NEW DELHI: India’s telecom regulator has proposed easing compliance burdens on smaller cable television operators whilst tightening audit procedures for the rest of the industry under draft amendments released on 22 September.
The Telecom Regulatory Authority of India (TRAI) plans to make annual system audits optional for distribution platform operators (DPOs) serving fewer than 30,000 active subscribers. The move follows complaints from smaller operators about the disproportionate cost of mandatory audits, which can consume a significant share of their revenues.
The proposed draft Telecommunications (Broadcasting And Cable) Services Interconnection (Addressable Systems) (Seventh Amendment ) Regulations, 2025 state that larger operators would still face stricter requirements. They must complete audits for the preceding financial year and share reports with broadcasters by 30 September each year, replacing the current calendar year framework.
The draft also introduces new provisions for infrastructure sharing between operators. Where multiple DPOs share encoding equipment, the infrastructure provider would insert watermark logos at the encoder level whilst individual operators add their logos through set-top boxes. However, TRAI proposes limiting screen clutter by allowing only two logos—the broadcaster’s and the last-mile distributor’s—to appear simultaneously.
The regulator has addressed longstanding industry disputes over audit challenges. Under new procedures, broadcasters questioning audit reports must cite specific discrepancies with evidence within 30 days. If unsatisfied with auditor responses, they can request special audits but must bear the costs.
“The audit of systems is necessary to ensure that the systems deployed by a DPO are addressable as per regulatory requirements,” TRAI stated in its explanatory memorandum. “Proper and accurate subscription reports are very important as the settlement of charges between service providers is based on such reports.”
The draft regulations also mandate that auditors provide independence certificates confirming they have no conflicts of interest with the entities being audited.
Industry stakeholders have until 6 October to submit comments on the proposals. The amendments are scheduled to take effect from 1st April 2026.
The move reflects TRAI’s broader effort to reduce regulatory burden on smaller operators whilst maintaining oversight of the Rs 70,000 crore broadcasting and cable services sector. The authority previously made certain compliance requirements optional for operators with fewer than 30,000 subscribers in quality-of-service regulations issued in July 2024.
However, some industry players have criticised the proposals. Broadcaster associations argue that exempting smaller operators from mandatory audits could increase under-reporting of subscriber numbers, whilst some cable operators contend that even the revised procedures remain too burdensome.
The draft comes as India’s television distribution industry grapples with declining subscriber bases and increased competition from digital platforms. Many smaller operators have struggled with compliance costs, particularly annual audit fees that can range from Rs 50,000 to several lakhs depending on system complexity.
TRAI’s proposals also address technical requirements for infrastructure sharing arrangements, mandating separate data instances for each operator using shared subscriber management and conditional access systems to prevent cross-contamination of subscriber data.
The regulator emphasised that the 30,000-subscriber threshold for audit exemptions would be reviewed periodically based on market conditions.
