Broadcasters oppose TRAI’s attempt to reintroduce 15% discount cap on channel bouquets
TRAI had moved the Supreme Court after the Madras High Court set the discount cap on channel bouquets clause aside. The authority had later withdrawn the appeal
After the implementation of the New Tariff Order the Telecom Regulatory Authority of India sought suggestions from the stakeholders on a review of the new regime. It issued a consultation paper on tariff-related issues for broadcasting and cable services.
Now the stakeholders have reacted to it and the broadcasters especially have a problem with TRAI looking to re-introduce the 15 per cent discount cap on channel bouquets.
The 15 per cent discount clause was set aside by the Madras High Court on May 2018 while hearing a plea filed by Star India and Vijay TV against TRAI’s tariff order. The court had, however, approved all other proposals put forth by TRAI. The authority had moved the Supreme Court to reverse the Madras High Court order but later withdrew its appeal.
Broadcasters thus feel it is not TRAI’s place to suggest for a discount cap.
Star India, in its reply to the consultation paper said, “TRAI has misleadingly represented the position in respect of the capping on discount on sum of prices of a-la-carte channels forming part of the bouquets at 85 per cent, as the same has been categorically struck down by the Madras High Court, and the Supreme Court.”
The statement further read, “First, it is important to reiterate the threshold objection that TRAI’s presumption that the provision of discount cap under the NTO exists but was merely not enforced by TRAI is incorrect, given that the High Court of Madras struck the provision down as arbitrary.”
Sony Pictures Networks India reiterated, “The cap on discount on a sum of a-la-carte channels forming part of the bouquets cannot be reintroduced as it would be contumacious of the order of the Supreme Court, whereby the Special Leave Petition of TRAI on this very aspect stood withdrawn. TRAI by imposing any restriction on the way channels are priced will be interfering with the right of service providers to conduct their business. The imposition of discount caps is one such restriction which will impinge upon the right to carry on trade guaranteed under Article 19 (1) (g) of the Constitution of India.”
Times Network also said that there was a proposal to put cap on the discount of the bouquet at 15 per cent which was held to be arbitrary and unenforceable by the courts. “This fact that the discount on bouquet is not enforceable was very well known to TRAI and all the stakeholders well before the implementation of the new regulations and TRAI with full knowledge of this fact went ahead with implementation of the new regulations and ensured that the new regulations are adopted by the industry and the consumers. While TRAI believes that the NTO was envisaged as a policy to give power of selection and choice in the hands of end consumers and this kind of discounting is making MRP of individual channels illusory thereby impacting the a la carte choice of channels by consumers, the courts have held that the 15 per cent discount cap arbitrary and set it aside.”
BBC Global News India mentioned how doing so might lead to litigations. The statement reads, “The Madras High Court has already held 15 per cent discount cap imposed on bouquet pricing by the Authority as arbitrary and has set it aside. The Supreme Court has also not passed any order pertaining to capping of discount on bouquets in an appeal filed by the Authority against order of Madras High Court. Thereafter, the Authority filed an SLP (Special Leave Petition) before the Supreme Court for clarification related to capping of discount on price of bouquet. Interestingly, this SLP was dismissed by Supreme Court as it was withdrawn by the Authority. In our opinion going back to the issues which have already been adjudicated upon and decided by the highest courts will send a very wrong signal. Moreover, any attempt to bring in capping on bouquet discount will give rise to multi-dimensional litigations which is never good for any industry.”
Sun Direct also feels that TRAI is attempting to re-agitate the same issue which has been decided by the highest court in the country.
Discovery Communication India in their reply made it abundantly clear that it isn’t open to TRAI to reintroduce caps on discounts. “In this background, the effort on the part of TRAI to bring up the issue based on the self-same arguments, is clearly in disregard of the authority of the constitutional courts of the country, whose decisions are binding on TRAI as a statutory authority. It is beyond the jurisdiction of TRAI to impose such cap. Moreover, when the High Court and Supreme Court have considered these arguments while giving their verdict, it is a clear overreach of the judgment if TRAI seeks to introduce such a cap of discount.”
