TRAI stands for the Telecom Regulatory Authority of India, the regulator of Indian telecommunication industry. It was established as an independent authority by the Telecom Regulatory Authority of India Act 1997. The major objectives of this statutory body are (a) ensuring the orderly growth of the telecom sector and (b) protecting the interests of both telecom service providers and consumers.
What does the new TRAI regulation mean?
The Telecom Regulatory Authority of India has announced a new regulatory framework that permits customers to pay only for the channels opted by them. New guidelines will be effective from February 1, 2019.
Digitisation of cable TV networks was carried out in March 2017. However, many service providers were not providing choose and pick option to customers and hence better transparency needed to be brought in. According to the TRAI, the new framework is finalised after a consultative process with all stake holders that lasted around eighteen months.
The frame work is applicable to all direct-to-home (DTH) and local cable operators. Under these guidelines, the customers can pick the channels they desire to watch and need to pay only for such channels. As of now, service providers offer pre-designed packs to customers to choose, which may contain channels customers never watch. So far, cable operators have been deciding the channels to be included in the packets. Now, TRAI empowers customers to select the channels.
TRAI Regulation and customers
Once the guidelines are implemented, it becomes mandatory for service providers to offer every channel on an a la carte basis to customers. The French phrase 'a la carta' means choosing a single piece from a platter. Further, to ensure transparency, broadcasters must display the MRP of each channel on the TV Screen through an Electronic Program Guide. As MRP of channel has to be displayed to customers, the distributors will not be able to overcharge beyond that announced by the broadcasters. The broadcasters and distributors can continue to offer bouquets of channels, but the MRP for these packs also should be published.
The framework stipulates a maximum network capacity fee of ₹130 for 100 channels. Customers will have an option to choose additional channels more than 100 channels. Additional channels can be chosen in slabs of 25 channels each with a maximum price of ₹20 per slab. For, charging the network capacity fee, a high definition (HD) channel will be treated as two standard definition (SD) channels.
TRAI expects the frame work to drastically reduce the monthly cable/DTH bill. However, for some customers, depending on the number and price of the paid channels, the bill may go up. According to the TRAI estimates, less than 15% of consumers may opt for more than 100 channels. The authority has displayed some the model packs in different markets, on its website.
Payment of advance charges under new TRAI regulations
For advance payments for a scheme with a lock-in period, like an annual plan, the distributor must provide services for the committed period without any increase in price or charges. The other terms of subscription also will remain same for the lock-in period. Distributors also should not make any changes that will put the subscriber in a back foot in such cases.
The customers, who have already enjoying an annual facility, if required, can switch over to a new package after February 1. The proportionate unused balance against the existing package as on the date of switchover can be adjusted for the new package of choice.