There has been a competition going on in the DTH industry after the implementation of the new Trai tariff regime. Ever since the Telecom Regulatory Authority of India (Trai) introduced the new tariff regime in the industry, the competitiveness of the sector has definitely gone up. However, the implementation of the tariff regime also meant that the subscribers were now facing increased monthly rentals with the new regulations in place. This rattled some of the subscribers. After this happened, the telecom regulator has been in search of methods through which it can ease the tension in the DTH and broadcasting industry. Amidst all this, the cable TV operators have come with a big breakthrough which the subscribers might appreciate.
Cable TV Operators Get Together on NCF Discount
The new breakthrough comes in the form of a big Network Capacity Fee discount, which the cable TV operators are offering on their subscriptions. For the unaware, the NCF is the amount which the cable TV and DTH subscribers pay for the slots of TV channels. As per the new Trai tariff regime, the NCF charges mandate that the DTH and cable TV operators have to provide at least 100 SD channels for the NCF of Rs 130 and this is the rate on which the most operators have been offering their services. But, the case has now become different for most cable TV operators.
During its struggle to come up with likely solutions for the issues in the new Trai tariff regime, the regulator had floated a consultation paper in this regard. In its comments, the All India Digital Cable Federation (AIDCF) also made its inputs. As part of the comments on the same consultation, the cable TV operators which make up the AIDCF remarked that they would change the current NCF charges and structure for the good of the industry. AIDCEF President, SN Sharma, who is also the CEO of DEN Networks made comments on behalf of all the cable TV operators saying that now all the cable TV operators will offer 150 SD channels on the standard Rs 130 NCF. Previously, at the same cost, the subscribers were enjoying only 100 channels.
The Story of the Additional NCF Charges
To get 25 additional channels, the subscribers had to pay Rs 20 NCF as additional charges. This means that subscribers would be getting 50 more channels for the same cost and they would be saving Rs 40 in the process. In a way, the cable TV operators have discounted the additional NCF for the subscribers by bringing this new change for a total of 50 additional channels. Since most households in India are unlikely to have more than 150 channels which they watch, then with a cable TV connection they would be able to save some amount.
Cable TV Could be the More Economical Choice
There is also the question that since DTH operators do not belong to AIDCF, this change is not applicable to them. This means that DTH operators would have to spend Rs 40 more in the name of NCF if they are going for more than 100 channels. This is good news for cable TV subscribers, and for DTH subscribers who want an economical choice, this could be the right time to switch to the cable TV operators. It is worth noting that most subscribers used to opt for DTH operators because of the service that it provides, but if you are watching TV with the sole purpose of watching satellite TV channels, then going for a cable TV connection could save you some bucks. Although, there are a few DTH operators like Sun Direct who are also offering a discount on their NCF. Tata Sky also seems to be giving a small discount on NCF amount with the way of Lite packs.
