Scatmag.com

REVERSE PATH


CONCERNS ON NEW TARIFF ORDERS

Dear Editor,

The new tariff regulations have been going back and forth between the Supreme Court and the Madras High Court and the early May Supreme Court verdict that the implementation of the tariff order should be withheld until a final decision of the Madras High Court has further held back these crucial developments for upto a month from 12th June 2017.

In the meantime, all broadcasters and some of the largest MSO's in the nation have already declared their tariffs on their websites.

In case the TRAI is permitted to implement its tariff order, will these same tariffs be maintained? Do broadcasters have the options of changing the tariffs again in June-July 2017 after the Madras High Court verdict?

It is also observed that some broadcasters such as Star India & Sony have created extremely complicated conditions with their Pay channel bouquets. These make it difficult for us in the industry to understand and implement and even convey to our customers who probably will find them even more difficult to understand. The TRAI should instruct Star India and Sony to declare its bouquets in simple terms which the end consumer can understand clearly.

S. Banerjee - By E-mail.

Yes, the multiple delays in implementation of the TRAI's tariff and interconnection orders is unfortunate. Do note that the interconnection order, which dictates maximum carriage fees that can be levied by MSOs, has also been stayed.

There is no stay on the Quality Of Service Regulations 2017. they are to be implemented as originally declared.

Should the Madras High Court decision be unfavourable to the TRAI, the regulator will almost certainly be compelled to appeal to the Supreme Court, as effectively, the TRAI will be stripped of its powers to declare any tariff regulations. The role of the industry regulator would then be substantially decimated. Of course, another appeal in the Supreme Court would mean a further delay and setback of the entire industry.

According to the TRAI’s 3 March 2017 regulations, broadcasters can change their Pay Channel MRPs with 30 days’ notice. Hence if the regulations are implemented, broadcasters can change their submitted tariffs by issuing a notice in July 2017 for completely new rates. It is for this reason that we have not carried the rates declared in early May 2017, in our magazine.

The broadcasters' bouquets are actually a facility provided to broadcasters to bundle & promote their own channels, directly to subscribers. If any broadcaster has decided to formulate consumer unfriendly bouquet terms and conditions, it is the broadcaster's loss.

The MSOs' bouquets to the consumer will actually contain channels from multiple broadcasters and are likely to be more widely subscribed to, forming the mainstay of bouquet subscriptions by consumers. -Ed.



REGISTER UNDER GST?

Dear Sir,

I am a DEN LCO in Raichur, Karnataka. DEN is asking us to register under ST / GST. Are LCOs also eligible to register under GST?

Please advise.

Ravikiran R Sarsamkar By E-Maill.

Service Tax is being replaced by GST (Good & Service Tax) from 1st July 2017. We have carried a detailed article on GST, this month. As indicated in the article:

a. Any person, business or company can register for GST.

b. GST registration & payment is compulsory if your annual turnover exceeds ₹ 20 lakhs (₹ 10 lakhs in North Eastern States).

c. GST is compulsory also for some other categories, even if their annual turnover is less than ₹ 20 Lakhs. Please see details in the GST article this month.

d. As explained in the article, a GST payer can claim 'input credit,' thereby reducing the GST payment. However, to avail of this 'input credit,' all suppliers in the chain must be registered and paying GST. That is why, there will be pressure on all to register themselves under GST.