TDSAT SEMINAR

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TDSAT SEMINARConsumer Rights under TRAI Act,
1997 and Redressal of Consumer Grievances20/10/
2007

• Presented by

Avnindra Mohan ZEE NETWORK
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Indian Broadcasting Distribution Industry
Scenario

• According to latest survey they are 110 million
  TV Homes out of which 70 million are CS Homes.
• Total Industry size is estimated to be approx
  Rs.18,000 -19,000 Crores.
• Over 285 Channels are available over Indian Sky
  and every month 3-4 new Channels are being
  launched.
• Content delivery platforms
• Cable CAS Non-CAS MSO Cable Operators
• DTH Pay (addressable) Free To Air Private
  DTH Operators Prasar Bharti
• IPTV Pay Free To Air MTNL BSNL - Emerging
  platform.
• Most of the cable plants are analogue and have
  limited channel carrying capacity. At present
  65-75 channels are being delivered by most of the
  cable operators.
• At present no addressability except in pay DTH
  notified CAS areas of Delhi, Mumbai Kolkata and
  the channels are delivered on defacto choice of
  service providers and not according what a
  customer wishes to watch.
• No measuring mechanism- Imagine electricity,
  telephone without a meter and paying a random
  price for it.

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PROTECTION OF CONSUMERS INTEREST TRAI ACT, 1997

• The preamble of the Act reads as under-
• An Act to provide for the establishment of
  Telecom Regulatory Authority of India and the
  Telecom Disputes Settlement and Appellate
  Tribunal to regulate the telecommunication
  services, adjudicate disputes, dispose of appeals
  and to protect the interests of service providers
  and consumers of the telecom sector, to promote
  and ensure orderly growth of the telecom sector,
  and for matters connected therewith or incidental
  thereto.

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PROVISIONS OF TRAI ACT

• Section 11(1)(b) of TRAI Act recognizes specific
  consumer-protection responsibilities for TRAI.
  These responsibilities include-
• laying down the standards of quality of service
• ensuring quality of service
• conducting the periodical survey of each service
  provided by the service providers so as to
  protect interest of the consumers of
  telecommunication service.
• To fulfill these responsibilities, TRAI has
  issued numerous directions and regulations that
  emphasize various obligations of service
  providers towards their consumers.
• TRAI has powers under Section 11(2) of the Act to
  fix up the tariffs/rates at which the services
  shall be provided. The rates may be different for
  persons or class of persons for similar services.
• TRAI has also published guidelines on
  registration and interaction with consumer
  organizations to promote a sustained dialogue
  with consumers on policy matters.

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Dispute Resolution

• Section 14(a)(iii) provides that TDSAT has
  jurisdiction to adjudicate any dispute between a
  service provider and a group of consumers.
  Therefore a group of consumers can approach TDSAT
  and seek adjudication.
• As per proviso to Section 14 of TRAI Act the
  complaint of individual consumer which is
  maintainable before the Consumer Redressal Forum
  / Commission / National Commission can not be
  entertained by TDSAT.
• Keeping consumers interest paramount, TDSAT in a
  case Kartic Chundar v Principal General Manager
  (2004) 2 CompLJ 86 treated six applications from
  individual petitioners each challenging increase
  in their telephone circuit rentals, as the
  petition from the group of consumers. TDSAT has
  held that since each of their cases raised the
  similar questions, they could be treated as group
  of consumers. Ultimately TDSAT ordered DOT to
  refund a certain portion of the increase not only
  to the petitioners but also to all other
  consumers who were similarly situated.

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Dispute Resolution

• Section 14A of TRAI Act provides as under
• The Central Government or a State Government or a
  local authority or any person may make an
  application to the Appellate Tribunal for
  adjudication of any dispute referred to in clause
  (a) of Section 14.
• The Central Government or a State Government or a
  local authority or any person aggrieved by any
  direction, decision or order made by the
  Authority may prefer an appeal to the Appellate
  Tribunal.

