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TDSAT sets aside TRAI's direction on cable tariff ceiling

  1. #1
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    Default TDSAT sets aside TRAI's direction on cable tariff ceiling

    Hi all,
    Look at the following :-

    http://economictimes.indiatimes.com/...,prtpage-1.cms


    TDSAT sets aside TRAI's direction on cable tariff ceiling
    15 Jan 2009, 1614 hrs IST, PTI

    NEW DELHI: Sectoral tribunal TDSAT ON Thursday rejected a tariff order issued by TRAI proposing to put a ceiling on cable services charges in the
    country, saying that the regulator had violated principles of transparency.

    The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) also asked TRAI to study afresh the issue of allowing Multi-System Operators (MSOs) to choose channels for distribution in non-CAS areas in the next six months, saying the ve would not ensure benefit to consumers.

    "We set aside the Telecommunications (Broadcasting & Cable) Services Tariff order 2007 of TRAI," said the TDSAT bench headed by Justice Arun Kumar.

    The bench further observed while issuing the circular that "principles of transparency (have) been violated by the authority (TRAI) ... TRAI should have taken due care while passing an important order such as this".

    On October 4, 2007, TRAI issued a circular proposing price band of Rs 132-260 for cable services based on a classification of cities and the number of pay channels provided by MSOs.

    Besides, TRAI had allowed MSOs to take channels from broadcasters on a pick-and-choose basis. It was opposed by media houses including Zee, Star, Sony and Sun, which approached TDSAT, but MSOs supported TRAI on the issue.

    On the issue of allowing MSOs to pick and choose channels for distribution in non-CAS areas the tribunal observed: "We are not convinced by the arguments that the prescription of a ceiling on the cable charges at the subscriber level will translate into the MSOs and cable operators passing on the financial benefits to subscribers."
    Last edited by shirish; 16th January 2009 at 08:10 AM. Reason: wrong url

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