Category: Regulators

  • Cabinet approves MoU cooperation between Prasar Bharati and Radio Television Malaysia

    Cabinet approves MoU cooperation between Prasar Bharati and Radio Television Malaysia

    Mumbai: The Union Cabinet chaired by the Prime Minister, Narendra Modi was apprised of the MoU/Agreement signed on 7 November, 2023 which has an immense potential to strengthen the cooperation in the field of broadcasting, exchange of news, and audio-visual programmes as well as significantly augment India’s friendly relations with the country. With this, the total number of MoUs signed by Prasar Bharati with different countries has increased to 46.

    Prasar Bharati plays a crucial role in nation building and lays continuous focus on providing meaningful and accurate content to one and all, both within the country and abroad. These MoUs are going to be crucial in distribution of content in other countries, in developing partnerships with international broadcasters and exploring new strategies to address the demands of new technologies.

    The major benefit arising out of signing of MoUs are exchange of programmes in the areas of Culture, Education, Science, Technology, Sports, News and other fields on gratis/non-gratis basis.

    India’s Public Service Broadcaster, Prasar Bharati has entered into a Memorandum of Understanding with Radio Televisyen Malaysia, the Public Service Broadcaster of Malaysia in order to promote cooperation in public broadcasting in the field of radio and television.

  • TRAI extends consultation paper on ‘Regulation on Rating Framework for Digital Connectivity in Buildings’

    TRAI extends consultation paper on ‘Regulation on Rating Framework for Digital Connectivity in Buildings’

    Mumbai: Telecom Regulatory Authority of India had released consultation paper on “Regulation on Rating Framework for Digital Connectivity in Buildings or Area” on 27 September 2023, inviting comments from stakeholders, with the last date of submission of comments as 8 December 2023 and counter comments by 22 December 2023.

    Considering the request received from the stakeholder/Industry association for further extension of time for submission of comments, it has been decided to extend the last date of submission of comments by four weeks i.e. up to 5 January 2024 and counter comments by 19 January 2024.

  • TRAI extends last date of consultation paper on ‘Encouraging R&D in Telecom, Broadcasting, and IT (ICT) Sectors’

    TRAI extends last date of consultation paper on ‘Encouraging R&D in Telecom, Broadcasting, and IT (ICT) Sectors’

    Mumbai: Telecom Regulatory Authority of India (TRAI) released a Consultation Paper on ‘Encouraging R&D in Telecom, Broadcasting, and IT (ICT) Sectors’ on 22 September 2023. Initially, the last date of receiving comments from the stakeholders was fixed on 23′ October 2023 and counter comments by 6th November 2023. However, on the request of stakeholders, the last date for submission of comments and counter comments was extended upto 23 November 2023 and 7 December 2023 respectively.

    Keeping in view the request from stakeholders for further extension of time for submission of comments, it has been decided to extend the last date of submission of comments and counter comments upto 23 December 2023 and 6 January 2024 respectively.

  • TRAI extends date of consultation paper on “Digital Transformation through 5G Ecosystem”

    TRAI extends date of consultation paper on “Digital Transformation through 5G Ecosystem”

    Mumbai: The Telecom Regulatory Authority of India (TRAI) had sought comments / counter-comments of stakeholders on the consultation paper on “Digital Transformation through 5G Ecosystem” dated 29 September 2023. The last date for receiving written comments and counter-comments from the stakeholders was initially fixed as 30 October 2023 and 13 November 2023 respectively. On 30 October, TRAIfurther extended the last date for submission of written comments up to 27 November 2023 and for counter-comments up to 11 December 2023.

    TRAI has received requests from Industry Associations for further extension of timeline for submission of comments citing various reasons like difficulty in collating the essential information from the respective teams. They have also mentioned that the paper covers very important issues pertaining to the policy challenges and the right policy framework for faster adoption and effective utilisation of new technologies and they are in the process of compiling and streamlining diverse views of their members.

    Keeping in view the requests of stakeholders, it has been decided to extend the last date for submission of written comments up to 26 December 2023 and for counter-comments up to 8 January 2024.

  • Cyber insurance demand outpaces industry readiness

    Mumbai: The landscape of insurance sales is undergoing a shift, especially in the realm of cyber insurance. Unlike traditional insurance, the demand for cyber insurance is rapidly rising, fueled by the recent formulation of India’s data protection law.

