NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Friday came out with a consultation paper on the need for having separate tariffs for commercial cable subscribers like hotels, guest houses, offices and hospitals and whether these should cover all kinds of establishments.

TRAI, which will receive comments from stakeholders till May 12, has asked whether the tariffs for commercial purposes should be fixed or not and what should be the methodology for that. It has sought to know how should commercial consumers be defined and differentiated from non-commercial consumers.

The consultation paper seeks to know whether the tariff regulation should cover all kinds of commercial establishments or it should omit some categories.

The consultation paper follows the TRAI's March 7 interim tariff order, providing for a separate ceiling for commercial tariffs. This was done after the broadcast appellate authority, Telecom Dispute Settlements and Appellate Tribunal (TDSAT), concluded that the interim order, meant primarily for domestic consumers, did not cover commercial services.

The interim amendment order describes an ordinary cable subscriber as any person who receives broadcasting service from a cable operator and uses the same for domestic purposes.

On the other hand, a commercial subscriber has been defined as a person who receives broadcasting service at a place indicated by him and uses the signals for the benefit of his clients, customers, members or any other class or group of persons.

The consultation paper pointed out to the "problems and difficulties'' in identifying commercial subscribers on the basis of this definition as it brings within its ambit not only hotels and restaurants but also a whole range of establishments in the organised and unorganised sectors like small shops, hospitals and offices. The issue on a differential tariff order for commercial establishments surfaced after disputes between broadcasters and hotel and restaurant federations.

Hotel and restaurant associations argue that they cannot be called commercial establishments for purposes of receiving and retransmitting of pay channels to their guests, as they do not charge the guests separately as for numerous other services.

However, broadcasters say that commercial establishments need no protection and particularly hotels and restaurants as they simply pass on the burden to their clients.

"Further, hotels and restaurants are free to charge for their products and use the services provided by the broadcasters for commercial gain,'' they said, adding that hotels can always refuse to avail themselves of the services if the price charged by the broadcasters was considered unreasonable. — PTI

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