Broadcasters unite against TRAI's revised tariff order

Mumbai: Top Indian broadcasters shared a stage on Friday to express solidarity against the latest amendments to broadcast sector tariffs by the Telecom Regulatory Authority of India (TRAI). Under the aegis of the Indian Broadcasting Foundation (IBF), top executives of Star & Disney India, Zee Entertainment Enterprises (ZEE), Sony Pictures Networks India (SPN), Viacom 18, Discovery Communications, Turner International, ETV and TV Today Network pointed out how the new regulations were going to 'strangulate' the industry’s growth.
They also hinted at the grouping exploring legal options against the order. ET reported on Friday that the broadcasters were planning to move court against Trai. The IBF may file a petition in the Bombay High Court early next week, sources told ET. NP Singh, MD & CEO of SPN and president of IBF said that broadcasters had collectively spent over Rs 1,000 crore in just communicating the changes (new tariffs) to consumers. Despite that, the sector faced an overall loss of 12-15 million subscribers, he said. In the last 15 years of regulating the broadcast sector, Trai had issued more than 36 tariff orders, to 'micro-manage' what is arguably the most 'value for money' form of news and entertainment in the world. “This goes contrary to the government's stated position of ensuring the ease of doing business,” he said.

Uday Shankar, president of The Walt Disney Company Asia Pacific and chairman of Star India and The Walt Disney Company India, wondered why there was a need for amendments since a thoughtful, comprehensive, collaborative exercise had been done last year.

“It clearly means the previous exercise was not thoughtful,” he said. “If (the regulator) is so concerned with bringing down the price for the consumer, then why, in the name of NCF (network capacity fee), are distributors being allowed to charge as much as Rs 160 for something the DD FreeDish is giving for free.” Ultimately, the new regulations will mean consumer choice will be limited as smaller channels will not be able to survive, he said. India Today Group chairman Aroon Purie said the new regulations were strangulating the industry. “It’s like killing the golden goose,” he said.

Megha Tata, MD - South Asia at Discovery Communications India, said India was already the cheapest cable market in the world and the future of the industry was in “jeopardy” with such micromanaging. “You can’t keep making frequent change. From 2003, our rates have grown less than half of the rate of inflation,” said Sudhanshu Vats, MD and Group CEO of Viacom18 and VP of IBF.

Vats said the objectives of the new tariff order (NTO) were to give choice to consumers, to bring transparency and to reduce litigation. There is, however, already over 94% awareness of NTO and choice among consumers, he pointed out.