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Category: TRAI

  • TRAI reiterates earlier view, opposes partial auction of 2100 MHz

    TRAI reiterates earlier view, opposes partial auction of 2100 MHz

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has opined that clubbing the 2100 MHz band spectrum with the spectrum of other bands for auction in February will be defeated if sufficient spectrum is not made available in the 2100 MHz band.
     
    “A split auction of 2100 MHz (one in February 2015 and remaining, say, in December 2015 after availability from Defence Ministry) will artificially increase the market price of 2100 MHz in February because of the severe supply constraint. The 15 MHz of spectrum in the 2100 MHz spectrum being vacated by Defence Ministry should be auctioned in view of the in-principle agreement reached with MoD, even if it is not available immediately,” TRAI said today.

    The Authority reiterated that in the upcoming auction of 2100 MHz band spectrum, an auction-specific cap should be placed that no bidder would be permitted to bid for more than two blocks in a local service area (LSA) if three to four blocks are available in that LSA.
     
    TRAI said there is no change in the reserve prices for spectrum in the 2100 MHz bands from what were recommended earlier.
     
    It said the Department of Telecom is responsible to ensure that the spectrum being auctioned is either interference free or to share information upfront about the areas where interference is likely to occur so that the telecom service providers participating in the auction can take informed decision.
     
    These views were given to the DoT in Clarifications/Reconsideration of Recommendations on ‘Valuation and Reserve Price of Spectrum: 2100 MHz Band.’

    TRAI had sent its recommendations on ‘Valuation and Reserve Price of Spectrum: 2100 MHz Band’ on 31 December, 2014 to the DoT. On 8 January, 2015, the DoT sought clarifications/reconsideration on many of the recommendations.
     
    After considering the comments given by the DoT, TRAI has furnished its response to the Government. The Authority, has reiterated its earlier recommendations with detailed reasoning.
     
    As highlighted in the Authority’s recommendations on ‘Valuation and Reserve Price of Spectrum: Licences Expiring in 2015-16’ dated 15 October, 2014, it is vitally important to auction spectrum in the 2100 MHz band along with spectrum in the 900 MHz band. The same sense of urgency was echoed by the DoT when, through its letter dated 27 November, 2014, it requested TRAI to expedite the process for its recommendations on the reserve price of 2100 MHz band and related issues so that the auction of spectrum being released by Defence could be conducted along with the auction of spectrum in the 800 MHz/900 MHz/1800 MHz bands scheduled to be held in February 2015. Heeding DoT’s request, TRAI delinked the 2100 MHz band from other bands – 2300 MHz and 2500 MHz band – which were part of the DoT’s reference of 16 October, 2014, and issued its recommendations specifically for 2100 MHz band on 31 December, 2014.
     
    In its back-reference of 8 January, 2015, the DoT has not indicated the exact amount of spectrum in the 2100 MHz band that will be put to auction. However, media reports suggest that only 5 MHz is likely to be put to auction. The swapping of spectrum leading to release of an additional 15 MHz will be carried out later after the DoT notify the Defence band.
     
    Quoting the Communications & IT Minister, the media has reported that the notification is likely to be done in the next 45 days. Media reports also mention that the swapped spectrum in 2100 MHz may be put to auction in December 2015.
     
    These media reports are neither a positive development nor particularly encouraging. The whole purpose of clubbing the 2100 MHz band spectrum along with spectrum of other bands for auction in February 2015 will be defeated if sufficient spectrum is not made available in the 2100 MHz band. Moreover, it was emphasized by the Authority that, if swapping has been agreed in principle, the spectrum can be put to auction and the actual assignment made after the auctions viz. once the release of spectrum is cleared by MoD. This remains a distinctly feasible option because time is on DoT’s side: actual assignment can wait till end 2015, close to a year away.
     
    The MoD has informed TRAI that the proposal for release of 15 MHz of spectrum in 2100 MHz band on a pan-India basis in lieu of an equal amount of commercial spectrum in the 1900 MHz band has been agreed to in principle and this has also been conveyed to the DoT. In its back-reference, the DoT has not assigned any reason for not putting this spectrum to auction in February 2015. In the absence of any plausible reason to hold back this spectrum, the Authority is not in a position to review its recommendations and, therefore, stands by them.
     
