In April this year, TRAI introduced a new tariff regime for DTH and cable TV, which made TV viewing costlier for viewers. The main thing this new tariff regime brings is the network capacity fee. Although Network Capacity fee existed in the past, that’s the first time it is transparent among viewers. Earlier, the viewers used to subscribe directly from their cable TV or DTH company, and they give them their own defined pack of channels. However, this new tariff regime transparently bifurcates the network capacity fee from the individual channels fee. Also, giving the viewers the complete freedom to make their custom pack of channels. Although, TRAI takes this decision to make subscription more cost-effective, however, lastly it became expensive.
Now, let me explain to you how this new Tariff regime makes channel subscription expensive instead of profitable. Well, In the new Tariff regime, TRAI mandated a network capacity fee of Rs 153 for every 75 channels a user subscribe for. Also, if a user wants to subscribe more than 75 channels, then for every 25 extra channels, he has to pay 20 rupees more as the Network capacity fee. Now, coming to these 75 channels, Rs 153 should be paid no matter user subscribe for free or paid channels. However, the user has to pay the subscription fee of the paid channels in separate in addition to Rs. 153.
Difference Between Network Capacity Fee and Paid Channel Fee?
Well, Network Capacity Fee is the charge you are paying to your DTH or Cable company which is fixed by TRAI in the latest tariff regime to Rs. 153. Now, coming to the paid channel fee, it is the price you are paying to the broadcasters like Aaj Tak, NDTV, Star Plus and so on.
Here, one thing you could notice is the variable broadcaster fee. For example, Aaj Tak charges Rs. 0.75 as the subscription fee for a month whereas NDTV charges Rs. 1. Now, if you talk about the network capacity fee, it is not variable, and now TRAI is going to make it variable too.
On What basis TRAI is going to make the network capacity fee variable?
Well, it isn’t official right now, but many experts believe, TRAI could make the network capacity fee vary according to the circles or regions. Say in some circle the Network capacity fee would be costlier in comparison to some other circle and so on.
So, this is it. Do you think that this new move by TRAI could reduce the overall subscription cost of TV channels? Let us know in the comments down below.