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Initially broadcasting services were not considered as telecommunication services, and hence not covered under the TRAI Act 1997(Telecom Regulatory Authority of India Act), more specifically section 2(k) of the definition. With the passage of time and embarkment of new era in cable and entertainment services by introduction of entertainment through CATV (Community Antenna Television/ Community Access Television ) that too with specific genre wise channels, Government of India realized that broadcasting and cable services require regulatory watchdog to stream line and handle upcoming broadcasting boom of ever increasing CATV network business and staggering increase in entertainment and mass reaching mode of Cable TV, which was flooded with “foreign pay channels” reaching the living rooms of Indian masses. This was realized much before covering Broadcasting and Cable service under the umbrella of Telecommunications Service. However Government of India passed the notification covering Broadcasting & Cable service as Telecommunications Service on 9, January 2004 consequently broadcasting and Cable service covered in definition of Telecommunications Service of The TRAI Act, 1997.
Presently, there are four major Acts which are guiding and governing laws so far as Broadcasting and Cable service are concerned within the territory of India: (a) Television Cable Network {Regulation} Act 1995, (b) Television and Cable Network Rule 1994, (c) Telecom Regulatory Authority of India Act 1997 (as amended){TRAI Act}, (d) Indian Telegraph Act. 1885(as amended in 1995,upto date). The Telegraph Act was amended in the context of National Telecom policy 1994, which, amongst other things, stress on achieving the universal service, bringing the quality of telecom customers demand at reasonable price, and participations of the companies registered in India the area of basic as well as value added telecom services as also making arrangements for protection and promotion of consumer interest from service providing functions which will be keeping with general trend in the world.
In view of above , it was proposed to set up an independent Telecom Regulatory Authority as a non- statutory body and for that purpose Indian Telegraph (Amendment ) Bill1995 was introduced and then passed by the both the Houses of Parliament.
Apart from these, there are numbers of regulations as passed by TRAI from time to time under sections 11, 12, 13 and their sub-sections, and section 36 of TRAI Act 1997. TRAI, being expert body for governing and regulating the telecommunication services in India, has been entrusted with responsibilities and powers of regulating Telecommunication Service within Territory of India ;and in performing its functions as enumerated under section 11 of Act, it has powers of issuing directions, pass orders, and fix and regulate prices by passing appropriate Tariff Orders under various section more specifically section 11 (2) (b) and section 36 of the TRAI Act 1997 respectively.
Presently, Broadcasting and Cable service are undergoing a transition time from previous analog mode of cable service where consumers used to receive between 40 to 70 (approx.) Channels and used to pay on an average between ` 100 to 350 per connection for CAVT services, depending upon locality and gentry, In analog mode there were intricate problems of poor transmission and consumers had no choice of selecting the channels of their choice, further there were never ending disputes between the stake holders, to mention few were (i) Under-declaration in number of subscribers/consumers by Local Operators/Distributors/ carriers of Channels, (ii) Piracy of cable signals beyond authorized area etc.(iii) non- receipt of complete taxes to the local and central Government, due to under declared connections. Furthermore, consumers were also loaded with channels which probably they might had not chosen, if given a choice of opting. In other words, despite having remote control of their TV sets in their hand, they had no control over the channels offered to them for watching.
Considering such scenario the Government of India on recommendations of TRAI introduced Digital Addressable System(DAS) for providing Cable and Broadcasting service in phased manner starting from 1st November 2012 and last phased completing by 31 December 2014 initially (it has been extended now by December 2016). Digital Addressable System of providing Broadcasting and Cable Service, with the aim of achieving 100% addressability, (wherein exact number of connections and channels with details of consumers could be recorded in systematic manner, and bill can be generate based on channels subscribed by the consumers), with introduction of DAS not only the channel carrying capacity of Operators has increase multifold, but also it has improved the quality of CATV signals with introduction of High Definition Channels(HD) etc. It was a gigantic stride by the Government to streamline the unregularized business of broadcasting and cable casting in one big leap.
With implementation of DAS (Digital Addressable System), the consumers have gained greater choices and control over their cost of cable service, also the revenue sharing between value chain holders has attained much more clarity in contrast with what it was prior to implementation of DAS.
However, conversely at the same time, the numbers of hindrance are still sprouting and subsisting in complete and true implementation of DAS in cable service. They are as follows: (i) The Content packaging and insertion on local channels (which may not be of consumers choice) are still being controlled by Multi System Operators (MSOs) at middle level and greatly manipulated at the Local Cable Operator’s (LCO) level. (ii) Despite system of having and recording details of consumers in Subscribers Management System, the full details and 100% disclosures are either not fed in system due to lack of consumers interest in providing their details or nonserious approach at local operator’s end, or even if it is recorded it is not being given, by LCOs to MSO apprehending it could be passed-on to their competitors in highly competing market.
Consequently broadcasters and Government do not realize their complete revenue based on the complete disclosure and consequently revenue and taxes are evaded respectively at the grass root level.(iii) The Broadcasters play pivotal role in quality of contents and consumers and MSOs have no direct control over it. (iv) Consumers are not aware about their rights and even in marginal cases where consumers are active about their rights, lack of proper awareness and guidance, slay their interest of pursuing speedy respite. (v) Insertion of advertisement in ‘pay channels’ is big issue and consumers are helpless in it. (vi), Children’s channels should be advertisement free, is the issue which has not got government’s attention yet. In many foreign countries any kind of advertisement is strictly prohibited on Kids channels, because ultimately guardians have been victimized through kids channels, people have not been educated on this issue by any of stake holders.
It has also been lately realized by the Regulator (TRAI) that Vertical Integration of Business Interest and cross holdings, leading to monopolizing business and anticompetitive business practices directly or through subsidiary companies has also not been met well and to curb this practice TRAI has passed effective Regulations on 10 February 2014 declaring that agents and ‘Distribution Platform Operator’ shall not act on behalf of more than one broadcaster or broadcasters and there shall be nonclubbing of channels of different broadcasters in formation of bouquet of channels.
Above are few examples on which Government’s attention is required in execution, and implementation though regulations meet it at some extent, but in fully implementing the DAS in CATV industry stern steps for enforcement are required. With obvious notions and support of industry, and consumers/public level, involvement would also be of great magnitude for achieving the true digitalisation in appropriate manner. The Government of India in its National Telecom policy 2012 has also emphasized taking steps to facilitate convergence of local cable TV networks post digitalization.
With this fast changing and multi dimensional digital world of broadcasting service, the participation of people is of great importance, who are required to be made more aware about their rights as consumers of Cable and Broadcasting TV services. This will play a vital role in making India a fully digitalized nation.
Sandeep Arya is a 2004 law graduate from Faculty of Law, Delhi University. He has 10 years of PQE. Since October 2008 he has been working with Hinduja Group Co, dealing in Broadcasting and Cable infrastructure Business. His profile includes Telecom Litigation, Regulatory Issues; he is a regular face at TDSAT & Supreme Court in relation to Telecom cases. Prior to this he handled Corporate Litigation & IPR teams at Delhi Based leading law firms.
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