The Telecom Regulatory Authority of India (TRAI) on Wednesday revised its regulatory framework for cable and broadcasting services, under which cable operators need to mandatorily provide as many as 200 channels for Rs 153 a month (including taxes) to their subscribers. In a respite for consumers, the TRAI has also capped the amount consumers will have to pay monthly for all free to air channels at Rs 160. As a result of this new order, cable TV users will be able to access more channels at lower subscription price.
Reacting to TRAI order, shares of Sun TV Network declined as much as 6.37 per cent to hit an intraday low of Rs 411.45 apiece against previous closing price of Rs 439.45 on the Bombay Stock Exchange (BSE). Finally, Sun TV Network stock closed day's trade at Rs 433.95, down 1.25 per cent. There was also spurt in volume trade as 2.10 lakh shares changed hands over the counter as compared to two-week average volume of 0.66 lakh shares.
On the National Stock Exchange, Sun TV Network shares ended 1.54 per cent lower at Rs 432.80. The stock touched an intraday low of Rs 410 after a negative opening at Rs 430.
Shares of Zee Entertainment were also under pressure and fell nearly 3 per cent in intraday trade on the BSE. The stock touched an intraday low of Rs 279.85 after opening lower at Rs 283.90. Zee Entertainment share price closed Thursday's trade at Rs 289.80, up 0.45 per cent.
Bucking the trend, shares of Dish TV India settled day's trade at Rs 13.12 apiece, up 2.26 per cent, on the BSE. The stock hit an intraday high of Rs 13.25 and an intraday low of Rs 12.72.
After examining various provisions, TRAI has mandated provision of 200 channels in maximum fee (network capacity fee or NCF) of Rs 130 excluding taxes per month. Right now, DTH or cable TV operators provide only 100 channels for a fee of Rs 153 (Rs 130 excluding taxes) a month.
According to TRAI, the decision has been taken to protect interests of all the stakeholders, particularly consumers. Meanwhile, the BSE Sensex ended 320 points, or 0.78 per cent, higher at 41,626.
By Chitranjan Kumar