Strict norms on the anvil for cable operators

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Mandatory submission of PAN number by a cable operator, disclosure of exact cable susbcribers in a area and an area-wise mandatory licence for the large cable distribution companies are some of the key suggestions made by various the cable and broadcasting industry.

These suggestions are in response to a consultation paper issued by the Telecom Regulatory Authority of India (Trai), that is also the broadcast regulator, on the restructuring of cable services.

If accepted, the entire structure of cable services in the country will undergo a major overhaul as currently the cable services have least regulations. According to the Trai paper, currently any citizen can become a cable operator by depositing Rs 500 in the head Post office. Also, there are no guidelines on the minimum qualifications for becoming a cable operator.

However, the apex body of cable operators--Cable Operators Federation of India (COFI)--has opposed any changes in the current registeration process.

But various others stakeholders like Digital Entertainment Network (DEN), ESPN, Big TV, Tata Sky, and Zee Network have suggested certain mandatory changes in the minimum guidelines for becoming a cable operator or distributor.

In its response, the new direct-to-home (DTH) company Big TV said: \" The local cable operators should be treated as a franchise of Multi System Operators(MSOs). Onus of regulatory compliance should be put on MSOs as this will lead better administrative and regulatory control over cable services.\"

Backing a licence-based MSO system in the country, the newly formed cable distribution company DEN said that the Government may consider issuing licenses to MSOs on circle basis, similar to radio/telecom, and imposing new and more detailed registration formalities.

Even the leading sports broadcaster ESPN Software India said that Trai should adopt auctioning of cable licences for different cities and towns. \"While doing so the Authority should categorize all the existing cities and towns etc. and then should fix a minimum number of licences for said categories,\" ESPN said in its response.

On its part Zee Network and WWIL (the cable arm of Zee Group) suggested a mandatory use of registeration number for each of the cable operators, MSOs and the customers. \"Each operator registered should be given a serial number under the category. For example HITS-001 or MSO-001, LCO- 00001 etc. Each operator should also be bound to allot a registration number to its own customer. This will make it possible to identify each customer uniquely in India such as HITS-001/LCO-8976 as well as keep track of the manner in which the customer being served,\" Zee said.

However ORTEL Communications, a regional MSO suggested that there was no need for a separate registration of MSOs and local cable operators as both are providing cable TV services either directly or through smaller operators or a combination of both.
Strict norms on the anvil for cable operators
 
Call it a battle between the established industry bigwigs and local cable operators. The cable TV industry has slammed sector regulator TRAI over its moves to streamline and regulate the sector and said that the number of cable TV homes has grown to over 70 million homes in about 15 years has largely been on account of the entrepreneurial spirit in this industry, while also adding that excessive supervision will kill this spirit.

Cable TV operators associations, therefore, do not want the government to lay down financial and technical criteria to become a cable TV operator.

On the other hand, broadcasters and DTH operators such as Tata Sky want stringent norms for the sector. For instance, Tata Sky has sought that cable TV operators be subject to revenue sharing, intellectual property requirements, quality controls amongst other regulations. Several broadcasters including ESPN has sought that TRAI impose measures to check under-reporting by cable TV operators.

Both the Cable Operators Federation of India and the Cable Operators and Distributors Association, the apex bodies that represents thousands of small players in this segment, have warned TRAI that any effort made to regulate the industry must be done keeping this in mind that the step should help the industry to grow.

They have also pointed out that India’s stand-alone cable TV operators were successfully competing head-on with new digital technologies like DTH, IPTV, and broadband etc for the last four years and making good progress in spite of lack of interest by the government in providing it a proper environment of regulatory support and incentives for expedited growth.

“This has been possible only because of the determination of thousands of small entrepreneurs called cable operators and their zeal to survive against all odds,” the COFI added in its communication to TRAI.

On TRAI’s observation that new regulations were required to introduce competition as in most cases, there is only
one cable operator in an area, the federations have pointed out that monopoly in the Cable TV Industry is not due to lack of competition but due to cartelisation of Multi System Operators (MSOs) and broadcasters which the government has failed to check, while also adding that the last mile operator is too small an entity to create a Monopoly.

“Before the MSOs joined in, there were four to five cable operators in every locality in the big cities. During the process of consolidation, a situation of monopoly was created using the MSO Distributors,” the COFI said.

However, players such as Big TV, the DTH arm of Reliance Communications do not agree to the views put forward by the cable TV operators. Big TV has told TRAI that DTH was the only platform that could give effective competition to Cable TV operators, but said that for this to happen, the prices for channels on the DTH platform should be regulated.

On the issue of under declaration of the subscriber base by cable TV operators, Big TV has said the proposed solution by Big TV is to have broadcasters provide content only to MSOs and not to the local cable operator, and subscriber reports by MSOs to be made public to all broadcasters and governmental authorities
Don't play Big Brother, cable TV guys tell TRAI- Media-Media / Entertainment -News By Industry-News-The Economic Times
 
this things just goes on and on and nothing really happens for the customer.
 

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