Kolkata: The Calcutta High Court had yesterday imposed a stay on the implementation of the tariff order after cable operators in Kolkata complained that they did not get enough time to prepare for the switchover to the new system. They’d also complained that the new system would severely impact their revenue and affect their operations and ability to continue as providers of TV channels.
While. Similar cases filed before Madras High Court, Pune High Court and Delhi High Court were either dismissed or dined, the Calcutta High Court ruling created ripples across the market fearing that the stay might disrupt the smooth implementation of the new tariff regime effective from 1st February 2019.
However, TRAI immediately took up the matter before the Calcutta High Court and requested that the stay on the implementation of the new tariff system be vacated stating that the petitioners had misled the court. Subsequently, the Court has agreed to consider hear the regulator at 2 PM today. It also submitted the Supreme Court judgement of October last year, in which the apex court had clearly upheld TRAI’s regulations and supported the regulator’s stand on the need to dismantle the ‘bouquet’ system and introduce choice to the consumer.
The Calcutta High Court, however, refused to lift the stay yesterday, and said it wishes to be convinced that cable operators’ “power to negotiate” with the MSO was ‘real’ and not ‘illusory’. It pointed out that if it can be convinced that cable operators actually have such powers to negotiate and conclude a just deal, then the stay could be lifted.
“Whether or not Court will interfere in sustaining interim order passed yesterday will turn on answer to the question as to whether the option for negotiation given by impugned notification is illusory,” said the order by Justice Arindam Sinha.
In their petitions, cable operators complained that the new tariff model will restrict them to just 9% of the total content costs paid by the consumer and their feed suppliers (MSOs) to 11% of the total content costs paid by the consumer.
