After a long legal battle between broadcasters and the telecom regulatory authority of India (TRAI), the Bombay High Court on Wednesday pronounced judgment on the amended new tariff order (NTO 2.0) case. The court has upheld the constitutional validity of NTO 2.0 but has partly struck down the second provision of the twin conditions.
As per the second provision, the a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part. The court has mentioned the clause as an arbitrary condition. The Indian Broadcasting Foundation (IBF), along with other broadcasters had filed a writ petition in the Bombay High Court against TRAI in 2020 January, immediately after the issue of NTO 2.0.
Now the consumers can choose 200 channels of their choice excluding the mandated Prasara Bharati channels by paying Rs.130 (plus GST) towards Network capacity fee. Earlier, the consumer is entitled only to 100 channels including the 26 Prasar Bharati Channels. Relief has also been given to Multi-TV home subscribers as they would pay only 40% of NCF for every second and additional TVs in a home.
The concerns of FTA, news and regional broadcasters have also been addressed by capping a maximum carriage fee payable by a broadcaster to a DPO for a TV channel per month. MSO, IPTV providers, HITS operator has also been mandated that their target market cannot be more than a state or a union territory, as the case may be. The carriage fee is capped at Rs. 4 lakhs per Standard Definition Channel per month for a DPO. This will ensure viability of news, regional and niche channels. Hence, no MSO can charge more than 4 lakhs per month.
Concern of all the broadcasters regarding placement fee and misuse by few DPOs manipulating Electronic Program Guide (EPG) has also been addressed. Full flexibility to the DPOs to organize the television channels on EPG based on Language or Genre. The provision will safeguard consumers’ and broadcasters’ interest vis-a-vis erstwhile arbitrary maneuvering by DPOs. This will also save regional and smaller broadcasters from any probable misuse by DPO.
NTO 2.0 prescribed price ceilings and contained twin pricing conditions of which the second part was struck down as unconstitutional. The twin pricing conditions were:
- The sum of the a-la-carte rates of the pay channels (MRP) forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part.
- The a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.
The 2nd condition has been struck down.
Remaining stipulations in NTO-2.0 have been upheld. Bench has also observed that TRAI will not take any coercive steps for six (6) weeks for implementation of remaining part of NTO-2.0, which has been upheld.
