TRAI Regime: Trail By Fire?

As broadcasters come out with individual value packs to woo consumers before the TRAI tariff regime comes into effect from Feb 1, we analyse the scenario for all stakeholders and find that consumer behaviour will finally determine how the order is implemented in the months ahead

- Samarpita Banerjee

Even as the Indian broadcast industry is set to enter a new era, with the impending implementation of the new tariff regime mandated by Telecom Regulatory Authority of India (TRAI) from February 1, experts predict that much will depend on how consumers react. In fact, depending on consumer behaviour, individual value packs announced by broadcasters now may have to be recalibrated in the months ahead.

According to the new framework - aimed at empowering consumers with the choice of paying only for the TV channels that they want to watch - all DTH and cable channel subscribers will need to subscribe to a base pack of Rs 130+ taxes to watch 100 free-to-air (FTA) channels that users can select out of 500 channels. However, this base pack will not include some of the popular channels offered by major broadcasters. Most broadcasters have already unveiled their value packs along with their a-la-carte prices that consumers will need to select from. Some broadcasters have had to convert a few FTA channels to pay in the new bouquets.

However, the industry is still trying to figure out if the primary purpose of the entire exercise will be served by the new tariff regime. Considering the steep discounted rates that are being offered on bouquets, experts feel that consumers might not be interested in opting for value packs individually and will eventually end up paying for bouquet offerings. Currently, the bouquet pricing is much lower than the a-la-carte pricing, and if a consumer has to buy channels individually, in case a bouquet does not contain the channels of his choice, he might end up paying much more.

So far, a lot was also dependent on the 15% discount cap on which the Supreme Court verdict was awaited. However, on January 4, 2019, the special leave petition (SLP) filed by TRAI seeking clarification on the 15% bouquet discount cap was dismissed as withdrawn in the Supreme Court.