NTO 2.0 implementation may hurt MSOs, broadcaster

If you are avid watchers of popular Hindi television channels such as Zee TV, Star, Sony Tv, SAB Tv, etc then be prepared to fork out additional 58% from your pocket to ensure that your daily does of entertainment continues unaffected.

The Regulator of telecom sector in India – TRAI has not budged on its decision of implementing the new tariff rules from March 1, despite the seven hearings held by the Bombay HC and the stay demanded by the television broadcasters.

The Indian Broadcasting Foundation (IBF) had approached the Bombay HC against the TRAI’s new tariff order which was issued in December 2018 and implemented in Feb 2019.

The new rules issued by TRAI affected users a great deal and in an attempt to hike down the cost, TRAI announced amendments to the NTO on January 1.

However, the TRAI has declared to the Bombay HC that the implementation of the new amendment will not be deferred.

As per the new changes, TRAI has reduced the cap on the MRP of individual channels to Rs 12 from Rs 19 per month. This means for premium channels such as Sony, Zee TV, Star Plus and others, some users may have to shell out upto 58% more money, since the cable operators have removed this channel from the bouquets.

TRAI had introduced some major changes in the television pricing last November, which hiked the costs of television channels greatly.

To brace the customers from burning a sudden hole in their pockets, television operators had offered some appealing offers. But they have now decided to withdraw the offers on the various entertainment, edutainment and sports channels.

This means that there will be as much as Rs 20 increase in the monthly subscription of a Kolkata cable TV viewer.

This will affect the pricings of popular entertainment channels including Star Plus, Sony TV, Star Jalsha, Zee Bangla and SAB TV, edutainment channels like National Geographic and sports channels like Star Sports 2,3 and Star Sports First. These channels will now cost Rs 19 again, which was Rs 12 for ala carte subscribers.

Alternatively, the TRAI decision may result in broadcasters and Multi Services Operators (MSO) – the cable services providers – may get impacted as viewers turn to free or less expensive channels. It’s a double-edged sword.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.