The Bombay High Court on Wednesday upheld the Constitutional validity of the New Tariff Order (NTO) by the Telecom Regulatory Authority of India (TRAI), except for two pricing conditions.
A Division Bench of Justices A. A. Sayed and Anuja Prabhudessai said the a la carte rates of each pay channel forming part of bouquet shall not exceed three times the average rate of the pay channel bouquet of which the channel is a part. The second condition being the sum of a la carte rates of pay channels forming part of a bouquet shall in no case exceed one-and-half times the rate of the entire bouquet of which the channels is a part.
In August, 2020 TRAI had given an interim statement of no coercive action by the body against non-compliance of the NTO by the broadcasters, which will continue for another six weeks.
The court was hearing a clutch of petitions filed by the Indian Broadcasting Foundation (IBF), Film and Television Producers Guild of India, Zee Entertainment Enterprises Limited, Sony Pictures Networks, Disney Board, Asianet Star Communication, and Star India, against TRAI.
These broadcasters are challenging some regulations and the amended NTO by the telecom authority. On January 1, 2020 TRAI had introduced a new rule that reduces the cost of subscribing to a channel from the existing ₹19 to ₹12 per month for television broadcasters. The reduced price ceiling was to be included in their pack by January 15.
The IBF’s petition mentions, “The Broadcasters, content production companies, operators and their linked service providers together employ more than 10 lakh people in the sector. TRAI’s impugned provisions that virtually control everything from fixing of a ceiling price of a channel for inclusion in a bouquet and prescribing twin conditions will negatively impact the financial viability of the business.”
The petition also explains, “A normal Indian family is likely to choose one or more channel bouquets that would provide all such genres of channels as opposed to choosing a-la-carte channels of each category. It is submitted that consumer’s choice of TV channels is based on personal and demographic preferences such as age, sex, culture etc.”
Other petitions voice similar concerns, “It is manifestly arbitrary to unilaterally and without any application of mind whatsoever, reduce the price cap on the maximum price that a channel can be priced at in order to qualify being made part of a bouquet. There is especially no justification given to reduce the price ceiling.”
The common contentions in all pleas are that such a restriction impinges upon the fundamental right guaranteed to all broadcasters under Article 19 (1) A (to freedom of speech and expression) and Article 19 (1) G (to practise any profession, or to carry on any occupation, trade or business) of the Indian Constitution and that any restriction on these rights have to be reasonable. However, this cannot be considered as a reasonable restriction, they maintain.
According to TRAI, subscribers are not choosing a la carte channels on account of channel bouquets being available at a discounted rate, and broadcasters have misused the freedom given to them in fixing rates of a la carte channels and bouquets.
