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NTO 2.0 implementation could have an impact of Rs 1500-2000 cr on TV segment revenues

The Telecom Regulatory Authority of India‘s (TRAI) new tariff order (NTO) 2.0, which is currently sub-judice, could have an impact of Rs 1500 to Rs 2000 crore on TV segment revenues in the event that demand does not increase, according to FICCI-EY 2020 report.

According to the report, applying a cap on the discounting of prices could result in the closure of weaker and niche channels and consequent loss of jobs. It further stated that reducing prices of channels that can form part of a bouquet could bring down end-customer bouquet prices and increase choice.

Further, the reduction of network capacity fee (NCF) in multiple TV homes is something that has already been implemented by some DPOs, though it can impact revenues by Rs 500 crore, as per EY estimate. However, it added that reduction in multiple TV NCF, bouquet prices, and longterm package discounts can bring back some of the lost TV subscriptions

According to NTO 2.0, the sum of the a-la-carte rates of the pay channels forming part of a bouquet shall in no case exceed one and half times the rate of the bouquet of which such pay channels are a part; and the a-la-carte rates of each pay channel, forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of the bouquet of which such pay channel is a part.

Further, the ceiling price of a pay channel for inclusion in the bouquet has been reduced from Rs 19 to Rs 12. The number of bouquets of pay channels not to be more than the number of pay channels offered by a broadcaster.

Increasing the number of SD channels that can be provided within the NCF of Rs 130 per month from 100 to 200 and capping the NCF for more than 200 SD channels at Rs 160 per month.

The report also estimated that active paid subscriptions reduced by 26 million in 2019. Total subscription paid for television in India by viewers increased by 7.5% in 2019, despite a fall in active paid subscriptions, on account of higher ARPUs.

NTO 2.0 implementation could have an impact of Rs 1500-2000 cr on TV segment revenues: Report


EntMnt Staff
Free DTH is the only place remaining for the Indian viewers.