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Category: TRAI

  • TRAI issues paper aimed at resolving controversial AGR for broadcast, telecom

    TRAI issues paper aimed at resolving controversial AGR for broadcast, telecom

    NEW DELHI: Following a multitude of cases by both telecom and broadcast operators, the Telecom Regulatory Authority of India (TRAI) has initiated a review of the definition of Gross Revenue (GR) and the permissible deductions to arrive at Adjusted Gross Revenue (AGR) in the context of the National Telecom Policy 2012.

     

    In a Consultation Paper on the subject, the Authority has examined the components of GR, AGR and minimum presumptive AGR, rates of Licence Fee and Spectrum Usage Charges, formats of statements of revenue and licence fee and audit and verifiability of revenue and licence fee.

     

    Stakeholders are expected to respond to the 24 questions raised in the Consultation Paper by 1 September and counter-comments by 8 September. TRAI has made it clear that there will be no extension to these dates.

     

    The paper on Definition of Revenue Base (AGR) for the Reckoning of Licence Fee and Spectrum Usage Charges will also examine the changes made in the licensing regime, the transition from the administrative allocation regime towards market-determined prices for spectrum, and the conclusion of tenure of many licences. The paper provides the relevant background information on the subject covering various issues involved.

     

    On the definition of AGR specifically, the Authority had in 2012 recommended that only the revenue from the wireless services shall count towards AGR calculation for the limited purpose of calculation of Spectrum Usage Charges (SUC) that would continue to be determined on service area basis, and should be levied only in respect of those service areas where the Licensee holds any access spectrum.

     

    TRAI wants to know whether there is a need to review/revise the definition of GR and AGR in the different licences at this stage; the guiding principles for designing the framework of the revenue sharing regime; and whether the rate of licence fee (LF) be reviewed instead of changing the definitions of GR and AGR, especially with regard to the component of USO levy, in the interest of simplicity, verifiability, and ease of administration.

     

    The paper also wants to know whether the revenue base for levy of licence fee and spectrum usage charges include the entire income of the licensee or only income accruing from licenced activities if the definitions are to be reviewed/revised.

     

    It has asked whether LF be levied as a percentage of GR in place of AGR in the interest of simplicity and ease of application, and should the revenue base for calculating LF and SUC include ‘other operating revenue’ and ‘other income’.

     

    The Government prepared a draft licence agreement for International Long Distance (ILD) services in September, 2000 containing a provision that LF was payable as a percentage of revenue. For the Public Mobile Radio Trunk Service (PMRTS) too, the revenue share regime was made applicable from 1 November 2001.

     

    The definition of AGR has been litigated since 2003. TSPs questioned the inclusion of various components of revenue in the reckoning of AGR as well as the legality of the definition before TDSAT. In 2006, TDSAT, after noting that revenue from non-licensed activities needed to be excluded from the reckonable revenue, asked TRAI to make recommendations on the inclusion or exclusion of the disputed items in the AGR. TRAI made its recommendations on 13 September 2006 and the Tribunal gave its final order in the matter on 30 August 2007 after accepting most (but modifying some) of TRAI’s recommendations.

     

    In the course of finalising the recommendations of the Authority on the reference from TDSAT, the views of DoT were obtained by the Authority through its representative and incorporated in the “Recommendations on components of Adjusted Gross Revenue” dated 13 September 2006. The Authority was informed that the basic rationale adopted by the Government while formulating the definition of AGR was that it should be easy to interpret – so as to pose fewer problems in application and less disputes and litigations, and to make it less prone to reduction in LF liability by way of accounting jugglery; and it should be easy to verify.

     

    The TDSAT’s judgment of 30 August 2007 was taken in appeal by DoT to the Supreme Court and was set aside by its judgment on 11 October 2011 on the grounds, among others, that TDSAT had no jurisdiction to decide the validity of the terms and conditions of the licence including the definition of AGR incorporated in the licence agreement. It was for DoT – and not TRAI and TDSAT – to take a final decision on the definition of AGR. The Supreme Court also held that a licensee can raise a dispute about the computation of AGR relating to a particular demand and that TDSAT can then examine whether the demand was in accordance with the licence agreement and the definition of AGR.

     

    The judgment of the Supreme Court settled important points of law and has clarified the nature of the contractual relationship between the Government as licensor and the TSPs. The judgment also laid down the parameters of institutional responsibility in arriving at the contractual terms and conditions; it held that: litigation regarding the computation of LF continues before the TDSAT in the case of individual demands made on TSPs. It has also been reported that writ petitions re-agitating the revenue share definition have been filed by TSPs in different High Courts. 

