Capping rates at ₹100 unfeasible: Cable service providers

A day after Punjab chief minister Charanjit Singh Channi fixed the monthly cable TV rate at ₹100, service providers called a statewide emergency meeting and concluded that the price slash was unfeasible.

Alleging that the Telecom Regulatory Authority Of India (TRAI) was micromanaging the cable networks, Fastway Media Cable Network CEO Peeush Mahajan said, “ The regulatory authority has fixed the base price at ₹130, with an additional 18% GST, which roughly comes to ₹154 per connection for 200 channels. Of the ₹130, ₹91 goes to the cable operator, ₹10 to taxes, and the remainder goes to the service provider. Thus, ₹91 goes to cable operators, who have to pay employees salaries, and maintenance costs.”

“Not just us, even DTH providers charge between ₹300 to ₹900 per package. Nearly 20,000 people from across the state are associated with the cable business and if corrective steps are not taken, it will be really difficult to run the business,” said Mahajan, adding that operators will urge the CM to reconsider his decision.

Selective price slashing’
Another cable operator said there should not be selective price slashing. “If cable TV prices have been capped, then the government should cap the prices of DTH providers as well. Why this selective penalising? Our business is already suffering as people are increasingly shifting to high-speed internet-based platforms,” said the cable operator, requesting anonymity.

The CM had said the prices were being capped to end the “cable mafia.” He had also said that transport and cable in the state were owned and controlled by the Badals. Hindustan Times