Mumbai: Telecom Disputes Settlement And Appellate Tribunal (TDSAT) has ordered Star to provide all channels to Dish TV at 50 per cent of the rate applicable to cable operators.
The order states that rates charged for the cable TV platform cannot be applicable to DTH (Direct to home).
Commenting on the judgment Zee Telefilms said that there was no scope for negotiations with Star on pricing.
Its Vice Chairman Jawahar Goel says that Star will have to abide by the order within 15 days.
Excerpts from CNBC-TV18's exclusive interview with Jawahar Goel:
Q: What is the exact implication of this order and what was the decision that was given on the 22nd?
A: The TDSAT has accepted the contention of the ASE enterprise-- Dish TV saying that Star's demand for Rs 67 for bouquet one and two as against the cable rate of Rs 54 was the contravention of the tariff order of the TRAI.
The court has taken into account the statement of James Murdoch and Star saying that there is under declaration in cable, and in DTH, the prices have to be much lower.
In the interim, they have said that Rs 27 will be the rate, while 50 per cent will be the distribution margin, and TRAI will pick up the rate, which can be lower than Rs 27.
Q: The channels in your basket, what rate are they going along with for Dish TV as compared to their cable operator charges?
A: In Dish TV, there are three bouquets. One is the Free-to-air at Rs 2/day, another bouquet is Rs 6/day, which includes all other channels like ESPN, Sony, Zee, Turner etc. And, for English Movie channels, the subscribers are paying Rs 10/ day plus taxes.
Q: How soon are you hopeful that this order will come into effect because Tata Sky is also waiting to launch?
A: I don't know what Tata Sky has planned and what they are doing. But another aspect of this order is that Dish TV has to carry all of the Star bouquet channels.
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Q: You spoke about two bouquets, what does bouquet A and B comprise of?
A: The bouquet one is of nine channels, which includes Star Plus, National Geographic, Star Movies etc.
Q: With Star now having to join the Dish TV bouquet while it is waiting for Tata Sky to launch, would that mean that on a reciprocal basis when Tata Sky does launch, Zee would have to go ahead and provide its bouquet on almost the same conditions?
A: Zee Turner and Zee have had discussions with Tata Sky. But Tata Sky's stand has been that they don't have the capacity. They want to carry only few of their channels.
Q: How soon will Star TV have to abide by this TDSAT order?
A: The order says that within 15 days they have to provide the channels, otherwise it will be tantamount to the denial of the content, under the inter-content order and under down-linking policy guidelines.
Q: So there are going to be fresh negotiations on the pricing at which they will provide you with that bouquet over the next couple of days?
A: I think there is no scope for negotiations right now. It is Rs 27. The TRAI will have to come out with the pricing policy. TRAI is also consulting on fixing prices under proposed CAS regime in South Bombay, South Calcutta, and South Delhi.
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