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Trai rules out 'must carry' on DTH, recommends STB interoperability
 
Indiantelevision.com Team

(30 January 2008 5:00 pm)

 

NEW DELHI: The Telecom Regulatory Authority of India (Trai) in its latest recommendations has held that there is no "must carry" implied in the regulation related to DTH operations, adding that subscribers must be given the option of technical interoperability of set-top boxes (STBs) upon changing the service provider.

 

Trai has recommended to the government of India that no DTH service provider be bound to carry all the channels offered by broadcasters as part of their bouquet, and said that the DTH provider is not a seeker of channels.

 
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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