    The Authority would also take this opportunity to sound a note of caution. If media reports are to be believed and if spectrum is auctioned in two chunks, one in February 2015 and remaining, say, in December 2015 after availability from Defence, the result would be a split auction. A split auction of 2100 MHz will artificially increase the market price of 2100 MHz in February 2015 because of the severe supply constraint. What is more, that will then become the anchor price for the next 2100 MHz auction. This situation can be averted by putting all the available spectrum for auction in February.
     
    The full text of the response to the Government has been placed on TRAI’s website www.trai. gov.in

     

  • TRAI pulls up broadcasters, MSOs on DAS implementation

    TRAI pulls up broadcasters, MSOs on DAS implementation

    NEW DELHI: Broadcasters were taken to task for their failure to file reports relating to subscribers while multi-system operators (MSOs) were rapped for failure to meet their commitments relating to billing in two separate meetings held with senior officials of the Telecom Regulatory Authority of India (TRAI) held in the first fortnight of this month.
     
    The meeting, with selected broadcasters earlier this month, also saw TRAI officials asking the broadcasters about agreements with MSOs under the reference interconnect offer (RIO).
     
    Broadcasters were also urged to step up awareness among subscribers in phase III and phase IV so that the transition to digital addressable system (DAS) is smooth.
     
    TRAI also urged broadcasters to highlight problems faced by them in the switch-over to DAS and issues relating to connectivity.
     
    In the meeting with MSOs earlier this week, problems relating to issuance of licences were also taken up.
     
    The MSOs were also asked to provide a list of areas not reached by them, an issue that had also been raised at the last DAS Task Force meeting.
     
    A TRAI official told Indiantelevision.com that issues relating to set top boxes were not taken up as they are being dealt with directly by the Information and Broadcasting Ministry.

     

  • TRAI ready to consider proposal for e-commerce but says it is already over-burdened

    TRAI ready to consider proposal for e-commerce but says it is already over-burdened

    NEW DELHI: With more and more people depending on their computers and smart phones to transact business transactions and transfer money, the Government appears to have woken up to the need for someone to regulate this.
     
    While confirming this, a source in the Telecom Regulatory Authority of India (TRAI) told indiantelevision.com that the role of the regulator had remained confined to telecom until 2004 when it was asked to also look into issues relating to broadcasting and had later drawn up regulations relating to telemarketing following complaints by telecom consumers about mobile calls.
     
    The need for an e-commerce regulator was felt after the Confederation of All India Traders (CAIT) sought the Commerce Ministry’s intervention over ‘predatory pricing’ strategies of e-tailers during festival sales last year. It asked the government to set up a taskforce to “probe into the working and business model of e-commerce companies” and to set up a regulatory authority to monitor the business.
     
    The source said TRAI will consider the proposal but will have to consider that it is already burdened with issues like spectrum e-auction and the digital addressable system for cable television.
     
    Now, an inter-ministerial panel has requested the Authority to take up the role or suggest if there is a need for a separate regulator for e-commerce. The panel has sought an update from the Consumer Affairs Ministry on measures taken to introduce online dispute resolution in e-commerce.

     

    The inter-ministerial panel will prepare a paper, sought by the Data Security Council of India, on imposing restrictions on the location of servers and on getting companies like Google and Amazon to set up data centres in India.

     

    The Department of Industrial Policy and Promotion has informed the committee there is no plan to change the foreign direct investment (FDI) policy in e-commerce. The Department is understood to have said there was no lack of clarity in the FDI policy for e-commerce. If required, the Department noted, issues related to e-commerce funding and operations could be addressed by formulating guidelines for the sector rather than by modifying the FDI policy.

     

    Last month, the DIPP had suggested up to 49 per cent FDI in consumer e-commerce following representations by several US companies. FDI is barred in e-commerce companies selling directly to consumers and there are restrictions on sourcing from local manufacturers. The DIPP also suggested a mechanism to facilitate US investments in India after Amazon, which has invested about $300 million in India, sought the government’s approval for further investments.

     

    Foreign e-commerce companies are allowed to operate as online marketplaces. FDI of up to 100 per cent is permitted in business-to-business e-commerce.

