Trai Tariff Regime: Variable NCF Will Likely Make Cable TV, DTH Subscriptions Cheaper

After making several changes in the telecom sector, Trai must be now looking to implement the changes it planned for the broadcasting sector. In April this year, the new tariff regime by Trai became fully effective, but the television subscribers were not satisfied with the changes brought by Trai. The one major change which irked a lot of users is the Network Capacity Fee (NCF); Every DTH/Cable TV connection now comes with mandatory NCF charges of Rs 153 and these go upwards depending on the number of FTA channels you choose. And on top of that, the a-la-carte channels were priced on the slightly higher side as compared to the past. Trai is looking to bring variable NCF charges which will likely make the Cable TV or DTH subscriptions a bit cheaper compared to what users are paying right now.

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Understanding the New Billing System Under Trai Tariff Regime

Now, in the new Trai tariff regime, one of the major points of focus is the Network Capacity Fee (NCF). To put it in clearer words, the very essence of the new Trai tariff regime revolves around the NCF charges which the subscribers are charged for the channels. It is worth noting that in the DTH or cable TV bill, which the subscribers pay, the customers pay the bill in two parts – first is the NCF charge and the second is the content charges, which the subscribers pay to the broadcasters for the TV channels. Now, the NCF charge is the fee paid to the DTH operator or the cable TV operator for carrying the channels, and distribution and this fee has been capped at Rs 130 or Rs 153 inclusive of taxes for 100 channels. This means that no matter how many channels, the subscribers get, they would have to pay Rs 153 per month at least.