For the first time in nearly two years since the conditional access system (CAS) had been enforced in select areas of Delhi, Mumbai and Kolkata, the prices of pay channels have been revised by the broadcast regulator based on inflation.

According to the new rates provided by the Telecom Regulatory Authority of India (Trai), the monthly price of a pay channel in CAS areas will now go up by 35 paise. So, all pay channels that were priced at a maximum ceiling of Rs 5 per month in CAS areas, will now be priced at Rs 5.35, Trai said.

The regulator has taken a 7 per cent increase in inflation to calculate the new rates. The monthly price of the basic bouquet of 30 free-to-air channels in CAS areas has also gone up from Rs 77 to Rs 82 per month. The price revision does not include any taxes levied on the pay of free-to-air channels.

Trai has also made reductions in the security deposit and monthly rental for set-top boxes in the CAS areas. "Since prices of set-top boxes have come down during the last two years of the implementation of CAS tariff order, it has been felt necessary to revisit the same and to reflect it in the tariff order in order to pass on the benefits to the consumers," Trai said in a statement.

Now the service providers will be required to offer two schemes to the consumers in CAS areas -- one with a security deposit of Rs 200 instead of Rs 250 along with a monthly rental of Rs 34 instead of Rs 45. The service providers will also have to offer another scheme that will entail a security deposit of Rs 750 instead of Rs 999 with a monthly rental of Rs 22 instead of Rs. 30, Trai said.

The new tariffs will be applicable from January 1, 2009. Earlier in 2003 and later in 2005, Trai had made similar upward adjustments in the cable channel tariffs.