TRAI issues CP on 2 references from MIB on platform services
The MIB has proposed to adopt certain recommendations on four issues in respect of platform services offered by MSOs
The Telecom Regulatory Authority of India (TRAI) on Monday issued a consultation paper after the Ministry of Information and Broadcasting (MIB) sent back references on its recommendations dated 19.11.2014 on 'Regulatory Framework for Platform Services' and 'Platform Services offered by DTH Operators' dated 13.11.2019.
The TRAI has received two references from the MIB dated October 23, 2020.
In one of the references, the MIB has informed TRAI that after consideration of the recommendation on 'Regulatory Framework for Platform Services' by Inter-Ministerial Committee (IMC), the recommendations have been accepted, except Recommendation No. 8.
The ministry further informed TRAI that certain recommendations have been approved with modification and requested the regulator to furnish its recommendations on the suggested modifications.
In the second reference, the MIB has informed TRAI that they are examining the TRAI’s recommendations on 'Regulatory Framework for Platform Services' for their implementation in respect of Multi-System Operators (MSOs)/Local Cable Operators (LCOs).
The MIB has proposed to adopt certain recommendations on four issues, in respect of Platform Services offered by MSOs also by appropriately replacing the word "DTH" with "MSO" and requested TRAI to furnish its views on the above proposal.
The TRAI noted that recommendations on Regulatory Framework for Platform Services in 2014 were issued when digitisation process was not complete. As the process of Digitalisation has since been completed in March 2017, the recommendations as regards those for DAS areas only remain relevant now.
The authority issued the Recommendations on Platform Services offered by DTH Operators on 13th November 2019 after receiving a reference from MIB dated 2nd July 2019. The MIB referred to TRAI’s earlier recommendations on 'Regulatory Framework for Platform Services' and sought TRAI recommendations by reconsidering the issues regarding platform services for DTH operators.
TRAI will provide its recommendations on the above-mentioned letters to MIB after a due consultation process. Written comments on the consultation paper are invited from the stakeholders by 14th December 2020 and counter-comments by 19th December 2020.
Reference related to 'Regulatory Framework for Platform Services'
The MIB has rejected the TRAI recommendation that "any person/ entity desirous of providing PS, or is already providing such services, must be incorporated as a company under the Indian Companies Act, 2013 and the rules framed thereunder".
The MIB's view is that this recommendation was not accepted by IMC in respect of MSOs/LCOs since most of the MSOs/LCOs operated in small areas are either proprietorship or partnership firms that are not registered as companies.
It further stated that making it obligatory for MSOs/LCOs to convert into companies may not be in line with the promotion of ease of doing business. IMC decided that anybody registered as a DPO, either with MIB or with the post office, shall be eligible to carry PS channels.
In its response, the TRAI has said that "in case MIB considers that there is no necessity to register as a company for MSOs desirous to register their platform service, it should satisfy itself regarding the transparency of ownership and assurance of content of such platform services at the time of registration. MIB may ensure that registration of Platform Service Channel may be made in such a way that the individuals provide full disclosure".
In response to TRAI recommendation that a maximum of 15 PS channels may be offered by the DPOs, the MIB had suggested that the MSOs may be permitted to operate to a maximum of 5%, and LCOs to a maximum of 1% of the total permitted satellite channel being carried by them as permitted PS channels without any upper limit.
The TRAI has responded to the MIB by saying that the liberal regulatory framework of PS should not encourage the bypassing of the traditional broadcast routes. It further stated that it was not desirable to separately specify the limit on the number of PS channels that may be offered by the MSOs and LCOs. This may be left to the mutual arrangement among MSOs and LCOs. An MSO may remain responsible for all the platform service channels being offered on its platform.
In the consultation paper, the TRAI has agreed with MIB's views that the recommendations on four issues regarding Platform Services offered by DTH operators may also be applicable to all DPOs including MSOs to ensure uniformity of guidelines of DTH operators and MSOs.
