TRAI notifies hike in non-DAS tariff ceilings

Allows 15% inflation linked hike which is applicable both at the wholesale and retail levels

BestMediaInfo Bureau | Delhi | April 1, 2014

The Telecom Regulatory Authority of India (TRAI) has allowed 15 per cent inflation linked hike in tariff ceilings. It has been done through the notification of the Tariff Order, namely, 'Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Eleventh Amendment) Order, 2014'.

These revisions are applicable both at the wholesale and retail levels. This is the first of the two instalments the authority has decided to allow.

Although TRAI was periodically revising tariff ceilings for cable TV services offered through non-addressable systems since 2004, the revisions were pending for the last five years because the matter was pending in the Supreme Court.

Based on the rise in the wholesale price index (WPI) over the last few years and considering other relevant factors, TRAI came to the conclusion that an overall 27.5 per cent inflation hike is to be allowed. However, the authority is to the view that a hike to the tune of 27.5 per cent in a single go would not be appropriate for the market and consumers to adjust to. Therefore, the authority has prescribed that the hike be implemented in two instalments.

The second instalment for the remaining inflation linked increase will be made effective from January 1, 2015 which will be notified subsequently. This is expected to give enough and reasonable time to all the stakeholders to adjust to these hikes.

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