STAR TV to treat hotels on a par with domestic consumers

Star India Private Limited (Star TV) has been stopped from charging a premium on subscription fees to hotels and restaurants.

Telecom Dispute Settlement and Appellate Tribunal, New Delhi by its order of September 10, held that the members of Hotel and Restaurant Association (Western India) will pay same subscription fee as other ‘domestic consumers’.

The cable facilities offered to its guests by the hotels, restaurants cannot be considered as ‘exhibition to the public’ held the tribunal.

All hotels, restaurants and bars, affiliated to the association will henceforth pay on a ‘per point connection’ basis i.e. pay for the number of connections it has bought like any family would in its home.

“This is a big relief for the small time hotelier. Difference between the present fee and the one sought to be levied was anywhere between Rs3 lakh and Rs8 lakh; depending on the number of rooms and the location of hotel,” said hotelier Sunil Kothari, a member of the association.

“We do not charge customers for use of the cable. Such heavy rise for a value added service to our customers would break the back of most hoteliers,” added Kothari.

In August, tribunal first passed orders in favour of the association saying the association members pay the same subscription charges as other domestic consumers. Star approached Supreme Court against this order. Star TV argued members of hospitality industry should pay a higher subscription fee as they were commercial consumers airing the channels to the public.

Star further demanded direct negotiations between it as the broadcaster, and members of the association as receivers and not through cable operators.

“In fact some hoteliers have already negotiated higher rate than the domestic and paid the money to Star,” said Kothari. Spokesperson for Star India, Yash Khanna has declined comment as other similar cases between the parties are subjudice before the tribunal.