New Tariff Regime Will Bring Positive Effects in Industry: TRAI

New Tariff Regime Will Bring Positive Effects in Industry: TRAI

TRAI Chairman RS Sharma said, LCOs / DTH operators & MSOs have benefitted from TRAI New Tariff Regime implementation. With TRAI’s intervention, the industry has finally been able to establish a new pricing structure for channels through which the Subscribers / TV Viewers can choose the channels that they want to watch and then only pay for them. This has also brought transparency into the industry which was previously clouded with a lot of mystery about how the channels were priced.

TRAI Suggests Way of Decreasing Bill for Customers

Mr. Sharma said that previously almost all subscribers had an unnecessary number of channels on their subscription and the subscribers paid for them. However, with the new rules, customers would choose and only pay for the channels that they watch. He also noted that as per BARC report, 90% of the subscribers flip less than 50 channels, so if the channel selection is done with proper thought then the customers would actually be able to save on their monthly subscription.

New TRAI Regime to Also Attract Foreign Investors to the Industry

He also added that the new tariff regime would also attract foreign investors and large investments as previously there were discriminatory practices and non-transparent transactions which would be hindered such opportunities. Now with transparent practices, the industry is likely to be a more attractive avenue for big foreign investors.

TRAI chairman also said that given the number of stakeholders involved, the implementation of the TRAI tariff framework was a hard task, but now that it is in action, the market forces are at play, and the effects of the new rules will be visible shortly.

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