Intent Good, But Uncertainties Remain: Edelweiss On TRAI Draft Report
The Telecom Regulatory Authority of India's proposal on television tariffs is well intentioned but marked with uncertainties and risks, according to Edelweiss Securities Ltd.
TRAI has proposed a monthly rental of Rs 130 per set top box for 100 standard definition channels, in its draft tariff order on Wednesday.
Edelweiss said the implementation of this order will take time as many stake holders may seek legal recourse against certain provisions in the draft. They expect the biggest hurdle in the implementation to come from local cable operators.
In the draft order, TRAI says TV channel distributors can form bouquets only from a la carte channels of broadcasters. However, the retail price of such a bouquet of pay channels will not be less than 85 percent of the sum of maximum retail price of these channels forming the bouquet.
Consumers may still end up choosing a package due to lack of awareness about a-la-carte channels, according to Edelweiss.
Consumers may still prefer to choose packages due to low awareness and ease/inertia. Distributors will have to come up with a standard package for consumers, which will provide all popular channels.Edelweiss Research Report
Carriage Fee Clarity
The report further states that TRAI's order lacks clarity over carriage fees and placement revenues. It also highlights the issues that may arise via LCOs as well as multi-system operators.
There is no clarity on carriage fee and placement revenue. However, we expect distributors to charge carriage revenue to broadcasters for carrying free-to-air channels in the basic pack. There is no discussion on sharing between MSOs and LCOs. In case of MSOs, unless prepaid billing starts, we do not expect fair share of revenue for the MSOs from the LCOs.Edelweiss Research Report
Long-Term Positive?
Despite the flaws, Edelweiss expects a jump in monetization from premium channels and a rise in revenue from Phase III and Phase IV markets.
However, the lowest package price of a DTH service, which is currently at Rs 99, may go up to Rs 130, according to the report.
Also Read: How Much Should Consumers Pay For 100 Television Channels? TRAI's Asking
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
