Cable operators plan protests against new tariff order

MUMBAI: After broadcasters, now the local cable operators (LCOs) across India are also planning protests against the Telecom Regulatory Authority of India’s (Trai) latest amendments to the new tariff order (NTO).

Cable operators are strongly objecting to the new mandate that caps the network capacity fee (NCF) at Rs 160 and a 60% discount on second and third TV sets in the same households.

“We are going to challenge some of the regulations, mainly with respect to NCF,” Arvind Prabhoo, president of the Maharashtra Cable Operators Foundation (MCOF) told ET.

On Sunday, MCOF had called a meeting of the LCOs across the country here in Mumbai, which was attended by heads of over 40 state and city cable operators’ associations from Delhi, Bengaluru, Haryana, Madhya Pradesh, Karnataka as well as coastal and central Maharashtra.

After the meeting, Prabhoo told ET that he had “very fruitful discussion” with various associations and that he will be first writing to the regulator first to roll back the amendments.

“We have decided that we will first appeal to Trai that certain clauses of the amendments are against cable operators and they will make it difficult for us to survive. Also, since NTO is just about stabilising, why do they want to disrupt it again,” Prabhoo said.

“It’s gross micromanagement,” said head of another cable operators’ association, “Trai is putting every aspect of their business under price control.”

He added that the operators don’t want to get into channel pricing. That’s broadcasters call.

“Our major issue is NCF. Today, even if a consumer is paying Rs 500 per month, a cable operator is only getting Rs 50. We cannot charge service fee and installation charges are also capped at Rs 350. Now they want to cap NCF too. Do they want us to get out of business,” he said. “Trai is killing the LCO industry.”

Trai had notified amendments to its new tariff order (NTO) on January 1st, in a bid to bring down consumers’ monthly cable/ DTH bills. However, the regulator has faced ire from all the stakeholders since then.

Talking about the 60% discount on NCF on second and subsequent TVs in a household, Prabhoo said that there was no consultation on the matter. “From where did this come from suddenly?” Prabhoo asked. “This is only going to help the DTH players. If the regulator doesn’t listen to us, we will have to move to courts.”

A Mumbai-based large LCO said that associations across India are thinking that Trai has gone overboard this time. “We are exploring all the options. This time it has come to our survival.”

LCOs are also objecting to the Indian Broadcasting Foundation’s (IBF) claim that NCF is the cause of the rise in monthly cable cost.

“IBF should not make such statements and mislead consumers. We are not commenting on how they should price their channels, so they should not comment on NCF,” Prabhoo said.

Amid all the protests, Trai chairman RS Sharma will be addressing media on Monday to present his side on the new regulations and amendments.