     

  • TRAI issues new tariff order to balance consumer rate and broadcaster demands

    TRAI issues new tariff order to balance consumer rate and broadcaster demands

    NEW DELHI: In a major initiative aimed at simplifying tariffs and meeting demands of consumers, the Telecom Regulatory Authority of India (TRAI) today issued a new tariff order which apart from fixing tariffs also amended the definition of addressable systems (DAS) as understood at present.
    The Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Fourteenth Amendment) Order, 2015 said “addressable system” means an electronic device (which includes hardware and  its  associated  software)  or  more  than  one  electronic  device  put  in  an integrated system through which signals of digital addressable system can be sent in encrypted form, which can be decoded by the device or devices, having an activated Conditional Access System at the premises of the subscriber within the limits of authorisation made, through the Conditional Access System and the subscriber management system, on the explicit choice and request of such subscriber, by multi-system operator or DTH operator or IPTV operator or HITS operator  to the subscriber; and the expression “non-addressable system” shall be construed accordingly.
    The Order shall come into force on the date of its publication in the Official Gazette.
    The order also specifies that it will apply to specified states, cities, towns and areas notified from time to time and not the entire country.  
    The order has specified that if any new pay channel is launched or any free-to-air channel is converted to pay channel after the first day of January 2015, then the ceiling shall not apply if the new pay channel or pay channel converted from free-to-air to pay channel is provided on a standalone basis, either individually or as part of new, separate bouquet.The broadcaster shall declare the genre of its channels and such genre shall be either News and Current Affairs or Infotainment or Sports or Kids or Music or Lifestyle or Movies or Religious or Devotional or General Entertainment (Hindi) or General Entertainment (English) or General Entertainment (regional language).
    The rates of channels, referred to in the first proviso shall be similar to the rates of similar channels existing as on the date of such launch of new channel or such conversion of free-to-air channel into a pay channel and the ceiling of charges, specified under sub-clauses (a), (b) and (c) shall not, in any case, exceed by the rates of channels referred to in the third proviso.
    In case a multi system operator or a cable operator reduces the number of pay channels that were being shown on the date of coming into force of the Telecommunication(Broadcasting and Cable) Services (Second) Tariff (Fourteenth  Amendment) Order 2015, the ceiling shall be reduced taking into account the rate(s) of the channel(s) so removed. In the case of the commercial subscriber, for each television connection, the charges payable by the Ordinary cable subscriber under sub-clause (a), shall be the ceiling.

    If a commercial subscriber charges his customer or any person for a programme of a broadcaster shown within his premises, he shall, before he starts providing such service, enter into agreement with the broadcaster and the broadcaster may charge the commercial subscriber, for such programme, as may be agreed upon between them.
    The charges referred to in sub-clause (a) shall in no case exceed the maximum amount of charges specified in the Part I or Part II, as the case may be, of the Schedule annexed with this Order.”
    In determining the similarity of rates of similar channels referred to in the provisos below clause 3 above the following factors shall be taken into account:
    (i)  the genre and language of the new  pay or converted Free to Air  to pay channel; and
    (ii) the range of prices ascribed to the existing channels of similar genre and
    language in the price of a bouquet(s) and prices of bouquet(s) that exist.”
    Every broadcaster shall offer or cause to offer on non-discriminatory basis all its channels on a-la- carte basis to the multi system operator or the cable operator, as the case may be, and specify an a-la-carte rate, subject to provisions of sub-clause (2) of this  clause and clauses 3 and 3B, for each  pay channel offered by him.
    In case a broadcaster, in addition to offering all its channels on a-la-carte basis, provides, without prejudice to the provisions of sub-clause (1), to a multi system operator or to a cable operator, pay channels as part of a bouquet consisting only of pay channels or both pay and free to air channels, the rate for such bouquet and a-la-carte rates for such pay channels forming part of that bouquet shall be subject to the following conditions, namely:-
    (a) the sum of the a-la-carte rates of the pay channels forming part of such a bouquet shall in no case exceed one and half  times of the rate of that bouquet of which such pay channels are a part; and
    (b) the a-la-carte rates of each pay channel, forming part of such a bouquet, shall in no case   exceed three times the average   rate of a pay channel   of that bouquet of which such pay channel is  a part and the average rate of a pay channel of the bouquet be calculated in the following manner, namely:
    If the bouquet rate is Rs. ‘X’ per month per subscriber and the number of pay channels is ‘Y’ in a bouquet, then  the average pay channel rate of the bouquet shall be Rs. ‘X’ divided by number of pay channels ‘Y’:
    Provided that the composition of a bouquet existing as on the 1 day of December 2007, in so far as pay channels are concerned in that bouquet, shall not be changed: and nothing contained in the first proviso shall apply to those bouquets of channels existing on the first day of December 2007, which are required to be modified pursuant to the commencement of the Telecommunication (Broadcasting and Cable Services) Interconnection (Seventh Amendment) Regulation, 2014.
     
