TRAI makes amendments to its tariff order, reduces cap on the MRP of individual channels to ₹12 per month, from earlier ₹19

• TRAI’s new amendments will make broadcasters rationalise the channel and bouquet prices.
• As per the new rule, if the broadcaster offers a bouquet of 5 channels for ₹50 per month, the combined MRP can’t be more than ₹100.
• The second condition, on the other hand, requires channels to not extend the price of any channel in their bouquet more than three times the average price.

The Telecom and Regulatory Authority of India (TRAI) has amended its tariff orders for Broadcasting and Cable Services sector. As per the order, the MRP of individual channels will now be reduced to ₹12 per month, from earlier ₹19, effective from March 19.

The Authority also prescribed twin conditions to ensure that the price of a-la-carte channels do not become illusionary, which restricts channels from offering discounts of more than 33%. It also said that the sum of the a-la-carte rates of pay channels (MRP) forming part of a bouquet, shall not exceed one and a half times the rate of the bouquet of which such pay channels are a part.

Therefore, according to this new rule, if the broadcaster offers a bouquet of 5 channels for ₹50 per month, the combined MRP can’t be more than ₹100.

The second condition, on the other hand, requires channels to not extend the price of any channel in their bouquet to more than three times the average price. For example, if the average price of the channels in a bouquet is ₹5, MRP of any individual channel cannot be more than ₹125.

TRAI has also mandated provision of 200 channels in maximum Network Capacity Fee (NCF) of ₹130, excluding taxes per month. TRAI has capped the amount which consumers will have to pay for FTA channels at ₹160.

The broadcasters now cannot offer bouquets of more than the number of channels it distributes. However, the authority has permitted Distribution Platform Operators (DPOs) to offer discounts on long term subscriptions which is for 6 months or more.

After consumers highlighted the huge charges taken by DPOs in the form of NCF for a multi-TV home, TRAI has decided that in case of homes where more than one TV connection is working in the name of one person, the maximum charge will be 40% of declared NCF for second and additional TV connections.

In addition, a broadcaster will be required to pay a lakh as carriage fee to the DPO for carrying a channel in the country.