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Rediff.com  » Business » Broadcasters challenge Trai's regulation

Broadcasters challenge Trai's regulation

Source: PTI
November 20, 2007 17:00 IST
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Leading broadcasters Zee-Turner and Set Discovery have challenged in TDSAT sectoral regulator Telecom Regulatory Authority of India's guidelines on pricing of cable TV charges in non-conditional access system areas.

Trai regulation directs them to provide their channels on a 'la carte' basis.

In their petition, the broadcasters have alleged that the price fixation by Trai October 4 regulation is 'arbitrary and discriminatory'.

"The authority has exercised its power in an arbitrary and discriminatory manner which fails to serve the objective of fixing a proper/correct price though it is well settled that price fixation should be based on relevant material."

"It should be fair and responsible and that not a minimum but a reasonable profit margin
is permissible," said Set Discovery in its petition submitted before the sectoral tribunal TDSAT.

The broadcasters also alleged that the regulator while fixing the price relied on "erroneous premise" that there was not sufficient level of competition in the market to let the market forces fix the price.

"There is sufficient level of competition to let market forces determine the prices," said the petitioners.

According to them, Trai failed to protect their interest and the regulation was tilted in favour of cable operators and multi system operators by giving them greater leverage, while leaving the consumers on their mercy.

They also alleged that the Trai failed to balance their interests and would impact the content providers (channels).
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