The All India Aavishkar Dish Antenna Sangh, part of the Aavishkar Media Group, has petitioned the TRAI and Ministry of Information and Broadcasting (MIB) to withhold new tariff guidelines’ implementation from 2022, saying the ‘industry feels that NTO2 regulations is not required’ at the moment.

Pointing out that at present TRAI’s earlier tariff regimes is still in the process of “settling down”, Aavishkar, in letters to the TRAI and MIB Minister Anurag Thakur, said, “However, (after) observing all the pros and cons, the industry feels that NTO 2 regulations are not required…(as) there are no issues of customer dissatisfaction.”

Quoting TRAI data that the “active subscriber base went down by 25 percent after the implementation of the first tariff order in 2019”, Aavishkar has said the regulator fixing the network capacity fee (NCF) at Rs. 130 has impacted the business calculations of cable operators; simply because NCF pricing is “market driven” and the MSOs and LCOs are “providing ample discounts to customers as per geographic areas and market(s)”.

“The NTO2 as a new regulation and (its) implementation plan has ruffled all in the industry, and now everyone feels that this is not required for implementation,” the letter has highlighted, pleading for it to be put on hold.

Aavishkar’s submission to TRAI and the Indian government comes days after two other industry bodies of LCOs hit out against NTO 2.0 clauses, with one of the organisations dubbing it a “black law” aimed at causing huge financial losses to the cable operators if implemented.

The letter also criticized the regulator’s move to micro-manage the broadcast and cable businesses.

“After lot of analysis, the distribution industry of LCO and MSOs, who have led and made this Cable industry, strongly felt that NTO2 regulations are taking into ancient rules of supreme price control. It will only create more job losses in the MSO and LCO industry, increase prices for the customers —as bouquet will become rare for premium channels,” Aavishkar said.

“The cable content industry market was supposed to move towards a more free market situation and not more stringent pricing regulations,” Aavishkar argued, making a pitch for lighter-touch regulations.

Interestingly, Aavishkar has also batted for such industry issues to be settled amongst players through discussions. “The stakeholders of the industry can always sit together and draw out healthier customer benefit requirements,” it said.

However, the letter did point to the fact that by taking out of the bouquet flagship and popular channels to beat the price cap of Rs. 12, broadcasters have created a “demand for flagship channels across the country”, which would “increase the monthly cable bills of the end consumer”.

“Whenever any further regulation needs will be there, the industry will itself suggest (to) the TRAI (on regulations). We humbly request Government and policy makers to initiate best possible action (to) stop implementation of NTO2,” Aavishkar urged.