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Trai to review FTA revenue sharing formula in Cas areas: Tdsat
 
Indiantelevision.com Team

(16 January 2008 3:00 pm)

 

NEW DELHI: The Telecom Regulatory Authority of India (Trai) is going to invite all stakeholders in the mandated Cas areas of the three metros to put in their comments on the revenue sharing formula originally envisaged in the regulation on Cas.

 

This comes in the wake of a direction from Telecom Disputes Settlement Appellate Tribunal (TDSAT) on 14 January, on a petition by Siti Cable Network Ltd, which has since been renamed as Wire & Wireless India Ltd (WWIL).

 
In the Appeal No. 11 C of 2006 filed by then Siti Cable, the MSO had prayed that they be given part of the share from the Rs 77 for FTA channels, which as per the original Cas regulation goes entirely to the local cable operators.

Trai had decided to give the entire FTA accruals to the LCOs since, in its opinion, the MSOs would get substantial money from "carriage fees" from broadcasters.

Before Trai had finalised the regulation, Siti Cale had argued in the consultation process that in Cas areas, because of digital feed, which allows for a greater number of channels to be fed, "carriage fees" had become redundant.

In the course of the case too, Siti Cable argued that they should get a share of the FTA monies not only because "carriage fees" had become redundant, but also because the MSOs had to make the largest volume of technological and infrastructural inputs that cost them a huge amount of money, hence.

The court has observed that a full year has elapsed since the implementation of Cas; hence, it is necessary that Trai take a look at the revenue sharing arrangement.

TDSAT has maintained that Trai should invite stakeholders to send their comments and documentation, which industry sources say would include evidence that the MSOs have not received "carriage fees" for feeding the channels from broadcasters in the mandated Cas areas.

It has also said that after taking all factors into account, Trai must review the situation and see what needs to be done in the interest of natural justice.

Trai has been granted two and half month of time for the process to be completed.

 
 
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