TRAI detects virtual monopolies in cable sector, mulls restrictions

Detecting "virtual" monopolies in cable distribution across many states, broadcasting regulator TRAI is mulling imposing restrictions on Multi System Operators (MSOs).

In this connection it has has sought views from stakeholders on whether restrictions - based on area or market share - could prevent monopolisation by MSOs.

"It has been observed in some states that a single entity has, over a period of time, acquired several MSOs and LCOs, virtually monopolising the cable TV distribution," the regulator said in a consultation paper released today.

"Such monopolies or market dominance are clearly not in the best interest of consumers and may have serious implications in terms of competition, pricing, quality of service and healthy growth of the cable TV sector," it added.

The paper said that while there was competition among several MSOs in Delhi, Karnataka, Rajasthan, West Bengal and Maharashtra but in Tamil Nadu, Punjab, Odisha, Kerala, Uttar Pradesh and Andhra Pradesh, a single player had become dominant.

In the paper TRAI observed that with technological developments, Internet and telephone services may be provided over cable TV networks and the dominance of these distribution companies could extend to these areas also.

The regulator made these observations in the consultation paper and has invited views of stakeholders on the issue of monopolies and market dominance in the cable TV segment.

TRAI had begun looking into the issue after I&B secretary U K Varma in December last year had asked it to suggest ways to break monopolies in the cable sector.

Estimating from the data of Set Top Boxes (STBs) seeded by various MSOs during the digitisation drive, the regulator said that it seemed that certain MSOs control over 80 per cent of the market in some cities.

The regulator also pointed to the example of the FM Radio industry where a company can operate not more than 40 per cent of the total channels in any city and not more than 15 per cent of total number of channels across the country.