MUMBAI: The Bombay High Court has pronounced its verdict on the challenges filed by television broadcasters against Telecom Regulatory Authority of India’s (TRAI) New Tariff Order (NTO) 2.0.
While upholding the constitutional validity of NTO 2.0, it has struck down the crucial second part of the TRAI order, deeming its provisions to be “arbitrary”.
The twin pricing conditions in TRAI’s NTO 2.0 order were:
1. The sum of the a-la-carte rates of the pay channels (MRP) forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part.
2. The a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.
Best Media Info reports that while hearing arguments in the case on September 30 2020, the Bench had asked whether TRAI had placed twin pricing conditions for consultation. The Bench had noted that more than 90% bouquets in the market are DPO (distribution platform operator) bouquets, which do not seem to be under the same restrictions as applicable to broadcasters’ bouquets. It asked TRAI’s counsel to explain how DPO bouquets are bound by the same restrictions applicable to broadcasters.
Meanwhile, the Bench of Justices AA Sayed and Anuja Prabhudessai ordered that TRAI will not take any coercive steps for at least six weeks for implementing the parts of NTO-2.0 which has been upheld.
The broadcasters had prayed for striking down the amended tariff order and regulations since they violate Article 14, Article 19(1)(a) and Article 19(1)(g).
