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The investigation did not find any merit that Sun Direct TV was giving set top boxes free of cost to its customers and thereby bearing a subsidy burden of over Rs. 2200/- per subscriber. inquiries have revealed that the set top boxes were given as a part of the subscription package and therefore it remained the property of Sun Direct TV. Further, such provision of DTH boxes to its customers was also followed by all other DTH operators in lndia as per chart given in the report. The rates charged by Sun DTH were effectively comparable to others. The inquiries also did not find any substance and merit on the allegation of resorting to predatory pricing by providing package of Tamil channels at

Offerinq of CPE (consumer premises equipment) free of cost to the subscribers. This would cover the alleqations that SUN Direct is subsidizinq its customers by bearing a subsidy burden of over Rs. 2200!- The l.P in his information has attached an advertisement published in Business Standard which says that "Get Sun Direct DTH for i ust Rs. 440 and get 4 months subscription with 'Dis h and Set--top Box Free'. Further, in the foot note of the same advertisement it is written that 'the installationl activation charges Rs. 1250- extra'. The l.P, therefore, has alleged that the offer of Dish and Set--top Box free of cost made by the O.P is in contravention of the provisions of Competition Act as it is a straight away bearing a subsidy burden of over 2,200 per subscriber. Explaining it further, the l.P has submitted that since the Direct to 9.2 9.3 Home (DTH) platform is directly fed from the satellite, it needs an antenna and a set top box along with a viewing card as main ingredients to constitute a system so that the TV Signals can be provided to the consumers through Television sets. Apart from this the wires and fixtures also add cost to the hardware set. The OP is using an advance technology called "MPEG-4" wherein the cost of set top boxes are more that of conventional 'MPEG-2' technology. From the reporting of press it is understood that set top box above would cost Rs. 2160 to Rs. 2,280/- per piece.

o the consumers who avail the to return the same on discontinuation of lg order to ascertain the facts of reducing the prices of CPE below the cost, the DG asked the OP to provide details of monthly charges on various bouquets of channels offered by it to its consumers and also the details of capital cost of set top boxes incurred by it in procuring the same and the amount charged for its customer other D s for these boxes. The DG called for the similar information from the TH Service Operators and compared the element of subsidy in the offers n by all the service providers. The DG has prepared a table of comparable rat es as on 31.11.2010 wherein the cost of different equipments have been give compared in respect of other service providers and has come to the conclusion that all DTH Service providers are more or less charging the same amount of money on monthly basis from their customers and ther efore, there is no merit in the allegation of the l.P that Sun Direct TV has reduced the prices of its DTH lso concluded that it was clear nership of the CPE vests with Sun Direct TV and is given to the customer only to enable them to receive the signals service to eliminate competitors. The DG has a from the subscriber agreement that the ow of Sun Direct TV. Thus, the allegation that Sun Direct is subsidizing the cost of hardware does not hold good in the absence of transfer of the rights in the hands of the customers.