AIDCF vs TRAI: Kerala HC to hear the matter on Feb 22
The cable operators’ body had approached the court seeking interim relief from disconnection notices sent by broadcasters
The Kerala High Court is set to resume hearing on the All India Digital Cable Federation's (AIDCF) petition challenging the Telecom Regulatory Authority of India's (TRAI) new Tariff Order. The matter will be heard on February 22. The move was taken after the arguments in the hearing failed to reach a conclusion.
According to the submission made by Jayant Mehta Counsel for AIDCF, TRAI by allowing 45% discount under the new regime would permit the broadcasters to push for bouquets. AIDCF' counsel said that TRAI has ignored the Preamble of the TRAI Act which provides that TRAI is responsible for orderly growth of the industry. AIDCF counsel said that the implementation of the 2022 regime can be deferred for a month more so when the 2020 regime was not implemented for 3 years.
In respond to AIDCF' submission, TRAI said that Petitioners neither have a prima facie case nor have balance of convenience in their favour. The Petitioners have no case for grant of status quo ante. The 2022 regime is already implemented w.e.f. 01.02.2023.
TRAI's advocate said DPOs have suppressed the timelines relating to the challenge to the 2017 Regulations before the Madras High Court and the Supreme Court which shows that the price cap of Rs 19 was upheld by the Supreme Court.
Kerala High Court had refused to grant any interim relief in favour of the Petitioners on 06.01.2023.
Under Regulation 10(1), a written interconnection agreement is a must for a broadcaster to provide tv signals to a DPO.
Broadcasters and DTH operators have already executed such interconnection agreements.
"80% of the DPOs have complied with the 2022 Regulations. It is only the Petitioners alongwith few other MSOs who have refused to sign the interconnection agreements in compliance of 2022 Regulations. Infact, one of the members of the petitioner No.1, Siti Cables has also signed the interconnection agreement under the 2022 Regulations. Interim relief in favour of the petitioners would create two different regimes on ground – one set of DPOs complying with the 2022 regime and one set of DPOs operating under the erst while regime."
TRAI also said that broadcasters cannot refuse to provide signals to the DPOs if they are willing to sign the revised interconnection agreement.
"Broadcasters are producers of content and cost of production of content varies. DPOs are intermediaries who pass on the signals of the broadcasters to the consumers. DPOs have no say in pricing of channels.
Price cap of Rs 19 was upheld by the Supreme Court in Star India vs. DIPP. The submission of Dr. Singhvi that the price cap of Rs 19 was never implemented is incorrect. The said price cap was implemented from 01.02.2019.
Rs 12 cannot be considered a basis to assess the price hike as Rs 12 was never implemented. The Regulations carry presumption of constitutionality."
TRAI said petitioners have been operating under the price cap of Rs 19. TRAI has only allowed the said price cap to continue without any enhancement.Any interim relief in favour of the petitioners at this stage would amount to granting final relief."
Over the weekend, major broadcasters Disney Star, Sony and Zee disconnected signals to AIDCF members who refused to sign fresh distribution agreements under NTO 3.0
The cable operators' body had earlier dismissed the broadcasters' notice, requesting that they sign a new RIO. Both parties have accused each other of being unfair to the customers and spreading false information.
