New Trai Issues New Mandate for Capping Installation and Activation Charge at Rs 500 for DTH Subscribers

The telecom and broadcast regulatory body, Telecom Regulatory Authority of India (Trai) has passed a new mandate, capping the installation and activation charged for DTH providers at Rs 500. This new mandate states that DTH providers will not be able to charge more than Rs 350 as installation charge and not more than Rs 150 as an activation charge of the service. Contrary to this, currently DTH providers charge Rs 1,200 for installation and activation of DTH service. This charge is non-refundable, and no extra rental is charged for equipment on top of service rentals. However, after this new mandate, the service providers might levy an upfront refundable deposit and a monthly charge for equipment.

New Capex on Activation and Installation Charges for DTH Providers

Regarding this new capex, Trai issued a clarification relating to the new tariff regime which comes into effect on December 29. The regulatory body said, “A Distributor of television channels or its linked local cable operator, as the case may be, may charge an amount not exceeding rupees three hundred and fifty as a one-time installation charge.. [and] an amount not exceeding rupees one hundred as a one-time activation charge for activating the broadcasting services related to television.”

Trai has also informed that if the consumers manage to find a set-top box which is usable with the DTH provider’s service, then they should be allowed to use the same. Expanding on this, Trai said, “It shall be permissible for every subscriber to buy a set top box of approved quality from the open market, if available, which is technically compatible with the system of the Distributor of television channels. The distributor or its linked local cable operator, as the case may be, shall not compel any subscriber to buy or take on rent the set-top box from him alone.”

New Rules for Equipment Related Charges

As per the current standards, the cost incurred by the DTH provider for equipment in an SD connection is Rs 2,200 whereas for an HD connection the fee stands at Rs 2,500. Traditionally, the DTH subscribers pay around half of this amount while the DTH providers manage the other half. With the introduction of the new tariff scheme, the most feasible way for the DTH providers will be to charge a security deposit of Rs 700-1200 on top of Rs 500 installation and activation charge. Another way that DTH providers can opt for is the selling of equipment to the subscribers for Rs 1,500-2,500.

Trai has also said that in case a subscriber disconnects from the DTH provider and notifies the DTH provider before 15 days of disconnection, then the DTH provider will have to refund the security amount within seven days of disconnection.

Apart from this, the regulator has also put a max cap on the visiting charge of service technicians to subscriber premises for carrying out repair and maintenance services. This charge has been set at a max of Rs 250 per visit.