Trai Will Work to Reduce Costs After Admitting to Increased Subscription Rates After New Tariff Regime

After a lot of back and forth, Trai has finally come around and accepted the fact that the new regulatory framework has caused the monthly subscription bills to shoot up

By June 9th, 2019 AT 9:36 PM
  • Trai will issue a consultation paper in few days to invite comments on how it can reduce prices
  • Supreme Court has also granted Trai the full power to regulate tariff in the industry

The Telecom Regulatory Authority of India (Trai) rolled out the new regulatory framework to bring more transparency to the DTH and broadcasting industry. It also intended to change prices on the business side of things. However, some of the unexpected drawbacks of this new rule change meant rising costs for the subscribers and major inconvenience as well. While Trai was initially not admitting to this, the regulator has now admitted that the new tariff regime has led to increased subscription costs. The Trai will now float consultation paper in the coming days to discuss methods about how these increased prices can be brought down.

Monthly TV Bills Increase After New Trai Tariff Regime

Conventionally, broadcasters like Star India have believed that it is beyond the jurisdiction of the telecom regulator to look into tariffs. However, Trai says that it always had the authority to look into the tariffs of the industry but had chosen not to do so until now and has let the market forces decide it– a similar approach how it takes for the telecom industry.

Before the rollout of the new regulatory and pricing framework, Trai had actually intended to reduce the monthly cost of TV bills, but after the implementation of this new regime, many complaints have surfaced saying that monthly TV bills have gone up instead of coming down. This is not it, as consumers are also facing a lot of confusion regarding the new tariff regime. About this, the official said, “The aim was to make TV channel pricing more transparent and to give control of channels to the consumers while making it more affordable… but it did not pan out that way.”

READ:  Trai Discusses Variable NCF, Discounts on LTR Packs and More in Consultation Paper for Tariff Related Issues

The new tariff mandate from Trai had surely turned the industry towards the path of transparency with the consumers only paying for channels which they want to watch. But, this has also made the monthly TV bills of viewers costly.

Trai to Now Float Consultation Paper to Reduce Tariff

Sachin Gupta, Senior Director at a rating firm had said, “Our analysis of the impact of the regulations indicates a varied impact on monthly TV bills. Based on current pricing, the monthly TV bill can go up by 25% from Rs 230-240 to ~Rs 300 per month for viewers who opt for the top 10 channels, but will come down for those who opt up to top 5 channels.”

However, that time Trai had dismissed these reports saying that the monthly bills will come down with time. Now floating a consultation paper will also be legally possible for Trai as the Supreme Court has already noted that Trai possesses the power to frame tariffs and regulations for the broadcasting industry.

Read more on:

Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

Leave a Reply

Photo and Image Files
2 Comment threads
2 Thread replies
Most reacted comment
Hottest comment thread
4 Comment authors
R!TTERd5aqoepNo speed in jioArvind Recent comment authors
newest oldest most voted

I think Trai should wait. The conditions are favourable for Jio’s DTH entry.


I welcomed this new tariff regime introduced by Trai because you pay for what you watch. Because we were paying unnecessarily for channels of different languages which used to come as part of your subscription and I hardly watched any of those channels. Like star plus zee tv colors and other hindi channels which were bundled in every South Indian HD pack you subscribe (SD or HD). Which absolutely made NO Sense to many yet there was no choice and I wanted only English HD channels. Now I have a freedom to select the channels I want to watch and… Read more »

Tata Sky, Videocon D2h
No speed in jio
No speed in jio

Everybody is not rich like you !


Chal jhothe ?

Recent Posts

Motorola One Action First Impressions: A Smartphone Packing an Action Camera

Motorola has been betting on its new One series of smartphones which encompass new innovations. We have already seen the...

JioFiber Witnessed 120.1% Increase in Download Speeds Over Fixed Broadband During Last 12 Months: Ookla

Broadband speed measurement firm Ookla on Thursday said it has found Bharti Airtel to be the fastest mobile broadband network,...

Leaked First Render of OnePlus 7T Reveals Round Camera Setup

OnePlus 7T and possibly the OnePlus 7T Pro are the next smartphones from OnePlus, rumoured to release as soon as...