  • DTH ops plea: Exclude content cost from AGR

    DTH ops plea: Exclude content cost from AGR

    MUMBAI: The Telecom Regulatory Authority of India (TRAI), last week, came out with the much needed recommendation paper on new DTH licences. The issue had come into light when India’s oldest DTH operator Dish TV was nearing the end of its 10 year licence that was given to it when it started operating.

     

    While the need for fresh and transparent rules came up, TRAI issued a consultation paper in October 2013 and it was just last week that it came up with its recommendation paper on the same. What most DTH operators were glad about was the reduction in the annual licence fee from 10 per cent of gross revenue (GR) to 8 per cent of adjusted gross revenue (AGR). This would mean that the DTH industry in all will save around Rs 200 crore to Rs 300 crore.

     

    The AGR is calculated after deducting service tax, sales tax and entertainment tax from the GR. TRAI states that since there has been growing convergence of telecom and broadcast, the 8 per cent is aligned to the unified licence (UL) in the telecom field. The recommendation paper states that in the UL, AGR is arrived at by excluding taxes and charges of ‘pass through’ nature. Even though TRAI states that there is no such charge of ‘pass through’ nature for DTH players, the latter disagrees.

     

    “We were hoping for either a 6 per cent of AGR or 8 per cent of AGR with ‘pass through’ of content cost,” says Videocon d2h CEO Anil Khera. When a few months ago, the Ministry had sent notices to all the DTH operators to pay the licence fee dues, they had taken the issue to court. Tata Sky CEO Harit Nagpal had then said that the Ministry of Information and Broadcasting had itself asked the Finance Ministry to reduce the fee from 10 per cent to 6 per cent.

     

    The paper says that two DTH operators had recommended that for calculating AGR, deduction should be made for not just service tax, sales tax and entertainment tax, but also for content costs, transponder costs, hardware sales revenue etc.

     

    Dish TV CEO and soon to be DTH Operators Association president RC Venkateish says that the fight for exclusion of content cost isn’t over yet. He says, “We will approach the Ministry of Information and Broadcasting to press for content cost to be excluded from the AGR. Like we had said, either it should be removed or else the licence fee should be brought down to 6 per cent of AGR instead of the recommended 8 per cent of AGR.”

     

    The parliament was told in April 2013 that six private DTH operators paid Rs 307.8 crore as licence fee to the government for the year 2011-12. According to figures furnished in the reply to the Parliament, Tata Sky paid licence fee of Rs 79.3 crore in 2011-12 as against Airtel Digital’s Rs 61.87 crore and Dish TV’s Rs 30 crore. Sun Direct paid Rs 36 crore, Reliance Big TV paid Rs 9.5 crore, and Videocon d2h paid Rs 5 crore.

     

    For now, the recommendations are pending with the Ministry for approval.

  • TRAI to study how interoperability in DTH can be made effective

    TRAI to study how interoperability in DTH can be made effective

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) that released a recommendation paper on the new DTH licensing regime amongst other things also covered the issue of set top box (STB) interoperability. In the paper, the Authority has said that STB interoperability is not possible because of the different technologies adopted by the operators due to them entering the market at different times.

     

    TRAI thus, has asked the bureau of Indian standards (BIS) to regularly keep updating the standard of STB technology.

     

    Just one day after the recommendation paper, the Authority has now been asked by the Information and Broadcasting Ministry (I&B) to give its recommendations on how the portability of direct-to-home (DTH) set top boxes can be done easily.

     

    Stating this, I&B Minister Prakash Javadekar today told Parliament that the interoperability of DTH customer premises equipment has not so far proved to be effective due to various techno-economic reasons.

     

    The interoperability had been envisaged in the DTH licence conditions, he said.

     

    The portability in DTH service can be achieved through technical interoperability or through commercial interoperability.

  • DTH licensing recommendations: TRAI restricts vertically integrated broadcasters from owning more than one DPO

    DTH licensing recommendations: TRAI restricts vertically integrated broadcasters from owning more than one DPO

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has come out with some rules and regulations regarding a host of issues including crucial ones such as DTH licences and cross holding. In a recommendation paper that it gave out, it has said that certain restrictions be placed on vertically and horizontally integrated broadcasters and distribution platform operators (DPOs).

