Discounts on network capacity fee not barred for subsequent connections says TRAI

Trai said Friday its regulation does not stop operators from offering discounts or lowering network capacity fee for second or subsequent connections in the same household, but such discounts should be offered uniformly in a location and declared transparently on the players' website. "... now few service providers have started offering the discount/ complete waive Network Capacity Fee (NCF) on second/ additional TV connections in home," Telecom Regulatory Authority of India (TRAI) said in a statement.

The clarification came after some subscribers raised the issue regarding the price of the multiple TV connection at home. "It has been clarified by the authority that the regulation provides a capping of Rs 130 as Network Capacity Fee (NCF) for 100 SD channels and Rs 20 for the slab of next 25 SD channels," TRAI said. Further, the regulation does not prohibit the service providers to offer discount or lower Network Capacity Fee for second or additional connections in same location or home, the statement said.

"However, it may be noted that such discount shall be uniform in the target market area of respective TV channel distributor and duly declared by the DPO (Distribution Platform Operator) on their website," it said. Trai has unveiled the new tariff order and regulatory regime for the broadcast and cable sector, which would pave the way for consumers to opt for channels they wish to view, and pay only for them. It had said every channel should be offered a la carte, with a transparent display of rates on electronic programme guide. The new framework came into effect from February 1.

(With inputs from agencies.)