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SC instructs TRAI to fix cable tariff for hotels

Praveen K Singh - New Delhi

The long pending dispute between cable broadcasters and hotels seems to have come to an end with the Supreme Court of India asking the Telecom Authority of India (TRAI) to fix the tariff for hotels and other commercial cable subscribers.

The Bench comprising Justice SB Sinha and Markandey Katju in its verdict held that members of Hotel Association of India and the Hotel & Restaurant Owners Association as consumers, thus bringing them under the purview of TRAI jurisdiction. The Bench has asked TRAI to fix the tariff for both categories of cable subscribers - domestic and commercial. While delivering the verdict it said, "TRAI's jurisdiction is not only to fix tariff but also laying down terms and conditions for providing services. Prima facie, it can fix standards and the form and the way in which a consumer would get service." However, it added that as it turned out, when TRAI frames tariffs, members of hotel associations would be at liberty to plea against the tariff decided by the regulator.

In its reaction to the verdict, secretary general of FHRAI, Kamal Sharma, said, "TRAI should take a rational approach towards fixing of tariff as already small hotels are disturbed with the Public Performance License (PPL) and T-series Public Performance License (TPPL), which is trying to exploit the operators in hospitality industry, which is already facing severe competition."

With the SC's final verdict, TRAI is fully entitled to fix tariff for commercial cable users. Talking to Express Hospitality, a senior TRAI official said, "We will soon come out with a separate tariff for commercial users including the hotel sector." He agreed that the tariff would certainly be high considering the high price services hotels provide to guests.