The Telecom Regulatory Authority of India (TRAI) through a circular has ruled against differential cable TV rates levied at hotels and restaurants. Declaring it should be at par with domestic charges, it maintained that additional cost of watching TV would be applicable only if charged separately or if charges are being levied for entry.
The Hotel and Restaurant Association of Western India (HRAWI) along with the apex body Federation of Hotel and Restaurant Associations of India (FHRAI) had been agitating for regulated tariff for Hotel Industry since 2004 and had submitted its detailed comments to the consultation paper. The HRAWI has welcomed the decision which has averted an approximate 15-20 per cent increase in room tariffs and restaurant bills.
“We had been contesting against differential tariffs for over a decade and our efforts have paid off. It has been declared a necessity for the benefit of customers and not a luxury,” says Bharat Malkani, President, HRAWI. “The channels and broadcasters wanted commercial establishments to pay additional charges than what was paid by domestic subscribers. Although in cases where any establishment exploits TV broadcasting by charging additionally to its patrons, will then be required to pay at commercial tariffs,” he adds.
The FHRAI submitted that in 2006, the Supreme Court had held that television is a mere amenity in hotel rooms just like fans and air-conditioners and had submitted its detailed comments to the consultation paper. It had represented at the Open House Discussion and submitted to the authority that hotels and restaurants be treated at par with Domestic subscribers, as TV signal is a part of other amenity provided free of charge by hotels to their guests.
The FHRAI also stated that channels do not subsidize ordinary subscribers like it happens in electricity or water to demand higher tariff for commercial subscribers. “We had argued that members do not charge separately for watching TV programs in restaurants , it’s a mere amenity and customers today demand TV sets for information or to watch their favourite sport while enjoying their drink or food. Besides even the tourism departments have mandated installing TVs in hotels for a better tourist experience. Commercial tariff for cable TV would have meant that customers would have to pay additional by way of higher food or beverage cost,” says Pradeep Shetty, Chairman – Legal Matters sub-committee, FHRAI and HRAWI.
