Trai cap pushes up TV channel ad rates

Trai has been given two weeks to respond to an appeal filed by the News Broadcasters Association of India.

After being stagnant during the first half of the year, advertising rates on television channels have started increasing, owing to the Telecom Regulatory Authority of India (Trai)'s recent 12-minutes-an-hour cap on advertising on TV channels. The cap prompted broadcasters to raise ad rates by 8-10 per cent. By October, when the cap would be implemented, the rise in rates would stand at 25-30 per cent, said media buyers in the know. The chief executive of a general entertainment channel admitted ad rates had started rising. "With inventory levels set to decline, this is bound to happen," he said on condition of anonymity.

News channels have already appealed against Trai's ruling, with the Telecom Disputes Settlement & Appellate Tribunal agreeing to hear them on the matter. Trai has been given two weeks to respond to an appeal filed by the News Broadcasters Association of India.http://www.afaqs.com/news/story/38207_Trai-cap-pushes-up-TV-channel-ad-rates