(14 May 2009 10:30 pm)

MUMBAI: The Telecom Disputes Settlement and Appellate Tribunal (Tdsat) has asked Trai to prepare a new tariff policy for add-on channels on the direct-to-home (DTH) platform.

In its ruling relating to a legal dispute between ESPN and Trai, which may have a long term impact on the pricing of channels for DTH platform, Tdsat has explicitly asked Trai to fix the tariffs and take into consideration the situation arising in cases where the ‘add on packages’ are involved.

Under the current tariff regime as per Trai’s regulation, broadcasters have to give their channels to DTH operators at 50 per cent of cable rates in non-Cas areas. Tdsat, in effect, has said that the principle of 50 per cent tariff should not be applied in case of ‘add on packages’.

Tdsat has also directed Trai not to take recourse over this issue till the policy finalisation on tariffs for 'add on packages'.

Broadcasters like ESON Star Sports are free to negotiate with the DTH operators till Trai comes out with the pricing order for the add-on channels.

The issue had cropped up when 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.

ESPN Software India counsel Nanju Ganpathy said, “Tdsat accepted ESPN’s contention that 50 per cent discount should be given only when the channel is being viewed by all or at least a majority of the DTH operator’s subscriber base. ESPN’s main contention that the 50 per cent discount norm for DTH operators laid down by Tdsat was in cases where the channels were placed in basic packages and were going to the majority of the DTH operator’s subscriber base. However, when a DTH operator places channels in add-on packages, channels no longer have the majority viewership exposure as enjoyed by them in cable platforms. Therefore such broadcasters should not be forced to give discounts as high as 50 per cent to the DTH operators.”

On the directive of Tdsat, Ganpathy said, “We are glad that the tribunal has also directed Trai not to take any action pursuant to the Trai’s direction to the sports broadcaster requiring it to offer its channels to DTH operators at 50 per cent discounted rate.”

Tdsat said, “We hope that Trai will, having already initiated the exercise of fixing the DTH tariff, complete the same within the next four months.”

ESPN Star Sports is the official broadcaster for the ICC World T20 which kicks off on 5 June.