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TRAI chief Lahoti outlines 10 focus areas for National Broadcast Policy

In his first public appearance after becoming the TRAI Chairman 6-weeks ago, Anil Kumar Lahoti, said that the revision of audience measurement system, strengthening public service broadcasting and a few other growth areas of M&E sector are important points of discussion in the soon-to-be-released Broadcast Policy Consultation Paper

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TRAI chief Lahoti outlines 10 focus areas for National Broadcast Policy

At the FICCI Frames 2024, Telecom Regulatory Authority of India (TRAI) Chairman, Anil Kumar Lahoti, said that the consultation paper on the new National Broadcast Policy will be released within the next few days.

In his first public appearance after becoming the TRAI chairman a few weeks ago, in a discussion with Harit Nagpal, Chief Executive Officer (CEO), Tata Play, Lahoti highlighted 10 focus areas of the policy.

The focus areas include encouraging production and promotion of local content, making India a global hub in content creation and content uplinking, strengthening public service broadcasting and how to have growth in all the various verticals of the M&E sector.

Other focus areas are, ease of doing business, combating piracy, enhancing the scope and leveraging of terrestrial broadcasting, reviewing the current audience measurement system and strengthening the role of broadcasting in case of disasters.

Lahoti highlighted that TRAI had conducted a pre-consultation regarding the National Broadcast Policy to identify the focus areas and is now almost ready with a detailed consultation paper which will be out within the next few days.

“TRAI has been tasked with providing recommendations and input for this policy. We conducted a pre-consultation with the industry to identify key areas of focus. Soon, we will release a detailed consultation paper, gather input from the industry, and subsequently provide recommendations,” Lahoti said.

“We will be listening from all the stakeholders including the consumers and the industry on these various issues and then give our suggestions to the government,” added the former Railway Board Chief.

Lahoti, while giving 10 focus points under the National Broadcast Policy, said, “First is encouraging production and promotion of local content. India has vast opportunities in producing content and not only for the country but also to take it beyond the borders for the world as a whole. Second thing is how to make India a global hub in content creation and content uplinking.”

Third is to further strengthen public service broadcasting. It is very important for a country like India to have a strong public service broadcasting system for dissemination of information, knowledge, education and entertainment so that the public service broadcasting delivers quality content and it is widely disseminated, Lahoti said.

“The next thing that we will be dealing with is how to have growth in all the various verticals of the M&E sector. Then the next thing is how to make the regulatory climate and the policy environment more business friendly and promote the ease of doing business so that the sector grows,” Lahoti stated.

Furthermore, he spoke about combating piracy. One of the focus areas is combating piracy, content security, protection of the copyrights and how the content remains secure. The next thing is enhancing the scope and leveraging the terrestrial broadcasting, he said.

TRAI consultation paper also includes revision of the current audience measurement system.

“The audience measurement system was revised long back and a very small sample is taken to measure the audience. Now with the advent of technology, there is opportunity to review the structure of audience measurement so that we have more scientific data and this can be utilised by the advertisers and the broadcasters for proper monetising of the content that they are creating and broadcasting. Then the next thing is an effective grievance redressal system,” Lahoti said.

“Last but not the least is the role of broadcasting in case of disasters. In case of disasters, broadcasting has a very important role to play so the focus area here would be how that can be strengthened. So these are the various focus areas that we have identified and we will be soon doing a detailed consultation on this,” he added.

Moving on, Nagpal said that in India's media entertainment sector, there was only one Doordarshan channel in the beginning. Then came cable, followed by DTH. Nowadays, people are also discussing D2M, which is another form of direct-to-mobile, essentially a terrestrial network-based media entertainment platform.

Initially, mobile services started at Rs 16 and 40 paise per minute for voice calls and 1 rupee per SMS. Now, voice calls and texts are free. This platform primarily serves as a media entertainment conduit. With the advent of 5G, competition among these different platforms is increasing.

Nagpal asked Lahoti that considering the numerous competing options available to consumers, how does he plan to manage them all without conflict and ensure they can coexist harmoniously?

“There are two aspects to your question. First, the emergence of direct-to-mobile services, and second, how to handle competition. When there's competition in a sector, the role of the regulator diminishes because market forces come into play. However, as you noted correctly, this sector involves various alternative mediums and numerous stakeholders, all within a single chain from content creation to delivery to consumers. It's crucial to ensure the orderly functioning of the entire industry,” Lahoti said.

He summed up the role of TRAI to ensure fairness, no discrimination among various stakeholders and players.

"Also, the regulator's role is to ensure that people don't fight and instead cooperate to meet the needs of all stakeholders. While one stakeholder might hope for the best, they might not always get it. However, the goal is for the entire industry to benefit, not just individuals. That's our approach,” he added.

