TRAI regulation F. No. RG-1/2/(2)/2022-B AND CS (2) · 22 Nov 2022
Official title
The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Fourth Amendment) Regulations, 2022
Official record
Open source pageSummary
These regulations amend the 2017 Interconnection Regulations to permit broadcasters to offer discounts on the maximum retail price (MRP) of both a-la-carte pay channels and bouquets of pay channels to distributors of television channels. The discount is capped at 15% of the MRP. Furthermore, the total of the distribution fee and any such discounts must not exceed 35% of the MRP. Broadcasters must ensure these discounts are based on fair, transparent, and non-discriminatory terms, with measurable and computable parameters. When calculating incentives based on subscription levels, broadcasters must account for the total subscription of a channel across both a-la-carte and bouquet offerings. These provisions aim to improve value chain efficiency while preventing discriminatory practices and ensuring consumer choice.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART III, SECTION 4
TELECOM REGULATORY AUTHORITY OF INDIA NOTIFICATION
THE TELECOMMUNICATION (BROADCASTING AND CABLE) SERVICES INTERCONNECTION (ADDRESSABLE SYSTEMS) (FOURTH AMENDMENT) REGULATIONS, 2022 (2 of 2022)
New Delhi, 22/11/2022
F. No. RG-1/2/(2)/2022-B AND CS (2).— In exercise of the powers conferred by section 36, read with sub-clauses (ii), (iii) and (iv) of clause (b) of sub-section (1) 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, —
(a) issued, in exercise of the powers conferred upon the Central Government under clause (d) of sub-section (1) of section 11 and proviso to clause (k) of sub-section (1) of section 2 of the said Act, and
(b) published under notification No. S.O.44 (E) and 45 (E) dated the 9th January, 2004 in the Gazette of India, Extraordinary, Part II, Section 3,—
the Telecom Regulatory Authority of India hereby makes the following regulations to further amend the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017 (1 of 2017), namely:-
(2) They shall come into force from the date of their publication in the Official Gazette.
“(4) It shall be permissible to a broadcaster to offer discounts, on the maximum retail price of pay channel or bouquet of pay channels, to distributors of television channels, not exceeding fifteen percent of the maximum retail price:
Provided that the sum of distribution fee declared by a broadcaster under sub-regulation (3) and discounts offered under this sub-regulation in no case shall exceed thirty five percent of the maximum retail price of pay channel or bouquet of pay channels, as the case may be:
Provided further that offer of discounts, if any, to distributors of television channels, shall be based on combined subscription of the channel, both in bouquets as well as in a-la-carte, and such discount, if any, shall be offered on proportionate revenue from such channel as a-la-carte and as part of (any) bouquet:
Explanation: Any discount, offered as an incentive by a broadcaster on the maximum retail price of the pay channel or bouquet, based on actual number of subscribers or actual subscription percentage, recorded in a month, shall take into account total subscription of the channel both in a-la-carte as well as bouquet.
Illustrations
(a) Let us assume a broadcaster is offering a discount, as an incentive, of say 10% on the maximum retail price of a pay channel to the distributor in case actual subscription percentage of that channel reaches say 75%. In case the actual subscription percentage of that channel reaches say 30% on a-la-carte basis and say 45% in bouquets, then the distributor should become eligible to get the above-mentioned discount, as the actual combined subscription percentage of that channel would be 75%.
(b) Let us assume a broadcaster is offering a discount, as an incentive, of say 10% on the maximum retail price of a pay channel (Channel X) to the distributor in case actual combined subscription percentage of that channel on a-la-carte basis and as part of a bouquet reaches say 75%. Now, say the actual subscription percentage of that channel reaches 30% in a-la-carte and 45% as part of a bouquet, then the distributor should become eligible to get the above-mentioned discount, because the actual combined subscription percentage of that channel would be 75%. In such case, the discount to be offered as an incentive for the combined subscription attained will be calculated in proportion to the channel’s revenue on a-la-carte basis as well as in a bouquet, i.e. on the maximum retail price and the ‘effective price’ of the channel, respectively. Now, say the bouquet has been designed by combining a few channels and offering 40% reduction of sum of a-la-carte price of individual channels forming part of that bouquet. Say, Channel X has an maximum retail price of Rs. 10/-, then in such case the ‘effective price’ of Channel X in the bouquet will be Rs 6/- (i.e. 40% less than the maximum retail price of the television channel). The final amount of incentive for this Channel X will be arrived at as below:
Sum of Proportionate Revenue of the Channel X on a-la-carte basis and as part of bouquet = Maximum retail price x Subscription on a-la-carte basis + Effective Price in bouquet x Subscription of the bouquet
Amount of Discount on Channel X = Sum of Proportionate Revenue of Channel X on a-la-carte and bouquets * Prescribed % Discount
(c) Let us assume a broadcaster is offering a discount, as an incentive, of say 10% on the maximum retail price of a pay channel to the distributor in case actual combined subscription percentage of that channel reaches say 75%. Now, say the channel is offered on a-la-carte basis and also as a part of two bouquets, and its actual subscription percentage is 10% in a-la-carte, 20% as part of Bouquet A and 45% as part of Bouquet B. In such case, the discount to be offered as an incentive for the combined subscription attained will be calculated in proportion to the channel’s revenue on a-la-carte as well as in each of the bouquets. Say Bouquet A and Bouquet B have been designed by combining a few channels and offering 40% and 30% reduction of sum of a-la-carte price of individual channels forming part of that bouquet, respectively. Say, Channel X has an maximum retail price of Rs. 10/-, then in such case the ‘effective price’ of Channel X in Bouquet A will be Rs 6/- (i.e. 40% less than the maximum retail price of the television channel) and in Bouquet B will be Rs 7/- (i.e. 30% less than the maximum retail price of the television channel). In this case, the final amount of incentive for this Channel X will be arrived at as below:
Sum of Proportionate Revenue of the Channel on a-la-carte basis and as part of bouquets = Maximum retail price x Subscription on a-la-carte basis + Effective Price in Bouquet A x Subscription of Bouquet A + Effective Price in Bouquet B x Subscription of Bouquet B ………..
Amount of Discount of the said Television Channel = Sum of Proportionate Revenue of the said Television Channel on a-la-carte basis and as part of bouquets x Prescribed % Discount.
Provided also that offer of discounts, if any, to distributors of television channels shall be on the basis of fair, transparent and non-discriminatory terms:
Provided also that the parameters of discounts shall be measurable and computable.”
“Explanation: For removal of doubt, it is clarified that any discount, offered as an incentive by a broadcaster on the maximum retail price of the pay channel or the bouquet of pay channels, based on actual number of subscribers or actual subscription percentage, recorded in a month shall not amount to guarantee for a minimum subscriber base or a minimum subscription percentage for its channel.”
