On Wednesday, the High Court of Bombay upheld the constitutional validity of a tariff order passed by the Telecom Regulatory Authority of India (TRAI) last year, but struck down one condition which said the price of a single channel cannot be more than one-third of the highest priced channel in that bouquet.
A division bench of Justice Amjad Sayyed & Justice Anuja Prabhudessai passed the judgement on a bunch of pleas filed by several broadcasters, like the Indian Broadcasting Foundation, a representative body of TV broadcasters, the Film & Television Producers Guild of India, Zee Entertainment Ltd & Sony Pictures Network India.
On Jan 1, 2020, the TRAI issued new tariff rules by which the Network Capacity Fee (NCF) price was lowered, benefitting consumers. Previously, a sum of Rs 130 was applicable for all free-to-air channels & consumers needed to pay more in order to watch additional channels.
After the amendments to the broadcast sector tariffs, consumers will pay Rs 130 as NCF charge, but will be entitled to get 200 channels. Changes were also mandated to be made in the price of individual channels.
The pleas said the new regulations were arbitrary, unreasonable & violative of their fundamental right
.
On Wednesday, the HC disposed of the petitions & said, The challenge to the constitutional validity of the 2020 rules & regulations of TRAI fails.
"One condition related to the average pricing of a channel in a bouquet is arbitrary & hence is struck down, the Court said in its Judgment.
As per this condition, the a-la-carte rates of each pay channel (MRP), forming part of a bouquet, shall in no case exceed three times the average rate of a pay channel of that bouquet.
The petitioners requested the court to extend its earlier orders of August & October last year directing the TRAI to not take any coercive steps against the stakeholders for some time, so that they could study the judgment & decide their future course of action.
The Court then sought to know if the other stakeholders, who have not approached the HC in challenge, have implemented the new regulations.
Senior counsel Venkatesh Dhond & advocate Ashish Pyasi, appearing for TRAI, said the other stakeholders have already implemented the rules.
"The interim order passed earlier asking the TRAI not to take any coercive steps is extended for a period of 6 weeks, the court said.
The TRAI had defended its regulation, saying it was a consumer-friendly measure & aimed at ensuring ensure transparency & non-discrimination in channel rates.
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