After threatening to end cable operators' monopoly, broadcasting regulator Trai has zeroed in on broadcasters, saying they cannot arbitrarily hike subscription rates and all collections from cable operators by them will have to be on the rates prevailing on December 26.
Also, the newly appointed regulator said it will study the cost structures of broadcasters and eventually evolve principles to regulate subscription rates they charge from cable operators.
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"The agreement between MSOs/cable operators and broadcasters as on December 26 on rates will have to be valid," Trai chairman Pradip Baijal told PTI in New Delhi.
Asked what would happen if the number of subscribers of a cable operator goes up, Baijal said, "Any increase in total collection will be on a pro rata basis since the broadcasters will not be allowed to increase the charges per channel per subscriber".
Baijal also said Trai was studying the cost structures of broadcasters.
"I will examine their cost structures... fixing prices for them will be difficult but we will have to evolve some principle," he said.
Baijal has also warned against geographical monopolies by cable operators, saying these will have to go so that the market forces are allowed to determine tariffs.
Baijal said in any case of violation of Trai directives, the violator could be prosecuted, adding that except India and Taiwan, most other countries have some kind of broadcasting regulation in place.
On cable operators' monopoly, he said all networks suffer from monopolies and this situation will be examined in details.
"If we find geographical monopolies, then we will have to regulate tariffs, unless I can create competition... over the years we have created competition (in telecom) and so we have been able to get out of regulating tariffs," he said.
Baijal said this process will create unbundling and bring in more competition in the market.
Besides, the regulator also plans to examine the suggestions it may receive from the public on its consultation paper issued last week.
In the consultation paper, Trai has asked for suggestions and views on issues of duration and rates for advertisements on cable services, compensation to subscribers in case operators were not able to provide uninterrupted service, sale and rental for CAS boxes and various other industry, operators and consumers issues.
The guidelines, however, did not touch the content issue. The regulator has asked the respondents, including viewers, industry and cable operators to submit their views by January 30 to enable it formulate the policy at the earliest.
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