More projected pain for broadcasters as Telco’s looking to offer IPTV services have called on TRAI to fix channel prices reports ET, almost a month after DTH operators did the same. Currently, broadcasters are to charge DTH operators up to 50 percent of their Cable TV bouquet price.

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With the current telco posturing, it seems they are lobbying for a similar if not lower rate from broadcasters. Reason? Traditionally the TRAI has been supportive of digitized formats and as seen with DTH will want to solve content woes for a new platform by mandate. Currently, BSNL and MTNL, offering IPTV in a few cities,  are paying minimum guarantees to content providers. With channel rates currently being variable, a TRAI mandate could bolster penetration through low acquisition costs per customer. Content differentiation on IPTV is limited as well, considering the Ministry of Information and Broadcasting will be regulating content. Currently, to avail MTNL’s IPTV service in New Delhi, a broadband connection is pre-requisite and IPTV services cost an additional Rs 999 (refundable deposit). Additionally, a subscriber doesn’t have to pay for a set-top box with a 12 month free subscription thrown in.

Compare this to DTH, where a set-top box and installation costs, excluding a monthly fee, will make you poorer by Rs 5000. However, the problem with IPTV lies not in its cost or content but its reach, which both BSNL and MTNL have under-utilized in spite of having proprietary last mile access. Till the time TRAI manages to create an environment that facilitates entry of private players, IPTV will continue to stagnate and infact digress in comparison to an increasingly competitive DTH sector.