    If there is a bouquet, comprising of 10 channels of 3 broadcasters as per the following details.

    After  the  reconfiguration  the  bouquets  to  be  offered  by  the  individual broadcasters shall be as under:
    Broadcaster B shall offer the bouquet as per the following details

    Broadcaster C shall offer the bouquet as per the following details:

    While the Broadcaster A can offer channel 1 at a-la-carte rate of Rs. 2.”
    TRAI has aslo appended an Explanatory Memorandum which traces the history of discussions and orders over the last 11 years on its website trai.gov.in.

  • TRAI simplifies definition of AGR for license fee and spectrum usage

    TRAI simplifies definition of AGR for license fee and spectrum usage

    NEW DELHI: After several months of dispute and even court proceedings, the Telecom Regulatory Authority of India (TRAI) on 6 January agreed that the licence fee (LF) and spectrum usage charges (SUC) should continue to be computed based on adjusted gross revenue (AGR).

     The regulator clarified that gross revenue shall comprise revenue accruing to the licenced entity by way of all operations/activities and inclusive of  all other revenue/ income on   account of  interest, dividend, rent, profit on sale of fixed assets,  miscellaneous income etc. without any set-off for  related items of expense.

    However in the recommendations on ‘Definition of Revenue Base (AGR) for   the Reckoning of License Fee and Spectrum Usage Charges’, TRAI introduced the  concept of Applicable Gross Revenue (ApGR). ApGR would be equal to total gross revenue of the licensee as reduced by:

    (i)   revenue from operations other than   telecom   activities/ operations as well  as revenue from activities under a licence/ permission issued by the Information and Broadcasting Ministry; receipts from the USO fund; and items of ‘other income’ as listed in  the ‘positive list’ issued by the regulator.

     Following disputes/litigations between licensor and licensees on definition of  gross revenue and  adjusted gross revenue under  licence(s) granted  by  Department of Telecommunications for  different telecom services and the need to rationalise taxes as stated in the National Telecom Policy  2012, the authority has suo motu decided to  review the  existing  definition of revenue, licence fee  rate and other related matters under section 11(1)(a)(ii) of the TRAI Act.  

     Further, there was also a reference from DoT in last July requesting TRAI to   submit recommendations for delinking of  licensing of networks from delivery of  services by  way  of virtual network operators,  etc., including associated issues such as AGR,  terms  of sharing of  passive and active infrastructure, etc., under the unified licensing regime. A separate consultation paper had been issued in this regard on 5 December 2014 dealing with the issues under reference other than AGR.

     The authority earlier issued a consultation paper on “Definition of Revenue Base (AGR)  for   the    Reckoning  of   License  Fee   and   Spectrum Usage Charges on 31 July 2014”.

    Comments   and   counter   comments were received from the stakeholders and an open house discussion was conducted at New Delhi by TRAI with the stakeholders.

     Under the new recommendations, AGR would be arrived by deducting pass through charges from ApGR.  No change is recommended in   the existing definition of pass through charges (i.e.  deductions)  under  different licences to  arrive at AGR  for  the computation of LF and sue except the inclusion of access charges paid by  TSPs providing international calling card services and toll-free charges.
     
    SUC should be levied on AGR of respective telecom services which use access spectrum in operations or providing services.

     Share of USO  levy  in  LF should be  reduced from the present 5 per cent to  3 per cent of   AGR   for   all   licences  with  effect  from    1  April   2015.  With    this reduction, the applicable uniform rate of licence fee would become 6 per cent (from   the present 8 per cent)  of  AGR  viz.  the 3 per cent  of  LF  that directly accrues currently to  the Government will not  change.
     
    ISPs having AGR  less than Rs  5 crore in  a year shall pay  licence fee of Rs 10  lakh or  actual LF based on  the applicable rate, whichever is less.
     
    Minimum presumptive AGR for  the   purpose of LF and SUC should not be  made  applicable  to   any  licence(s)  granted   by   Government   for providing telecom services.
     
    IP-I  services may not be  brought under the licensing regime.
     
    For  simplicity of administration, ease of verifiability and to avoid higher transaction and compliance costs, any netting of amounts paid  to other entities should not be  permitted for  the computation of  AGR  so  as to meet with the  licence condition that  does not   permit setting off  any related item of expense.
     
