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Tag: open sky

  • TRAI chief defends broadcast tariff order, data protection suggestions

    TRAI chief defends broadcast tariff order, data protection suggestions

    MUMBAI: The much touted and highly anticipated live session of TRAI Chairman RS Sharma on Twitter yesterday didn’t throw up surprises. The moderator relayed more queries on the telecom sector and very few on the broadcast segment and in the few that were answered, the chief regulator defended his organisation’s stand ably.

    One such query relating to the broadcast sector revolved around whether India was a highly regulated market and then sought a status report on TRAI’s latest directives, including those relating to broadcast and cable sector tariff, inter-connect agreement amongst stakeholders and quality of service.

    Denying that India was a highly regulated market — “no case of over-regulation…,” he said — Sharma pointed out that though the present set of regulations, implemented after almost 18 months, had “seen a lot of litigation”, they were “wonderful” and aimed at ensuring “transparency” in the whole eco-system.

    “The customers [of TV services] would benefit,” Sharma emphasised.

    For the uninitiated, TRAI’s tariff guidelines, originally issued in 2016, remained mired in legal tangles till earlier this year when Madras High Court upheld the regulator’s contentions. Subsequently, on 3 July 2018 TRAI issued a statement saying as all judicial compliances were completed, its tariff order came into existence with immediate effect. However, the Supreme Court is set to hear a case filed by original petitioners Star India and Vijay TV against the high court order late August. Some confusion still prevails regarding a cap of 15 per cent on prices of TV channels offered by broadcasters as the Chennai court had frowned down on this stipulation.

    Coming back to the TRAI on Twitter session, asked about indifferent quality of service relating to mobile broadband, Sharma batted for use of satellites to also deliver broadband services. In fact, in its several recommendations, the regulatory body has pushed for an open sky policy signifying usage of Indian and foreign satellites to deliver a host of services, including television and broadband.

    According to the chief regulator, all options of delivering broadband services should be explored, including satellites, cable TV and DTH platforms. Such an approach could also result in bringing down costs, Sharma said in reply to a question on indifferent broadband services in hilly and logistics-challenged areas like the north-eastern part of India.

    Queried on the logic behind issuing recommendations on data vis-à-vis its ownership and privacy ahead of a government-mandated panel appointed to look into these issues, Sharma explained it as a necessity as the ecosystem was changing. Currently, India is consuming more data than the US and China put together, he pointed out, adding, therefore, the issue of data security, privacy and ownership had become extremely important.

    “If data is flowing, new players have emerged [and] they also have to accept the responsibility and… take care of consumer data. Hence, after the consultation process running for about a year, we came up with this recommendation saying similar kind of rules must apply to the telecom, browser, devices…” Sharma clarified. However, the Justice BN Srikrishna committee, asked by the government to look into issues relating to data, has expressed its displeasure on TRAI recommendations ahead of its own conclusions.

    “Justice Srikrishna committee is drafting an…overall data protection law and we have said while there may be general questions relating to data protection, it is important that till that time, apply more or less the same rules of data protection as applicable for telecom service providers,” Sharma defended his organisation’s stand.

    Asked about the Apple controversy that proposed strict actions against the US giant as it was not complying with TRAI request on consumer data, Sharma clarified that it had nothing to do with any particular company and termed the situation as “misconstrued” — “It is totally related to the issue of unsolicited communication,” he added.

    Interestingly, through its various apps, aimed at consumer assistance (like checking the broadband speed being provided by the telecom service provider on mobile handsets of consumers), TRAI itself collects huge amount of data, which critics have said could be exploited if leaked.

    Asked about the data that the regulator mines and ways its protection is ensured, Sharma said that the organisation has “adopted privacy” as a default mechanism, which ensures data protection of consumers.

    The 1978 batch Indian Administrative Service officer Sharma was appointed as TRAI chairman three years ago. His tenure is scheduled to end in August 2018 and the government, according to sources, has received as many as 45 applications for the post that was advertised on the website of Department of Telecoms.

  • Comment: TRAI uplinks progressive recommendations; now MIB, others need to downlink them

    Comment: TRAI uplinks progressive recommendations; now MIB, others need to downlink them

    The approximately Rs 1,400 billion Indian broadcasting and cable sectors, reeling under the impact of a slow economy and hemmed in by erratic policy-making, would be breathing a bit easy after TRAI’s recommendations on issues related to uplink and downlink of TV channels and teleports.

