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TRAI freezes cable rates for hotels, restaurants

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This has been done to protect the interests of commercial consumers as well in the short term. Rates charged almost three times the household rates

New Delhi , March 7

The Telecom Regulatory Authority of India (TRAI) has decided to freeze the cable television rates as prevalent on March 1, 2006, for hotels and restaurants.

TRAI said that this has been done to protect the interests of commercial consumers as well in the short term. This would be reviewed on the basis of a detail examination.

Industry sources said that the rates charged by broadcasters from commercial enterprises is almost three times the household rates.

A couple of Associations of Hotels and Restaurants filed a batch of petitions against leading broadcasters in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

The dispute

The dispute basically pertained to the fact whether the hotels and restaurants can be equated with domestic consumers for the provision of cable TV service and there were also other connected and consequential issues under adjudication.

The TDSAT, while adjudicating on the issues of dispute in its judgment dated January 17, 2006, had observed that the regulator should also consider whether it is necessary to fix the tariff for commercial purposes in order to bring about greater degree of clarity and also avoid any conflicts and disputes arising in this regard.

TRAI had also received a representation from the Federation of Hotel and Restaurant Association of India (FHRAI), in which they had inter alia requested TRAI to fix tariffs for hotels as per the normal procedure and also issue a restraining order on the broadcasters preventing them from charging arbitrary rates fixed for hotels and restaurants till the regulations are framed by the regulator.

After considering the observations made by the TDSAT and the representation of the FHRAI, TRAI felt that the issue of need or otherwise to fix tariff for commercial purpose and the method and manner of fixing specific commercial tariff are connected issues, and needs a detailed consultation and examination.

It is considering the course of action on this separately.

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