NEW DELHI: The government has sought broadcast regulator Trai's views to prevent monopolistic operations by cable operators and multi-system operators, expressing concern that it might have serious implications in terms of competition, pricing and healthy growth of the cable TV sector in the market.
In a statement, the information and broadcasting (I&B) ministry said, "It has been observed that cable TV distribution is virtually monopolized in some states as operation of the entire cable TV network is dominated by a single entity. At present, there are no restrictions on the issue of accumulation of interest in terms of market share in a city, district, state or country by individual MSOs and LCOs in the cable sector."
MSOs and cable operators are free to operate in any area of their choice after obtaining registration from the ministry. "It is felt that such monopolies may not be in the interest of consumers and may have serious implications in terms of competition, pricing and healthy growth of cable TV sector in that market," the ministry said.
The ministry has requested Trai to provide its recommendations on whether "in order to ensure fair competition, improved quality of service, and equity, should any restriction be imposed on MSOs/LCOs to prevent monopolies/accumulation of interest? If yes, what restrictions should be imposed and what should be the form, nature and scope of such restrictions?" The regulator will also explore the necessity of amending the Cable Television Networks (Regulation) Act, 1995.
MSOs and cable operators are required to be registered with local post offices to be able to operate in the permitted areas of registration. However, as per recent amendments in the Cable Television Networks (Regulation) Amendment Rules 2012, it has become mandatory for MSOs to register with the I&B ministry to operate.
Govt seeks Trai's opinion on cable monopolies
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Govt seeks Trai's opinion on cable monopolies
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Govt seeks Trai's opinion on cable monopolies
