Madras HC Gives Split Verdict In TRAI Vs Star India

On March 2, the Madras High Court referred to a third judge the petitions challenging Telecom Regulatory Authority of India’s (TRAI’s) March 2017 tariff order related to pricing of television channels offered as a bouquet, after a two-judge bench including Chief Justice Indira Banerjee and Justice M Sundar delivered a split verdict in the matter.

Star India and its subsidiary Vijay Television Pvt. Ltd. had filed a petition against the tariff order “Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017 and the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017 (hereafter referred to as ‘impugned provisions’)” released by TRAI in March 2017. The tariff order included regulations for pricing, packaging of channels, fixed tariff for carriage, and other such aspects.

The two-judge bench suggested that TRAI can offer regulations on the carriage front, but it cannot govern content-related pricing.

Upholding the impugned regulations, the tariff order on pricing and packaging of TV channels offered in a bouquet, and a cap on channel prices, the Chief Justice then said, “In my considered view, the challenge to the impugned regulation and the tariff order fails.” However, the Chief Justice held as “arbitrary” the clause putting a cap of 15 percent on discount on the maximum retail price of a bouquet and said that it was “not enforceable”.