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Tata Sky withdraws Network Charges on Select Channels
   Feb 05, 2019 03:45 PM

Recently the leading DTH provider SUN Direct launched a new offer wherein it waived off the Network Capacity Fee (NCF) for additional channels that are chosen by subscribers while selecting their base pack. This move also inspired the DTH giant Tata Sky to remove the network fees on select channels. Sun Direct’s offer enables subscribers to view unlimited free to air (FTA) channels at a basic price of INR 154 and also pay only the content charges for additional pay channels as the network charges have been removed. Tata Sky’s new offer is also similar with the exception of having pay channels.

New Pricing Structure by TRAI Regime

Under the new TRAI regime, the latest pricing structure has influenced the changes in pricing made by the DTH service providers. With the new scheme in place, the DTH providers will be able to provide two bills to their customers, one being the bill for network charges and the other content. Details such as the cost for network capacity will be mentioned in the network charges bill. The subscriber can hold a minimum of 100 SD channels or 50 HD channels at the cost of INR 130 which will be exclusive of all taxes. In case the subscriber needs to watch more channels, he will have to pay for the network charge per extra channel.

Pricing by Tata Sky and Sun Direct

The DTH providers will be issuing a second bill which will be purely for the content and this will not be controlled or modified by the service provider. It includes the total cost of channels given by the DTH company as a fixed cost. If the subscriber wants to add an FTA channel to the existing range of 100 channels, he will have to pay the network charge fee along with content charges. The DTH players have now started removing the network charges and with the new schemes, their subscribers will not be charged with NCF on select channels.

Sun Direct is providing 330 channels at just INR 154 under the new scheme whereas the subscribers would have to pay roughly INR 600 to watch the same number of channels. Tata Sky on the other hand is giving only select channels as NCF-free. Sun Direct considers the number of subscribers who have more than 100 channels to be very few and therefore the DTH operator wont be losing out on revenue from NCF fee.

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