The Telecom Regulatory Authority of India (TRAI) is seeking stakeholders’ opinion whether the price of HD channels should be regulated to protect the interests of the consumers. In its consultation paper ‘Tariff issues related to TV services’, the regulator is examining if there is a rationale behind the abnormally high price of HD channels compared to the SD channels.

 

Presently, broadcasters are free to fix the price for HD channels. The HD channels are priced many multiples of SD channels despite the fact that broadcasters do not incur any major costs on HD channels except the bandwidth cost for uplinking. These days, the TRAI said, broadcasters do not have to incur additional costs on production. The content on SD and HD channels is the same. In fact, almost all HD channels are mirror image of SD channels in terms of content except the scheduling, which might vary. Moreover, HD channels, which were initially ad free and were completely dependent upon subscription revenues, have also begun to carry quite a few advertisements.

 

Furthermore, the price ratios of HD and SD channels in terms of RIO rates for similar content is exorbitantly high, thereby indicating large price differential, TRAI said that there does not appear a valid justification for pricing HD channels abnormally high. Therefore, there is a need to define some relationship between the price of the HD channel and the price of the SD channel and it should be notified transparently.

 

It is noted that the distribution platform operators (DPOs) have brought out that broadcasters produce content in HD format and down convert to SD format for distribution to subscribers considering that many subscribers as of now have only SD compatible STBs. Contending that the charges for such content are same and fall under present regulatory framework as any other channel, TRAI said that the price difference of several times in HD channel price when compared with SD channel price is unjustified and against the interest of subscribers.

 

The sector regulator has asked the stakeholders to provide their comments on how the price of the HD channel should be regulated to protect the interest of subscribers. It has also asked whether the HD channel price should be linked with SD and what should be the formula to link HD format price with SD format. TRAI wants stakeholders to provide their comments whether similar content in different formats (HD and SD) in a given bouquet be pushed to the subscribers and how this issue can be addressed.

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