Trai Tariff Regime Results in Better Service and Repair Regulations Along with Viewership

There has been a long ongoing debate about the practical implication of the new regulatory framework introduced by the Telecom Regulatory Authority of India (Trai). The telecom regulator introduced this framework to bring transparency into pricing in the DTH and broadcasting industry. However, along with these parameters, the regulatory framework has also brought a much-needed positive change in the service and repair regulations. This aligns with the consumers’ interest as now the consumers will have more convenience. There are also some unprecedented effects of the Trai tariff regime which have reflected in the viewership and the company ARPU.

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Justified Channel Pricing for Cable Operators of All Sizes

While consumers are at the end of the TV-industry chain, the new rule has certainly tweaked things for the small cable operators as well. Now there might be a mixed reaction to this statement in different locations across the country, but the transparent pricing of channels now ensures that a small cable operator based out of a tier-2 city will pay the same price for the channel to the broadcaster as a prominent DTH provider based out of a metro city. Previously, this was not the case as big players used to enjoy discounted rates from the broadcasters while cable operators were denied such flexible prices thus cutting down their margins, and pushing them further down on the business front.

Increase in ARPU for DTH Companies

With the new Trai mandate, there are also better prospects for DTH companies. Airtel CEO, Gopal Vittal has already said that the company expects to slowly increase its ARPU owing to the new Trai pricing mandate. The same industry trend will affect the entire playing field, and the DTH operators are likely going to enjoy an increased revenue stream from their subscribers in the coming months as the heat of the new rules settles gradually.