TRAI's tariff order gets legal nod, comes into immediate effect

The Telecom Regulatory Authority of India (TRAI) has released a press statement announcing that the tariff order dated March 3, 2017 and the consumer protection regulations have come into effect from July 3, 2018. This is followed by the fact that on May 23, 2018, the High Court of Madras upheld the validity of the regulation and the tariff order, after it was challenged multiple times in different courts of law.

The authority has always believed that implementation of the new regulatory framework will bring in transparency, enable provisioning of affordable broadcasting and cable TV services for the consumer and at the same time, would lead to an orderly growth of the sector.

The authority notified a regulatory framework for broadcasting and cable TV service provided through addressable systems, which include the direct to home (DTH) systems, cable TV systems provided through digital addressable systems (DAS), head-end in the sky (HITS) and internet protocol TV (IPTV). The regulatory framework comprises The Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017, as amended on March 30, 2017; The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017 (called the interconnection regulation 2017) and The Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service and Consumer Protection (Addressable Systems) Regulations, 2017 (called the QoS regulation 2017).

The draft/ notified interconnection regulations and the tariff order were challenges in two writ petitions in the High Court of Judicature at Madras. Later, the implementation of the interconnection regulation and the tariff order was kept suspended since May 8, 2017. Implementation of the QoS Regulation 2017 was also deferred because of its natural linkage with the provisions of the interconnection regulation and the tariff order.

In the meantime, the regulations were challenged before Delhi High Court by other stakeholders, which were also directed to be dependent on the outcome of the case in the Madras High Court.

Now that the regulations and tariff order are to be implemented, TRAI has clarified and reinstated the timelines prescribed in the interconnection regulation 2017, the QoS regulation 2017 and the tariff order 2017. All the service providers are required to comply with all the provisions of the regulations and tariff order afresh.

Dates to remember:

1. The Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff Order, 2017: Declaration of MRP and nature of channels by broadcasters within 60 days; Declaration of Network Capacity Fee and Distribution Retail Price (DRP) by Distributors (DPO) within 180 days; Reporting by broadcasters within 120 days.

2. The Telecommunication (Broadcasting and Cable) Interconnection (Addressable Systems) Regulations, 2017: Publication of Reference Interconnect Offer (RIO) by broadcasters within 60 days; Publication of Reference Interconnect Offer (RIO) by distributors within 60 days; Signing of the interconnection agreements within 150 days;

3. The Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service and Consumer Protection (Addressable Systems) Regulations, 2017: Migration of the subscribers to the new framework within 180 days; Establishment of customer care centre, website, consumer care channel and publication of manual of practice within 120 days.

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