TRAI Sets A Time Frame of Five Years for Digital Transmission Through Cable TV

Telecom Regulatory Authority of India (TRAI) has send its final recommendations on “Restructuring of Cable TV Services” to Ministry of Information and Broadcasting. If acted upon by the Government it will not only revamp the Cable TV industry but would also put India on the map of developed countries with predominant share of digital transmission of entertainment content. 

The spectacular growth of Indian Cable TV industry during the past two decades has been largely due to entrepreneurial skills of Cable TV operators.

Cable TV penetration has risen to 78 million homes at the end of year 2007 and still has a lot of potential to grow. However, the present mode of Cable TV transmission which is predominantly analogue, has certain limitations as it lacks scope for technological up-gradation, appropriate addressability and efficient resource utilization.

The salient features of the recommendations

• Greater emphasis laid on network digitization, increased addressability and to encourage voluntary CAS.

• Incentives prescribed to Multi System Operators (MSOs) to introduce total digitized networks.

• The registration for cable TV operator to be replaced by a comprehensive and supportive licensing framework.

• Separate licensing frameworks for Cable TV operators (LCOs) and Multi System Operators (MSOs).

• Eligibility criterion made specific to identify the entities who can act as LCOs and MSOs

• Option and flexibility to choose Service area given both to LCOs and MSOs.

• Entry Fee

• LCO- Rs 10000/- and Rs. 100000/- for District and state level respectively.

• MSO- Rs. 1 Lakh, Rs. 10 Lakhs and Rs. 25 lakhs for District, State and Country level respectively.

• New license and renewal of license in time bound manner.

• Duration and Administrative Cess for respective License well defined.

• Licensing Authority and Appellate Authority well defined.

• Easy migration of valid registered Cable TV operators.

• A well defined Subscriber complaint redressal mechanism & Subscriber Billing system.

• Quality of service defined for LCOs and MSOs.

• Data collection procedure for LCOs and MSOs well defined to ensure organized and systematic growth.

• Penalty provisions including suspension and termination of license for effective compliance of licensing conditions.

• LCOs & MSOs encouraged to use latest transmission technologies such as fiber etc for better quality of service. Both MSOs & LCOs made eligible for Right of Way (RoW).

• Special concession of 50% in entry fee for LCOs and MSOs for an initial period of three years for J&K and North Eastern states.

• Detailed recommendations are avai lable on TRAI's website www.trai.gov.in.

The sector is marred with disputes relating to actual subscriber base, poor quality of service and inadequate consumer grievance redressal mechanism. The non-availability of authenticated data, lack of supervisory guidance and unorganized development of Cable TV industry are some of the roadblocks to explore its full potential. The Authority has recommended a well defined, robust and supportive licensing framework to restructure the Cable TV sector in order to boost planned, sustained growth and better services to customers.

The recent technological developments are likely to trigger a fierce competition in the TV Broadcasting sector and the conventional Cable TV operators may face stiff competition from operators running TV networks based on advance distribution technologies like Direct to Home (DTH), Headend in the Sky (HITS), Internet Protocol Television (IPTV) etc. With more and more convergence taking place especially between Broadcasting and Telecommunication sectors, the conventional analog cable TV networks will have to be upgraded for exploiting new avenues for delivering the converged services.

The convergence and advent of NGN will require high speed broadband access to subscribers. Cable operators can contribute a lot in this direction as it will help to increase broadband penetration drastically. This will definitely require up-gradation of present Cable TV Networks to two-way digital cable networks. Such network upgradation requires huge resources inflow which can be attracted only in a well organized sector with supportive regulatory framework.

The Authority had initiated a consultation process by floating a detailed consultation paper on “Restructuring of Cable TV Services” on 4th March, 2008.

Emphasis has been laid on long term stable, organized and supportive licensing framework to encourage innovation & investments in the sector with emphasis on better services and effective customer grievance redressal mechanism. The Authority has duly recognized the contributions made by present Local Cable Operators (LCOs). It also recognizes the investments made by the LCOs in terms of time, manpower and money. Therefore, the framework being suggested would encourage continuing role for the present Cable TV operators in the restructuring of the Sector.

