TRAI proposes 10-year renewal period for MSO registration

The Telecom Regulatory Authority of India has issued a consultation paper on 'Renewal of Multi-System Operators (MSOs) Registration' following a reference from the Ministry of Information and Broadcasting (MIB).

The vide its letter dated 7th February 2022 has made a reference to TRAI, seeking its recommendations on referred aspects of the renewal of MSO registrations. In its reference, MIB has stated that the policy guidelines for uplinking/downlinking of channels prescribe 10 years as the permission period. The renewal period is also mentioned as 10 years. In the DTH sector, the TRAI noted, the guidelines mention the licence validity for a period of 20 years, renewable by 10 years at a time. To maintain uniformity with the DTH and broadcasting sector and considering the validity of security clearance, MIB has proposed to keep the renewal period of MSO registration after every 10 years. The processing fee to be charged for such renewal also needs to be decided, the TRAI said in the consultation paper.

As there is no provision for renewal in the CTN Act, the MIB has sought TRAI's recommendations on whether a provision relating to the renewal of MSO registration after every 10 years be inserted in the Rules. Further, Rule 11A of CTN Rules, 1994 prescribes a processing fee of Rs. 1 lakh to be submitted with the application for MSO registration. The MIB has asked TRAI to recommend the amount of processing fee to be charged for such renewal, which shall also be inserted in the Rules.

The TRAI said that the consultation paper has been prepared to seek the comments/views of the stakeholders on the issues related to the renewal of MSO registration. It is also noted that at present there is no provision for renewal in the existing Guidelines for Registration for HITS services.

TRAI is of the view that in order to maintain uniformity amongst different distribution platforms, the policy guidelines should have a provision for renewal for HITS services also. Accordingly, TRAI said it may initiate a separate consultation for renewal of HITS services, either on a reference from MIB regarding this or on suo motu basis, as may be necessary.

The digitalisation of the Indian broadcasting sector began in the year 2012 and was completed across the country by March 2017. The MIB issued new registrations to MSOs during the DAS implementation in June 2012, which became due for renewal/extension in June 2022. The Cable Television Networks Rules, 1994, however, do not mention provisions for the renewal of MSO registrations. In view of this, the authority has received a reference from MIB seeking recommendations on the issues pertaining to the MSO Renewal procedure.

As per the existing guidelines, the MIB grants registrations to operate as an MSO under Rule 11A-11F of The Cable Television Networks Rules, 1994. The applicant deposits a processing fee of Rs 1 lakh online on the Bharatkosh portal, and then along with the fee receipt and other requisite documents applies online on the Broadcast Seva portal for registration as MSO.

Post scrutiny of eligibility and documents, security clearance from the Ministry of Home Affairs (MHA) is obtained before grant of the registration. Para 7.1 of MHA guidelines dated 25.06.2018 for assessment of proposals for National Security Clearance states that “The validity period of security clearance will be co-terminus with the validity period of license/permission granted by the administrative ministries/departments. in the case of contracts, the security clearance to the bidders will be valid till the contract is valid. As regards renewal of permission/license/registration, the ministry/department concerned shall forward the proposal in standard proforma at least 90 days in advance to MHA”.

The security clearance provided by MHA to an entity, or its director(s) has a limited validity of ten years from the date of initial grant of security clearance or period of license/permission, whichever is earlier, as clarified in MHA O.M. dated 25.06.2018.

 The last date for submission of comments is 10th August while the last date for submission of counter comments is 17th August.

Issues for consultation

3.1 What should be the period of extension/renewal, to be prescribed in the Cable Television Networks (Regulation) Act, 1995 /Cable Television Networks Rules, 1994, on the expiry of the initial period of permission of MSO registration? Please elaborate your response with justification.

3.2 Whether a one-time fee should be levied at the time of renewal of the MSO registration? If yes, please suggest amount of fee for such renewal to be prescribed in the Cable Television Networks (Regulation) Act, 1995 /Cable Television Networks Rules, 1994. Please provide detailed reasoning for your comment.

3.3 Should a time window be prescribed before the expiry of MSO registration, within which the MSO shall apply for renewal of the MSO registration?

3.4 In case an MSO has applied for renewal, and the final decision on renewal is pending, what should be the provision to ensure continuity of service for the consumers on expiry of previous registration?

3.5 In case an MSO hasn’t applied for renewal before the expiry of its registration:

3.5.1 What should be the status of services by such MSO after the expiry of registration? As per extant guidelines/ regulations an MSO with valid registration only can get the signals of a television channel. Should a broadcaster

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disconnect the television channels for such MSOs whose registration has expired?

3.5.2 Should existing registered operational MSOs be provided with an extended time beyond the original registration period for applying for renewal? What should be the maximum time after expiry up to which an application for renewal can be entertained by MIB?

3.5.3 Should there be an additional fee for such applications that are received after the expiry of the registration period?

3.6 Should some qualifying conditions be prescribed for renewal of MSO registration, under which the MSO, along with the application for renewal, shall be required to submit its compliance status with the terms and conditions of registration and the extant regulatory framework?

Please provide the details of:

(i) List of necessary compliances that should be mandatory for considering renewal of MSO registration,

(ii) List of documents, which may include, but may not be limited to, self-certifications, NOCs from TRAI/MIB/licensing authority, audit reports etc. that would be required to be submitted for verification of such compliances at the time of application,

(iii) Any other mandatory requirements for verification of status of compliances of the MSOs before grant of renewal of registration.

Please elaborate your suggestions with reasons for the mandatory requirement of each compliance in tandem with ease of doing business in the television distribution network.

3.7 Should there be any additional terms and conditions for renewal of the permission for MSO registration? Please elaborate.

3.8 Stakeholders may also provide their comments on any other issue relevant to the present consultation.