TRAI throws CAS ball back at consumers

BY trai| IN Law and Policy | 19/01/2004

The government side-stepped the conditional access fiasco in an election year by giving it to the Telecom Regulatory Authority to sort out. TRAI’s response: making the issues public and inviting suggestions on how to solve them.

From the preface by the chairman of the Telecom Regulatory Authority, Pradip Baijal:

The enclosed Consultation Note is the first step towards a meaningful examination of the relevant issues mentioned above and would provide the necessary platform for discussing them. The comments and other inputs provided by the stakeholders would enable the Telecom Regulatory Authority of India to formulate a more detailed Consultation Paper with a view to evolving appropriate policies for the orderly growth of the cable and broadcasting services in the country. The Consultation Note has already been placed on TRAI’s website (www.trai.gov.in).

5. Written comments on this Consultation Note may be furnished to the Secretary, Telecom Regulatory Authority of India by 30 th January 2004. It would be appreciated if the response is accompanied with an electronic version of the text through email at trai07@bol.net.in. The fax number of TRAI is 011-26193294.

( Pradip Baijal) Chairman, TRAI New Delhi Dated 15th January 2004.

Relevant extract from the Consultation Note:

Section II

7. Issues involved:

a) The norms for fixing rates (or ceiling rates) for cable subscribers/cable operators / Multi Service Operators for inDIVidual pay channels, bouquets thereof, and distribution of free-to-air channels;whether this should be uniform in areas under CAS and non-CAS areas or whether it should be different; other principles for determining the above mentioned rates, including periodicity of revision.

b) Regulation regarding rates of cable operators, including periodicityof change of monthly cable charges in non-CAS areas and the maximum percentage change to be allowed at any one time.

c) Principles governing the sharing of pay channel charges between broadcasters, Multi Service Operators and local cable operators.

d) The principles for laying down limits as to the extent of bundling of pay channels to be allowed in order to ensure that Cable TV viewers have a genuine choice with regard to selection of pay channels, e.g. to ensure that bundling does not discourage selection of inDIVidual channels.

e) The standard terms and conditions under which set top boxes may be made available (sale/rental) to subscribers in CAS areas and refund of charges deemed inappropriate.

f) The conditions under which consumers may return set top boxes sold or rented to them by service providers and ask for a refund;

g) The compensation to be paid by cable operators to viewers who have ordered pay channels if transmission is interrupted for more than a specified portion of prime time (e.g.10%) in a month or in the case of a sports channel, a similar portion (10%) of the time during an important sports event. The principles for sharing this compensation between broadcasters, Multi Service Operators andlocal cable operators.

h) The principles to be followed for laying down the standards of quality of service to be provided by the cable operators / Multi Service Operators / Broadcasters and for ensuring the quality of service and conduct of periodic survey of such service provided by the Cable Operators / Multi Service Operators / Broadcasters so as to protect the interests of the consumers of Broadcasting and Cable Services.

i) Measures to increase competition, promote efficiency and encourage wider consumer choice in the operation of Broadcasting and Cable services so as to serve consumer interests and to ensure the availability of services in rural and remote areas.

j) Measures for the development of Broadcasting and Cable services technology (including Direct-to-Home and Broadband) and any other matter relatable to this industry, in general.

k. Advertisements on TV channels:

(i) the maximum advertising time to be permitted per half-an-houron free-to-air channels along with other conditions that are required to be imposed;

(ii) the further regulation of advertising on pay channels in reference to tariffs for the channels;

(iii) whether the restrictions at (i) & (ii) above should apply to both CAS and non-CAS areas uniformly or whether differential treatment is called for.

8. Comments and other inputs are requested on the above issuesand any other related matter. Please note that the comments relating to broadcasters should include issues relevant also for authorised distributors and advertising sales agencies of pay satellite channels.

9. The Authority invites written responses from all interested parties by 30 th January, 2004. It would be appreciated if the response is accompanied with an electronic version of the text through email. The communication may be sent to Dr. Harsha Vardhana Singh,Secretary, TRAI (trai07@bol.net.in) or to Shri Rajan Singla, Advisor (trai@del2.vsnl.net.in). The fax number of TRAI is 011-26193294.

You can read the full consultation note at www.trai.gov.in.