These recommendations are a step forward to restructure Cable TV Networks to ensure effective licensing compliance, attract investment, facilitate new value added services.

It has also been assured that no undesired persons get the cable TV license as the eligibility criteria demands an affidavit from the person stating that he has not been convicted for any criminal offence. 

TRAI has also recommended that the cable operator should be a tax payer havig a valid PAN number. He should also be registered with service tax authority.

A scheme for administrative cess, amounting to ten percent of license fee, has been advocated to meet the contingency needs of the Department of Posts for maintenance of records etc., of Cable TV operators. 

The entry fee for LCOs in NE and J&K region is recommended to be reduced to 50 % for applications received during initial period of three years from the date of notifications of new regime. 

Licensing Authority is the same as the earstwhile registering authority and has been specified for different types of networks. The Senior Superintendent of Post Offices (Division Head) for District Level licenses and the Chief Post Master General of the circle for State level license.

The appellate authority for District Level licenses shall be the Chief Post Master General of the circle and for the State level licenses, the CPMG/Pr. CPMG shall be the appellate Authority, as the case may be.

To better organise the function of a cable service, it has been recommended that LCO mustl provide receipts for payments received from subscribers as specified by TRAI from time to time. Such receipts must be serially numbered and bear name, telephone number, Service Tax number and Entertainment Tax number (if applicable) of LCO. Such receipt should provide details of subscription charges & taxes separately.

To maitain the quality of service, licensed cable operators should comply with BIS Standard IS 13420, Part I (Revised) relating to system performance, and ensure delivery of proper signal at subscriber premises as given under:

• C/N > 44 dB

• Minimum Carrier level 60 dB(V)

• Maximum Carrier level 80 dB(V)

• Slope < 12 dB

• X-Mod > 57 dB

• CSO > 57 dB

For providing better and modern services TRAI wants Cable TV operators to be made eligible for seeking RoW for laying Cable/Optic fiber both underground as well as over poles on non exclusive basis. Concerned State Governments/ local bodies may consider formulating a RoW policy for Cable TV operators. Ministry of I&B may initiate a dialogue with the state governments to facilitate the formulation of uniform RoW policy for Cable TV operators.

LCOs shall not be responsible for the content provided by MSOs/ Broadcasters, but they will effectively block such content whenever they are required to do so by the authorized officer. 

 LCOs shall be permitted to transmit their ground based channels, which will be subjected to Program code and Advertisement code as prescribed in the Cable Television Network (Regulation) Act, 1995 

 Existing LCOs may be mandated to digitize their network in five years from the date of notification of new licensing regime. The new entrants, however, have been given only three years. TRAI wants only digital networks to come up.

LCOs providing the broadband services after obtaining appropriate license in rural and far flung areas using two way digitalised cable networks shall be entitled for USOF subsidy/ support given to telecom operators for providing similar services if they fulfill terms and conditions laid by USOF. No discrimination shall be done based on the type of network and technology used to provide a broadband service.

All agreements between MSOs and broadcasters and between MSOs and cable operators shall be in writing It shall be the responsibility of the MSOs to compulsorily provide a signed copy of the interconnection agreement to the LCOs and to retain an acknowledgement. In addition, MSOs will also attempt to provide a translated copy of the interconnection agreement in the local language.

IT has also been recommended that MSOs shall provide a monthly bill to LCOs giving details of current demand and past outstandings, if any, separately.

If the recommendations are accepted by the Ministry soon, we may expect much better days ahead.

Source: http://cablequest.org/articles/regulations/item/1373-trai-sets-a-time-frame-of-five-years-for-digital-transmission-through-cable-tv.htmlSource: http://cablequest.org/articles/regulations/item/1373-trai-sets-a-time-frame-of-five-years-for-digital-transmission-through-cable-tv.html