MIB seeks TRAI views on reasonable restrictions on MSOs, LCOs

The aim is to ensure the prevention of monopolies in the cable distribution business 

BestMediaInfo Bureau | Delhi | December 17, 2012

The Ministry of Information & Broadcasting (MIB) has sought views of TRAI on measures to prevent monopolistic operations by MSOs and LCOs. The ministry has requested TRAI to provide its recommendations under Section 11 (1) (a) on whether any restriction should be imposed on MSOs/LCOs to prevent monopolies/accumulation of interest in order to ensure fair competition, improved quality of service and equity. If restrictions are required, the ministry wants to know what kind of restrictions should be imposed and what should be the form, nature and scope of such restrictions.

Accordingly, amendments required in the Cable Television Networks (Regulation) 1995 Act and Rules framed thereunder may also be suggested.'

Multi-System Operators (MSOs) and Local Cable Operators (LCOs) are required to be registered with local post offices to be able to operate in the permitted areas of registration. However, as per recent amendments in the Cable Television Networks (Regulation) Amendment Rules 2012, it has become mandatory for MSOs to get registration from MIB to operate in those areas which are notified for analogue switch-off.

It has been observed that the cable TV distribution is virtually monopolised in some states as the entire cable TV network is dominated by a single entity in that state. At present, there are no restrictions on the issue of accumulation of interest in terms of market share in a city, district, state or country by individual MSOs and LCOs in the cable sector. MSOs and LCOs are free to operate in any area(s) of their choice after obtaining registration from the ministry. It is felt that such monopolies may not be in the interest of consumers and may have serious implications in terms of competition, pricing and healthy growth of cable TV sector in that market.

Earlier, the ministry had made a reference to TRAI on May 16, 2012 to examine and recommend measures to address issues of cross-media restrictions and safeguards. With this reference, the issue of monopoly in the broadcasting sector in the most comprehensive sense is set to get addressed by TRAI.

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