Leading broadcasters, including Zee Turner and Star Den Media Services, on Monday challenged Trai's tariff order to cap wholesale price of channels to service providers like DTH and IPTV at 35 per cent of rates for normal cable operators.
In separate petitions filed at the Telecom Disputes Settlement and Appellate Tribunal, ESPN Software India, MSM Discovery, Zee Turner and Star Den Media Services said the tariff suggested by the sectoral regulator was not commercially viable.
The broadcasters submitted that while fixing the tariff, Trai has acted in arbitrary and unreasonable manner and did not consider the suggestions of the stake holders.
Admitting the plea of the broadcasters, TDSAT directed Trai to file its reply by September 6.
Trai had on July 21 notified that a new wholesale tariff structure would be effective from September 1, whereby broadcasters can charge only at 35 per cent of rates that they charged from normal cable operators while supplying to service providers in various platforms such as direct to home, Internet protocol television and Hyperlink-Induced Topic Search.
Earlier the broadcasters charged it at 50 per cent. During the proceedings, counsels appearing for the broadcasters asked TDSAT for an urgent hearing as the deadline for the new tariff order was approaching.
However, senior advocate Meet Malhotra appearing for TRAI said that the new tariff would be effectively operational from October 1, 2010, only.
"The new tariff, between operators would become effective not before first week of October," said Malhotra.
He further suggested the tribunal to hear all four cases filed by the broadcasters collectively and pass orders, which was agreed by the tribunal.
The tribunal has fixed September 14 for next hearing.
