Joint Memorandum

Cable Operators Federation of India

National Cable & Telecommunication Association

Without Prejudice
(By Speed Post/E-mail)

Dated: 22 June 2016

The Chairperson
Telecom Regulatory Authority of India
Mahanagar Doorsanchar Bhawan.
Jawahar Lal Nehru Marg
New Delhi 110 002
Subject: Request for a direction to stake holders on Tariff and Arrears Adjustment on
account of withdrawal of 27.5 % inflation linked hike by TRAI on 09 May 2016, applicable
to rates of TV services at retail and wholesale levels in DAS and Non-DAS systems
subsequent to order of the Honble Supreme Court dated 4th August 2015 upholding the
Honble TDSAT Judgement dated 28th April 2015 setting aside the 27.5 % inflation linked
hike vide Eleventh and Thirteenth Tariff amendments.
Sir,
This in reference to the recent press note (No 28/2016) of TRAI dated 9 th May 2016. (Copy
Enclosed Annexure A) where TRAI in its wisdom and subsequent to Honble TDSAT
setting aside Eleventh and Thirteenth tariff amendment orders, have finally withdrawn the Tariff
Amendment Order dated 31st March 2014 that allowed for inflationary linked hike of 27.5%
in two installments. The first installment of 15% was allowed w.e.f. 1 st April 2014.
Balance inflation linked hike of 12.5% allowed both at the retail and wholesale levels,
w.e.f 1st January 2015
We also draw your kind attention to the Honble TDSAT order dated 29 th May 2014 in Appeal
Nos 1 (C) and 2 (C) of 2014 (Copy Enclosed Annexure B). The relevant portion of the said
Honble TDSAT order clearly states:
At this stage, we are not inclined to pass any order of stay. However, we direct that all
stake-holders must keep a separate account in regard to the collections on the basis of
the impugned order. It is made clear that in case the Appeals succeed, the individual
subscribers making any excess payment in terms of the impugned order will be entitled
to adjustments for the succeeding month from the respective LCOs/MSOs. Similarly, the
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LCOs will be entitled to adjustments from the MSOs and the LCOs and the MSOs from
the broadcasters.
In view of the above developments and now finally TRAI withdrawing its tariff amendment
orders of 31st March 2014, there is an immediate need to adjust the increased payments if
made by the subscribers to the LCOs, LCOs to the MSOs and MSOs to the broadcasters, in
accordance with the above mentioned TDSAT order of 29 May 2014.
The MSO have till now, intentionally not adjusted or refunded the access payments made to
them on account of the tariff amendment orders and we are now constrained to approach you
suggesting to adjust the same by observing Tariff and Arrear Adjustment Period ( TAAP) for
a period of 4 (Four Months from July- October 2016 ) w.e.f 01 July 2016, where during this
period of observing TAAP, we will adjust any excess subscription if paid by our subscribers to
us and do the same with MSOs by abstaining or adjusting excess subscription within this
period.
This TAAP observed to adjust our rightful and legitimate arrears due, upon the MSO, shall not
be construed as a default in payment or non-payment of agreed / negotiated / invoiced
payments due, under an interconnection agreement entered with the MSO in any manner
whatsoever or otherwise.
Statutory payment obligations towards applicable Entertainment Tax and Service Tax will
continue to be fulfilled as is, during this period of observing TAAP by the stakeholders.
The last mile LCOs will also enclose a copy of the last paid invoice / bank statement of the
payments made / released to the respective MSO in order to also certify that there are no
outstanding dues payable on them as on date. Whereas there is also no mandatory 21 days,
notice of disconnection issued or served upon it, as on date, for any default in payment or
outstanding of dues.
In the larger interest of the consumers, we request TRAI to pass suitable directions / advisory
to all stake holders accordingly To MSOs not to disconnect the signals, feed received by a last mile networks (LCO) or
make any package alterations, activations or deactivations in STBs during this crucial
period of observing TAAP. For the smooth adjustment of the increase / hike made
payable by us from 1st April 2014 till 30th June 2016.
In the pre-paid MSO business model, adequate credit should be maintained by the MSO
in the system during this period of our observing TAAP, for the adjustment of the
increase / hike made payable by us from 1st April 2014 till 30th June 2016.
In case of any discrepancy or for reconciliation of accounts by the MSO, if needed,
Rendition of the Separate Accounts kept be made in order to ascertain the
discrepancy and reconciliation of the accounts.

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A similar direction may please be given to the Pay TV Broadcasters and they be directed to
bring back the tariff as existing on 31 March 2014.
Thanking You
Yours Truly

(Roop Sharma)
9810069272
COFI
Cable Operators Federation of India

Enclosures: as above

Copy To: For Information

LCO / LMO Associations
MSO Associations
Broadcaster Association

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(Vikki Choudhry)
9811144467
NCTA
National Cable & Telecommunication Association