Gujarat: Cable operators challenge TRAI over revenue sharing

The Cable Operators Association of Gujarat has moved the Gujarat High Court challenging the Telecom Regulatory Authority of India's (TRAI) regulations prescribing the sharing of service charges between multi-system operators (MSOs) and local cable operators (LCOs) in the ratio of 55:45 per cent.

The association has challenged the constitutional validity of the revenue sharing clause under the Telecommunications (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations 2017. It has submitted to the court that the TRAI's action of deciding the ratio of sharing of service charges between two independent business entities is without any jurisdiction and is arbitrary and illegal.

Notably, the petition was taken up for hearing on Wednesday by the single judge bench of Justice VM Pancholi. However, Justice Pancholi recused himself from hearing the matter as the petitioner has challenged the constitutional validity of the TRAI's regulations, which needs to be heard by a division bench. Justice Pancholi, while recusing himself, directed the high court registry to place the matter before Acting Chief Justice AS Dave, who will assign an appropriate bench which will decide the case. The regulation being challenged is coming to effect from February 1.

As per the present set-up, signals are being distributed by the broadcasters to MSOs, which in turn transmits it to the LCOs. The LCOs transmit it to subscribers of television channels—the end users.