TRAI's NCF decision may result in higher DTH pack tariffs

TRAI has also asked for opinions on whether users who live in rural and urban sections of the nation should have access to separate NCF slabs

The public is being asked for feedback on whether the NCF (Network Capacity Fee) should be raised for customers by the Telecom Regulatory Authority of India (TRAI). Users who subscribe to channel packs are charged NCF by Direct-to-Home (DTH) service providers. The user will be required to pay more NCF the more channels there are.

TRAI's decision will influence whether the price of NCF increases or stays the same. If the price increases, the DTH firms will benefit since they would make more money. However, consumers who are already switching from traditional DTH connections to IPTV or OTT (over-the-top) entertainment platforms won't appreciate the price hike at all.

Customers currently pay Rs 130 plus applicable taxes as NCF for 200 SD channels. The cost is Rs 160 with taxes for more than 200 SD channels. The DTH operators contend that the NCF need to be raised and subject to yearly modification depending on the inflation index. If TRAI accepts the DTH firms' request, subscribers may experience frequent price increases for NCF.

TRAI has also asked for opinions on whether users who live in rural and urban sections of the nation should have access to separate NCF slabs. It is also important to be aware that TRAI is seeking opinions on whether or not the NCF fees for obtaining a secondary connection should also go up.

The last thing that clients expect is for the cost of DTH connections and channel packages to go up. However, that makes a little sense from the DTH firms' point of view. Since DTH providers' subscriber bases have been declining over time, their top objective is now to maximise revenue from each client rather than solely focus on scaling up their business.