DTH Activation, Installation Cost Slashed By 58%; TataSky, Airtel, Dish Cannot Charge More Than Rs 500!
TRAI's new rules aims to help new DTH customers in India. Will this help?
Telecom Regulatory Authority of India or TRAI is indeed concerned about consumers, and this latest directive clearly proves that.
TRAI has ordered all DTH or Direct to Home providers that they cannot charge more than Rs 500 for DTH activation and installation.
How will this benefit the consumers?
TRAI Order: Rs 500 Maximum Charge For DTH Activation, Installation
TRAI’s new rules for Cable TV and DTH will be effective from December 29th, and will roll out pan-India starting January 1st, 2019.
A new rule pertaining to DTH activation and installation has been added by TRAI, which states that DTH providers in India cannot charge more than Rs 500 for the same.
While Rs 350 can be charged maximum for installation, Rs 150 for activation is the cap.
TRAI’s new order said, “A Distributor of television channels or its linked local cable operator, as the case may be, may charge an amount not exceeding rupees three hundred and fifty as a one-time installation charge.. [and] an amount not exceeding rupees one hundred as a one-time activation charge for activating the broadcasting services related to television.”
How Will This Benefit Consumers?
Currently, Rs 1200`is the normal installation and activation charges for DTH services. This is not refundable and doesn’t include any additional features or plans.
This cost includes charges for installing new wires and activating the service.
Hence, the cost for the same has now been slashed by 58%, which will directly benefit those consumers who are installing new DTH service.
However, those who have existing DTH services won’t be impacted by this new rule.
Besides, TRAI has also ruled that DTH companies cannot charge more than Rs 250 for sending technicians to solve any issue related to DTH connections.
Cost Of New Equipment – How Will DTH Firms Manage It?
Normally, the new equipment for a new DTH price costs Rs 2200 for SD connection, and Rs 2500 for HD connection. As of now, DTH companies compensate by charging Rs 1200, which is half of the amount from the customers, and the rest they pay.
But now, with TRAI forcing them to charge Rs 500 max, the issue of new equipment for DTH customers can be an issue.
There are some theories going around on this development.
Maybe, DTH providers like Airtel, Tata Sky etc can charge a security deposit of Rs 700 to Rs 1000, which means that overall, the new customer will need to pay Rs 1200 to Rs 1500, which is the norm as of now.
However, once the DTH connection is terminated, the DTH will need to return the security deposit.
We will keep you updated, as more details come in.