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From 29 Dec 2018 you may have to pay more money for your monthly cable or direct to home(DTH) connection as new rates (tariff) will come into effect. This is done by the Telecom Regulatory Authority of India’s (TRAI) to let consumers have the option to select and pay only for TV channels they want to watch at the maximum retail price (MRP) set by the respective broadcasters and to make the entire framework completely transparent.  This article talks about the Cable and DTH New Rates, What are the value packs offered to customers? What is the MRP of the channels? Where can one find more information?

The Telecom Regulatory Authority of India (TRAI) has now extended the deadline for switching to the new channel pricing and subscription tariff regime—subscribers now have till 31 March 2019 to make the switch and will ideally not face disruption of services in the meantime.

Best Fit Plan

In view of the larger public interest, the Authority directs all DPOs that those subscribers who do not exercise their options shall be migrated to a ‘Best Fit Plan’,” says TRAI in an official statement, before adding, “The subscribers’ old plan shall continue till either subscriber exercise his/her option, or he/she is migrated to the ‘Best Fit Plan’.” In many ways, the cable tv operators and direct to home (DTH) service providers (referred to as Distribution Platform Owners or DPOs) are free to switch users to what is a ‘best fit’ plan under the new subscription packs as per the latest TRAI guidelines, to ensure that the services aren’t disrupted. 

Subscribers will be free to change their ‘Best Fit Plan’ at any date and time on or before 31st March 2019 and DPOs shall convert their ‘Best Fit Plan’ into the desired pack (channel/Bouquet) within 72 hours from the time choice exercised by the Subscriber

  • The Best Fit Plan will contain only those channels that the particular subscriber prefers.
  • The Best Fit Plan won’t exceed the current bill amount of the subscriber.

How to choose Channel packs?

TRAI has come up with a portal www.channeltariff.trai.gov.in which lists the price of all pay channels as well as bouquet packages of all broadcasters. The price mentioned in the list is MRP and no distributor can charge more than the maximum retail price declared by a broadcaster. The distributor can, however, choose to offer you discounted tariff plans.

An example sample pack is shown here

How to choose Channel packs on Tata Sky?

Tata Sky FTA Basic pack that will be available will all the free-to-air channels here

Tata Sky How to choose channel packs

Tata Sky How to choose channel packs

How to choose Channel packs on Airtel DTH?

Airtel DTH How to choose channel packs

Airtel DTH How to choose channel packs

Cable and DTH New Rate Structure

Customers will be able to take a-la-carte channels. A broadcaster(Zee, Star, Sony) can offer bouquets, he must provide an a-la-carte option.  Now platform providers like cable operators cannot create customized channel packs but packaging will be done by broadcasters.  As per the new rate structure, a consumer will have to pay up following.

Cost of migration to new plans: In case you have already paid for an annual plan, then the distributor shall continue to provide services for the remaining period without change in tariff plan, according to new TRAI rules. If you switch over to a new package after 1 February, then the proportional balance amount of existing package can be adjusted against the new package.

Please visit https://trai.gov.in website for more clarifications

  • Rs 130 (plus taxes) for the first set of 100 channels, which includes 25 free-to-air (FTA) channels called as Network Capacity Charge. This doesn’t include any popular channels from top TV networks like Star India, Zee, Sony etc. It includes 24 DD Channels. You can have more than 100 channels but then you would have to pay extra Rs.20 for every additional 25 channels capacity and so on
  • The minimum cost of a channel is 50 paisa per month.
  • The maximum cost of an individual channel is Rs 19 per month.
  • Broadcasters like Star, Zee, Sony etc will provide bundled packs or value packs. For example, Star Value Hindi Pack is Rs 49 (without taxes) and Zee Hindi pack SD is Rs 45.
  • There will no thematic plans around specific genres like movies, reality, music, entertainment, sports and so on.  Now platform providers like cable operators cannot create customized channel packs but packaging will be done by broadcasters
  • Those who own multiple TVs earlier could choose the relevant genre pack. For example, someone may want only English and international HD channels on his bedroom TV, while his living room TV may be primarily used for watching Hindi HD content. However, under the new system that will come into effect from December 29, the consumer will have no choice but to choose the appropriate pack or channel.
  • Out of the 800+ TV channels in India, 332 have already declared their prices which are available at TRAI website, 
    • Within the 332 pay channels, 232 are in standard definition or SD, while the remaining 100 are HD channels.
    • Out of the total 100 pay HD channels, only 31 are priced less than Rs 10. Out of the remaining 69, 44 are priced at Rs 19 per month.
    • In the case of standard definition, only 25 channels are priced at Rs 19 each.

