Rediff.com« Back to articlePrint this article

Cable TV in office? Pay more now

April 21, 2006 16:33 IST
Broadcast regulator TRAI on Friday came out with a consultation paper on the need for having separate tariffs for commercial cable subscribers like hotels, guest houses, offices and hospitals and whether these should cover all kinds of establishments.

TRAI, which will receive comments from stakeholders till May 12, has asked whether tariffs for commercial purposes should be fixed or not and what should be the methodology for that.

Also, it has sought to know how should commercial consumers be defined and differentiated from non-commercial consumers.

The consultation paper also seeks to know if the tariff regulation should cover all kinds of commercial establishments or whether some categories can be omitted. The consultation paper follows TRAI's March 7 tariff order, issued as an interim measure, providing for a separate ceiling for commercial tariffs.

This was done after broadcast appellate authority TDSAT concluded that TRAI's 2004 tariff order, meant primarily for domestic consumers, does not cover commercial services.

TRAI's March tariff amendment order describes an ordinary cable subscriber as any person who receives broadcasting service from a cable operator and uses the same for domestic purposes.

On the other hand, a commercial subscriber has been defined as a person who receives broadcasting service at a place indicated by him and uses the signals for the benefit of his clients, customers, members or any other class or group of persons.

The consultation paper pointed out to the "problems and difficulties" in identifying commercial subscribers on the basis of this definition as it brings within its ambit not only hotels and restaurants but also a whole range of establishments in the organised and unorganised sector like small shops, hospitals and offices.

A shopkeeper may use a small TV set in his shop for his own viewing and not specifically for clients who visit his shop while an organisation may have a TV set installed for viewing by employees as a source of recreation and keeping its employees updated on developments across the world.

"A view has to be formulated as to whether such institutions are to be categorised differently from ordinary cable subscribers even though the signals are primarily meant for the customers and clients of such institutions," the consultation paper says.

The issue on a differential tariff order for commercial establishments surfaced after disputes between broadcasters and hotel and restaurant federations.

Hotel and restaurant associations argue that they cannot be called commercial for purposes of receiving and retransmitting of pay channels to their guests as they do not charge the guests separately as for numerous other services.

However, broadcasters say that commercial establishments need no protection and particularly hotels and restaurants as they simply pass on the burden to their clients.

"Further the hotels and restaurants are free to charge for their products and use the services provided by the broadcasters for commercial gain," they said, adding that hotels can always refuse to avail of the services if the price charged by the broadcasters was considered unreasonable.
© Copyright 2025 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.