The industry body said in a statement that the issues strike at the very heart of the new MRP based tariff regime (NTO<\/a>) which TRAI made effective from February 1st, 2019.
The IBF noted that surprisingly, barely a few months after the commencement of the NTO and even before the industry at large and more importantly the end consumer has fully adapted to the new regulatory regime, TRAI proposes a fresh consultation paper, seeking to make fundamental changes in channel pricing and bouquet formation. “This goes against all norms of a stable regulatory regime so necessary for the economic advancement of any industry,” IBF said.
It also noted that the implementation of the NTO has resulted in massive changes in the distribution landscape and with the support of all stakeholders including broadcasters, distribution platform operators (DPOs) and the end consumer, the transition to the new regime is being managed relatively smoothly.
“Broadcasters have done their best to ensure a smooth transition without a disruption of services. TRAI itself has stated that over 90% of consumers have migrated to the new tariff regime by choosing channels and\/or bouquets of their choice,” IBF stated.
However, it added that TRAI’s consultation paper proceeds on the assumption that consumers are being denied their choice of channels by excessive discounts on bouquets. “IBF wishes to point out that the cap on bouquet discounts under the NTO was struck down by the Madras High Court as “arbitrary”. Further, the global practice in the television and cable industry is the offering of content in bouquets customised to meet the diverse needs of consumers,” IBF said.
The essence of a free market economy, IBF said, is that consumers make their own choices about the products they buy or the services they wish to receive. “It is incorrect and would be an affront to the consumer’s intelligence to suggest that they choose channels only on price and not on the quality of their content,” IBF said.
The foundation added that promoting a la carte at the cost of bouquets will deny consumers the choice they need in a country like India with such a large and variegated diversity of cultures and languages.
“Smaller as well as niche content channels will lose out and their viability will come under question. Broadcasters will be unwilling to launch new channels and producers will be unwilling to experiment with new content. All this will lead to fewer shows being produced which will have a knockdown effect on downstream production and on employment in the sector,” IBF warned.
Stability in policy<\/a> formulation and “soft touch” in regulatory oversight is an absolute necessity for healthy industry growth. The Government’s focus on “ease of doing business” warrants minimal regulatory intervention. Hence regulatory intervention at this early stage in the implementation of the NTO is not only premature but will have disastrous consequences for the broadcasting industry, IBF maintained.
IBF also urged TRAI to defer any further regulatory interventions and allow the industry and its stakeholders and especially the consumer more time to adapt to the new regulatory regime.
<\/body>","next_sibling":[{"msid":70813666,"title":"\u2018PM won\u2019t compromise on data sovereignty\u2019","entity_type":"ARTICLE","link":"\/news\/pm-wont-compromise-on-data-sovereignty\/70813666","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"70808954","title":"television-getty-images","entity_type":"IMAGES","seopath":"industry\/media\/entertainment\/media\/ibf-raises-concerns-over-trais-consultation-paper-on-tariff-related-issues\/television-getty-images","category_name":"IBF raises concerns over TRAI\u2019s consultation paper on tariff related issues","synopsis":"The IBF noted that surprisingly, barely a few months after the commencement of the NTO and even before the industry at large and more importantly the end consumer has fully adapted to the new regulatory regime, TRAI proposes a fresh consultation paper.","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-72369\/70808954.cms?width=150&height=112","link":"\/image\/industry\/media\/entertainment\/media\/ibf-raises-concerns-over-trais-consultation-paper-on-tariff-related-issues\/television-getty-images\/70808954"}],"msid":70813690,"entity_type":"ARTICLE","title":"IBF raises concerns over TRAI\u2019s consultation paper on tariff related issues","synopsis":"The industry body said in a statement that the issues strike at the very heart of the new MRP based tariff regime (NTO) which TRAI made effective from February 1st, 2019.","titleseo":"telecomnews\/ibf-raises-concerns-over-trais-consultation-paper-on-tariff-related-issues","status":"ACTIVE","authors":[{"author_name":"Gaurav Laghate","author_link":"\/author\/479243984\/gaurav-laghate","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479243984.cms?width=250&height=250","author_additional":{"thumbsize":false,"msid":479243984,"author_name":"Gaurav Laghate","author_seo_name":"gaurav-laghate","designation":"Assistant Editor","agency":false}}],"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2019-08-24 09:03:30","lastupd":"2019-08-24 09:03:30","breadcrumbTags":["trai","NTO","tariff","IBF","policy"],"secinfo":{"seolocation":"telecomnews\/ibf-raises-concerns-over-trais-consultation-paper-on-tariff-related-issues"}}" data-news_link="//www.iser-br.com/news/ibf-raises-concerns-over-trais-consultation-paper-on-tariff-related-issues/70813690">