(13 May 2009 11:35 pm)

MUMBAI: The Supreme Court has asked the Telecom Regulatory Authority of India (Trai) to chalk out a new tariff regime for cable services in non-Cas (conditional access system) areas.

In its verdict today, the bench headed by Chief Justice KG Balakrishnan directed Trai that the new tariff should be based on a classification of cities and the number of pay channels provided.

The SC, while asking Trai to carry out the exercise de novo (afresh, without being influenced by the Tdsat ruling), clarified that the comprehensive tariff order would include a cap on carriage and placement charges, PTI reported.

Meanwhile, SC also rejected the objection raised by multi-system operators (MSO) counsel CS Vaidyananthan that the issue of capping the carriage charges was not the subject matter of the appeal and it should also include advertisement charges.

The court also upheld its earlier order, wherein sectoral tribunal Tdsat had rejected Trai's order that put a ceiling on cable service charges.

The directive will ensure that MSOs and local cable operators will charge tariffs, as per Trai's directions, between Rs 132 and 260, for services in non-Cas areas. Broadcasters cannot enhance tariffs more than 7 per cent for cable services while they will have to offer channels to consumers on a la carte basis.