TRAI proposes cap on HD channel tariffs, pay-and-pick menu

Moneycontrol bureauSoon you may be able to make television channel subscription packs of 100 standard definition (SD) channels of your choice for a meagre sum of Rs 130 per set top box. In its draft Telecommunications (Broadcasting and Cable Services) Tariffs order, TRAI has proposed that every broadcaster shall offer channels on an 'a-la carte' or pick-and-pay basis to subscribers.So pre-packaged subscriptions where you may have to pay for channels you don't wish to watch may no longer be an irritant for a cable television subscribers.  TRAI also mandates the pack to have channels notified by the government to be compulsarily provided with the pack. The set of channels can also include HD channels - where one high definition (HD) channel equals to two SD channels - and premium channels for which a subscriber will have to pay."The Authority (TRAI) has decided to examine the tariff structure so that the business models provide all consumers freedom to choose from an array of attractive and affordable a-la-carte channels and bundled broadcast TV services as per their preferences and paying capacity," the order says. TRAI has proposed that the MRP for a single HD channel cannot be more than thrice the value of its SD variant.This proposal effectively caps the price that set top box operators can charge subscribers.TRAI has called for a change in HD channel pricing because of decreasing costs of HD TVs and set top boxes which has led to a wider acceptance of these channels. The cost of producing an HD channel has also considerably reduced. The TRAI has thus asked for a "re-examination of the large differential in prices of HD channels viz-a-viz their SD versions."Each channel will also have to be now categorised as a "pay" channel or a "free" channel by its broadcaster.According to the draft, the order may come into force starting April 1, 2017. TRAI has asked all the stakeholders to share their views on the draft before the order comes into effect.