The Telecom Regulatory Authority of India (TRAI) hiked the rates of cable TV services by 7 percent. TRAI informed that the new tariffs will come into effect from January 1, 2009. Under the revised tariffs, the viewers will have to pay Rs 5.37 per channel in the (conditional access system) CAS-notified areas of Delhi, Mumbai, Kolkata and Chennai. Earlier, the rate was Rs 5 per channel.

 

TRAI has also announced the increase in rates for watching free-to-air channels by Rs 5. According to a statement of the organisation, tariffs of basic tier services have been hiked to Rs 82 from 77. The basic tier services offer 30 free-to-air channels. Apart from CAS-notified areas, the cable rates for the non-CAS areas have also been increased by 7 per cent.

 

While explaining the reason for the increase in rates, TRAI said that 7 percent increase has been provided based on the wholesale price index in non-CAS areas. However, the prices for the security deposits and rentals of the set top boxes (STB) have been reduced. As result, cable operators will take a security deposit of Rs 200 and Rs 750 and charge a monthly rental of Rs 34 and Rs 22 in CAS and non-CAS areas, respectively.

 

The new changes in security deposits and rentals have been brought as per the Telecommunication (Broadcasting and Cable) Amendment Order, 2008. Prior to the changes, cable operators used to charge a security deposit Rs250 and Rs 999 and the monthly rental of Rs 45 and Rs 30. TRAI had also made similar adjustments in pricing in 2003 and 2005.