TRAI set to revise cable tariffs upwards

Cable TV tariffs were last hiked in October 2007. It is expected to be revised upwards marginally by around 5-6% to basically offset inflation. Generally, an increased hike beyond 5-6% sees a lot of opposition from consumers.

Analysts and broadcasters are watching out for the quantum of the hike. The quantum of the hike would be decided post consultation with operators. Broadcasters however, would ideally want market forces to determine cable tariff rates, which might see a revision upwards of 5-6%, which could result in more opposition. Also, if cable operators fail to incorporate the 5-6% hike then there could be a switch towards DTH, IPTV and HITS. So, if it is hiked by the government it has to be incorporated by cable operators.

Broadcasters don’t expect a resistance in the hike of 5-6% and don’t see negotiation problems with cable operators due to the pass through of the hike.

Analysts believe the move could be positive for companies like Zee Entertainment, Sun TV, TV18 and NDTV.

Source: Moneycontrol.com