Trai opens door for cable operators' foray into IPTV

Cable operators and multi-system operators (MSOs) will now be allowed to offer Internet Protocol TV or IPTV services apart from the telecom companies.

Till now, only telecom operators, having licence to offer voice, data, and video (triple play), could offer IPTV services.

In its position paper on IPTV services, the Telecom Regulatory Authority of India (Trai) has said that cable TV operators registered under the Cable TV Act, 1995, and telecom service providers having licence to provide triple play, will be able to offer IPTV services without requiring any further licence or registration.

Also, the Trai has said that the IPTV channels will be regulated by the same laws as are applicable to the existing television channels shown on the cable.

IPTV is a new method of delivering and viewing television programmes using an Internet protocol network and high-speed broadband technology.

Unlike cable services, viewers can interact with IPTV and make their choices. Therefore, IPTV is also capable of providing video-on-demand, time-shifted television (a television show that can be watched days after being telecast at a touch of a button) and many other exciting features.

This move will help a number of cable companies, like InCable and Hathways, that have been looking to offer IPTV services to subscribers apart from offering cable services.

Through this paper, the Trai has also ended a long-standing tussle between the Ministry of Information and Broadcasting (I&B) and the Department of Telecommunications (DoT) on who will be the nodal ministry for IPTV services.

The Trai says that in case of breach of any provisions of Acts or licensing norms governing the IPTV services by telecom and cable TV operators, the respective ministries, along with the regulator, will look into the matter.

On the issue of providing television signals to IPTV service providers, the Trai has suggested the I&B ministry should make the necessary changes in the downlinking guidelines.

"IPTV services are a technological advancement and perhaps were not perceived at the time of the issuance of the policy guidelines for downlinking of television channels. A suitable modification has to be made in this policy guideline to enable IPTV service providers get signals from broadcasters for providing IPTV services," the regulator said.

Cable operators and a number of multi-system operators had told the Trai that for IPTV services, there would have to be a rationalisation in the limit on foreign direct investments (FDI). At present there exists a 49 per cent cap on FDI in cable distribution services, while the FDI cap in telecom services is 74 per cent.

The Trai paper has suggested that differential FDI limit for cable operators and telecom service providers be continued.

"The provision of IPTV services by telecom operators using telecom network does not fall within ambit of the Cable TV Act, which regulates IPTV services for the cable operators, therefore, provision of this Act will not be applicable to telecom operators as long as their own licence permits them to provide triple play service," Trai said.