Reliance Big TV issues notice to Tata Sky for alleged breach of commercial terms

MUMBAI: Direct to home (DTH) operator Reliance Big TV (RBTV), which has been acquired by Pantel Technologies, has issued a notice to Tata Sky for alleged breach of commercial understanding, a source close to the development has told TelevisionPost.com.

The notice was issued in the last week of January.

RBTV has asked Tata Sky to pay up Rs 79.75 crore for migration of customers and for taking possession of its set top boxes (STBs) while acquiring customers. It has also claimed that Tata Sky had agreed to pay a certain sum for boot up channel to inform the subscribers about the migration.

“Reliance Big TV has issued a notice to Tata Sky for breach of agreed commercial understanding for migration of customers and for illegally hoarding STBs while acquiring subscribers. The total notice value Rs 79.75 crore,” the source said.

As per commercial terms, Tata Sky had to pay Rs 150 per subscriber and Rs 3000 for STB for an estimated 2.5 lakh RBTV subscribers.

“They were supposed to pay for each subscriber and they were supposed to pay a certain sum for boot up channel to inform the subscriber about migration to Tata Sky. It was a dual component,” the source stated.

Tata Sky MD and CEO Harit Nagpal said he is not aware of any notice from RBTV. He also claimed that there was no understanding between the two companies.

“We were talking but nothing happened. Every operator put up ads including Airtel Digital TV, Dish TV, and Videocon d2h. I am not aware of any legal notice issued by them,” Nagpal said.

As reported by TelevisionPost.com earlier, Reliance Communications, the erstwhile owner of RBTV, had tied-up with Tata Sky for migration of RBTV customers.

As per the terms, Tata Sky had agreed to provide free DTH connection to RDTV customers even as the customers had to pay for the pack charges as per applicable rates. It had also agreed to add the account balance of RDTV’s existing subscribers to their new Tata Sky accounts post activation.

“We have tied-up with Tata Sky to get you a new connection absolutely free. Your Reliance Digital TV account balance will be added to your new Tata Sky account,” Reliance Big TV had posted on its website.

Reliance DTH subscribers had to give a missed call on 9237092370 to get a free connection.

In addition to Tata Sky, other DTH operators had also wooed Reliance Big TV customers with offers to join their platform.

RCom had earlier announced that it will shut down the DTH business with effect from 18 November due to the expiry of DTH licence. However, later the telecom operator entered into a deal with Pantel Technologies to sell the DTH business.

Pantel will renew the DTH licence and will clear the outstanding dues of RBTV.