| While
all MSOs and consumers have voted a solid 'No' to the issue, and broadcasters
have routinely reiterated their 'Yes', Casbaa says that the price freeze should
have explicit "sunset" provisions for periodic review of the need for
continuation of the rate regulations. It
also says: "Competition should be enhanced if it was possible to induce real,
on-the ground competition between cable operators. Currently, there is no real
competition as the consultation paper notes the local cable operator does not
allow other cable operators in the area to give connection to the subscriber wanting
to change the operator." Casbaa
wants Trai to develop and adopt an explicit benchmark or set of benchmarks for
determining when the competitive players (either within the cable industry, or
from the DTH or eventually the IPTV industries) have achieved sufficient market
weight that would signify existence of effective competition. Such
benchmarks were used in both the USA and Canada as the DTH industries grew there.
The point is not that the criteria adopted in these countries are the best for
India; it is rather that they are examples of benchmark criteria set by other
governments to deal with the same problem that the Trai faces. Casbaa
says it recognises the difficulty of relaxing rate regulation in an environment
where many consumers prefer to pay low rates, without considering the sustainability
of the industry or the desirability of investments for greater choice and greater
digital penetration. "We
believe, however, that if the TRAI does not address this issue squarely and develop
meaningful, objective benchmarks, the concept of the price freeze as a 'temporary'
measure will become a mockery." Most
of the broadcasters have said that competition will take care of pricing, but
the Grahak Hitavardhini Sarvajanik Sanstha has some weighty arguments against
that. This
consumer lobby NGO says: "Total forbearance will lead to total exploitation
of consumers. It will also defeat the very legislative intention in appointing
a Regulator for Broadcasting Industry." It
argues also that the beneficiaries of competition are the broadcasters and the
consumer does not benefit from this competition for various reasons:
" there is a total lack of after-sales services, (ii) Broadband and IPTV
platforms are yet in an infant stage,
" there is no correlation
in the price-cap in CAS and non-CAS area in terms of definition of the price.
Authority should create common comparable regulations in Cas and non-Cas areas "Though
there are multiple service platforms available to the cable TV subscribers yet
they doe not become comparable for the consumer due to various practical difficulties.
The consumer lacks empowerment to make the market forces effective and influential.
"Till
such time that the development of market is perceptible in this regard control
regime of cable services are required to continue. Thus the forbearance as an
option is not advisable," the NGO has argued. The
trade body US India Business Council (USIBC Washington) has sought deregulation
of prices because, it says, "Price control will limit a distributor's ability
to upgrade services and infrastructure a critical consideration considering that
Trai appears to favour a voluntary upgrade to Cas outside the four major metro
areas. USIBC
says that there should be checks and balances in case there is no forbearance. However,
it says, "The types of checks and balances that are necessary are not controls
on pricing or service offerings. But instead they are greater sharing of information
which will empower consumers and companies to help fulfil the promise of an open
market and protect consumers against collusion or other harms that could be caused
by the market. "The
types of checks and balances that should be introduced deal more with ensuring
cable providers accurately disclose their subscriber bases, and also for cable
operators to deliver cable bills (in writing and in clear and concise language)
to consumers that break down the fees so that consumers know what makes up their
bill totals." | 
