Regulators
NCF fee sparks consumer backlash over TV pricing and access
84.7 percent oppose NCF on free channels, 57 percent report higher bills.
MUMBAI: For many viewers, the real drama on television may be the bill, not the show. A report by the Esya Centre has found that the Network Capacity Fee (NCF) is widely perceived as an unfair charge, shaping how consumers engage with television services in India. While television itself continues to score well with audiences around 70 percent of respondents reported satisfaction with content quality, the dissatisfaction lies squarely with pricing. As many as 84.7 percent of respondents said they were unhappy paying the NCF for free-to-air channels, highlighting a disconnect between cost and perceived value.
Introduced at Rs 130 for access to a base set of channels, the NCF was later deregulated, allowing distributors to set it independently under the framework of the Telecom Regulatory Authority of India (TRAI). The study argues that such fixed charges, especially when increased without corresponding service improvements, tend to reduce consumer welfare rather than enhance efficiency.
The numbers underline the frustration. Around 68 percent of respondents said they do not understand how the NCF is calculated, while 94 percent consider it unfair. More than half 57 percent reported higher monthly expenses under the current pricing system, and a striking 96 percent said they would be more satisfied if the existing framework were removed.
Rather than being seen as a value-linked service fee, the NCF is widely viewed as a mandatory “access toll”, a cost consumers must bear simply to enter the television ecosystem. The report notes that viewers do not associate the fee with better service quality or greater choice, reinforcing the perception that it adds cost without adding value.
This has broader implications for market participation. Fixed charges like the NCF, the study suggests, influence whether consumers subscribe at all. When such costs rise, users are more likely to opt out rather than adjust their viewing habits, potentially shrinking the market.
In effect, the current pricing design appears to redistribute value within the system rather than improve it for consumers. The findings point to a growing sentiment that the NCF is less about enabling access and more about shaping it, often at the viewer’s expense.
Regulators
Distributor control shaping pricing and access in TV sector study
49 percent rely on DPOs, 84.7 percent oppose NCF on free channels.
MUMBAI: Who really holds the remote may not be the viewer after all. A study by the Esya Centre suggests that Distribution Platform Operators (DPOs) are increasingly shaping pricing, content visibility and consumer choice in India’s broadcasting sector, acting as the primary gatekeepers between broadcasters and audiences. According to the findings, distributors control last-mile access, billing systems and channel interfaces giving them significant influence over which channels reach consumers and how they are packaged. Survey data shows that 49 percent of users rely on distributors to select channels, while 32.9 percent say availability depends on whether distributors choose to carry them.
This control is not incidental, it is built into the regulatory framework governed by the Telecom Regulatory Authority of India (TRAI). While broadcasters are required to supply channels, distributors retain discretion over carriage, placement and visibility. Conditional must-carry rules and capacity-linked provisions allow them to refuse or limit channel availability. Amendments preventing channels from being offered on both free and pay platforms further narrow alternative routes, tightening distributor control.
Despite these structural dynamics, television continues to hold strong consumer relevance. Around 70 percent of respondents reported satisfaction with TV quality, indicating that content itself remains compelling. The friction, however, lies elsewhere pricing and billing.
At the centre of dissatisfaction is the Network Capacity Fee (NCF), a fixed platform charge introduced at ₹130 for a base set of channels, with additional costs for higher slabs. Now determined by distributors following regulatory changes, the fee has become a flashpoint. Around 84.7 percent of respondents expressed dissatisfaction with paying for free-to-air channels through the NCF, while 94 percent said they do not consider the charge fair. About 68 percent admitted they do not understand how the fee is calculated, and 57 percent reported higher monthly spending under the current system. A striking 96 percent said they would be more satisfied if the fee were removed.
The report notes that such fixed charges can directly influence whether consumers remain in the market and, when perceived as unjustified, can reduce overall consumer welfare.
Based on responses from 2,037 households across 15 cities, the study also highlights a deeper behavioural shift. While consumers technically have the option to customise their channel packs, many rely on distributor-designed bundles instead. This creates a gap between formal choice and effective choice.
Menu design, default packs and channel placement controlled by distributors play a decisive role in shaping viewing habits. In practice, what appears to be consumer choice is often guided, if not determined, by distributor-led packaging.
The result is a system where the power to decide what gets watched may lie less with the viewer and more with the platform curating their screen.
