Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Third Amendment) Order, 2022 · No. 4 of 2022

TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART III, SECTION 4

TELECOM REGULATORY AUTHORITY OF INDIA

NOTIFICATION

New Delhi, the 22 November 2022

No. RG-8/1/(9)/2021-B AND CS(1 AND 3).--- In exercise of the powers conferred by sub-section (2) of section 11 of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), read with notification of the Central Government, in the Ministry of Communication and Information Technology (Department of Telecommunications), No. 39, -----

1. issued, in exercise of the powers conferred upon the Central Government by proviso to clause (k) of sub-section (1) of section 2 and clause (d) of sub-section (1) of section 11 of the said Act, and

2. published under notification No. S.O. 44 (E) and 45 (E) dated 9th January, 2004 in the Gazette of India, Extraordinary, Part II, Section 3, ----

the Telecom Regulatory Authority of India hereby makes the following Order to amend the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017 (1 of 2017), namely: -

THE TELECOMMUNICATION (BROADCASTING AND CABLE) SERVICES (EIGHTH) (ADDRESSABLE SYSTEMS) TARIFF (THIRD AMENDMENT) ORDER, 2022 (No. 4 of 2022)

1. Short title, extent and commencement:

(i) This Order may be called the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Third Amendment) Order, 2022 (4 of 2022).

(ii) This Order shall apply throughout the territory of India.

(iii) This Order shall come into force from 1st of February 2023 except clause 4 and 5 of this order which shall come into force from the date of publication of this order in the Official Gazette..

2. In clause 3 of the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017 (hereinafter referred to as the “principal Tariff Order”), in sub-clause (3) ---

(a) in the second proviso, for the words “rupees twelve”, the words “rupees nineteen” shall be substituted;

(b) for the third proviso, the following proviso shall be substituted, namely: ---

“Provided further that maximum retail price per month of such bouquet of pay channels shall not be less than fifty five percent of the sum of maximum retail prices per month of a-la-carte pay channels forming part of that bouquet;”

3. In clause 4 of the principal Tariff Order, ----

(a) in the second proviso to sub-clause (3), for the words “rupees twelve”, the words “rupees nineteen” shall be substituted;

(b) in the first proviso to sub-clause (4), for the words “rupees twelve”, the words “rupees nineteen” shall be substituted;

4. In clause 6 of the principal Tariff Order, ----

(a) after the first proviso to sub-clause (1), the following proviso shall be inserted, namely: --

“Provided further that any change in name, nature, language, maximum retail prices, per month, of channels and maximum retail price, per month, or composition of bouquets due to the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Third Amendment) Order, 2022, shall be

a) reported to the Authority on the portal as specified for this purpose at least forty-five days prior to such change;

b) simultaneously published on the website of the broadcaster; and

c) communicated to all the distributors of television channels, with whom it has entered into interconnection agreement.”

(b) the third proviso shall be deleted.

5. In clause (7) of the principal Tariff Order, -----

(a) after the first proviso to sub-clause (1), the following proviso shall be inserted, namely: --

“Provided further that any change in network capacity fee, name, nature, language, distributor retail prices of pay channels, distributor retail price or composition of bouquet of pay channels and composition of bouquet of free-to-air channels, network capacity fee for each additional TV connection beyond first TV connection in a multi TV home and long term subscriptions, as the case may be, due to the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Third Amendment) Order, 2022, shall be -

a) reported to the Authority on the portal as specified for this purpose at least thirty days prior to such change; and

b) simultaneously published on the website of the distributor.”

(b) the third proviso shall be deleted.

(V. Raghunandan) Secretary, TRAI

Note 1.----The Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017 (1 of 2017) was published in the Gazette of India, Extraordinary, Part III, Section 4 vide notification No. 21-1/2016-B&CS dated 3rd March, 2017 and subsequently amended vide notifications No. 1-2/2017-B&CS dated 30th March, 2017 and No. 21-01/2019- B&CS dated 1st January 2020.

Note 2. ----The Explanatory Memorandum at Appendix A to this Order explains the objects and reasons of the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Third Amendment) Order, 2022

Appendix ‘A’

EXPLNATORY MEMORANDUM

Introduction and Background

1. The Telecom Regulatory Authority of India (TRAI) on 3rdMarch, 2017 notified the new regulatory framework to ensure orderly growth of the Broadcasting and Cable TV Sector after a consultation process that lasted for more than one and a half year. This was necessitated by the complete digitization of Cable TV networks in India. The framework comprised of following Tariff Order and Regulations:

i. The Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017 (Tariff Order 2017);

ii. The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017(Interconnection Regulations, 2017);

iii. The Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service and Consumer Protection (Addressable Systems) Regulations, 2017(QoS Regulations, 2017).

Hereinafter, the above two Regulations & the Tariff order are collectively referred to as ‘the Framework.’

2. However, the framework could not be implemented as per the proposed timelines due to legal challenges. After passing legal scrutiny in Hon’ble High Court Madras and Hon’ble Supreme Court, ‘the framework’ came into effect from 29th December 2018. Collectively the three determinations completely overhauled the regulatory framework for the Sector. Given the size and structure of the Sector and the changes that ‘the framework’ entailed, it was imminent that there could be some transient issues.

3. TRAI carried out a consumer survey during July and August 2019 through an agency. The survey results reflected some inadequacies resulting in issues for the consumers. TRAI also received quite a few consumer representations during this period. ‘the Framework’ changed quite a few business processes. As a result, many positives emerged. Consumers could exercise their choices like never before. All the stakeholders in the television distribution value chain were assured of their distinct revenue stream(s). The trust-based audit regime through third party empaneled auditors started functioning. These measures helped in enabling orderly growth of the sector. Yet, it was observed that a few service providers were making unfair use of the available flexibility of the framework. The Authority took up a consultative exercise to address these issues. After due consultation in the last quarter of 2019, TRAI notified the following amendments to the Regulatory Framework 2017, on 1st January 2020:

A. The Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Second Amendment) Order, 2017 (Tariff Amendment Order 2020)

B. The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Second Amendment) Regulations, 2017 (Interconnection Amendment Regulations, 2020)

C. The Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service and Consumer Protection (Addressable Systems) (Third Amendment) Regulations, 2017(QoS Amendment Regulations, 2020)

Hereinafter, the above amendments are collectively referred to as ‘the amended Framework 2020’¹