The Telecom Regulatory Authority of India (TRAI) has taken a significant step by issuing a Consultation Paper focused on the “Review of Regulatory Framework for Broadcasting and Cable Services.” This move aims to address various challenges and concerns that have surfaced since the implementation of the previous regulatory framework in the broadcasting and cable services sector.
A Historical Context: Framework Evolution and Legal Examination
The journey towards refining the regulatory framework began in 2017, when TRAI introduced the Regulatory Framework for Broadcasting and Cable Services. This framework was developed in alignment with the complete digitization of the cable TV sector. Following a thorough legal review process, which involved scrutiny by both the Hon’ble Madras High Court and the Hon’ble Supreme Court, the regulatory framework officially came into force on December 29, 2018.
Refinement and Emerging Challenges
Recognizing the evolving nature of the industry, TRAI introduced amendments in 2020, including the Tariff Amendment Order 2020, Interconnection Amendment Regulations 2020, and QoS Amendment Regulations 2020. Although most of these amendments were upheld by various High Courts, certain provisions faced legal challenges.
Implementation of New Tariffs and Stakeholder Concerns
Some key provisions introduced related to Network Capacity Fee (NCF), multi-TV households, and long-term subscription plans. However, the subsequent announcement of new tariffs by broadcasters raised concerns among Distribution Platform Operators (DPOs), Associations of Local Cable Operators (LCOs), and Consumer Organizations. These stakeholders expressed apprehensions about the practicality of implementing the new rates, the transition of consumers to the new tariff regime, and the potential impact of increased pay channel and bouquet rates.
A Collaborative Approach and Further Amendments
In response to these challenges, TRAI established a committee comprising members from key industry bodies such as the Indian Broadcasting and Digital Foundation (IBDF), All India Digital Cable Federation (AIDCF), and DTH Association. This committee identified several issues arising from the amended framework and recommended immediate actions to facilitate a seamless implementation process.
Engaging Stakeholders for Input
Continuing its proactive approach, TRAI released a consultation paper titled “Issues Related to New Regulatory Framework for Broadcasting and Cable Services” on May 7, 2022. The paper sought feedback from stakeholders on the unresolved matters affecting the complete execution of the amended framework introduced in 2020.
Focused Amendments for Enhanced Clarity
Building on this feedback, TRAI took further steps in November 2022 by notifying the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Third Amendment) Order, 2022, and the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Fourth Amendment) Regulations, 2022. These amendments were specifically aimed at addressing issues related to the maximum retail price (MRP) of TV channels, the pricing structure of channel bouquets, and incentives for broadcasters.
A Consultative Approach: Collaborative Efforts and Industry Engagements
Throughout this process, TRAI has demonstrated a commitment to engaging with stakeholders from various segments of the industry, including broadcasters, Multi-System Operators (MSOs), Direct-to-Home (DTH) operators, and LCOs. The authority has considered numerous suggestions from these consultations, helping shape its strategy for addressing the remaining challenges related to tariff, interconnection, and quality of service.
A Forward-Thinking Approach: Seeking Further Insights
In an effort to continue this constructive dialogue, TRAI has now invited stakeholders to provide written comments on the consultation paper until September 5, 2023. This provides an opportunity for industry players to contribute their insights and perspectives, facilitating the ongoing process of refining the regulatory framework for broadcasting and cable services. Counter comments, if any, can be submitted by September 19, 2023.
The TRAI’s commitment to a consultative approach reflects its dedication to fostering a regulatory environment that meets the evolving needs of the broadcasting and cable services sector in India.
