In an effort to restructure the unorganised cable TV segment, the Telecom Regulatory Authority of India (Trai) has suggested bringing it under the licensing regime.
Operators can migrate to new regime within 12 months from March 31 of the year of notification
NEW DELHI: In an effort to restructure the unorganised cable TV segment, the Telecom Regulatory Authority of India (Trai) has suggested bringing it under the licensing regime.
Currently, cable operators only have to register at a post office.
There are around 30,000 registered cable TV operators in the country, but some estimates suggest the number is more than double that figure. Around 128 million households in the country have television, and 78 million of these have cable and satellite connection.
With new technologies such as direct-to-home (DTH), headend-in-the-sky (HITS) and internet protocol television (IPTV) picking up, the regulator believes it is time the cable industry was restructured.
The regulator, which oversees both telecom and the broadcasting sectors, has been planning a stricter regime for the cable TV industry for quite some time.
DNA Money had on June 10, 2007 quoted Trai chairman Nripendra Misra as saying the regulator was working on “strengthening and organising” the cable TV segment. The story had mentioned that the current registration process of cable operators would be replaced by a tougher regime.
In its recommendation on Tuesday, Trai has called for separate licensing provisions for multi-system operators (MSOs) and cable operators.
As for cable operators, the senior superintendent of post offices shall grant district level licences to cable TV operators for five years at a fee of Rs 10,000, Trai has stated. However, for a state level cable TV service licence, the entry fee would be Rs 1 lakh. The renewal fee would remain the same.
The regulator has also recommended a scheme for administrative cess, which is 10% of the licence fee. There will be no annual licence fee.
Meanwhile, the ministry of information and broadcasting (I&B) and Trai would frame violation guidelines against which penalty can be charged. Penalty could include suspension and termination of licence.
All existing registered cable operators would be able to migrate to the new licensing regime within 12 months from March 31 of the year the revised procedure is notified in.
Interestingly, Trai has suggested that local cable operators providing broadband service in rural areas be entitled to Universal Service Obligation Fund, if they fulfill certain conditions. At present, only telecom operators offering rural services get subsidies from the USO Fund.
Licences to MSOs would be granted by the I&B ministry, Trai has said. The licence term would be five years. The eligibility conditions for licensing of MSOs would be more stringent. For instance, the entry fee for district level licence would be Rs 1 lakh and the entity must have a networth of Rs 5 lakh.
For state licence, an MSO must pay Rs 10 lakh and have a networth of Rs 10 lakh. For a national licence, an MSO must pay an entry fee of Rs 25 lakh and have a networth of Rs 25 lakh. There won’t be any annual licence fee.
A cable TV operator said the government already gets substantial revenue. “There are around 70,000 operators who pay Rs 500 each every year towards annual fee,” he said. “That’s Rs 3.5 crore a year.”
m_nivedita@dnaindia.net
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