Bengaluru based consumer body Consumer Care Society (CCS) is against any present revision and review of the network capacity fee or NCF, though it feels that the capping for multi TV homes can be removed as the latter category of consumers have better purchasing power.

The consumer body also categorically advocated against bringing Doordarshan FreeDish, a subscription-free platform for TV channels, under any tariff regulations that regulator TRAI has mandated for other stakeholders in the broadcast and cable TV realm.

“The present ceiling of Rs 130 on NCF should not be revised. Furthermore, the capping should not be removed too…the average NCF is lower than that currently stipulated and, hence, it is market forces at work,” the CCS justified its stand in a submission to TRAI’s consultation on ‘Review of Regulatory Framework for Broadcasting and Cable Services’.

Pointing out that frequent revision of NCF could create “confusion at the subscriber levels”, the CCS said there are complaints from the subscribers that the DPO/LCOs charge a “higher NCF even when there is cap”, and if the cap is removed, the DPO/LCO will “fleece” the rural and poor subscribers.

It added the periodicity of revision, if mandated, should be once every five years and Wholesale Price Index should be accounted for while reviewing the NCF.

However, acknowledging that distributors like LCOs do face economic challenges, the consumer body said flexibility in NCF for multi-TV homes will provide a buffer for any cost increase.

“TRAI should consider removing the NCF capping for multi-TV homes,” CCS stressed, justifying it by saying, “Subscribers/consumers having multiple TVs are likely to have higher income and, hence, should be in a better position to negotiate and have a higher paying capacity.

“To move to a less regulated market and light touch regulation as a policy, the NCF capping for multi TV homes can be removed. This additional income accruing to the DPOs is another reason why the NCF for a single TV home should not be increased.”

Is there a need to review the ceiling on discount on sum of MRP of a-la-carte channels in a bouquet, while fixing the MRP of that bouquet by DPOs?

The consumer body submitted that there was a “need to review” this regulation as by restricting the discount given by the DPOs for the bouquet made and offered by the DPOs, the consumer is affected adversely with the price being higher than what is determined by the marketplace.

“The DPO business is constrained by the lack of freedom in deciding the pricing of their services. This could lead to the closure of DPOs, as consumers are already moving to other alternatives like streaming services.

“The inability to be flexible with the pricing to maximise their revenues and their profits, the DPOs resort to unfair and unethical ways to raise their revenues.”

Replying to a point on whether TRAI’s tariff regime should be applicable on distribution platforms such as DD FreeDish, CCS argued: “The (tariff) regulations should not be applied to DD FreeDish. Currently, consumers can access the channels on DD Free Dish without the additional burden of a monthly subscription.

“The fact that there is DD FreeDish, introduces an element of competition in the marketplace, favouring the consumers. Also, it offers the new broadcasters/TV channels  go-to-market strategies, which is beneficial to the broadcasting sector.”