NCF fee sparks consumer backlash over TV pricing and access

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.