FAQ regarding Cable

What is Network Capacity Fee

As per TRAI, you have to pay minimum Rs.130 and you will get capacity to see 100 channels which is known as Network Capacity Charge. Out of 100 channels, there will be 25 channels from DD which are free and you can choose the remaining 75 channels. In these 75 channels, you can either put paid channels or free channels or mixture of paid and free channels. If you choose 1 HD channel then it is equivalent to 2 SD channels.

After 100 channel capacity is full you have to pay extra Rs.20 for every additional 25 channels capacity and so on.

You need to pay 18% GST extra

What is FTA or Free to Air Channels?

FTA channels will be provided completely free in new framework whereas these were charged by different platform providers earlier. The MRP of FTA channels as shown in Electronic Program Guide (EPG) will be ‘free’. The latest list by TRAI shows that there are 330 pay TV channels and 535 FTA channels at present but not all FTA channels are carried by all operators. List of FTA channels is given here.

DTH cable base pack

TRAI has mandated that all DTH service providers must offer a base pack. The regulations state that any operator can charge up to Rs 130 for the base pack containing at least 100 channels. The base pack can contain an operator chosen channel pack or a custom one curated by the consumer. Despite TRAI setting the bar to Rs 130, several popular operators have been offering base packs starting from as low as Rs 85.

  • DishTV is offering its base pack starting for as low as Rs 85, which includes 170 channels and services.
  • Tata Sky is still offering its own curated base packs starting at Rs 220, with a similar number of channels as its previous packs. Tata Sky is also offering a TRAI-mandated base pack at Rs 99 with a major focus on regional channels.
  • Airtel Digital TV is also offering a base “My Plan” for Rs 99 with a wide variety of local, regional as well national channels.

What’s noticeable is that most operators are offering more than 100 channels in their base pack, but the choice of all channels is widely balanced.

Suggestions of Pack for Hindi Speaking Audience

Suggestive Package of 100 SD channels for Hindi Speaking Market Package Price =315 without discount out of which Paid SD channels = 68, FTA channels = 7, DD channels = 25

Check out Suggested Packages list from TRAI here.

Suggestion of Cable pack for Hindi

The suggestion of Cable pack for Hindi

MRP of Channels or Bouquet

MRP of Pay channels of Cable and DTH

MRP of Pay channels of Cable and DTH

Broadcasters like Star, Zee, have declared their bouquet offers. Star has announced value pack in seven languages, wthe ith price range starting from Rs 25 (exclusive of taxes) for Tamil to Rs 49 for Hindi. Star Value Pack includes entertainment, movies, knowledge and the best of Sports, as shown in the image below.

Sony Picture Network, which has distribution rights for 32 channels, has also declared MRP for its a-la-carte and bouquets on its website. It has put an MRP of Rs 90 for the bouquet of HD channels, which includes HD channels such as Set, ET, Sab, Max, SONY BBC Earth, Ten 1, Ten 2, Ten 3, Six, SONY ESPN, Pix, AXN and AXN HD.