    Accounting of deductions of pass through charges from ApGR  to  arrive at the relevant revenue base (i.e.  AGR)  for  the computation of  LF and SUC   should be  allowed on  an accrual  basis.  However, in  the   case  of service tax  and sales tax/  VAT collected on  behalf of  the   Government, deductions  from    revenue  should  be   allowed  only  for   the    amount actually paid to the  Government.
     
    (xii)    Intra-circle roaming charges should not   be  allowed as deduction from ApGR   for   calculating  AGR   of   the    telecom  service  provider  for   the purpose of computation of LF and SUC.
     
    The DoT   should  introduce  a  standardized  process of  verification  with   a unique code assigned to each item of revenue and PTC,  along with  clear codal instructions   to    be    uniformly   followed  by    all    licencees  and Controller of Communication Accounts.

     

  • MSO’s request govt to set up regional units to facilitate DAS registrations

    MSO’s request govt to set up regional units to facilitate DAS registrations

    NEW DELHI: Even as the government has agreed to consider extension of four to five weeks for registration of multi system operators (MSO), who want to opt for phase III of the Digital Addressable System (DAS), the government has been asked to consider setting up regional units to facilitate such registrations.

    Speaking at the task force meeting last week, several stakeholders also wanted online registration for MSO’s wanting to enter their names for phase III.

    Ministry additional secretary J S Mathur, who chaired the meeting, also said that meetings were being organised between manufacturers of indigenous set top boxes and the Ministry of Information and Technology.

    Mathur responding to queries from some MSO’s wanted them to prepare a list of areas in phase III which were currently not being reached by cable television. A member had pointed out that a Headend In The Sky (HITS) platform could be used in such areas.

    Some consumer organisations which are part of the task force, said they will need to organise workshops in different parts of the country to help people understand DAS.  

    The Confederation of Indian Industry (CII) representatives said that the association was planning such workshops in Kerala and Guwahati. Mathur asked CII to give him details of the workshops when they are scheduled.

    Mathur regretted that the number of stakeholders attending the meetings was very minimal and expressed hope that later meetings will be attended by larger number of members.

    In the last meeting it had been announced that the task force would meet every month to ensure deadlines are met and phase III of DAS comes into operation by December 2016.

     

  • TRAI managed to give broadcasting as much importance as telecom in 2014

    TRAI managed to give broadcasting as much importance as telecom in 2014

    NEW DELHI: A decade after broadcasting was handed over to it, the Telecom Regulatory Authority of India (TRAI) appears to have given equal if not more time to the broadcasting sector, thanks largely to convergence of technology.

    Thus, issues like spectrum, marketing and even FM radio have got equal space during the Regulator’s work as telecom, apart from the digital addressable system (DAS) introduced in 2011.

    TRAI also mastered the art of marketing during the year 2014. It developed radio jingles in Hindi, English and 10 regional languages on VAS/UCC which were aired on various FM channels in 84 cities across the country for one week in the months of June, July, August and October 2014.

     Admitting in its annual report that it had failed to carry out periodic reviews to make inflation- linked adjustments, TRAI said it had finally done so in concurrence with the Supreme Court. Thereafter it issued two tariff orders on 31 March and 31 December as far as broadcasting was concerned.

    Based on the rise in the wholesale price index (WPI) over the last five years and considering other relevant factors, the Authority came to a conclusion that an overall 27.5 per cent inflation hike is to be allowed, both at the wholesale and retail levels. Taking into account the consumer’s interest, the Authority prescribed that this hike be implemented in two installments. The first installment of 15 per cent was made effective from 1 April 2014. This was notified vide the Telecommunications (Broadcasting & Cable) Services (Second) Tariff (Eleventh Amendment) Order 2014 dated 31 March 2014. The second installment for the remaining inflation-linked increase has been made effective from 1 January 2015. This is expected to give adequate and reasonable time to all stakeholders to adjust to these hikes. To take care of the second installment of the inflation linked hike, the Authority notified the Telecommunications (Broadcasting & Cable) Services (Second) Tariff (Thirteenth Amendment) Order 2014 dated 31 December 2014.