     

    A vertically integrated broadcaster will be permitted to control only one DPO while a vertically integrated DPO will be restricted from controlling any other DPO of other category in the relevant market. For this it has defined the meaning of cross holding and control to be as: ‘a broadcaster includes the broadcaster itself, its subsidiary companies /associate companies/ companies of its relatives, its holding company and subsidiary companies /associate companies/ companies of its relatives of its holding company and any other broadcaster in its control. Similarly, a DPO includes the DPO itself, its subsidiary companies /associate companies/ companies of its relatives, its holding company and subsidiary companies /associate companies/ companies of its relatives of its holding company and any other DPO in its control.’

     

    In its paper, TRAI states that ‘In order to ensure orderly growth of the broadcasting and distribution sectors and to avoid compromises or limitations on competition, certain cross-holding restrictions may be required to be put in place. Accordingly, the Authority recommends uniformity in the policy of cross holding /control between broadcasters and DPOs and amongst DPOs in the broadcasting and distribution sector.’

     

    Depending on the shareholding patterns as prescribed by TRAI, companies will have to restructure their operations within one year. Industry sources say that the only two probable companies that are likely to be affected are the Zee group with Siti Cable and Dish TV and the Sun group with Sumangli Cable and Sun Direct.

     

    However TRAI also states that there can’t be cross holding amongst DPOs of different categories. The paper states, ‘there cannot be any cross holding/control between an MSO (A), MSO cum HITS operator (B) or a HITS operator (C) and a DTH operator (D), while there could be controlling stakes amongst A, B and C subject to market share restrictions, as specified from time to time.’

     

    DPOs have been given set parameters for market share/dominance. For DTH operators, the relevant market would be the entire country while for an MSO it is the state. The market share of a DPO would be the number of active subscribers of that DPO as a percentage of the total number of active subscribers of that category of DPOs.

     

    On the DTH side, most operators are glad with the outcome of the paper that will now go through the Ministry of Information and Broadcasting (MIB). Says DTH Operators Association of India president and Tata Sky CEO Harit Nagpal, “We are glad with the outcome. There were two main issues that needed to be addressed: continuity of DTH licences and licence fee. The paper has made both amply clear, the migration process included. When the licence fee of 10 per cent was introduced there wasn’t any additional service and entertainment tax on it. We had been asking for relief on the licence fee to be calculated on adjusted gross revenue rather than gross revenue.”

     

    The period of DTH licence has been extended from the current 10 years to 20 years while the one time entry fee has been retained at Rs 10 crore. The big relief is the reduction of licence fee from 10 per cent of gross revenue (GR) to 8 per cent of adjusted gross revenue (AGR). An industry source said that the DTH industry earns anywhere between Rs 8000 crore to Rs 9000 crore annually, pegging the savings that will come due to the 2 per cent relief at nearly Rs 200 crore. “The reprieve on overall taxation is the highlight point. Although industry would have liked it to be 6 per cent of AGR, this isn’t bad at all,” said the source.

     

    Speaking on the new guidelines, Videocon director Saurabh Dhoot says, “This is a step in the direction towards encouraging industry riddled with high taxation and double taxation. However, content cost not included in deduction remains a concern area.”

     

    Supporting the extension of DTH licence, TRAI states that though the guidelines are silent on the provision of extension, it could not be its intent to disallow them from continuing their business post 10 years of existence. ‘Starting a DTH business entails a huge investment of resources. It would, therefore, be a reasonable expectation on the part of DTH licensees that, on the expiry of the initial 10 year licence, they would be eligible to apply for issue of a new licence, so that they could continue their business,’ it states.

     

    The new DTH licensing regime has been brought to bring fair degree of stability in the sector, to proper overall growth of the sector as it will create a conducive environment for investment from strategic investors. This will in turn spur innovation in terms of adoption of better technology and services.

     

    The DTH Operators Association had requested TRAI to consider initial licence of 20 years which it has agreed to give on the lines of Telecom licence while its second request of a 20 year extension has been kept to 10 years. ‘The Authority also recommends that the renewal shall be on the terms and conditions, including renewal fee, specified by the Licensor (MIB), in consultation with the TRAI.’

     

     AGR is calculated by excluding service tax, entertainment tax and sales tax/VAT paid to the government from the GR. The annual licence fee shall be subject to a minimum of 10 per cent of the entry fee while the licence should have a provision that prescribes that the licensor has the right to modify the licence fee as a percentage of AGR any time during the currency of the agreement.

