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TRAI Tariff Orders

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TRAI (Telecom Regulatory Authority of India) has issued fresh Tariff orders on September 8, 2015 regarding charges for receiving TV services/channels called the Telecommunication (Broadcasting and Cable) Services (Fourth) (Addressable Systems) Tariff (Fifth Amendment) Order, 2015 ( 5 of 2015). Please go though the Tariff orders and the Press Release.

The orders states that no differentiation will be made between household subscribers & commercial establishments (i.e. restaurants). Same tariff rates will be applicable for both kinds of establishments.

The restaurants who charge their clients separately for commercial exploitation of TV services to earn revenues out of it from their clients/guests will be classified as “Commercial subscribers”. For example if a restaurant tries to commercially exploit a sporting event by charging an additional amount than normal rates from its customers either through charging an entry fee or by way of raising the prices of the food/drinks being served during that period at its premises, will be classified as a Commercial subscriber. Rest of the restaurants will be falling under the category of “Ordinary subscribers”.

Restaurants that are classified as Commercial subscribers will have to enter into tripartite agreements on non-discriminatory terms & conditions with the DPOs (Distribution Platform Operators) and the Broadcasters. Such agreements will have to be filed with the TRAI within 30 days of entering into such agreements. No such agreement is required from Ordinary subscribers/restaurants.

Except for Commercial subscribers, there is no tariff differentiation for ordinary subscribers. It may be noted that the service/channel is to be taken only from DPOs (Local Cable Operators, Multi System Operators, and DTH) and no direct agreements will be permitted with the broadcasters. For all practical purposes, cable connection charges per TV payable by restaurants would be same as domestic subscriber rates.

In Analog (Non-Conditional Access System) areas, maximum tariff payable by Ordinary subscribers has been fixed by TRAI for different cities/towns be payable by restaurants. But in case of DAS (Digital Addressable System) areas, the same is to be fixed by the DPOs.