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Grievances of Consumers

• Tariff related
• Services related
• Policy related
• Regulatory Fiscal

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TARIFF ORDERS

• The Telecommunication (Broadcasting and Cable)
  Services Tariff Order, 2004, dated 1st October ,
  2004 and 4th October, 2007.
• The charges payable by-
• Cable subscribers to cable operator
• Cable operators to multi system
  operators/broadcasters (including their
  authorised distribution agencies) and
• Multi system operators to broadcaster (including
  their authorised distribution agencies)
• in non CAS areas as prevalent on 1st December,
  2007 and increased by an amount not exceeding 4
  shall be the ceiling, with respect to both free
  to air pay channel and bouquet of channels
  (consisting only of pay channels or both pay and
  free to air channels) and stand-alone channels
  not forming part of any bouquet.

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• Further ceiling prescribed based on number of
  FTA and pay channels and area at retail level

No. of channels A-1 A class cities B-1 B-2 class cities Others
Only free to air channels (min.30 FTA channels) Rs. 77 Rs. 77 Rs. 77
Minimum 30 FTA channels plus upto 20 pay channels Rs. 160 Rs. 140 Rs. 130
Minimum 30 FTA channels plus more than 20 and upto 30 pay channels Rs. 200 Rs. 170 Rs. 160
Minimum 30 FTA channels plus more than 30 and upto 45 pay channels Rs. 235 Rs 200 Rs.185
Minimum 30 FTA channels plus more than 45 pay channels Rs. 260 Rs. 220 Rs. 200
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• Broadcasters must provide all their channels on a
  la carte basis and declare a la carte rates to
  the multi system operators (MSOs)/cable
  operators.
• Bouquets of channels can also be offered. But to
  prevent perverse pricing of bouquets and to make
  the a-la-carte choice effective, the bouquet
  rates and a la carte rates of channels forming
  part of a bouquet should satisfy the following
  conditions
• Sum of a la carte rates not to exceed 1.5 times
  the bouquet rate.
• A la carte rate of each channel cannot be more
  than three times the average rate of the pay
  channel in the bouquet.
• The above measure is expected to enable the
  MSOs/cable operators to choose channels in tune
  with the liking of their subscribers in the
  localities being served them, and consequently to
  reduce the burden of cable charges on the
  subscribers on account of unwanted channels.

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• Ceiling can be exceeded if any new
  channel/bouquet is introduced after 01/12/07,
  based on the principle that rates of new channels
  should be similar to similar channels.
• Provisions made to address the issues regarding
  non availability of channels for distribution due
  to termination of contractual obligations and/or
  conversion of free to air channel to pay channel
  or vice versa.
• Detailed reporting requirements prescribed for
  broadcasters to TRAI as well as on its websites
  which inter alia includes
• names, genre and language of all free to air
  channels offered by the broadcaster
• name, a-la-carte rate, genre and language of each
  pay channel offered by the broadcaster

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• list of all bouquets offered by the broadcaster
  with prices of each bouquet, indicating the names
  of all the pay channels and free to air channels
  contained therein along with the names of owners
  of other channels in the bouquets
• target audience of all the pay channels and free
  to air channels (National or Regional, if
  Regional, State(s) must be specified)
• whether the pay channels are pay channels in
  whole of the country or only in part of the
  country. (States must be specified if a channel
  is a pay channel in part of the country)
• any other information relevant to free to air
  channels, pay channels, a-la-carte rates and
  bouquets offered by a broadcaster.

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• Every broadcaster who, after the 1st day of
  December, 2007,--
• introduces any new pay channel or free to air
  channel or
• converts any pay channel into free to air
  channel or
• converts any free to air channel into pay
  channel or
• discontinues any free to air channel or pay
  channel or
• introduces any new bouquet or discontinues any
  bouquet or modifies any bouquet,
• shall, within seven days of such introduction or
  conversion or discontinuation, furnish to the
  Authority the information required in the Tariff
  Order.

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CONSUMER EMPOWERMENT

• Issue of receipt and bill.
• Every LCO or MSO or broadcaster, as the case may
  be, shall -
• give to every subscriber the bill for the charges
  due and payable by such subscriber for each month
  or for such other period for which such charges
  become payable, containing all relevant details
  including the total number of pay and free to air
  channels, the charges levied (excluding taxes),
  nature and rates of taxes levied and amount
  thereof.
• give to every subscriber, along with the first
  bill after the 1st day of December, 2007, a list
  of all the pay channels and free to air channels
  being provided to the subscriber. Subsequently,
  written information about any changes in the pay
  channels or free to air channels being provided
  to the subscriber shall also be given along with
  the next bill given to the subscriber after such
  change.
• acknowledge all payments made by the subscriber
  by issuing a receipt therefor duly signed by him
  indicating therein the period and the purpose for
  which the payment has been received and other
  relevant details.

