NEW DELHI: Broadcast and telecom regulator TRAI said it would not regulate the tariffs for Direct To Home (DTH) services at the moment as it is a healthy competition to cable television.
In a consultation paper on the issues relating to Direct To Home (DTH) service for television, it said regulation has a rationale when the market does not function or the level of the competition is inadequate.
“These issues (of tariff) should be looked at after some time when the impact of the competition in general and the impact of rollout of the Conditional Access System (CAS) in cable TV in particular can be assessed,” TRAI said.
It added there are number of issues relating to tariffs both at the wholesale and at the retail level but the foremost issue is whether there is a need for any regulation of DTH tariffs since the service is in infact providing competition to cable television.
In the recent past, there has been competition between two service providers as well as between DTH and cable. Competitive packages and offers have been made by all the service providers as well as between DTH and the cable, it said.
At present, Doordarshan provides free services to air channels, Dish TV and Tata Sky operate in the pay channel space in the DTH segment. Sun TV and Reliance’s Bluemagic have also obtained Letters of Intent to commence their DTH services.
The consultation paper will also look into the issues such as quality of service, interconnection and regulatory issues relating to set-top boxes.