms of content and
price, the subscribers have the choice of
subscribing to other DTH operators, cable
operators or IPTV.
While
the issue of "must carry" is a
contention between broadcasters and DTH
operators, the issue of interoperability
is a contention encompassing rival DTH players
as well as cable and IPTV service providers.
Trai
says, "The requirement of technical
interoperability essentially protects the
interest of the subscribers by enabling
them to shift from one DTH service provider
to another without having to buy new hardware."
At
present, DTH license agreement does not
provide for commercial interoperability
of set-top boxes.
However,
the Direct to Home Broadcasting Services
(Standards of Quality of Service and Redressal
of Grievances) Regulation, 2007 requires
the DTH service providers to give an option
to their subscribers for obtaining the DTH
hardware on hire purchase or rent basis.
"Thus,
the DTH subscribers have an option to change
their service provider through commercial
interoperability as provided by the quality
of service regulation," Trai has recommended.
On
that issue, Trai notes, "As of now,
the Conditional Access Modules (CAM) are
not being supplied by the DTH operators
as the Conditional Access Modules (CAM)
presently cost almost as much as a new set
top box. Therefore,
technical interoperability has not been
very successful.
"However,
it is expected that the new DTH service
providers, who may be interested in taking
over the DTH subscribers of existing DTH
operators, will start making available Conditional
Access Modules (CAM). Moreover, presently
the DTH market is at a nascent stage with
a small subscriber base."
Trai
feels that with a small subscriber base,
the churn or shift from one service provider
to another is going to be even smaller.
"Therefore,
the demand for Conditional Access Modules
(CAM) is also very limited. Once, the subscriber
base of DTH grows and the churn becomes
substantial, the demand for Conditional
Access Modules (CAM) will also increase
and it is expected that increase in volumes
will result in drastic fall in prices of
Conditional Access Modules (CAM).
"Hence,
it is essential to ensure that all the set
top boxes have the CI slot mandated by the
BIS specifications in order to benefit from
the technical interoperability in near future,"
Trai argues.
Therefore,
the Trai recommends that there is no need
for doing away with the existing technical
interoperability conditions.
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