The constitutional validity of the NTO (New Tariff Order) released by TRAI in January 2020 has been upheld by Bombay HC. Broadcasters receive major setbacks, however as a relief, HC states premium channels can be included in the bouquet.

TRAI had announced new regulations on January 1^st which stated that the cost of channel subscription will be reduced to Rs 12 per month from the existing Rs 19/-for all television broadcasters. They were asked to include this reduced-price ceiling in their packs by January 15^th.

This announcement was met by protests by broadcasters who joined to submit a petition. The petitioners include

1. Film and Television Producers Guild of India,
2. Indian Broadcasting Foundation
3. TV broadcasters including many big names Asia net Communication’s, Sony Pictures, Star India, Zee Entertainment, Disney, TV18 and so forth.

The petition mentions, The Broadcasters, content production companies, operators and their linked service providers together employ more than 10 lakh people in the sector. TRAI’s impugned provisions that virtually control everything from fixing of a ceiling price of a channel for inclusion in a bouquet and prescribing twin conditions will negatively impact the financial viability of the business.

“A normal Indian family is likely to choose one or more channel bouquets that would provide all such genres of channels as opposed to choosing a-la-carte channels of each category. It is submitted that consumer’s choice of TV channels is based on personal and demographic preferences such as age, sex, culture etc,” explains the broadcasters in the petition.

Their major concern states “It is manifestly arbitrary to unilaterally and without any application of mind whatsoever, reduce the price cap on the maximum price that a channel can be priced at to qualify being made part of a bouquet. There is especially no justification given to reduce the price ceiling.”

While Trai continued a no coercive action against defaulters for another six weeks, on 20^th October 2020, the division bench led by Justice AA Sayed pronounced that the petitions challenging the January 2020 announcement were not valid, barring the inclusion of premium channels.

The NTO condition by TRAI restraining the inclusion of premium channels in the bouquet has been struck down by the High Court. The rates of the premium channels are thrice higher than average channels and the High Court felt it was unconstitutional to restrain these.

As per the divisional bench, “The challenge to the constitutional validity of the 2020 rules and regulations of TRAI fails.”

One condition related to the average pricing of a channel in a bouquet is arbitrary and hence is struck down,” the court said in its judgment

With the petitioners moving to get a stay on this judgment, we are yet to see if they take this a step further and approach the Supreme Court. Details are to be released on the HC website.