Thursday, January 12, 2017

TRAI v/s Broadcasters !!!   --- ( majra kya hai ? )

Kahaani October 2016 se start hoti hai !!
Image result for trai broadcaster draft

  • In its draft regulation issued in October, Trai had proposed a new tariff framework for the pricing and packaging of TV channels offered to subscribers.

Draft ki mukhya baatein !

  • Every broadcaster should declare the nature of each channel as ‘free to air' or ‘pay' for different geographical areas; 
  • Broadcaster can offer pay channels in the form of bouquet(s) and on a-la-carte basis. 
  • Price declaration should be as mentioned.

Image result for trai broadcaster draft

  • According to the draft order, a total of 100 standard definition channels (one high definition channel is equal to two standard definition channels) will be offered to subscribers at Rs130 (excluding taxes) per month, including channels notified by the central government to be mandatorily provided to subscribers. 
  • Beyond that, the channels will be made available in slabs of 25 each and an amount of Rs20 (excluding taxes) will be charged per slab. Trai had also asked the broadcasters to fix the maximum retail price (excluding taxes) for à la carte pay channels , according to the order.
  • According to the order, Trai had asked the broadcasters to fix the maximum retail price (excluding taxes) for à la carte pay channels. The order had further listed seven genres for television channels, down from current 11 and had also fixed a maximum price for each genre. 
  • So far, channel distributors had an upper hand in deciding the prices. These firms —called distribution platform operators—obtain TV channels at a negotiated price from broadcasters and deliver them to subscribers over their cable TV, direct-to-home (DTH) operators and head-end in the sky (HITS) networks.

Broadcasters and Broadasters Association ka kya kehna hai ?

  • Broadcasters and broadcasting associations have expressed concern over Trai’s tariff order and have even asked the department of industrial policy and promotion (DIPP) to undertake a review of Trai’s authority to regulate the sector. 
  • "Broadcasting firms are covered by copyright laws worldwide. We have asked DIPP to undertake a review through stakeholder consultation to align broadcasting laws with the copyright laws,” said an executive of a leading broadcaster on the condition of anonymity.
  • In its response, Zee said that the cost of the content is determined by market forces and the intellectual property/copyright owners under the Copyright Act are free to recover the perceived value of the content. “But under the Trai regulation/tariff order, the broadcaster/content owner distributing the said content through its channels is not allowed to charge the realistic market value and will be bound by the restriction of the genre cap/ceiling imposed on a particular channel prescribed by Trai,” it added.
  • Sony Pictures Network, which runs several entertainment and sports channels, agreed that the draft order if implemented will suffer from a lack of jurisdiction. Given that television broadcasters as the owners of the content are governed by the Copyright Act, “Trai ought not to do anything that would amount to a dilution of the unfettered rights granted to us thereunder,” said Sony in its comments.

Phir ...hona kya tha !

  • Earlier in December, Star India Pvt. Ltd and its subsidiary, Vijay Television Pvt. Ltd had also filed a petition in Madras HC against Trai, information and broadcasting (I&B) ministry, Department of Industrial Policy & Promotion (DIPP) and the Department of Telecom on similar grounds, after which HC asked Trai not to pass any guidelines on tariff issues in the broadcast sector. 

Phir TRAI ne kya kiya...TRAI ka stand ?

Image result for trai broadcaster draft

  • Following the Madras HC order, the regulator has moved Supreme Court through a special leave petition
  • “Trai is trying to bring transparency in the industry by regulating the broadcast distribution system. We have the mandate to regulate tariff, interconnection and quality of service issues in the sector,” a Trai official said

The high court will resume hearing on 12 January.


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