    However, industry insiders caution that despite the increasing demand, insurance companies may be hesitant to embrace this trend due to challenges such as high claims and the intricate nature of the product. Moreover, startups face hurdles in qualifying for comprehensive coverage, adding an additional layer of complexity to the scenario.

  • “Cable TV like regulation to affect OTTs growth,” say experts on Broadcasting Bill

    “Cable TV like regulation to affect OTTs growth,” say experts on Broadcasting Bill

    Mumbai: The government’s move to regulate OTT video streaming apps like Netflix, Disney+Hotstar, SonyLiv, etc., under the Broadcasting Services (Regulation) Bill, 2023, could affect content innovation and autonomy, derailing the growth path, experts said. Content on OTTs works on a “pull model”, wherein consumers choose the content. As such, any stringent programme and advertising codes might lead to content censorship and affect the audience experience.

    Another area of concern experts cite is whether the government will bring in a pricing regime for OTT content, much like it has for television channels. The Bill also contains a provision for a Content Evaluation Committee (CEC), a self-certification body that will certify the content of broadcasters.

    “While they have brought OTTs under regulation, they have not specified how a self-certification model will work and what role the government will play,” an executive at a media and entertainment company said. He added that once the Bill becomes an Act, the Telecom Regulatory Authority of India (Trai) will be the regulator for these streaming platforms as well.

    As per the Bill, the government may prescribe the number of members in the CEC, the quorum required, and such other details to facilitate the formation of CEC and its smooth functioning.

    Besides, there will also be a government appointed body, the Broadcast Advisory Council, that will have five government members and five government-nominated independent people from media, entertainment, broadcasting, child rights, disability rights, etc., to advise the government on orders to be issued to the broadcaster or the broadcasting network operator.

    “In light of increasing scrutiny of streaming platforms such as Netflix, Disney+ Hotstar, powers assigned to the government, specifically with respect to the size, quorum, & operational details of the Content Evaluation Committee, raise censorship concerns,” said policy advocacy group Internet Freedom Foundation (IFF) in a post on X (formerly Twitter).

    Currently, the OTT platforms are regulated by the IT Rules, 2021, with guidelines for self-regulation as well as code of ethics for digital content. Such platforms do not require any licence from the government, as they are classified as TV channels and have a different model.

    “It looks like a very ambitious project to bring OTT and cable TV under one piecemeal regulation because both the platforms are different and distribute different types of content to consumers,” said The Dialogue senior programme manager – online safety and platform regulation Shruti Shreya.

    According to Shreya, while there can be basic ratings and guidelines for these OTT streaming apps, the regulation does not need to be similar to that of cable TV. The government should not hinder creativity, but should give freedom to creators as the content is at the discretion of viewers, they can refuse to watch that and have filters.

    Once the Bill becomes an Act, it would bring streaming platforms such as Netflix and Hotstar completely within the ambit of the ministry of information and broadcasting (MIB) without having to rely on the Information Technology Rules, 2021, government officials said.

    The policy experts however said that first, the Bill should clearly mention if this would supersede the IT Act and second, the government can only amend certain codes of ethics in the IT Act instead of bringing them under a new legislation.

    “The requirement for all online content creators to adhere to a ‘programme code’ requires careful consideration. The government will have to ensure that while giving a code of ethics for content, it should not give subjective terms like content should be of ‘good taste’ or ‘decency’ as they did in the IT Rules, as that leads to ambiguous interpretations,” Shreya added.

    Nandita Saikia, a tech policy lawyer said, “the Bill missed the opportunity to legally separate broadcast content and carriage”.

    “The programme and ad codes currently in force have been notoriously difficult to deal with…also contains provisions which are so subjective that it is often difficult to foretell how they’ll likely be interpreted,” Saikia said in her comments on the Bill on LinkedIn.

    Even as experts demanded clarity on codes, they applauded the government on inclusion of content accessibility provision in the Bill. This would pave the way for persons with disabilities to access the content based on their comfort and not based on the current forms, they said.

  • MIB introduces Broadcasting Services (Regulation) Bill 2023

    MIB introduces Broadcasting Services (Regulation) Bill 2023

    Mumbai: The Ministry of Information and Broadcasting (MIB) has announced Broadcasting Services (Regulation) Bill 2023, to establish a consolidated legal framework for the entire broadcasting sector, seeking to replace the existing Cable Television Networks (Regulation) Act 1995 or any other policy guidelines currently governing the broadcasting sector in the country.

