I&B Ministry seeks Trai views on monopolistic operations in cable

The Information and Broadcasting Ministry may look at placing a cap on market shares of multi-system operators (MSOs) and local cable operators (LCOs) in a city, district, state and the country, as it seeks views from the Telecom Regulatory Authority of India (Trai) on the measures to prevent monopolistic operations.

The I&B Ministry has observed that the cable TV distribution is virtually monopolised in some states as operation of the entire cable TV network is dominated by a single entity in that State. "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," it said.

 

"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 further added.

The Ministry has asked Trai for its views on imposing of restrictions to prevent monopolies and the measures to prevent monopolistic operations by MSOs and LCOs.

The I&B Ministry has asked 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 ministry has also asked TRAI to suggest amendments required in the Cable Television Networks (Regulation) 1995 Act and Rules framed there under.