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Trai rejects ESPN's price contentions

Indiantelevision.com Team

(25 June 2008 11:15 pm)

NEW DELHI: The Telecom Regulatory Authority of India has rejected sports broadcaster ESPN's contentions, seeking to allow it to make mandatory for DTH operators to offer its channels in the entry level pay tier, while working out pricing on a mutually agreeable basis.

ESPN, involved in legal spat with DTH operator Tata Sky, had asked Trai through its new Reference Interconnect Offer (ROI) its intention to make it compulsory for DTH operators to take all three channels — Star Sports, ESPN and Star Cricket — collectively in their base package.

The Telecom Regulatory Authority of India has also directed sports broadcaster ESPN to modify its Reference Interconnect Offer within 15 days and offer to Direct to Home (DTH) operators the same bouquets which are being offered for non-CAS cable distribution.

In its eight-page order, Trai said ESPN should offer to the DTH operators the bouquets/ channels at 50 per cent of the rates at which such bouquets/channels are being offered for non-CAS cable distribution, that is, non-addressable platforms so as to comply with the norms laid down by the Telecom Dispute Settlement Appellate Tribunal (Tdsat) in letter and spirit.

ESPN was also asked not to impose conditions in its revised RIO dated 15 May, 2008; and to submit to the Authority a report of compliance with the directions, along with a copy of its modified RIO.

Tdsat had on 31 March last year and its judgment of 14 July, 2006, said that the rates for DTH platforms were to be 50 per cent of the rates at which the bouquets/channels are being offered for non-CAS cable distribution and to protect the interests of service providers and consumers of the broadcasting sector and cable sector.

The Regulator also said the order was necessary to promote and ensure orderly growth of the broadcasting sector and cable sector.

Trai rejected the contentions of ESPN seeking permission to offer its channels in the entry level pay tier on a mutually agreeable basis.

"Various factors, including high cost of content, reduced demand for a sports channel when there are no sporting events, mandatory sharing of content with the national broadcaster and time limit to advertisements are the factors which are generally taken into consideration while arriving at non-CAS prices of the sports channel," TRAI said.

Therefore, these factors do not necessitate any special treatment for a sports channel, it added in its directive to the broadcaster.