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NTO (New Tariff Order) broadcast tariff framework

Trade, Tariffs & Export Access · Tariffs & market access

What it is

TRAI's tariff framework for addressable television, introduced in 2017 and revised through NTO 2.0 and NTO 3.0. It requires broadcasters to declare a la carte MRPs for every channel, caps what may be included in a bouquet, and regulates the network capacity fee distributors charge

Subsequent amendments raised the permitted bouquet discount to 45%, removed the NCF ceiling and made FTA declaration mandatory

Impact on industries

  • Gave consumers genuine a la carte choice and price transparency, replacing opaque bundles where subscribers paid for channels they never watched
  • Broke bouquet economics for broadcasters - channels that survived on being bundled with popular ones must now justify themselves individually
  • Repeated revision is itself the problem - four iterations in under a decade, with continuous litigation through TDSAT, High Courts and the Supreme Court
  • Later amendments addressed distributor grievances by lifting the NCF ceiling and widening discount limits, partially rebalancing between broadcasters and platforms

Industries affected