The Telecom Disputes Settlement Appellate Tribunal (TDSAT) has dismissed the advertisement cap case between News Broadcasters Association (NBA) and other broadcasters versus the Telecom Regulatory Authority of India (Trai).
The development comes after the last week’s Supreme Court ruling stating that TDSAT does not have the authority to hear cases challenging Trai regulations.
Following this, the parties can now move the High Court.
Recently, TDSAT had stayed the implementation of Trai’s regulation to cap ads to 12 minute for one hour of broadcast; the cap was to be effective from October 2013.
“All appeals against Trai’s regulations will now have to be made in respective high courts. The power to appeal to high courts, which can be further escalated to SC, implies that there can be potential delays in dispute settlement,” said Abneesh Roy, associate director (institutional equities - research) Edelweiss Securities Ltd.
Commenting on the TDSAT decision, an official from one of the news broadcasters said, “The 12 minute ad cap issue is something we have been fighting against for a while now. The TDSAT decision will only add to the delay in getting the matter resolved.” If the TDSAT stay continues while broadcasters seek high court intervention, the Edelweiss report said the interim delay will be positive for companies such as Zee Media, NDTV and TV Today, TV18 Broadcast and Sun TV.