Trai moots renewal of cable company registration after 10 years

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The Telecom Regulatory Authority of India (TRAI) has recommended to the ministry of information and broadcasting (MIB) that the renewal of the registration period for multi-system operators (MSOs) should be 10 years. In its recommendations titled ‘Renewal of MSOs Registration’, the TRAI added that a shorter period of renewal will be counter-productive to a capital-intensive business like cable TV which has a long gestation period.

The regulator noted that there are 1753 registered MSOs out of which 1100 are operational. MSOs are intermediaries between the broadcasters and local cable operators (LCOs), who service the end cable TV customers. In some cases, MSOs also provide services directly to the end customers. According to the FICCI-EY 2022 report, the cable TV households in India stood at 67 million in 2021 compared to 55 million direct-to-home (DTH) homes.

The overall cable TV universe has been shrinking due to competition from telcos, DTH, Prasar Bharati’s free DTH platform DD Free Dish, and OTT.

The authority has also suggested that a processing fee of ₹1 lakh should be charged from the MSOs at the time of renewal. The application process should be fully digital through Broadcast Seva Portal. MSOs, whose applications are pending approval, should get deemed provisional extensions till the MIB takes a final decision on their applications, the TRAI added.

The authority also noted that the uplinking and downlinking guidelines for TV channels should be appropriately amended to ensure that broadcasters do not provide signals to MSOs whose registration has expired. The registration status of MSOs who have not applied for renewal should be deemed as cancelled post the expiry date. To ensure that the applicant MSO is in compliance with the extant rules and regulations, the TRAI has suggested that the ministry must refer every renewal application to it.

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