Bouquet offer by Star

Bouquet offer by Star

ZEE has brought 68 consumer-centric packs, offering genres from entertainment, movies, news, music and lifestyle. It has priced Hindi packs starting at Rs 45 as shown in the image below. Bouquet offer by Zee can be checked at their website www.zeeentertainment.com

Value Pack offer by Zee

Value Pack offer by Zee

List of FTA channels

FTA channels will be provided completely free in new framework whereas these were charged by different platform providers earlier. The MRP of FTA channels as shown in Electronic Program Guide (EPG) will be ‘free’. There are more than 600 FTA channels at present but not all FTA channels are carried by all operators. There are around 200 Hindi FTA channels in India.  List of all FTA channels is here

  • There are around 200 Hindi FTA channels in India. List of FTA channels is given here. The highest number of Hindi FTA channels are offered by Dish TV and Tata Sky. But even they don’t offer more than half of all Hindi FTA channels registered in India.
  • The second language with a large selection of free channels is Tamil. There are an estimated 50 FTA channels in Tamil language.
  • Telugu is at No.3 with around 40 such free channels, while Malayalam has around 35.
List of FTA Channels or Free to Air Channels

List of FTA Channels

Why has TRAI has come up new DTH and Cable Rates

Currently, in phase III and IV towns, consumers pay a monthly bill of Rs 200-250, and in large cities, a cable/ DTH bill is  between to Rs 350-400 for 250+ channels which includes sports and regional channels costs

As per TRAI,

  • four metros fall under phase I,
  • Cities with a population of over 1 million form phase II markets.
  • Phase III are those cities with the population of over 1 lakh,
  • Towns with less than 1 lakh of the population belong to phase IV.
  • One can expect Phase I/II subscribers to pay more but convincing price sensitive Phase III/IV subscribers to cough extra for TV services, who are currently paying Rs 200-250 per month, will be a challenge

TRAI brought the change to bring in clarity and transparency in pricing. Giving Customer a choice on what channels they want.

TRAI Notice on Will Cable/DTH rates rise

TRAI Notice on Will Cable/DTH rates rise

Will, there be a blackout on 29 Dec 2018?

TRAI has said there will be no blackout.  Last date was extended to 31 Jan 2019.

TRAI there will be no blackout

TRAI there will be no blackout

Local cable operators are also unhappy as they fear they will no longer be able to get a share of the content fees or pay channel charges. Under the existing system, local cable operators keep about half of the total money paid by a subscriber, while the other half is shared by the MSO feed provider and channel owners. However, if cable operators have to work with the prices announced by the broadcasters, the revenue shares will have to be reversed: Channel owners will have to be given 50%, with the LCO and the MSO splitting the other half.

TRAI FAQ

TRAI has come up with Frequently Asked Questions(FAQ) on their website. We encourage you to go through that . You can find it at  https://www.trai.gov.in/sites/default/files/FAQ18122018.pdf. It has answers to questions like:

A. General Concerns regarding new regulatory framework ………………………………………. iv
1. What was the reason to modify existing framework?…………………………………………………………………………………. iv
2. How consumers are benefitted in new regulatory framework for broadcasting and Cable Services?
iv
3. Whether the monthly charges to the consumers will be increased by Rs. 200/- or more …………………. iv
5. Does New Regulations favours only big pay Broadcasters?…………………………………………………………………………v
6. Will FTA channels be completely free?…………………………………………………………………………………………………………… vi
7. Does subscriber has flexibility to choose any channel? ……………………………………………………………………………… vi
8. Does Rs. 130 network capacity fee for 100 channels include only FTA channels ………………………………… vi
9. Whether there is a capping on discount while forming the bouquets?…………………………………………………… vi
10. Will Additional TV connection in a house be costlier?………………………………………………………………………………… vi

B. General understanding about new framework ……………………………………………………10
23. What constitute New Regulatory Framework?…………………………………………………………………………………………….10
24. What were the reasons behind framing of this regulatory framework? ………………………………………………..10
25. Is there any time line for implementation of the New Regulatory Framework? ………………………………….10
26. What are the benefits for various stakeholders under these regulations?……………………………………………… 2
27. What are pay channels? ………………………………………………………………………………………………………………………………………. 4
28. What is MRP of channel? Is it uniform for all distribution platforms? …………………………………………………….. 4
29. What is network capacity fee? …………………………………………………………………………………………………………………………… 4
30. What are Free to Air Channels? Do we have to pay for subscribing only FTA channels? ……………………. 5

We are a few days away from implementing the change. Nobody knows what will happen on 29 Dec. But if you are using Cable then it is time to sit down and find out what cable channels your family will like to see and take the appropriate channels and packs.

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