New Delhi, Jan. 23 (PTI): After threatening to end the monopoly of cable operators, the Telecom Regulatory Authority of India has zeroed in on broadcasters, saying they cannot arbitrarily hike subscription rates and all collections from cable operators by them will have to be on the rates prevailing on December 26.

Trai, which was recently appointed the broadcasting regulator, said it would study the cost structures of broadcasters and evolve principles to regulate the subscription rates they charge from cable operators.

“The agreement between MSOs/cable operators and broadcasters as on December 26 on rates will have to be valid,” said Trai chairman Pradip Baijal.

“Any increase in total collection will be on a pro rata basis, since the broadcasters will not be allowed to increase the charges per channel per subscriber,” Baijal said when asked what would happen if the number of subscribers of a cable operator goes up.

“I will examine their (broadcasters) cost structures…. Fixing prices for them will be difficult, but we will have to evolve some principles,” he said.

The Trai chairman has also warned against geographical monopolies by cable operators, saying these will have to go so that market forces are allowed to determine tariffs.

Those violating Trai could be prosecuted, Baijal said, adding that most countries other than India and Taiwan have some kind of broadcasting regulation in place.

All networks suffer from monopolies, Baijal said. “If we find geographical monopolies, then we will have to regulate tariffs, unless I can create competition…. Over the years, we have created competition (in telecom) and so we have been able to get out of regulating tariffs.”

The Trai chairman said this process would create unbundling and bring in more competition in the market.

The regulator also plans to examine the suggestions it may receive from the public on its consultation paper issued last week. Trai has asked for suggestions and views on issues of duration and rates for advertisements on cable services, compensation to subscribers in case operators are not able to provide uninterrupted service, sale and rental for set-top boxes and various other industry, operators and consumers issues.

The guidelines, however, did not touch upon content.

The regulator has asked the respondents, including viewers, industry and cable operators to submit their views by January 30.