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Home Cable & DTH

TRAI prompts Broadcasters and DPOs to gear up for rollout of NTO 2.0 on 1st March

by Editorial
February 14, 2020
in Cable & DTH, Featured
2 min read
TRAI prompts Broadcasters and DPOs to gear up for rollout of NTO 2.0
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New Delhi: The Telecom Regulatory Authority of India (TRAI) has sent a letter to all broadcasters and DPOs prompting them to take gear up for the regulatory and pricing changes that come in to effect from 1st March 2020.

As per the amended Tariff Order (NTO 2.0) no channel priced above Rs 12 will be permitted to be part of any package. DPO will have to offer at least 200 channels as part of the basic tier for a maximum network charge (excluding pay channel charges) of Rs 154, up from 100 at present.

NTO 2.0 also mandates DPO to publish the new rates and packages on 31st January so as to comply with 45 days notice to subscribers. However, most of them failed to comply with the same, the move has driven TRAI to send a reminder to the stakeholders.

“As you are aware, the provisions of the Tariff Amendment Order 2020 are to come into force from 1st March 2020 and several preparatory activities are to be carried out by service providers in a time bound manner.

“This is to ensure that sufficient time is actually available to the consumers to exercise their choice of channels and bouquets before 1st March 2020.

Therefore, all service providers concerned may take suitable steps to ensure that the consumers have enough time to make their choices of channels, so that the smooth transition takes place on 1st March 2020,” it said in its reminder yesterday.

It also asked these companies to highlight those plans and packages on their websites that do not conform to the new norms, and therefore will not be available from 1st March 2020.

“..to ensure that consumers at large are kept fully appraised, all concerned are required to ensure that information about all such existing bouquets which do not conform to the provisions of Tariff Order 2020 and which shall not be available for the consumers on or after Ist March 2020 may be suitably indicated on their website,” TRAI said.

It is not clear what will happen to consumers on 1st March when their plans become nonviable.

As far as consumers who are on non-compatible plans are concerned, TRAI has two options. The first is to ask cable and DTH operators to switch all such consumers to FTA (free channel) packs. The second option is to allow them to continue on these packs after removing the channels that are priced above Rs 12 per month.

TRAI is expected to issue further directions in this regard in coming days.

“It has also been observed from the information available on the websites of many Broadcasters that most of the existing bouquets of pay channels are not in compliance with the provisions of the Tariff Order 2017 (as amended by the Tariff Amendment Order 2020).

“Similarly, quite a few DPOs have also not published the required information on their website nor composition of new bouquets compliant to Tariff Amendment Order (TAO) dated 1st January 2020 have been published,” TRAI said.

Most of the broadcast networks owning the top rated GEC channels are unlikely to figure in any prominent packs or bouquets from 1st March 2020 as they are hoping for a reprieve from the court case. This is because channel owners not inclined in favour of cutting their prices from Rs 19 per month to Rs 12, Hence the subscribers of these channels will have to be now purchased a-la carte basis effective from 1st March 2020.

Tags: NTO 2.0TRAI Tariff Amendment Order

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