Need To Regulate ‘Perverse, Illusory Pricing’ By Broadcasters, TRAI Says

The telecom regulator has cited the mischief of “perverse and illusory pricing” of broadcasters to defend its Jan. 1 tariff order that seeks to cap the pricing of pay channels.

The Telecom Regulatory Authority of India argued against staying or deferring the order in the Bombay High Court today, saying that it was issued in the “overwhelming interest” of consumers. The court had, in January, denied broadcasters any relief but found the case fit for further arguments.

Meanwhile, an association representing consumers also moved court, seeking intervention in one of the applications filed by the Indian Broadcasting Federation. Its counsel argued that there has been a manifold hike in the pricing of pay channels by some broadcasters, with broadcasters profiteering at the expense of consumers. The association cited its earlier representations in the Supreme Court in support of its intervening application.

A two-member bench comprising Justice AA Sayed and Justice Anuja Prabhudesai directed the intervenor to file replies.

Here are the key arguments made by the parties.

What Did TRAI Say?

Vinit Naik, senior counsel representing the telecom regulator, argued that:

• The intent behind the order was to make the pricing of pay channels more realistic and customisable for consumers.
• Broadcasters are pushing unwanted channels by including them in bouquets.
• Mischief of illusory and perverse pricing by broadcasters compels viewers to subscribe to a spread of channels that they otherwise may not want to subscribe.
• The Supreme Court had upheld validity of similar regulations in 2017 and didn't find any invalid elements in it.

Ashish Kamat, counsel representing the telecom regulator, said that:

• Supreme Court cases like Sakal V. Union of India, which were cited by the broadcasters in their defence, doesn't apply to broadcast media.
• Broadcasters tried to derail regulations issued by telecom regulator but lost out multiple times in High Court and apex court.
• The Telecom Regulatory Authority of India Act, 1997, allows the telecom regulator to regulate the broadcasting sector and hence the tariff order is within its regulatory powers.