Section 81 in Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017
81. The Authority has further noted that the Average Revenue Per User net of payments made to broadcasters for their pay channels per month for some distributors of television channels at present is approximately Rs 100/-. The Authority in the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff Order, 2010 has mandated the MSOs to offer a package of a minimum of one hundred free-to-air channels as basic service tier (BST) and specify a minimum monthly subscription, not exceeding one hundred rupees (excluding taxes) per subscriber. The price of BST has never been questioned by any stakeholder so far. If we estimate the current price of BST applying the GDP deflator prepared by the World Bank, it comes out to be Rs. 110/-. The Authority has further noted that in Phase-III and Phase-IV areas, large number of small MSOs are providing services who have smaller networks and cater to small number of subscribers. In order to protect the interests of such MSOs, the amount of Rs. 130/ has been prescribed for Network Capacity Fee for the capacity of initial one hundred channels. In order to provide flexibility to distributors of television channels and protect the interests of customers/ viewers the ceiling of Rs. 130/- has been prescribed. Distributors of television channels are free to fix Network Capacity Fee below this ceiling. However, the Network Capacity Fee will be agnostic to the type of the channel carried over the network. It cannot vary based on the channels subscribed by a subscriber. The Authority will keep a watch on the developments in the market and may review the ceiling on the Network Capacity Fee in a time period of about two years.
