Financial Daily from THE HINDU group of publications Saturday, Dec 11, 2004 |
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Industry & Economy
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Radio/TV Marketing - Regulatory Bodies & Rulings Broadcasters should not deny content to distributors: TRAI Our Bureau
New Delhi , Dec. 10 BROADCASTERS will now not be allowed to deny content to distributors of television channels - be cable operators, direct-to-home (DTH) service providers or any other platform. The Telecom Regulatory Authority of India (TRAI) today issued a Notification on Telecommunication (Broadcasting and Cable Service) Interconnection Regulation 2004 which clearly states that every broadcaster must provide on request signals of its TV channels on non-discriminatory terms to all distributors of TV channels, including the cable operator, DTH operator, multi-system operator (MSO), head-ends in the sky (HITS) operator. MSOs on their part will also have to re-transmit signals received from a broadcaster, on a non-discriminatory basis to cable operators. The broadcast regulator has also said that broadcasters cannot enter into any kind of exclusive arrangements with any distributor of channels in such a way that prevents other distributors from obtaining the channels. The TRAI is of the opinion that the various distribution platforms must be promoted to provide consumer choice. "DTH is the platform most likely to provide effective competition to cable operators," it has said. TV channels are provided to all carriers and platforms to increase viewership for the purpose of earning maximum subscription fee as well as advertisement revenue. While some of the industry players are of the view that if all platforms carry the same content it will reduce competition and there will be no incentive to improve the content, the TRAI feels that exclusivity has not been a feature of India's fragmented cable television market. Citing an example it has said, "Star India Ltd and SET Discovery Ltd do not have commercial agreements to share their contents with ASC Enterprises on its DTH platform and at present are exclusively available on the cable TV platform. ASC Enterprises claims that the future growth will remain impacted by the denial of these popular contents." If a popular content is available on cable TV and not on the DTH platform, it would not be able to effectively give competition to the cable networks. On the issue of disconnection of signals, the regulator has clearly said that a month's notice would have to be given indicating the reasons for the proposed action.
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