LCN Rank Case: TDSAT tells broadcaster to pay cable operators

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has delivered its judgment on the issue of Logical Channel Number (LCN) rank in response to petitions filed by three cable operators against a leading broadcaster. In the judgment issued on March 3, the tribunal said the petitioners, Indian Cable Net Co. Ltd., SITI Networks and SITI Maurya, are entitled to the incentive amount of Rs 11.76 crore, Rs 7.23 crore, and 2.35 crore, respectively, as per the Subscription License Agreement (SLA). The petitioners have also been allowed an interest at 7% and costs of litigation. 

The judgment was delivered by the Chairperson Bench of TDSAT composed of Justice DN Patel and Subodh Kumar Gupta.

The judgment is related to a dispute pertaining to the displacement of LCN rank vis-a-vis the present regulatory framework. TDSAT has held that the placement of TV channels for the purpose of “rank” is an unregulated field. Moreover, the retransmission of channels on blank/vacant LCN Slots will not displace the rank of the channels. Since there is no uniform method of computing rank prevalent in the cable industry, for ease of operational functionality, the method envisaged by the petitioners would be taken as a correct method in the facts of the matter. 

Since February 2021, the broadcaster had not been paying incentives to the three petitioners in terms of the Subscription License Agreement executed between the parties. The contention of the broadcaster was that the introduction of a new channel on a higher LCN would be tantamount to the displacement of the LCN Rank of the broadcasters' channels placed at a lower LCN. 

Dismissing the argument of the broadcaster, the bench has further held that Clause 18 of Interconnection Regulations, 2017 is limited in nature and it does not govern placement of channels for purposes of rank, as was being canvassed.