New Rules for DTH / TV by TRAI

TRAI DTH/TV rules from today

-100 channels bandwidth cost 130rs.
-For every extra 25 channels bandwidth cost 20rs.
-26 Doordarshan channels are compulsory in 100 for 130.
– (100-26)=74 free to air or paid channels can be fitted in that 100 for 130. Extra charges only if it is paid. Else 130 only.

Customer(130 rs is bandwidth cost for 100 FTA/Paid channels, 20rs for extra 25) broadcaster(channel cost), distributor(bandwidth cost). HD channel bandwidth count is 2X normal channel bandwidth. So 130rs gives 74/2=37 HD channel capacity. Overall costs depend on Broadcaster.

Bandwidth cost

the cost of the network to carry that many channels (the count is including free/paid)
-Now money directly goes to the broadcaster. Now the Distributor has no bargaining advantage.

-Trai said to the broadcaster to price channels between 0.10 to 19. Every Tom and dick Entertainment channels priced themselves as 19rs. With an unlimited number of advertising and non-premium content where premium Start sports HD also 19rs.
– TRAI also made a rule to a broadcaster that if one has many channels (like star network, zee, Sony) then a single bouquet of channels package should not be less than 15% of total sum of individual channels. Which means X+y+z= 100, they (XYZ) bouquet package must not come lower than 85.

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– TRAI extended timeline till Jan 31st for following these rules to distributors/customers.

Now losers are broadcasters who priced every channel higher(max price) because they risk of being left unsubscribed, which only lowers their advertising revenue..mostly people watch only 50-60 channels. Now almost 700+ channels exist in India..what if all subscribe to 74(100-26) FTA and 5-6 paid channels? The broadcaster who used to live on ad revenue will die. Many news channels will die. Many broadcasters thought only 19rs but overall cost for a customer goes beyond 600-800+ for 40-60 paid channels they watch. So in the process of cost cutting users will kill some channels and make it a 20-30 paid list. Thereby broadcaster’s viewership count will be lowered and they lose ad. revenue. So the next step all broadcasters will be forced to lower their prices and almost all news channels will make their price to 0rs/FTA(free to air). Here Rural markets are completely different. They want everything for 200-250. So now all broadcasters are at viewership risk.

With this rules update, TRAI nullified distributor role. Before the distributor used to have bargaining/demanding advantage on either side (customer and broadcaster). So there used to be a price difference between each distributor to a broadcaster. One gets for 5rs and other get for 14rs. Because of big distributor’s/DTH demand and control. Now that’s completely removed.Now it’s more transparent. I don’t what big DTH operators will do? Bcz now they get only bandwidth charges of 130rs for 100 and 20rs for extra 25.:)

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