Channel churn: TRAI’s attempts to micromanage the broadcasting sector have backfired (The Hindu)

Mains Paper 3: Economy
Prelims level: TRAI
Mains level: Key regulations taken by TRAI

Context

• The Telecom Regulatory Authority of India’s attempts to fix tariffs for the broadcasting sector have disrupted the TV broadcasting sector, without benefiting all stakeholders.
• The idea of allowing consumers to pick the channels they want to watch on a la carte basis was aimed at ensuring transparency, but the manner in which it has been implemented has led to higher costs for many subscribers.
• Under the new framework that came into effect from April 1, distributors of television channels can charge a monthly rental amount of maximum ₹130 per month from a subscriber for 100 Standard Definition channels. In addition, viewers may subscribe to any other paid channel individually.

Key highlights about the viewing pattern in India

• According to the regulator, 80 per cent of subscribers, as per the viewing pattern given by BARC, either view or flip 40 or less number of channels.
• Therefore, the regulator argued, instead of paying for a bouquet of hundreds of unwanted channels, a consumer can carefully choose channels of her choice.
• This was supposed to put control back into the consumer’s hand, but in reality, it has become a nightmare for many consumers.
• The overall cost of accessing TV channels on a la carte basis have gone up by 25-50 per cent for viewers who opt for top 10-15 HD channels.
• Those who do not want to subscribe on a la carte basis can no longer subscribe to an annual plan with all channels included.
• Challenges related to revenue sharing between multiple system operators and local cable operators had also emerged.
• That TRAI has now undertaken a review of the entire framework within a few months of introducing it, is an acknowledgment that the tariff order was not working as intended.
• But TRAI’s latest attempt fails to address the core issue of enabling consumers to get access to TV content at affordable rates.

Way forward

• This is a flawed approach, because making one product more expensive does not make the other product cheaper.
• TRAI also wants to regulate the number of bouquets and the type of channels in the bouquet. This may face more operational and legal challenges during execution.
• The broadcasting sector is already plagued with litigations between the various players and it is the consumers who bear the brunt of such disputes.

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Prelims Questions:

Q.1) Consider the following statements:
1. The World Breastfeeding Week (WBW) was observed from 1st to 7th August 2019.
2. The theme of WBW 2019 is “Empower Parents, Enable Breastfeeding”.
3. ‘Mothers Absolute Affection (MAA)’ is a programme of Ministry of Women and Child Development to promote breastfeeding in the country.

Which of the statements given above is/are correct?
a) 1 only
b) 2 and 3 only
c) 1 and 2 only
d) None of the above.

Correct Answer: C
Mains Questions:
Q.1) That TRAI has now undertaken a review of the new tariff framework within a few months of introducing it, is an acknowledgment that it was not working as intended. Critically examine.