     

    The earlier rule of providing a bank guarantee (BG) of Rs 40 crore has been changed. Licencees will have to furnish a BG for an amount that is equal to payable licence fee for two quarters and other dues not otherwise securitised.  The BG has to be valid for a year and renewed on a year on year basis in a way that it will be valid for the entire licence period. New entrants will have to give a fixed BG of Rs 5 crore for first two quarters and then continue in the manner prescribed above.

     

    Those DTH operators that are serving their time in the existing regime can migrate to the new regime any time during its current licence period. Before migrating, it has to however clear dues and fulfill obligations under the old regime as well as clear legal cases. The ones who want to migrate will have to pay the entry fee again for a new licence but a rebate, commensurate to the remaining licence period may be granted to them.

     

    The quantum of migration fee will be as follows:

     

    Migration fee = [Entry fee in the new DTH licensing regime – (Entry fee under existing License/existing license period i.e. 10 years) x (No. Of years remaining in the existing regime at the time of migration)]. In this formulation part of a year is not to be counted.

     

    Currently, STB interoperability isn’t possible because of the different technologies being adopted by the operators due to their entering the market at different times. Therefore, the bureau of Indian standards (BIS) has been asked to regularly keep updating the standing of STB technology, in consultation with TRAI. A tariff order for DTH was recommended by TRAI last year that allowed an easy exit option to subscribers, ensuring availability of consumer–premises-equipment (CPE – that primarily consists of STB and Dish antenna) at reasonable prices, easy to understand terms and conditions and at the same time, protecting the interests of the service providers. This order is sub-judice in TDSAT.

  • TRAI recommendation on media and ownership including cross-media issues expected next month

    TRAI recommendation on media and ownership including cross-media issues expected next month

    NEW DELHI: More than 15 months after its second consultation paper on media ownership, the Telecom Regulatory Authority of India (TRAI) is expected to come out with its recommendations on media control and ownership including the tricky issue of cross-media ownership next month.

     

    TRAI chairman Rahul Khullar has said that he hopes the final recommendation will be out in early August but says that at the latest it would be available before the end of the month.

     

    TRAI had in 2008 and in its consultation paper in February 2013 given its view on the matter in which it ruled out state and government ownership leading to a furore since states like Tamil Nadu and West Bengal have applied for state ownership of either television channels or TV signal distribution. After issuing the paper, TRAI had also organised several Open House meets with stakeholders in different parts of the country. Open Houses were in Ahmadabad, Hyderabad, Delhi, Bhubaneswar and Indore.

    It has gained urgency with Tamil Nadu once again raising the issue of Arasu licensing for Digital Access Systems.

    While bodies like the Delhi Union of Journalists have suggested dismantling of existing monopolies and cross media empires, Times Television Network wants a ban on entry of lobbyists having association with public relations or political parties, religious bodies, urban and local administrative bodies, central government ministries and departments, and central government owned companies undertakings.

     

    However, the Indian Newspaper Society feels TRAI should stay out of this as this will mean placing restrictions on the print media with which TRAI is not authorised to deal.

     
    Besides media companies, industry bodies including Cable Operators Association of India, CII, CASBAA, FICCI and IAMAI also participated in consultation process.

     

    In its paper issued in February last year, TRAI had sought comments on devising ownership rules for vertical integration between broadcasting and distribution entities.

     
    The paper was expected to devise rules/restrictions in case of mergers and acquisitions in the media sector, and media ownership rules within and across media segments.

     

    Methodology to measure ownership or control of an entity over a media outlet, identification of genres to be considered while framing media ownership rules and prescribing norms for mandatory disclosures by media entities are some other issues.

     
    TRAI also discussed in its paper issues relating to identification of media segments wherein media ownership rules are to be prescribed, and identification of relevant markets for evaluating various parameters to be used for devising ownership rules and the methodology for measuring these parameters.

     
    At the outset, TRAI said the paper had been issued at the request of the Information and Broadcasting Ministry earlier last year following a report of the Administrative Staff College of India, in Hyderabad.

     

    TRAI said that it was felt that reasonable restrictions may need to be put in place on ownership in the media sector, to ensure media pluralism and to counter the ills of monopolies. It pointed out that such restrictions do exist in many international markets.

     

    In the Open Houses, a majority of the participants in the fifth Open House on Media Ownership in Indore today alleged that the media in the country was in the hands of just a handful of large corporate houses.

