Even as the Bombay High Court upheld the constitutional validity of the Indian regulator TRAI’s cable TV tariff guidelines issued last year, it gave a major concession to the broadcasters who, along with the producers guild, had petitioned the court to strike down the economic regulations altogether.

A division bench of Justices Amjad Sayyed and Anuja Prabhudessai passed the judgement on a bunch of petitions filed by several petitioners like the Indian Broadcasting Foundation, a representative body of TV broadcasters, the Film and Television Producers Guild of India, Zee Entertainment Ltd and Sony Pictures Network India, a PTI news dispatch from Mumbai stated.

It could be termed as a big win for TRAI whose powers to issue economic guidelines were being challenged. However, the TV channels too stand to gain from the court order, if implemented, which also could be described as a big gain.

On Wednesday, according to PTI, the high court said that the challenge to the constitutional validity of the 2020 rules and regulations of TRAI fails.

“One condition related to the average pricing of a channel in a bouquet is arbitrary and hence is struck down”, PTI quoted the court as saying.

As per this condition, the a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of that bouquet.

As first reported by Indianbroadcastingworld.com yesterday morning, the court did finally pass an order bringing to rest a long-drawn legal fight and the wait for a judgement that could pave the way forward.

However, industry sources indicate that after hearing the order — the full copy of the judgements with its fine prints not yet available to stakeholders— the top brass of the IBF went into a huddle to discuss a future course of action.

The new secretary-general of IBF, Siddharth Jain, who joins office from today seems to have his immediate work cut out and will have to hit the ground running.

But a cursory understanding of the court order makes it amply clear that TRAI has got the thumbs up from the Mumbai court — justifiably so — but the concessions given to the petitioners, especially the TV channels, is significant as English and niche TV channels, a dying breed due to the twin attack of digital’s march and the pandemic, stand to gain from the court relief and it’d help broadcasters in packaging and pricing such channels better.

Meanwhile, the PTI report from Mumbai added that on January 1, 2020, the TRAI issued new tariff rules by which the network capacity fee (NCF) price was lowered, benefiting consumers. Previously, a sum of Rs 130 was applicable for all free-to-air channels and consumers needed to pay more in order to watch additional channels.

After the amendments to the broadcast sector tariffs, consumers will pay Rs 130 as NCF charge, but will be entitled to get 200 channels. Changes were also mandated in the price of individual channels.

The petitions said the new regulations were arbitrary, unreasonable and violative of their fundamental right (to do business).

The petitioners requested the court to extend its earlier orders of August and October 2020 directing the TRAI to not take any coercive steps against the stakeholders for some time, so that they could study the judgment and decide their future course of action.

The court then sought to know if the other stakeholders, who have not approached the HC in challenge, have implemented the new regulations.

Senior counsel Venkatesh Dhond and advocate Ashish Pyasi, appearing for TRAI, said the other stakeholders have already implemented the rules.

“The interim order passed earlier asking the TRAI not to take any coercive steps is extended for a period of six weeks,” the court said.

The TRAI had defended its regulation, saying it was a consumer-friendly measure and aimed at ensuring ensure transparency and non-discrimination in channel rates.

Bombay HC has approved the above except for the clause of limitation of 33 percent discount on bouquet vs. a la carte prices.

Karan Taurani of  Elara Caps opined: “We believe there is a high likelihood of this being contested in the Supreme Court by TRAI as the entire reasoning of getting the NTO 2.0 was to cap discount and move to selective viewing, which the NTO 1.0 did not fulfill.”

IBF refused to comment on the court order, saying without studying the full judgement any reasoned comment is not possible.

Arvind Prabhoo of Mumbai cable ops body MCOF, it was “good” the court order had “upheld Trai’s contention”.  He added: “However we are waiting for court’s verdict on the LCO plea and, hopefully, the broadcasters will be more transparent with MSOs on inter-connect agreements.”

While welcoming the court order on the amendments in tariff regulation, Piyush Pankaj of GTPL-Hathway said the “full implementation of amendment will bring more transparency in the industry and give more choices and power to (the) customer”.

“We are hopeful that this will get implemented soon. It is good for all stakeholders in the industry value chain,” Jain added.

According to Sanjive Narain, CMD, Prag News, “It seems to be a great order but how far it can be implemented I am sceptical. The industry, as a whole, is so huge that to satisfy all the stakeholders all the time is very difficult. We will have to wait and see what steps the broadcasters take.”