← Policy & Regulation: Pricing and Tariff Control (all topics)
NTO / DPO (distribution platform operator) framework
What it is
The distribution platform operator's side of TRAI's tariff regime. A DPO must offer channels a la carte at declared MRPs, may bundle only within permitted discount limits, and charges a network capacity fee for carrying capacity rather than for content
The 2024 amendments abolished the NCF ceiling and widened permitted DPO discounts, addressing long-standing distributor grievances
Impact on industries
- Removing the NCF cap restored pricing freedom on the one revenue line a distributor genuinely controls, having previously been regulated on both content and capacity
- Wider discount limits let DPOs build competitive packs, though a la carte transparency cut average bill size and shrank the pool they share in
- Compliance is heavy - declared MRPs, reporting, subscriber management and audit sit on operators already under margin pressure
- The framework governs licensed cable and DTH but not internet-delivered linear services, so regulated operators compete against unregulated substitutes