The latest mandatory rent/service charge imposed upon cable TV consumers is a ploy to surge cable prices and for the industry as a whole to feel a big void.
TRAI wants cable operators to mandatory charge NCF (Network Capacity Fee) for 100 free to air channels. Really, the consumers now have to pay for "Free To Air" channels. The minimum mandatory NCF is INR 130 + 18% GST = INR 153.4.
And then on top of this NCF, we have slots of 25 channels for which the consumers have to pay INR 20 NCF extra. For example, if you want to subscribe to another 50 "Free To Air" channel, then you would have to pay 130 + 20 + 20 = 170 + 18% GST = INR 200.6 just for viewing 150 "Free To Air" channels. Don't we get super cheap TV Antennas / DD FreeDish to watch these "free" channels at no cost or just a one time cost?
As you have guessed, on top of the mandatory NCF, you have to pay for the paid channel subscriptions. So, what previously used to be a INR 300 per month cable subscription would balloon to >INR 500 per month (my opinion).
OK, so we come to the WHY. Why is this being done? The answer is simple, to pave the way for JIO's internet TV operations. By making the cost of cable TV this high, people will of course choose only specific channels to view. This will create a lot of problems to the TV channels who will look to a savior.
And, in this chaos, who will be messiah that saves cable TV, you guessed it, it will be JIO. Now, JIO needs the cable charges to go up north of INR 500 for that's the amount which is floating around for the all you can eat JIO Internet TV subscriptions.
With the all you can eat buffet of JIO TV, people will gladly give the same amount that they are now used to giving to traditional cable operators. This would be a big win for JIO.
The only way traditional cable operators can win is to convince all TV channels to become Free To Air, and share the NCF profits with them. I do not see that happening.
TRAI wants cable operators to mandatory charge NCF (Network Capacity Fee) for 100 free to air channels. Really, the consumers now have to pay for "Free To Air" channels. The minimum mandatory NCF is INR 130 + 18% GST = INR 153.4.
And then on top of this NCF, we have slots of 25 channels for which the consumers have to pay INR 20 NCF extra. For example, if you want to subscribe to another 50 "Free To Air" channel, then you would have to pay 130 + 20 + 20 = 170 + 18% GST = INR 200.6 just for viewing 150 "Free To Air" channels. Don't we get super cheap TV Antennas / DD FreeDish to watch these "free" channels at no cost or just a one time cost?
As you have guessed, on top of the mandatory NCF, you have to pay for the paid channel subscriptions. So, what previously used to be a INR 300 per month cable subscription would balloon to >INR 500 per month (my opinion).
OK, so we come to the WHY. Why is this being done? The answer is simple, to pave the way for JIO's internet TV operations. By making the cost of cable TV this high, people will of course choose only specific channels to view. This will create a lot of problems to the TV channels who will look to a savior.
And, in this chaos, who will be messiah that saves cable TV, you guessed it, it will be JIO. Now, JIO needs the cable charges to go up north of INR 500 for that's the amount which is floating around for the all you can eat JIO Internet TV subscriptions.
With the all you can eat buffet of JIO TV, people will gladly give the same amount that they are now used to giving to traditional cable operators. This would be a big win for JIO.
The only way traditional cable operators can win is to convince all TV channels to become Free To Air, and share the NCF profits with them. I do not see that happening.
