TRAI relief for small cable operators, recommends no net worth rule required

Telecom regulator TRAI on Monday recommended to the Ministry of Information and Broadcasting that there is no need for fixing a minimum net worth for registration of multiple-system operators in cable TV service.

The Cable Television Network Rules, 1994, prescribe the criteria for grant of registration to an multiple-system operators (MSO), which provides cable TV services to its subscribers.

The I&B Ministry had written a letter to TRAI on May 16 last year, seeking recommendations from the telecom regulator on appropriate levels for fixation of entry level net worth of MSOs for operationalising cable TV digitisation across the country.

In order to deliberate on various aspects related to the matter and to seek inputs from the industry stakeholders on relevant issue, TRAI issued a detailed consultation paper on 'Entry Level Net Worth for MSOs in Cable TV Services' on April 9 this year, an official statement said.

Subsequently, an open house discussion was held on June in Delhi to seek further views of the stakeholders on various issues, it said.

TRAI finalised its recommendations based on the comments of the stakeholders received during the consultation process and its own analysis, the statement said.

It noted that the New Regulatory Framework provides an enabling environment for small and medium MSOs and up scaling of LCOs to MSO.

"After careful consideration, authority has recommended that there is no necessity for fixation of a minimum entry-level net worth for MSO registration," the statement said.

At present, any individual, company, corporate firm or LLP that fulfils provisions of the cable TV rules may be granted MSO registration, it said.