TRAI allows Cable Operators to raise prices annually

The TRAI (Telephone Regulatory Authority of India) has finally allowed the cable operators and broadcasters to hike prices on account of inflation for their services. Because of this, Cable television charges across the country are now expected to go up by 4 per cent from January 1, 2006.

TRAI said in its order: “As almost a year has passed, another review has become due for the period beginning from January 1, 2006. An exercise was undertaken to determine the inflation adjustment rate. On the basis of analysis done by the Telecom Regulatory Authority of India, the inflation adjustment works out to 4 per cent.”

The last time cable charges were allowed to be increased was at the beginning of the year when they were raised by 7 per cent. TRAI added this about their decision: “An amendment order has been issued to give effect to the inflation adjustment and will come into effect from January 1, 2006. The new rates will be applicable for the payments to be made by consumers, cable operators, MSOs for the month of January, 2006.”