    And, why not?  When the consultation paper on uplinking and downlinking guidelines was released by TRAI in December last year, the concept paper had sent alarm bells ringing in the media industry. Reason? The consultation paper had references about auctioning of satellite spectrum and TV channel permissions, introduction of AGR (adjusted gross revenue) sharing based licence fee (the concept of licensing itself was a debatable issue) and introduction of other changes.

    Most media houses sensed that an auction and AGR-based licensing and spectrum regime could have an irreparable impact on the industry, a la telecom sector, where winding down of businesses and pink slips are becoming common. Even more worrying for the sector was the assertion by TRAI — probably egged on by the Ministry of Information and Broadcasting (MIB)’s reference letter on the issue — that the administrative permissions received by TV channels under the existing norms were licences under Section 4 of the Telegraph Act, 1885, which in itself is an antiquated piece of legislation harking back to the 19th century.

    Though TRAI may not have been directly responsible for suggesting in the consultation paper, issues that rankled the industry, it did experience a rare united and collective views of the industry. Though consensus among stakeholders is rare, on this matter there was no such hesitation. And, an open house forum organised by TRAI on the issue to get further feedback could be cited as an example of this rare unity of views.

    Most attendees to the open forum conveyed loud and clear that concepts like auctioning of TV channels’ permission and AGR-based annual revenue sharing (with the government) would do more harm to the industry than any good. What’s more, some of the industry representatives reminded TRAI of its recommendations for National Telecom Policy 2018 where it had suggested “review” of all levy and fees imposed on telecom service providers.

    In the final recommendations issued earlier this week, TRAI has categorically struck down the possibility of either auctioning of permissions and/or spectrum and steered clear of AGR altogether. Rather, it has taken a highly progressive stance, which if accepted by MIB and other government organisations can inject the much-needed fuel in the industry for it to propel forward faster over the next decade.

    By not increasing any substantial financial burden on media companies in this sector, TRAI has enabled the capex to go into creating newer ventures, innovative products and business models, and other expansionary activities, rather than simply paying fees and levies. Though the suggested framework has been left mostly untouched from the perspective of administrative fees, there are a few notable changes.

    The annual licence fee for uplinking of a TV channel has been enhanced from Rs 200,000 to Rs 300,000. Similarly, the annual fee for downlinking of a TV channel has been increased to Rs 750,000 from Rs 500,000. Also, the fee for downlinking of channels uplinked from abroad has been increased to Rs 22,50,000 per annum.

    TRAI, while exhorting the likes of MIB, Department of Space and DoT to streamline processes, has interestingly suggested transfer of permissions between two companies be permitted only in the case of mergers and acquisitions as recognised under applicable laws. However, free transfer has been recommended for permission of a TV channel to its subsidiary company or holding company or a subsidiary company of the holding company. The caveat being such a company should have a valid uplinking and downlinking permission.

    A time period of only one year has been given for operationalisation of a TV channel and a lock-in period of one year from the date of operationalisation of a channel for the transfer of permission of such a channel too has been introduced.

    As for teleports, no change in the amount of one- time non-refundable processing fee levied for seeking permission for establishing a teleport has been suggested. Similarly, it has been suggested that no entry fee is levied for granting permission for establishing a teleport. However, for each antenna, a fixed annual license fee of Rs 300,000 has been recommended.

    What will also come as a relief to the teleport industry is that TRAI has refrained from restricting the number of teleports in India.

    And, once again TRAI has nudged Department of Space and Department of Telecoms to take time-bound and liberalised policy decisions relating to satellite capacity. Though not said upfront and in so many words, the regulator has pitched in for foreign satellites too. “The issue of open sky policy for Ku band frequencies may be taken up by MIB in INSAT Coordination Committee (ICC) meeting and the open sky policy should be adopted.”

    Any regulator would vouch that it’s hard to please the core constituency and stakeholders don’t always agree with its stand, but on the uplink/downlink matter the industry would agree with most of the suggestions of TRAI — and also breathe a little easy.

    Hang on, don’t pop the champagne yet. TRAI can only make suggestions — it admitted so in an open forum — and it’s up to MIB, DoT and Department of Space to accept the suggestions and implement them. And, therein lies the catch because quite a few other sets of TRAI recommendations have been gathering dust in various corridors of power.

    Also Read :

    Uplink, downlink issue: TRAI pushes for a liberal regime keeping most existing norms unchanged

    TRAI extends dates for comments on uplinking/downlinking consultation paper