    The Bill streamlines regulatory processes, has extended its purview to cover the OTT content and digital news, and introduces contemporary definitions and provisions for emerging technologies.  It seeks to provide for a ‘Content Evaluation Committees’ and a ‘Broadcast Advisory Council’ for self-regulation, different program and advertisement code for different Broadcasting Network Operators, accessibility measures for persons with disabilities, and statutory penalties, etc.

    Key highlights of the bill are:

    1   Consolidation and Modernisation: It addresses the long-standing need of consolidating and updating the regulatory provisions for various broadcasting services under a single legislative framework. This move streamlines the regulatory process, making it more efficient and contemporary. It extends its regulatory purview to encompass broadcasting over-the-top (OTT) content and digital news and current affairs currently regulated through IT Act, 2000 and regulations made there under.

    2   Contemporary Definitions and Future-Ready Provisions: To keep pace with the evolving technologies and services, the bill introduces comprehensive definitions for contemporary broadcasting terms and incorporates provisions for emerging broadcasting technologies.

    3   Strengthens the Self-Regulation Regime: It enhances self-regulation with the introduction of ‘Content evaluation committees’ and evolves the existing Inter-Departmental Committee into a more participative and broader ‘Broadcast Advisory Council’.

     Differentiated Programme Code and Advertisement Code: It allows for a differentiated approach to Programme and Advertisement Codes across various services and requires self-classification by broadcasters and robust access control measures for restricted content.

    5   Accessibility for Persons with Disabilities: The bill addresses the specific needs of persons with disabilities by providing for enabling provisions for issue of comprehensive accessibility guidelines.

    6   Statutory Penalties and Fines: The draft Bill introduces statutory penalties such as: advisory, warning, censure, or monetary penalties, for operators and broadcasters. Provision for imprisonment and/or fines remains, but only for very serious offenses, ensuring a balanced approach to regulation.

     Equitable Penalties: Monetary penalties and fines are linked to the financial capacity of the entity, taking into account their investment and turnover to ensure fairness and equity.

    Infrastructure Sharing, Platform Services and Right of Way: The bill also includes provisions for infrastructure sharing among broadcasting network operators and carriage of platform services. Further, it streamlines the Right of Way section to address relocation and alterations more efficiently, and establishes a structured dispute resolution mechanism.

  • TRAI releases consultation paper on ‘Regulation on Rating Framework for Digital Connectivity in Buildings or Area’

    TRAI releases consultation paper on ‘Regulation on Rating Framework for Digital Connectivity in Buildings or Area’

    Mumbai: Telecom Regulatory Authority of India (TRAI) has released consultation paper on ‘Regulation on Rating Framework for Digital Connectivity in Buildings or Area’ on 27 September 2023, inviting comments from stakeholders, with last date of submission of comments as 10 November 2023 and counter comments by 24 November 2023.

    Keeping in vIew of the requests received from the stakeholder/industry association for extension of time for submission of comments, it has been decided to extend the last date of submission of comments by four weeks i.e. up to 8 December 2023 and counter comments by 22 December 2023. 

  • TRAI further extends paper on ‘Digital Inclusion in the Era of Emerging Technologies’

    TRAI further extends paper on ‘Digital Inclusion in the Era of Emerging Technologies’

    Mumbai: Telecom Regulatory Authority of India (TRAI) released a consultation paper on “Digital Inclusion in the Era of Emerging Technologies” on 14 September 2023. As per the extended timelines, the stakeholders were required to submit their comments by 16 November 2023 and counter comments up to 1 December 2023.

    TRAI received further requests from stakeholders for extension of time for submission of comments on the above-mentioned consultation paper due to festival holidays and ongoing multiple consultations. Therefore, it has been decided to extend the last date for submission of comments up to 15 December 2023 and counter comments up to 29 December 2023. 

  • SAT allowing Punit as CEO of Zee/Sony merged co. – a potential overhang if Sony does not agree on the same

    SAT allowing Punit as CEO of Zee/Sony merged co. – a potential overhang if Sony does not agree on the same

    Mumbai: As per media reports (link – https://tinyurl.com/4sfbhbn4

    ), Sony does not want Punit Goenka to head Zee/Sony merged co, amidst the ongoing SEBI investigation which will continue despite interim relief from SAT. We believe this is as per our two scenarios pointed out earlier (scenario 1 – merger process expedited with clarity over Punit and scenario 2 – Sony not in favour of appointing Punit as CEO amidst the ongoing investigation), which clearly mentioned that Sony may not be in favour of having a CEO who is undergoing an investigation.

