TRAI Reduces Price Cap Of A-la-Carte Channels

TRAI has announced that it will be reducing the price cap of A-la-Carte channels. The price of these pick-and-pay channels now stands at Rs. 12 subscription plan. To recall, TRAI introduced National Tariff Order on January 2nd, 2020, to maintain transparency in the broadcasting sector. But, the NTO didn't meet with the expectation.

The National Tariff Order failed miserably due to heightened monthly subscription prices, expensive individual channels, the sub-par implementation from operators, and more. With the new subscription plan, TRAI is upgrading its NTO. With the new NTO, TRAI will be bringing more transparency in the broadcasting sector, and at the same time will lessen the monthly TV subscription plans.

Under new norms by TRAI, broadcasters can't add individual channels worth Rs. 12 to their bouquets. When NTO was first implemented, TRAI got to know that several broadcasters offered huge discounts on bouquet packs to attract more consumers. Not working in the same spirit of the TRAI, these broadcasters were blamed for mismanaging transparency.

After TRAI's revived subscription plans got in the picture, broadcasters aren't pleased. These broadcasters have addressed their tiffs with TRAI to several local courts, to get relief. The broadcasters who were earlier rolling out TV channels plan from Rs 19, will be losing greater revenues after TRAI reduced the plan to Rs. 12, and that's why they need the courts to interfere in the matter.

Although broadcasters don't seem happy, subscribers are taking the news positively as they won't have to pay more money for some pick-and-pay channels. In the wake of protest by broadcasters, the next hearing at Bombay High Court is scheduled for February 12, 2020. And, it is expected the case will favor the TRAI.