The New Tariff Order rolled out by Trai has been challenged by various broadcasters and DTH operators. Earlier, the leading DTH service provider of India, Tata Sky challenged specific provisions of the new NTO 2.0 in Delhi High Court. However, Tata Sky is planning to add new amendments in their writ petition against the NTO 2.0, which was introduced by Trai at the beginning of 2020. As per Tata Sky, the provision of reduced NCF cap mentioned in the new tariff order will create trouble for DTH operators and it will reduce the profitability of the DTH platform.
Impugned Amendments 2020 Does Not Include Relevant Matters: Tata Sky
As per Tata Sky, Trai has reduced the charges of NCF in multi-tv households. The carriage fees charged by DPO has also been reduced to a cap of a maximum of Rs 4 lakh for SD channels. Tata Sky also marked that the new impugned amendments do not take essential and relevant matters whereas matters such as foreign consumers subscribing television channels on the a-la-carte basis by channel bouquets are being taken into account which is irrelevant. Tata Sky believes that the DTH network provided to the consumers will result in losses to the DTH operators. All the DTH operators will find it difficult to recover their capital costs.
NTO 2.0 Will Create Hassle for Broadcasters and DTH Operators
The provisions mentioned in the new tariff order which has been rolled out by Trai has been challenged by multiple broadcasters. However, as per Trai, the new tariff order will curb the market distortions which has been done by broadcasters. The provision of a-la-carte prices has been kept at the maximum, which will induce the customers to buy bouquets.
Broadcasters feel that Trai is biased about the bouquet pricing. Also, broadcasters have marked that Trai New NTO 2.0 will limit their ability to provide top class content to consumers. Trai earlier denied the deferment of NTO 2.0 which was subjected to specific provisions and implemented the new tariff order from March 1, 2020. Trai has also modified the provisions of NCF cap and Multi TV household connections.