The regulator has asked the TV broadcast industry to give their views on upgrading DD Free Dish to an addressable platform. The TRAI has also requested input from stakeholders about the migration process for DD Free Dish to become an addressable platform as well as the timeline for implementing the proposed migration plan.
Currently, DD Free Dish is a non-addressable platform as the majority of the set-top boxes (STBs) through which its service is accessed are unencrypted. The TRAI’s tariff and regulations don’t apply to DD Free Dish since it is a free platform.
The distribution platform operators (DPOs) have been lobbying for years with the government to regulate DD Free Dish, which has become a distribution giant and is estimated to reach over 40 million TV homes.
During the recent auction, Prasar Bharati earned over Rs 1000 crore in annual carriage fees from the sale of 65 slots of DD Free Dish to the broadcasters.
DD Free Dish, along with over-the-top (OTT) platforms, has been eating into the subscriber base of pay-TV service providers like Tata Play, Dish TV, Airtel Digital TV, Hathway Digital, DEN, and NXT Digital. These service providers are collectively referred to as DPOs by the TRAI.According to the FICCI-EY report, TV subscription revenue declined for the third year in a row in 2022 as the pay-TV universe saw a decline of five million homes and consumer-end ARPUs (average revenue per user) remained stagnant.The regulator has also sought views on whether pay channels available on DD Free Dish channels should be made available as FTA channels across all platforms. Currently, certain channels that are listed as pay channels on private distribution platforms are also available as FTA channels on DD Free Dish.
ET reported in March that the regulator would come out with a consultation paper that would discuss issues like a ceiling on network capacity fees, multi-TV connection tariffs, carriage fees, and a level playing field with regard to the pricing of TV channels.
Last year, the regulator amended the new tariff order (NTO) by reinstating the old price cap of Rs 19 per channel and doing away with the ‘twin conditions’ in its amended tariff order. The decision was taken to placate the broadcasters, who were unhappy with the frequent changes being made to the NTO regulations.
The consultation paper titled Regulatory Framework for Broadcasting and Cable Services delves into issues related to tariffs, interconnection regulation, and quality of service (QoS).
The issues in the consultation paper have been framed based on the inputs received from industry bodies like the Indian Broadcasting & Digital Foundation (IBDF), the All India Digital Cable Federation (AIDCF), and the DTH Association.
Among the other issues put up for consultation, the TRAI has asked stakeholders to provide comments with justification if the present ceiling of Rs 130 per month on the network capacity fee (NCF) is reviewed and revised.
The TRAI has also asked whether DPOs should be allowed to have variable NCF for different channel packages in different geographical areas. NCF is charged by the DPOs to consumers every month.
It has also asked the stakeholders to provide comments if there is a need to review the discount cap on the sum of the MRP of a-la-carte channels in a bouquet. The regulator has also asked if the revenue share between a multi-system operator (MSO) and a local cable operator (LCO) needs to be relooked at.
The authority also sought to determine if there is a need to remove the cap on carriage fees that are charged by DPOs to broadcasters. The TRAI has also asked if a financial disincentive should be levied in case a service provider is found in violation of the TRAI’s norms for the broadcasting sector.