  • TRAI extends DTH licence period to 20 years

    TRAI extends DTH licence period to 20 years

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has released its recommendations for a new DTH licensing regime today. As part of this, the period of DTH licence has been extended from the current 10 years to 20 years, renewable by 10 years at a time.

     

    The Regulator has said that the existing licence fee will be reduced from 10 per cent of gross revenue to 8 per cent of adjusted gross revenue, in line with the telecom licences.

     

    Also, the existing DTH licensees will be permitted to migrate to new regime at any time during the currency of the existing licences. Meanwhile, the one time entry fee has been retained at Rs 10 crore.

     

    The salient features of the recommended new DTH licensing regime are as follows:

     

    • The   period   of  DTH  license  to  be  increased  from   10  years to  20  years, renewable by 10 years at a time.

     

    • One time entry fee to be retained at Rs 10 crore.

     

    • Existing license fee to be reduced from 10 per cent of gross revenue (GR) to 8 per cent of adjusted gross revenue (AGR) in line with the telecom licenses.

     

    • The existing DTH licensees to be permitted to migrate to new regime at any time during the currency of their existing licenses.

     

    • BIS   to    come     out    with     updated     specifications for     STBs in consultation with TRAI which should be complied by DTH licensees.

     

    • The DTH licensees to be mandated to comply with the tariff order  scheme prescribed by TRAI for commercial inter-operability.

     

    The salient features of the Recommendation on Cross Holding/Control in the Broadcasting and Distribution Sectors are as follows:

     

    • Policy on Cross-holding/Control to be restructured to bring in uniformity in the broadcasting and distribution sectors.

     

    • Comprehensive definition of ‘control’ to be uniformly adopted in all segments of broadcasting and distribution sectors.

     

    • Relevant market for DTH to be the   entire country and   for MSO /HITS – State.

     

    • Broadcasters and Distribution Platform Operators (DPOs) – MSO /HITS  and DTH operators to be separate legal entities.

     

    Rationalised and regulated vertical integration to be permitted between broadcasters and DPOs.

     

    • Vertically integrated broadcaster(s) and DPO   to   be   subjected   to additional set of regulations.

     

    •A vertically integrated broadcaster to be permitted to control only one DPO.

     

    • A vertically integrated DPO to be restricted from controlling any other DPO of other category in the relevant market.

     

    • A vertically integrated DPO not to be permitted to acquire more than 33 per cent of the market share in the relevant market.

     

    The additional regulations for a vertically integrated broadcaster to include:

     

    • The   agreements with   the   DPOs   to be non-discriminatory and   on charge-per-subscriber (CPS) basis.

     

    • To file the   Reference Interconnect Offer (RIO) for approval by the Authority. All Interconnection Agreements to be only on the terms specified in the RIO.

     

    • To make disclosures as prescribed by the Authority.

     

    The  additional regulations for a vertically integrated DPO would  include:

     

    • DPO to declare its channel carrying capacity and not to reserve more than 15 per cent of this capacity for its vertically integrated broadcaster(s). Rest of the capacity to be offered to other broadcasters on non¬ discriminatory basis.

     

    • DPO   to   publish the   access fees   for carriage of channels over   its network.  The    charging of   the    access fees    should be   on   non­ discriminatory basis.

     

    • To make disclosures as prescribed by the Authority.

     

    • The   Authority  to  come   out   with   appropriate  Regulations/Orders for  the regulatory  framework  and  disclosures  after    the   government   takes  the   policy decision on  the  recommendations.

     

    Click here to read the full recommendation paper
  • TRAI extends date for responses on migration to IP-based networks

    TRAI extends date for responses on migration to IP-based networks

    NEW DELHI: Even as the issue of migration to IP-based networks and requirement of regulatory intervention in IP based interconnection requires urgency, the Telecom Regulatory Authority of India today extended time on the request of stakeholders to respond to a Consultation Paper issued by it on 30 June.

     

    Stakeholders have been asked to respond by 19 August with counter-comments if any by 26 August.

     

    The consultation paper wanted the opinion of stakeholders on interconnection requirements for application and content service providers; quality of service issues; and various other operational issues- sharing of network elements, emergency numbering etc.

