TRAI Draft Cable Tariff Order not Draconian

The regulator has released a draft tariff order instructing standard tariff packages for set top boxes (STB) for DTH and cable subscribers. The authority has asked for comments from all stakeholders by 26th April. According to the order, all cable and DTH operators would need to offer 4 set top box schemes to consumers (details on Pages 3-5). The cable and DTH operators are free to offer other schemes in addition to the ones prescribed by TRAI.

TRAI believes that post digitalization, STBs provided by various cable and DTH providers would be incompatible with each other making migration between networks difficult for subscribers. Thus in the interests of the consumer, provision for commercial interoperability of STB has to be provided and the tariff order proposes to address that concern.

Our channel checks show that Siti cable has been offering a similar package but it is not finding many takers for this scheme.

We believe that on the ground implementation of the rental scheme of STBs is filled with challenges. The primary concern of the cable and DTH providers would be the difficulty associated with collecting
the boxes from subscribers in case of default of payment or movement of the customer itself.