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TRAI asks broadcasters to roll-back recent price hikes

traiThe Telecom Regulatory Authority of India has asked all broadcasting companies in India to roll-back the recent hikes that they introduced in their pay channel rates.

Pay channel rates had been hiked by around 27% over the past one year after the TRAI allowed such a move to adjust for inflation.

However, the move was challenged in front of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), which quashed it.

The National Broadcasting Federation later went to the Supreme Court against the move by the TDSAT to quash the TRAI order allowing broadcasters to increase pay channel rates.

However, TRAI noted that the Supreme Court has not stayed the TDSAT order.

The “order of TDSAT has been challenged by Indian Broadcasting Federation (IBF) before the Hon’ble Supreme Court but no stay on the operation of the said order of the Hon’ble TDSAT has been granted. In view of the above, (pay channel companies) are requested to revise their wholesale tariff for the non-CAS and DAS areas to those that existed before the coming into force of the two impugned tariff orders .. within ten days from the date of receipt of this letter,” TRAI said.

The move will be a big boost to the margins of DTH and cable companies.

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