Joint Memorandum Cable Operators Federation of India National Cable &Telecommunications Association Without Prejudice (by Speed Post/E-mail) Dated: 20 June 2016 The Chairperson Telecom Regulatory Authority of India Mahanagar Doorsanchar Bhawan. Jawahar Lal Nehru Marg New Delhi - 110 002 Kind Attn: Sh R S Sharma t:_ Request for a tion to stake holders on Tariff and Arrears Adjustment on account_of withdrawal of 27.5 % inflation linked hike by TRAl on 09 May 2016, applicable to rates of TV services at retail and wholesale levels in DAS and Non-DAS systems subsequent to-_order of the Hon’ble Supreme Court dated 4" August 2015 holding the Hon'ble TDSAT Judgement dated 28" April 2015 setting aside the 27.5 inflation linked hike vide Eleventh and Thirteenth Tariff amendments. Sir, This in reference to the recent press note (No 28/2016) of TRAI dated 9" May 2016. (Copy Enclosed Annexure — A) where TRAI in its wisdom and subsequent to Hon'ble TDSAT setting aside Eleventh and Thirteenth tariff amendment orders, have finally withdrawn the Tariff Amendment Order dated 31% March 2014 that allowed for inflationary linked hike of 27.5% in two installments. The first installment of 15% was allowed w.e.f. 1 April 2014. Balance inflation linked hike of 12.5% allowed both at the retail and wholesale levels, we.f 1st January 2015” We also draw your kind attention to the Hon'ble TDSAT order dated 29" May 2014 in Appeal Nos 1 (C) and 2 (C) of 2014 (Copy Enclosed Annexure -B). The relevant portion of the said Hon'ble TDSAT order clearly states: “At this stage, we are not inclined to pass any order of stay. However, we direct that all stake-holders must keep a separate account in regard to the collections on the basis of the impugned order. It is made clear that in case the Appeals succeed, the individual subscribers making any excess payment in terms of the impugned order will be 1/3entitled to adjustments for the succeeding month from the respective LCOs/MSOs. Similarly, the LCOs will be entitled to adjustments from the MSOs and the LCOs and the MSOs from the broadcasters. In view of the above developments and now finally TRAI withdrawing its tariff amendment orders of 31% March 2014, there is an immediate need to adjust the increased payments if made by the subscribers to the LCOs, LCOs to the MSOs and MSOs to the broadcasters, in accordance with the above mentioned TDSAT order of 29 May 2014. ‘The MSO have till now, intentionally not adjusted or refunded the access payments made to them on account of the tariff amendment orders and we are now constrained to approach you Suggesting to adjust the same by observing Tariff and Arrear Adjustment Period ( TAAP) for a period of 4 (Four Months from July- October 2016 ) wef 01 July 2016, where during this period of observing TAAP, we will adjust any excess subscription paid by our subscribers to us and do the same with MSOs by abstaining or adjusting excess subscription within this period. This TAAP observed to adjust our rightful and legitimate arrears due, upon the MSO, shall not be construed as a default in payment or non-payment of agreed / negotiated / invoiced payments due, under an interconnection agreement entered with the MSO in any manner or otherwise. Statutory payment obligations towards applicable Entertainment Tax and Service Tax will continue to be fulfilled as is, during this period of observing TAAP by the stakeholders. The last mile LCOs will also enclose a copy of the last paid invoice / bank statement of the Payments made / released to the respective MSO in order to also certify that there are no outstanding dues payable on them as on date. Whereas there is also no mandatory 21 days, notice of disconnection issued or served upon us, as on date, for any default in payment of outstanding of dues. In the larger interest of the consumers at large, we request TRAl to pass suitable directions / advisory to all stake holders accordingly. + To MSOs not to disconnect the signals, feed received by a last mile networks (LCO) or make any package alterations, activations or deactivations in STBs during this crucial Period of observing TAAP. For the smooth adjustment of the increase / hike made Payable by us from 1" April 2014 till 30" June 2016. * In the pre-paid MSO business model, adequate credit should be maintained by the MSO in the system during this period of our observing TAAP, for the adjustment of the increase / hike made payable by us from 1st April 2014 till 30th June 2016. * In case of any discrepancy or for reconciliation of accounts by the MSO, if needed, Rendition of the “Separate Accounts “kept be made in order to ascertain the discrepancy and reconciliation of the accounts. 2)3similar direction may please be given to the Pay TV Broadcasters and they be directed to bring back the tariff as existing on 31 March 2014. ‘Thanking You tuly joop Sharma) 9810069272 COFI Cable Operators Federation of India Enclosures: as above Copy To: For Information LCO/ LMO Associations MSO Associations Broadcaster Association Page 3 of 3 od : (Vikki Choudhry) 9811144467 NCTA National Cable & Telecommunication Association