NBA agrees to pay reasonable carriage fees post-digitisation

This was decided at a meeting held on October 11 with TRAI Chairperson in Delhi

BestMediaInfo Bureau | Delhi | October 19, 2102

News broadcasters, under the umbrella of the News Broadcasters Association (NBA), have agreed to pay reasonable carriage fees after the rollout of digitisation following a meeting chaired by the TRAI (Telecom Regulatory Authority of India) Chairperson last week.

At the meeting held on October 11, 2012, with the TRAI Chairperson by representatives of the MSO Alliance, Indian Broadcasting Federation (IBF) and NBA to discuss the progress of digitisation, the payment of carriage fees (inclusive of marketing fees, tiering fees, packaging fees or fees or charges under any other nomenclature) under the digitised regime was also taken up.

In the past, news broadcasters have been very concerned with the threat of unreasonable carriage fees continuing even after the rollout of digitisation. While placement fee has been specifically prohibited in the TRAI notification, concerns have been regularly expressed about the lack of clarity with regard to carriage fees, whether it has to be paid at all after digitisation and, if so, at what rates.

The TRAI Chairperson mentioned the specific concerns of news broadcasters with regard to carriage fees. He mentioned that his predecessor had indicated what reasonable carriage fees should be in a digitised regime. Hence, he stated that boundaries had been laid down and he would expect carriage deals with news broadcasters to be within these bounds. He also exhorted broadcasters and MSOs to enter into agreements on carriage fees within the next few days so that all is set by the time digitisation rolls out in the four metros from November 1, 2012.

Keeping this in mind, despite the earlier objection of news broadcasters to the payment of any carriage fees whatsoever, broadcasters are now agreeable to enter into agreements  with MSOs for an initial period of one year for payment of carriage fees (inclusive of marketing fees, tiering fees, packaging fees or fees or charges under any other nomenclature) in the digitised areas, at a rate of 0.50 paise to Re 1 per set-top box subscriber, per channel per year, which is the reasonable rate and boundary set by the former TRAI Chairperson. Letters have been issued to MSOs in this regard.

News broadcasters are grateful to the TRAI Chairperson for taking proactive action in resolving the vexatious issue of carriage fees in a statesmanlike manner, the NBA said in a press statement yesterday.

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