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I&B min sleeps on Trai recommendations

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Soma Das Posted: Oct 10, 2008 at 1719 hrs IST
Of the set of over a dozen recommendations and proposals that the Telecom Regulatory Authority of India (Trai), has forwarded to the ministry of information and broadcasting since March 2006, the ministry has taken decision and issued guidelines for only one.

Those pending in the ministry include a hike in FDI in cable networks, DTH and a host of other carriage platforms, as well as the roll out of conditional access system, among others. The only recommendation of Trai that has gone through is Internet protocol television (IPTV), the policy framework, which received the approval of the Cabinet in August. The ministry officials in turn feel are issues that need time to come through.

In most cases, the Trai recommendations were in response to a reference note sent by the ministry to the regulator, asking it to either frame guidelines in an emerging sub-sector or suggest modifications in the existing policy frameworks. Trai also doubles up as the broadcast regulator on carriage issues. The subjects on which it has sent recommendations are, headend-in-the sky, third phase of private FM radio broadcasting and recently, on television rating points and restructuring of cable services, other than the roll out of conditional access system. According to an industry analyst, the raison detre of such policy-related recommendation is defeated if action is not taken in time.

“In a rapidly expanding and evolving media landscape in the country, the entire exercise of consulting all stakeholders more than once, borrowing international examples to study standard norms and good practices and then laying down recommendation is rendered meaningless if the final decision is not taken promptly. By the time the necessary actions are taken, the sector would have moved ahead to take the next leap and reality in the media landscape would have transformed, with a new set of challenges,” said a broadcaster. He further added that the lag between the policy document and the real scenario would be difficult to bridge, if the ministry continues to act at the current pace.

This has created an interesting situation. Industry players taking cognizance of the good practices and anticipating the enforcement of impending legislation have suo moto adopted the Trai recommendations in some cases. For instance, the two private agencies in the television rating business are working towards tracking the viewership of DTH and rural households, while the cable operators had ordered IPTV ready set top boxes even before the IPTV legislation was put in place.

The regulator in late August, proposed self regulation for television rating business, through an industry led expert body, but built in a role for government in the whole process. Earlier in July, Trai had suggested that the cable operators, both multi system operators and local cable operators, be brought under the licensing regime from the existing registration system. It also set a target of five years for the cable operators to migrate to digital transmission.

A ministry official when contacted said, “Most of these issues are under consideration. While a recommendation from Trai undoubtedly acts as a basis to set the foundation of the policy, a lot of work still needs to be done, many more aspects need to be deliberated upon, before the final policy document is given a go ahead. After all, the final policy framework is a semi-permanent document which is referred for a substantial period of time before the next revision,” The official added that the ministry is internally processing many of these issues and a decision on issues like HITS will be taken in a matter of time. Also the ministry in a letter early this year had communicated to the regulator that the satellite radio policy has been accepted, with modifications.

On FDI too, the ministry had communicated its intent to raise FDI in carriage platforms except for cable TV. A hike in news and current affairs channels was however, ruled out.

Trai had recommended in April that in view of convergence of technologies between the telecom and broadcasting sectors, the FDI limit in the cable networks, DTH, HITS, mobile TV be raised to 74 per cent from the current 49 per cent. Also, Trai had recommended that the FDI cap in FM radio and news and current affairs channel be raised to 49 per cent from the current 20 per cent and 26 per cent respectively.

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