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• Power of Authority to intervene.
• The Authority may, by order or direction made or
  issued by it, intervene in order to secure
  compliance of the provisions of this Tariff
  Order, or protect the interests of subscribers
  and service providers of the broadcasting
  services and cable services, or promote and
  ensure orderly growth of the broadcasting
  services and cable services, or facilitate
  competition and promote efficiency in the
  operation of broadcasting services and cable
  services so as to facilitate growth in such
  services.

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• The Tariff Order for CAS areas dated 31/08/2006.
• Tariff ceiling for basic service tire Rs.77/-
  p.m. plus taxes
• Ceiling on MRP for pay channels Rs.5/- per
  channel p.m.
• Mandatory on the part of broadcasters, MSOs and
  LCOs to offer pay channels on a-la-carte basis.
• Tariff for supply of STB
• STP Rs.30/- p.m. plus security deposit
  (refundable) Rs.999/- per STB
• ATP Rs.45/- p.m. plus security deposit
  (refundable) Rs.250/- per STB

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Service Related Regulations

• THE INTERCONNECTION REGULATION, 2004 dt.
  10/12/2004 4/9/2006
• Exclusive contracts and restricting competition
  prohibited.
• No disconnection without giving a notice of 21
  days. The notice must give the reasons in brief
  to the disconnection.
• In order to inform the consumers , notice to
  disconnect signals shall also be given in two
  local news paper out of which one notice should
  be given in local language. In case notice
  published in two newspapers on different dates,
  period of 21 days to start from the later of two
  dates
• Broadcaster/MSO/LCO may also inform the consumers
  through scrolls on the concerned channel(s).
  However, issue of notice in newspapers shall be
  compulsory.

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Quality of Service Regulation

• The Standards of Quality of Service (CAS Areas)
  Regulation, 2006 dt. 23/08/2006
• The Direct to Home Broadcasting Services
  (Standards of Quality of Services and Redressal
  of Grievances) Regulations, 2007

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• SALIENT FEATURES OF DTH QOS REGULATIONS
• The DTH operator to formulate schemes to offer
  customer premises equipments (including STB) to
  its subscribers on outright purchase basis,
  hire-purchase basis and rental basis.
• Provision of commercial interoperability to DTH
  subscribers in addition to technical
  interoperability- refund to subscribers on
  returning the customer premises equipment under
  hire-purchase/rental scheme.
• A time limit of 5 working days has been
  prescribed for complying with requests relating
  to shifting, disconnection and reconnection.

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• DTH operator will give notice for discontinuing a
  channel or for disconnecting a subscriber.
• DTH operator will not disable the STB if the
  subscriber has opted out of his service. This
  will enable the DTH subscriber to use the STB for
  receiving other DTH services.
• The subscription package offered to a subscriber
  will not be changed for 6 months to the
  disadvantage of DTH Subscriber. However, the
  subscriber can opt out of a particular package
  for any other package at any time.
• Post paid subscribers will be issued bills
  containing details such as charges for
  subscription package, value added services,
  customer premises equipments, taxes etc.

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• Three Tier Subscribers Grievance redressal
  system
• Establishment of Call Centres by DTH Operators
• Nodal Officers appointed by DTH Operators and
• TRAI to forward complaints.

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• DTH operator will establish call centres with
  sufficient number of telephone lines with toll
  free numbers, such that the benchmarks relating
  to response time are met (e.g., 80 calls to be
  answered within 60 seconds in case of voice
  operators and within 20 seconds if answered
  electronically, etc.).
• Each request or complaint to a call centre to be
  assigned a docket number.
• 90 of complaints regarding non-receipt of
  signals to be redressed within 24 hrs., and 90
  of other type of complaints to be redressed
  within 48 hrs. No complaint to remain pending
  beyond 5 days. All billing complaints to be
  redressed within 7 days.

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• DTH operators will nominate Nodal Officers in
  each operating State for redressal of grievances
  of those subscribers who are not satisfied with
  the redressal at call centre level.
• The Nodal Officer will redress the grievances
  within 10 days of registering of the complaint.
• Complaints received by TRAI and forwarded to DTH
  operator will be redressed within 15 days of
  forwarding, and outcome intimated both to the
  subscriber as well as to TRAI.
• The provisions of these regulations are in
  addition to any right conferred upon the direct
  to home subscribers under the Consumer Protection
  Act, 1986(68 of 1986) or any other law for the
  time being in force.