Furthermore, Lahoti said that the M&E industry is presently valued at Rs 2.3 trillion and is expected to reach Rs 3.1 trillion by 2026, with a growth rate of 10%.

“At the same time, we have to promote innovation and new investments in the industry. We need to facilitate the entry of new technologies and players into this field without imposing entry barriers. While ensuring a level playing field for newcomers, we must also prevent undue pressure on existing players from the influx of new technologies and competitors. This encapsulates the principal approach of TRAI in fostering the growth of this dynamic industry,” Lahoti said.

“So, let's talk about what we are doing about this. There are three main aspects, firstly, the ease of doing business. It's crucial for such an industry that the government and regulators should allow ease of doing business for this purpose,” he stated.

He also mentioned that in May 2023, TRAI provided recommendations to the government, which they are already implementing. The Ministry of Information and Broadcasting has enhanced its Broadcasting Seva Portal with an objective of facilitating all submissions, approvals, and compliances online, creating a one-stop platform for industry-government interactions for various compliances and approvals.

Another aspect to consider is the regulation itself. In order to adapt regulations to the present-day landscape, TRAI has issued a consultation paper.

“We have already received comments and counter comments from industry. Soon, we will hold an open discussion with all the stakeholders and then we will come up with our new improvements in the regulations to address the current requirements of the industry. The third thing is the new broadcasting policy which the government is bringing out,” Lahoti said.

Regarding the ongoing debate about whether TV is dead or does it have a future, Lahoti expressed his opinion that TV is neither dead nor facing its demise. He firmly believes it will exist.

Lahoti elaborated on his stance by addressing the argument that people are increasingly watching videos on mobile devices, implying a decline in TV viewership. He countered this by highlighting the vast difference in screen sizes, emphasising that the immersive experience provided by a 50-inch TV cannot be replicated on a 5-inch mobile screen. In essence, he asserted that TV's unique entertainment value and its ability to offer a larger viewing experience will ensure its continued relevance and presence in the media landscape.

He emphasised that nowadays, people have control over TV, but they can't take the TV screen outside their homes. However, they can use their mobile phones to watch live content while on the move. This extends their viewing time, which is overall beneficial for the industry.

“Now, the second thing is about OTT on large screens. According to the EY report, there are 19 million smart TVs, compared to 118 million paid TVs and 45 million free TVs, totaling 163 million TVs versus 19 million smart TVs. These numbers are self-explanatory. Additionally, approximately 140 million homes have yet to acquire their first TV, indicating a potential market. However, with the emergence of new technologies like OTTs, the industry is constantly evolving. As new technologies emerge, TVs must compete with alternatives,” Lahoti said.

He believes this would be beneficial for television because it encourages innovation, enhances quality and increases affordability. Moreover, television also has strengths, such as offering nearly 900 channels with a significant portion in regional languages, unlike OTT platforms. This regional content is particularly crucial for countries like India, ensuring its continued relevance.

Also, there are nearly a thousand MSOs overseeing the entire cable TV system, actively present in the field and in close proximity to consumers. This proximity allows them to swiftly reach consumers, unlike OTT platforms. Therefore, they must capitalise on this advantage by offering services that appeal to consumers, fostering preference. These are some key strengths of TV.

Nagpal asked Lahoti to provide suggestions for the industry to bridge the gap in providing televisions to homes that haven't yet acquired their first TV set.

While answering, Lahoti said, “If we examine the reasons behind the existence of over 100 million households that haven't purchased their first TV yet, two main factors emerge. Firstly, affordability plays a significant role, determined by household income levels. Secondly, infrastructure availability, especially concerning cable networks in remote and rural areas, contributes to this situation. To address affordability, the industry must work on removing entry barriers.”

Lahoti further explained that the initial cost for someone to get their first TV at home is quite high. This includes the expense of the TV itself and setting up the connection. Particularly in rural and remote areas where cable service isn't available, and neither is the terrestrial broadcast network, the only option is through direct-to-home telecast.

However, even here, the entry barrier remains high as individuals need to purchase a dish and a set-top box in addition to the TV.

“As technology advances, television prices are decreasing. However, I believe this is just the beginning. It's a simple idea, but even media companies could consider bundling TVs with their services. These are the considerations for bringing households without TVs on board,” he added.

Lahoti believes that it's crucial for the industry to recognise the emergence of competing technologies, including OTT. Instead of internal conflicts, the industry should focus on competing with these alternatives.

“Collaboration and cooperation are key to this. Understanding each other's perspectives can lead to stronger alliances against alternative technologies. While challenges are expected in such a dynamic industry, we have effective regulatory processes in place to manage them,” he added.

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TV digital OTT TRAI Harit Nagpal M&E Anil Kumar Lahoti Direct-to-mobile Broadcast Bill D2H EY report broadcast policy audience measurement focus areas new technologies
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