Monday 21 July 1997

Regulation: The Necessity

A country’s regulatory philosophy is built on its own unique history and traditions. In India so far we had the experience of state monopoly in the infrastructure development. After 50 years of independence, we are fast moving towards privatisation. However, we have to tread our path very carefully so as not to go off the track in a haste. On the other hand we have to counter the political lethargy in the country. There is a tendency to slow down the matter if there are no personal gains to be made. 
It is unfortunate that the faster we try to develop, the more we get into scams. The best approach is the natural approach that lets the market forces and technology create the right environment for development. Regulations are needed only to compliment tins development. Regulatory structure for broadcasting should include national and state level bodies. National level Authority should handle subjects like frequency spectrum distribution, programming codes, tech-meal standards and guide the state authorities in national policy implementation and subjects like taxation and technical standards. The state level authorities should deal with implementation of various policies in the best interests of the nation and the industry. Implementation should be decentralised to the greatest extent. In a true democracy the general approach to regulating the broadcast and Even if Regulations are essential, it is advisable to form them after due deliberation and considering all aspects for the growth of the industry rather than hurrying them through the Parliament to create history communication industry is

(a) Reliance on private sector to provide different service to public 
(b) Open entry policy
(c) Removing government regulations where feasible and letting market and technological forces determine industry structure, while retaining regulation necessary to safeguard the public interest in reliable, reasonably priced, nationwide and worldwide services. 
(d) Adapting the scope of regulating to the economic and technological circumstances of each telecommuni-cation service. 
Emphasis should be placed on free and open competition wherever feasible. Wherever there is a chance of monopolistic behavior, the regulatory arm of the government must be able to intervene and protect the interests of the users and other market participants. Companies with market power should not be able to abuse their dominant position. This will happen when the non-dominant players are regulated less rigidly. 
f Regulations are essential, it is advisable to form them after due deliberation and considering all aspects for the growth of the industry rather than hurrying them through the Parliament to create history
One of the most important aspects of any regulatory mechanism should be to consider the existing state of the industry. For example in the field of satellite broadcasting in India we already have
(i) large infrastructure of cable laid by small cable operators.
(ii) Cable Operator is declared a small-scale industry with lakhs of people engaged in it.
(iii) A number of foreign channels or channels with differing foreign equity already exist
(iv) THAI, the regulatory body for telecommunication services has been formed which can as well look after all technical and operational aspects of broadcasting. 
(v)The ground infrastructure for distribution of television is the same as for basic telecom services. 
(vi) The regulatory body must consider all the positive aspects of the industry and then introduce new regulations for better and more efficient service. We cannot afford to scrap everything existing and start fresh. Even if it is felt that the industry is going haywire, guide it on the right track. 
Regulations that can not be implemented have no use. We have already seen the example of Cable TV Network Regulation Act 1995. Hence, even if Regulations are essential, it is better to form them after due deliberation and considering all aspects for the growth of the industry rather than hurrying them through the Parliament to create history.

Source:
http://cablequest.org/articles/regulations/item/1398-regulation-the-necessity.htmlSource: http://cablequest.org/articles/regulations/item/1398-regulation-the-necessity.html

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