Tata Sky gets a breather from implementing TRAI tariff order, regulation till 10 Jan

MUMBAI: Direct to home (DTH) operator Tata Sky has got a respite from the Delhi High Court as the Telecom Regulatory Authority of India (TRAI) has assured that it will not take any coercive action against the DTH operator.

Tata Sky had challenged the TRAI’s tariff order and interconnection regulation in May last year.

The matter, which was listed for hearing today, has been renotified to 10 January.

During the hearing, the Tata Sky counsel pleaded that the TRAI be restrained from taking any coercive action. Responding to Tata Sky’s plea, the TRAI counsel agreed that no coercive action will be taken against the DTH operator till the next date of hearing.

However, the TRAI counsel also insisted that the DTH operator should implement the tariff order and regulation despite the assurance from the regulator.

All other distribution platform operators (DPOs) will have to comply with the TRAI tariff order and the regulation.

The sum and substance of the Tata Sky’s appeal is that the TRAI tariff order and regulation violate Article 19 (1)(G) of the constitution which allows citizens “to practice any profession, or to carry on any occupation, trade or business”.

It has also been argued that the new regulatory framework treats un-equals as equals by prescribing the same monthly rentals and discounts for DTH operators and multi system operators (MSOs).

Tata Sky is also against the regulation of carriage fee and must carry clause. The new regime will seriously impede their right to do mutually negotiated agreement, the DTH operator has argued.

Another contention of the DTH operator is that the new regime will completely overhaul the business models of DTH operators even though the overall regulatory framework is running smoothly.