    In a matter relating to a tariff order prescribing tariffs for commercial subscribers, the Supreme Court in April 2014, asked TRAI to come out with a new tariff dispensation for such subscribers. Accordingly, on 16 July and 18 July 2014, TRAI notified amendments to tariff orders / regulations pertaining to commercial subscribers of broadcasting and cable TV services. These amendments bring in clarity regarding the manner of distribution of TV signals to commercial subscribers, prescribe tariffs based on intended use of the TV signals, and aim to enhance transparency in tariff regulation.

    During phase I and phase II of digitisation of cable TV sector, it was noticed that the authorised agents/aggregators of the broadcasters were forming large bouquets, combining channels of different broadcasters and forcing it on the DPOs viz. cable, DTH, HITS and IP TV operators. This was resulting in distortions in the market. Incidentally, the Ministry of Information and Broadcasting (MIB) had also sent a reference to TRAI requesting for a review of the regulatory framework with regard to aggregators. The amendments aim at contributing to the orderly growth and overall development of the sector by streamlining the distribution of TV channels from broadcasters to DPOs. The salient provisions in these amendments are:

     A broadcaster is now defined as an entity having the necessary government permissions in its name. Only the broadcaster shall publish the Reference Interconnect Offers (RIOs) and enter into interconnection agreements with DPOs. However, in case a broadcaster, in discharge of its regulatory obligations, is using the services of an agent, such authorised agent can only act in the name of and on behalf of the broadcaster.

    As far as FM radio is concerned, TRAI on the request of MIB made recommendations on the amount of migration fee to be charged from existing FM operators on their migration from Phase-II to Phase-III of FM Radio Broadcasting. The permissions for operating FM Radio as per Phase-II policy were granted by MIB during the period 2005 to 2009 in 86 cities. As per the Phase-II policy, the permissions were granted for a period of 10 years to each FM Radio operator and there is no provision for extension of permission in the Phase-II policy.

    Therefore, Phase-II permissions will start expiring from 31 March 2015 onwards. There was no great incentive for an existing operator to pay a migration fee and operate as per the Phase-III policy only for the balance period of Phase-II permissions. Accordingly, the Authority in its recommendations on ‘Migration of FM Radio Broadcasters from Phase-II to Phase-III’ dated 20 February 2014 recommended a period of permission of 15 years after migration from Phase-II to Phase-III. The salient features of the recommendations are:
    TRAI reiterated early implementation of its recommendations on minimum channel spacing of 400 KHz for FM radio broadcast issued on 19 April 2012, which will in effect increase the number FM channels in each city for auction. The period of permission to operate the existing FM channels on migration from Phase-II to Phase-III will be 15 years.

    In the DTH Guidelines, under which licenses are issued to DTH operators, there is no explicit provision for an extension or a renewal of the licenses on completion of the license period. In this regard, the MIB sought recommendations of TRAI. After examination, the Authority concluded that to allow the DTH operators to continue their business after the expiry of the stipulated 10 year license period, the government will have to issue a new license. Accordingly, the Authority looked at the issues concerning the DTH sector holistically and, after following the due consultation process, sent its recommendations to the MIB on “Issues related to New DTH Licenses” on 23 July, 2014.

     Apart from removing the ambiguity over renewal of licenses, these recommendations suggest that the government came out with a new licensing regime for DTH sector which, amongst others, allows for longer license period, rationalised license fee, rationalised and regulated cross-holding and vertical integration between broadcasters and distribution platform operators including DTH operators. The recommendations also suggest a mechanism for migration of operators from the existing regime to the new regime. A new licensing regime, incorporating the provisions in the said recommendations, is expected to bring in, amongst others, certainty in DTH business, ease taxation pressures, attract better investments in the sector etc. and, thereby, promoting the overall efficiency in DTH operations.

     Ensuring plurality of voices in the media, that is, availability of fair, balanced and unbiased representation of a wide range of opinions and views, is critical for any democratic polity. Ensuring both external plurality, namely multiple voices in the national media market, and internal plurality, that is presentation of a range of facts and news in an unbiased manner by a media outlet, are fundamental in the working of a democracy.

    Regulatory restrictions on cross-media holdings seek to ensure external plurality in the media market, while restrictions in vertical holding by any entity of a broadcaster and a distribution entity are important to ensure that the distribution channels remain open to all desirous of presenting an opinion or view to the public. Finally, content regulation is critical in a time when news is increasingly seen as an asset belonging to a media entity’s owners to be monetized for political/ business/ or pecuniary gain.

