TRAI issues show-cause notice against ESPN over DTH tariff

A new direction was given to the war between ESPN and DTH operators over the pricing of sports channel on Tuesday when sector regulator Telecom Regulatory Authority of India (TRAI) issued a show-cause notice to ESPN Software India.

The notice said that if in case ESPN fail to comply with prices recommended by the regulator within three next working days, then TRAI would ask the I&B ministry to cancel broadcaster’s license. It will also then take the matter to the courts if the broadcaster failed to adhere to the rules.

According to TRAI, the broadcasters can not charge a premium of more than 50% to DTH operators when compared to the prices they offer to cable operators in non-CAS areas. But ESPN had failed to adhere to TRAI’s directions.

DTH regulators such as Tata Sky had asked ESPN to modify its reference interconnect offer. By this the latter could offer three sports channels-Star Sports, Star Cricket and ESPN, in the same bouquet as it does to MSOs and LCOs in non-CAS area.

TRAI had sent an 18-page long notice to ESPN which it has specified that if the broadcaster will not give any written statement of explanation within next three days, then the matter will be continued with the presumption that ESPN has nothing to say in its defense.

The notice issued by TRAI also asks the broadcaster as to why action shpuld not be initiated against it and why a complaint should not be filed by the authority before the court to take “cognisance of the contravention of the directions dated June 24?”