    Legally, we don’t foresee any challenge in appointing Punit as CEO, post the relief by SAT- as indicated by primary checks with legal experts too. However, as Sony is the majority in this merger – they may decide to appoint someone else due to this investigation; there is a high likelihood of Sony appointing someone internally to head the merged co.

    There is minimal impact of the above move (change in CEO) eventually, as the appointment of a new CEO will require a mere shareholder and Board approval; as mentioned earlier, we don’t foresee big delays beyond a point for the merger and the process could end over next 8-12 weeks, as Sony may not wait longer than that. Hence, we don’t even expect a big delay as such on the merger due to this move. Expect a larger transition time in business synergies case of Sony acquiring Zee without Punit, due to a potential new management for Zee

    Albeit above, 1) the business synergies, 2) superior CG (corporate governance) practice, 3) scale in OTT remain to be the drivers for the merged co and this could drive superior valuation multiples.

    Various scenarios that could emerge basis above – if Punit Geonka changes his stance and wants to remain CEO of the merged co, post SAT approval or keeps his stance (not wanting to become CEO)

    1) Scenario one – Sony may back out – merged called off  (Probability -20 per cent)

    In case of Punit Goenka wanting to be the CEO of the merged co. and Sony not agreeing upon the same,  it may lead to Sony backing out of the merger. We believe the probability of this event seems to very low, as the merger is very important for Z shareholders and the Goenka family; also, Sony may struggle to scale up in a market like India in case Disney is acquired by Reliance. We believe Sony too is equally eager for the merger as Z is, as the linear TV and OTT market has turned disruptive.

    2) Scenario two – Punit remains CEO of the merged co (Probability -10 per cent)

    In this scenario, Sony may allow Punit Goenka to remain as CEO and have their own finance, operations team for day to day affairs, with a majority on Board by Sony. However, given Sony’s MNC culture, this may seem to be a low likelihood event, unless they legally need to do it (As per term sheet of the merger) and cannot back out of the merger; Sony may not want to have a CEO on Board, who is under a SEBI investigation

    3) Scenario three – Punit may be offered a board seat, but not a CEO role (Probability -30 per cent)

    In this scenario, Punit may be offered a Board seat in the merged co, but not a CEO designation, until the outcome of investigation is known. This in turn may lead to superior CG practices in Z, with change in finance and operations team post the merger by Sony. This could potentially be a win-win for both parties, if mutually agreed upon. Further, Punit may also ask Sony for a higher non-compete fee in case he plans to step aside of Zee and not become CEO. We believe the probability of this event is on the higher side, as Punit may eventually agree to be on Board in the interim, until the outcome of investigation is known with a higher non compete fee

    4) Scenario four – Merger goes ahead without Punit (Probability – 40 per cent)

    In this scenario, Punit Goenka agrees to step aside as CEO if Sony decides to call off the merger; Sony may continue to run its India operations in India if the merger is called off, but Zee may struggle as valuations may come off atleast 50 per cent if the merger does not go through, which in turn could hamper shareholder and promoter stake valuation in Z today. We thus believe that at the end of the day, bargaining power is limited from Z promoter side, and they may have to agree upon the same. Sony can also seek shareholder approval (consortium) and go ahead with the merger without Punit Goenka. We believe probability of this event is the highest as shareholders own the company, with promoters having a mere 4 per cent stake.

    In terms of merger process, Z has already filed with ROC (Registrar of Companies); the merger process has reached advance stages and hence it may be tough for Sony too to back out of this merger. We thus believe that the likelihood of this merger going through remains high (80 per cent probability) with or without Punit Geonka; however, the recent approval by SAT allowing Punit as CEO and Sony not agreeing upon the same is a potential risk for the merger, as probability of the merger not going through moves up to 20 per cent now. As per our checks with legal experts, SEBI will file a stay in Supreme Court against the SAT order by end of this month. We await updates from Sony and Zee management, which will provide us more colour on where this merger could be headed.

    The credit for this article goes to Elara Capital Sr VP – research analyst (media, consumer discretionary & internet) Karan Taurani.