    Recommendations on “Issues related to Media Ownership” were issued on 12 August

    The key issues addressed and the concerned recommendations included defining who owns a media entity and controls it – in brief, an entity that possess not less than 50 per cent of voting rights in the media entity or can appoint more than 50 per cent of the members of its board of directors will be deemed to control it. The Recommendations also take into consideration control through debt, and has recommended the loan threshold that will deem the lender to be in control of a media entity.

    The restrictions recommended on cross-media ownership apply on the media entities that cover news and current affairs genres in the television and print segments only, as impact of radio and internet in India on opinion formation is marginal. In the print segment, only daily newspapers, including business and financial newspapers, should be considered.
    The MIB had sent a reference to TRAI seeking recommendations of the Authority on extension of permission granted to Community Radio Stations (CRS) in India. According to the 2006 Policy Guidelines for CRSs, the period of validity of Grant of Permission Agreements (GOPA) is five years and the guidelines contain no provisions for the renewal/ extension of permissions. The validity of the GOPAs issued under these Guidelines for some of the CRSs, had expired on completion of five years, requiring them to stop operating. The Authority, therefore, in an interim reply suggested continuation of the GOPAs on the same terms and conditions.

    CRS are an important medium for empowerment and social development of the local communities. Therefore, going beyond the terms of reference from MIB, the Authority in a pre- consultation process sought inputs from CRS permission holders on the issues relevant for the growth of CRS in the country based on their experiences over the past decade. Several responses were received; these inter alia included comments on procedural matters; technical issues; content; aid and assistance.

    In addition to the issues highlighted, the Authority also noted the important role, the CRS play in serving the local communities by providing relevant information/alerts during natural calamities and emergency situations. The Authority, after analysing all issues comprehensively, sent ‘Recommendations on Issues related Community Radio Stations’ to MIB on 29 August, 2014. The salient features of the recommendations included initial permission for operating a CRS to be five years; extension of permission for five years at a time, to be allowed following performance evaluation; and CRS to be allowed to broadcast locally relevant news and current affairs content sourced exclusively from AIR, in its original form or translated into the local language/ dialect.

    MIB sent references to the Authority to provide its recommendations on issues relating to ground based channels being operated by cable TV operators and programming services being offered by DTH service providers to their subscribers. Collectively these kinds of programming services provided by the Distribution Platform Operators (DPOs) are referred to as Platform Services (PS).

    At present, the PS offered by DPOs are not subject to any specific regulations or guidelines. Similarly, there are several ground-based broadcasters who provided local TV channels to cable operators for distribution which are also not covered by any specific regulations. Since, all of these platform services and local channels are being operated and distributed without even a simple registration system in place; the possible impact of the content carried on these channels on the law and order/ security situation is a cause for concern. In addition, the differentiated treatment under the different policy guidelines applicable to the different types of DPOs has to be addressed, to provide for similar regulatory frameworks for what after all are inter-changeable services. Therefore, there is an urgent need to establish a simple, robust and fair regulatory system that addresses all concerns regarding the PS being distributed on cable TV networks.

    After an extensive consultation process in which open houses discussions were held with stakeholders in all four regions in India, the Authority forwarded its recommendations on ‘Regulatory framework for Platform services’ to the government on 19 November 2014.

     

  • TRAI rationalises tariff for non-DAS areas, providing for inflation

    TRAI rationalises tariff for non-DAS areas, providing for inflation

    NEW DELHI: Meeting a long-felt demand, the Telecom Regulatory Authority of India (TRAI) has decided to allow the balance inflation linked hike both at the retail and wholesale levels, from 1 January 2015.

    The Telecommunication (Broadcasting and Cable) Services (Second) Tariff (Thirteenth Amendment) Order 2014 applicable for non-addressable (analogue cable TV) systems prescribes ceiling retail tariff on pan-India basis depending upon the number of pay and free-to-air (FTA) channels.

    The ceilings are Rs 117 per month for minimum of 30 FTA channels; Rs 234 per month for minimum 30 FTA channels and up to 20 pay channels; and Rs 292 per month for minimum 30 FTA channels and more than 20 pay channels.

     At the wholesale level, price ceilings will continue, subject to inflationary adjustments allowed from time to time.

    TRAI said the order was aimed at rationalising retail tariff and simplifying implementation. The Authority had undertaken a similar exercise in April 2014. 

