NEW DELHI: A new standoff is brewing between broadcasters and DTH operators on the pricing front. DTH operators have approached TRAI asking it to fix the price that they have to pay to the broadcasters. DTH players want a system in place similar to that for cable operators in metros (CAS notified areas), where TRAI has introduced regulations which state that broadcasters cannot charge more than Rs 5 per pay channel per subscriber.
When contacted, on the issue, TRAI chairman Nripendra Misra told ET: “DTH players have approached the regulator stating that they have been unable to enter into commercial agreements with broadcasters. We have called both DTH operators and broadcasters for a meeting to broadly discuss the various issues raised by them.”
In fact, TRAI too has acknowledged that the growth in this sector was being held up as broadcasters and DTH operators were finding it difficult to strike commercial agreements with each other: “One of the reasons for the delay in rolling out DTH services was the difficulty faced by the broadcasters and the DTH operators in concluding their interconnection agreements on time. This not only affected the growth of the sector, it also hampered competition because DTH at present is the only effective alternative to cable TV. There are about 3.2 million subscribers of pay DTH services, as compared to nearly 70 million subscribers for cable TV,” TRAI had said when it had introduced changes to the DTH licensing guidelines late last year.
However, the development is being opposed by the cable TV operators. Said UP Cable TV Association President Rajinder Sodhi: “If DTH also comes on the same rates or lesser rates than what cable TV operators offer, our industry will be wiped out. Cable operators who have been in the business since the past 15-17 years will be affected.”
Late last year, when bringing about changes in the DTH guidelines, TRAI had refused to fix the price for individual channels. Instead, the regulator had asked both broadcasters and DTH operators to enter into mutual commercial agreements through negotiations.
At the same time, TRAI had also clipped the wings on the bargaining powers of broadcasters and said that DTH operators could pick and choose channels they wanted to offer, rather than buying the entire bouquet of channels offered by the broadcasters.
TRAI had also mandated all broadcasters to offer interconnection (provide their channels) to DTH players within a stipulated time frame. It had also directed all broadcasters to publish reference interconnect offers which contain rates of channels, payment terms, discount rates, tenure of agreement and security and anti-piracy requirements, on their respective websites within three months.
DTH players say most channels were demanding exorbitant prices for the channels. ET has also learnt that TRAI has decided to intervene in a bid to address the issues raised by both sides.
TRAI sources also added that DTH operators wanted the regulator to act as per the clause in the licensing guidelines which states ‘if the broadcaster and the DTH operator fail to enter into an interconnection agreement after negotiations, then both of them may jointly request TRAI to arrive at an agreement.
DTH companies want TRAI to fix price- Media-Media / Entertainment -News By Industry-News-The Economic Times
When contacted, on the issue, TRAI chairman Nripendra Misra told ET: “DTH players have approached the regulator stating that they have been unable to enter into commercial agreements with broadcasters. We have called both DTH operators and broadcasters for a meeting to broadly discuss the various issues raised by them.”
In fact, TRAI too has acknowledged that the growth in this sector was being held up as broadcasters and DTH operators were finding it difficult to strike commercial agreements with each other: “One of the reasons for the delay in rolling out DTH services was the difficulty faced by the broadcasters and the DTH operators in concluding their interconnection agreements on time. This not only affected the growth of the sector, it also hampered competition because DTH at present is the only effective alternative to cable TV. There are about 3.2 million subscribers of pay DTH services, as compared to nearly 70 million subscribers for cable TV,” TRAI had said when it had introduced changes to the DTH licensing guidelines late last year.
However, the development is being opposed by the cable TV operators. Said UP Cable TV Association President Rajinder Sodhi: “If DTH also comes on the same rates or lesser rates than what cable TV operators offer, our industry will be wiped out. Cable operators who have been in the business since the past 15-17 years will be affected.”
Late last year, when bringing about changes in the DTH guidelines, TRAI had refused to fix the price for individual channels. Instead, the regulator had asked both broadcasters and DTH operators to enter into mutual commercial agreements through negotiations.
At the same time, TRAI had also clipped the wings on the bargaining powers of broadcasters and said that DTH operators could pick and choose channels they wanted to offer, rather than buying the entire bouquet of channels offered by the broadcasters.
TRAI had also mandated all broadcasters to offer interconnection (provide their channels) to DTH players within a stipulated time frame. It had also directed all broadcasters to publish reference interconnect offers which contain rates of channels, payment terms, discount rates, tenure of agreement and security and anti-piracy requirements, on their respective websites within three months.
DTH players say most channels were demanding exorbitant prices for the channels. ET has also learnt that TRAI has decided to intervene in a bid to address the issues raised by both sides.
TRAI sources also added that DTH operators wanted the regulator to act as per the clause in the licensing guidelines which states ‘if the broadcaster and the DTH operator fail to enter into an interconnection agreement after negotiations, then both of them may jointly request TRAI to arrive at an agreement.
DTH companies want TRAI to fix price- Media-Media / Entertainment -News By Industry-News-The Economic Times