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• Manual of Practice for DTH Subscribers
• Every DTH Operator shall publish a Manual of
  Practice containing, among other things, the
  following information relating to DTH Services,
  namely-
• details of call centres and nodal officers
• procedure and benchmarks for redressal of
  complaints through the call centres and through
  the Nodal Officers
• instructions regarding operations of Direct to
  Home Customer Premises Equipments
• rights conferred upon the direct to home
  subscribers under these regulations
• duties and obligations of the direct to home
  operator.
• A copy of the Manual shall be provided by the
  direct to home operator or his agent to each
  direct to home subscriber at the time of his
  subscription for direct to home service.

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Policies Fiscal Grievances

• Cost of provision of services increase because of
  various fiscal levies which need to be
  rationalised.
• Cable services are subject to both entertainment
  tax service tax unlike multiplexes and cinema
  halls, where no service tax is levied.
• VAT on STB rentals
• Non-availability of CENVAT Credit on STBs.
• DTH services are subject to
• License fee 10 of gross revenue
• Service tax 12.36
• Entertainment tax ranging from 20 30
• VAT on rentals / hire purchase of CPE
• These taxes are ultimately borne by consumers,
  thus increasing the cost. TRAI need to take up
  these issues with the Govt. through its
  recommendations so as to enable the consumers to
  receive the services at an affordable price.

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Other Consumer Centric Recommendations of TRAI

• An authorized officer should be appointed under
  Cable TV Networks (Regulation) Act at local level
  to sort out the grievance of consumers.
• The local cable operators to be registered with
  Authorised Officer as against the present system
  of registration with Post Office.
• The cable operators to submit information
  regarding the number of subscribers, subscription
  rate, rates of FTA (Basic tier) and pay channels
  to the authorized officer.
• The consumers and operators to have option to
  approach the authorized officer for
  implementation of TRAI regulations / Tariff
  Orders concerning the cable TV services. In case
  of violation of the regulations, the authorized
  officer should have power to file the complaints.
• The government may consider setting up an
  alternate dispute resolution mechanism for cable
  operators at local level.

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• Regulation on Guidelines for Registration of
  Consumer Organisation / Non-Government
  Organisations (NGOs) and their interaction with
  TRAI, 2001 - dt. 15/01/2001
• The registered organisations shall be informed to
  attend open house discussions held by TRAI on
  various issues.
• An open regular two way communication channel
  will be maintained with the consumer
  organisations and NGOs registered with the
  Authority, with the objective of sharing
  additional data/ information and discussions over
  and above what is shared through other channels.
  
• In addition to the open house discussions held in
  various parts of the country, TRAI shall hold
  half yearly meetings with registered consumer
  organisations to increase interaction for better
  understanding of the problems of consumers across
  the country. These meetings may be organised in
  different parts of country for better
  participation.

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• TRAI, in the form of consultation paper, shall
  also highlight the international practices of
  various consumer related issues for the benefit
  of consumers through these consumer
  organisations/NGOs.
• All the Consumer Organizations/ NGOs will
  interact with a Nodal Officer in TRAI for the
  purpose of registration and consumer related
  issues.

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State-wise list of Consumer Organizations /NGOs
registered with TRAI
Sl. No. Name of State No. of Organization Sl. No. Name of State No. of Organization
1. New Delhi 4 11. U.P 3
2. Karnataka 3 12. M.P 1
3. Maharashtra 2 13. West Bengal 2
4. Haryana 2 14. Andhra Pradesh 1
5. Tamil Nadu (Chennai) 3 15. Chandigarh 1
6. Gujarat 3 16. Pondicherry 1
7. Orissa 1 17. Assam 1
8. Kerala 2 19. Tripura 1
9. Rajasthan 1 20. Uttranchal 1
10. Jarkhand 1 20. Uttranchal 1
TOTAL TOTAL TOTAL TOTAL 34
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CONSUMER REDRESSAL

• Govt. to consider, review and act on the
  recommendations of the Authority including CAS
  implementations on urgent basis in the interest
  of consumers.
• Frequent inter-actions/open house with consumer
  organisations/bodies on various issues.

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Thank You
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