     

    Traditional telecommunication systems are migrating towards more powerful and viable internet protocol based telecommunication systems.  Migration to IP based network will result in co-existence of legacy network along with IP based network. The new IP based network as well as its co-existence with legacy network will give rise to several operational, interconnection and quality of service issues which needs to be addressed for the successful migration to IP based networks.

     

    Full text of the consultation paper is available on TRAI’s website www.trai.gov.in. 

  • TRAI recommends no change in entry fee for mobile number portability for service providers

    TRAI recommends no change in entry fee for mobile number portability for service providers

    NEW DELHI: There should be no change in the entry fee for mobile number portability (MNP) service providers for implementing Full Mobile Number Portability, the Telecom Regulatory Authority of India said today. 

    It also said the Performance Bank Guarantee and Financial Bank Guarantee for the MNP service providers should be continued according to the existing licence conditions. 

     

    The recommendations were made in response to the Department of Telecom on additional entry fee, Performance Bank Guarantee (PBG) and Financial Bank Guarantee (FBG) to be charged from the existing Mobile Number Portability licensees for enhancement of scope of their licence. 

     

    In accordance with the provisions contained in the National Telecom Policy 2012 regarding “One Nation- Full Mobile Number Portability,” TRAI received a reference from the DoT on 27 December 2012, seeking the recommendations of TRAI for implementing full Mobile Number Portability across the country. 

    After consultation with the stakeholders and examination of various issues, TRAI had given its recommendations on ‘Full Mobile Number Portability’ to the Department on 25 September 2013. 

     

    On 2 July this year, the DoT conveyed the acceptance of the said recommendations and requested TRAI to give its opinion for additional entry fee, PBG and FBG to be charged from the existing Mobile Number Portability licensees for enhancement of scope of their license. 

     

    The issues indicated in the DoT’s reference have been examined by the Authority and response to the said issues has been finalised. 

  • TRAI amends tariff order for commercial subscribers

    TRAI amends tariff order for commercial subscribers

    MUMBAI: After having invited comments from stakeholders regarding the imposition of tariff on commercial subscribers, the Telecom Regulatory Authority of India (TRAI) has come out with the amendment to the Telecommunication (Broadcasting and Cable) Services (Second) Tariff Order, 2004 (6 of 2004).

     

    The twelfth amendment will come into effect from the date of its publication in the official gazette.

     

    Going with the 24 responses to the earlier consultation pepper, there is no distinction between an ordinary and a commercial subscriber. The definition of a ‘commercial establishment’ (CE) has been included and ‘commercial subscriber’ (CS) has been amended.

     

    Accordingly, the new definition of a CE is “any premises wherein any trade, business or any work in connection with, or incidental or ancillary thereto, is carried on and includes a society registered under the Societies Registration Act, 1860 (21 of 1860), and charitable or other trust, whether registered or not, which carries on any business, trade or work in connection with, or incidental or ancillary thereto, journalistic,   printing and  publishing  establishments,  educational,  healthcare  or  other institutions run for private gain, theatres, cinemas, restaurants, eating houses, pubs, bars, residential hotels, malls, airport lounges, clubs or other places of public amusements or entertainment”.

     

    The definition of a CS is “any person who receives broadcasting services or cable services at a place indicated by him to a cable operator or multi system operator or direct to home operator or head end in the sky operator or Internet Protocol television service provider, as the case may be, and uses such services for the benefit of his clients, customers, members or any other class or group of persons having access to his commercial establishment.”

     

    Abiding by a recent Supreme Court verdict, TRAI has stated that in the rates of TV services, there should be no differentiation between an ordinary subscriber and a commercial subscriber and the charges for both should be per TV set basis. This is applicable when the establishment does not specifically charge the customer for the service. In case, it does, then the broadcaster and the CS can mutually agree on the tariff.

     

    A broadcaster cannot directly supply signals to the CS just as the same isn’t done for an ordinary subscriber. The CS can obtain signals only from a distribution platform operator such as MSO, DTH operator, cable operator, IPTV operator or a HITS operator. This is in line with the rule regarding downlinking of TV channels in India, which states that an applicant company can provide decoders only to registered distribution platforms.

     

    This would also ensure competition to be healthy.

     

    The point regarding sub categorisation of commercial subscribers into similarly-placed groups has been dismissed with only one distinction of those who provide it as part of their amenities to guests and those who don’t.

     

    The regulator expects that with this amendment, the distribution of TV services to commercial subscribers will be streamlined and the services would be available at competitive rates.

     

    Click here for the ammendment

     

    Click here for the press release