  • Spectrum auction reserve prices provide for 50 per cent relaxation for north-east

    Spectrum auction reserve prices provide for 50 per cent relaxation for north-east

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on 31 December recommended that in the upcoming auction of 2100 MHz band spectrum, an auction-specific cap should be placed that no bidder would be permitted to bid for more than 2 blocks in an LSA if 3 – 4 blocks are available in that LSA.  
    It also reiterated its recommendations that spectrum in the 2100 MHz band should be put to auction along with the 800/900/2100 MHz band. 
    Furthermore, the 15 MHz of spectrum (which are equivalent to 3 blocks of 2×5 MHz when paired corresponding downlink spectrum) in the 2100 MHz spectrum being vacated by Defence Ministry, in lieu of spectrum in the 1900 MHz spectrum, should be auctioned in view of the in-principle agreement reached with Ministry, even if it is not available immediately. This is because actual assignments do not have to be made immediately. The actual date of assignment may be given in the Notice Application (NIA). 
    The Authority recommended that the reserve price for North East LSA may be fixed at a discount of 50 per cent. 
    The recommendations follow a letter from the Department of Telecommunications on 16 October, saying the government was planning auction of right to use spectrum in the 2100 MHz, 2300 MHz and 2500 MHz bands, preferably along with the auction of spectrum in the 800 MHz, 900 MHz and 1800 MHz bands and seeking recommendations on some issues. 
    The Authority also recommended that the Department of Telecommunications should take all measures to ensure that the 2100 MHz spectrum which was earlier assigned to STEL in three service areas viz. Bihar, Orissa and Himachal Pradesh is also put to auction. 
    The Authority recommended that the roll-out obligations that were mandated in the 2010 auctions for spectrum in the 2100 MHz band should be applicable for the upcoming auction of 2100 MHz band. 
    However, a period of three years (instead of five years) should be prescribed to meet these obligations. 
    A Telecom Service Provider, which already has a block of 2×5 MHz in the 2100 MHz band in an a Local Service Area and acquires additional block(s) in the LSA through the upcoming auction, should not be mandated to comply with the roll-out obligations again. It would continue to be bound to the same roll-out obligations that were prescribed when it acquired the first block of spectrum in 2010. 
    The TSTP (Test Schedule Test Procedure) which prescribes the process and method for measurements and tests to be carried out to ensure the required roll-out of the 3G network should be finalised at the earliest but, in any case, no later than the conduct of the February 2015 auction. 
    The list of rural Short Distance Charging Areas along with names of the towns in these DCAs should be made part of the NIA. 
    The Authority recommended that if any TSP is assigned two blocks of 2×5 MHz in the 2100 MHz band in the upcoming auction, it should be assigned contiguous carriers only; and TSPs should be permitted to realign their spectrum holding amongst themselves with mutual agreement. 
    It recommended that the issue of interference, reported in the 2100 MHz band in some LSAs, needs to be resolved before putting fresh spectrum blocks to auction in these LSAs. Further, it is imperative to ensure that spectrum blocks being put to auction are interference-free. 
    The regulator recommended that the DoT should carry out the Electro-magnetic Field impact study and decide within a period of six months whether the power radiation limits from base stations can be enhanced beyond the present limits of 20 Watts for HSPA/HSPA+ or LTE technologies.  
    The Authority recommended that the reserve price for 2100 MHz spectrum in each LSA should be as given in table below: 

  • MSOs applying for DAS may get extension of four or five weeks, Task Force informed

    NEW DELHI: The deadline for multi-system operators (MSOs) wanting to apply for digital addressable systems (DAS) licence for phase III and IV may be extended by four to five weeks.

     

    This was indicated during the Task Force meeting on DAS held today, presided over by Ministry Additional Secretary J S Mathur and attended among others by the Adviser for DAS, Yogendra Pal.

     

    MSOs were asked to provide detailed seeding plans for the third phase which concludes in December next year.

     

    MSOs who want to complete DAS in their areas even before the last date on a voluntary basis were asked to negotiate directly with broadcasters, and with the subscribers in their respective areas.

     

    When some MSOs and cable operators referred to some ‘cable-dark’ areas – areas not reached by cable operators, the Ministry wanted the MSOs and other stakeholders to identify such areas.

     

    The meeting was held in keeping with an assurance last month that the meeting would be held every month.

     

    In the last meeting that was held on 21 November it was told that a total of 11 crore set top boxes will be needed for the third and final phase of digital addressable system of which only three crore will be for direct-to-home platforms.