TRAI, ministry split on qualifying criteria for TV channel owners

The Telecom Regulatory Authority of India (TRAI), which also regulates the broadcast media sector, has reiterated its earlier recommendation for a steep hike in qualifying criteria for launch of new TV channels. The ministry of information and broadcasting had sent back TRAI’s July 2010 recommendations to the telecom regulator expressing concern over the proposed increases in qualifying criteria.

The primary bone of contention is over the size of companies that should be allowed to start TV channels in the country. While the existing law, fixed five years ago, says the firm should have assets of at least Rs1.5 crore, TRAI had recommended raising it to Rs100 crore for news channels and Rs25 crore for non-news channels.

“Ministry is of the view that the net-worth requirement should not become so stiff so as to stifle the growth of independent and divergent sources of news and views which is the essence of a healthy democracy,” the I&B ministry said, while sending the recommendations back. Instead, it suggested Rs5 crore and Rs15 crore as the net-worth requirements for non-news and news channels.

The ministry also expressed concern that setting the bar as high as TRAI suggested would impact the viability of regional and language channels, which typically have lower running costs.   

In response, the regulator has now asked the government to put the caps at Rs15 crore and Rs75 crore for the two types of channels. India has hundreds of so-called news channels, many of them started by political and business leaders anxious to gain political clout. In its latest missive, Trai said TV broadcasting should not be left to “non-serious” players.

“TV broadcasting has significant impact on the public mind space and it is important that non-serious operators be discouraged,” it said in response to the ministry’s letter. It pointed out that the Rs1.5 crore net-worth requirement is proportionate with the Rs15-20 crore per year required to run a non-news channel and Rs100-150 crore required to run a news national channel.

Both TRAI and the ministry had earlier agreed on not capping the total number of channels or stipulating the broadcasting technology to be used. The ministry is expected to take a final call on the matter in a few weeks.

The new norms will be applicable only to new applicants.