The Hindu Business Line : TRAI issues consultation paper on cross media ownership

New Delhi, Sept. 23 The need for cross media ownership — whether it is a limit to the number of channels per broadcaster, geographical reach, market share or how much of a television or radio channel a newspaper can own — and the kind of restrictions on such ownership, has been highlighted in the Telecom Regulatory Authority of India’s latest consultation paper issued today.

Objective

The objective of the exercise undertaken, on request from the Ministry of Information and Broadcasting, is to provide for “competition, diversity and plurality of players, news and views.” The Authority has, in the past, advised cross media ownership in individual segments; it is now undertaking a comprehensive exercise.

Currently, such restrictions are applicable to the DTH sector and FM radio. For the former, broadcasting companies and cable networks can only own 20 per cent equity. Star Group, owners of News Corp, for example owns 20 per cent stake in Tata-Sky.

Radio’s market share is limited — no company is allowed more than a radio channel per city in each city and the total number of channels should not exceed 15 per cent of all channels in the country.

Finite spectrum, which probably dictated the market restrictions in radio, was also increasingly in demand for DTH, HITS, Mobile TV, Terrestrial TV and Satellite TV platforms.

The Ministry points out that “the percentage of total satellite TV channels owned by some of the major companies or groups is much more than 10 per cent” of roughly 350 channels available.

With companies owning both content and carriage, sometimes consumers, depending on which platform they are on, have very dramatically different options. Consider the basic DTH package of channels.

Fear of monopoly

It is the possible monopolistic tendencies from ambitious media companies that the Ministry is worried about.

Guidelines on cross media restrictions are to also bring a level playing field amongst players in similar businesses such as IPTV and Mobile TV. TRAI has already recommended similar restrictions for Private Terrestrial TV, Headend-In-The-Sky (HITS) and Mobile TV in its individual recommendations for these sectors.

The consultation paper starts with the need for such restrictions.

The Ministry acknowledges, in its letter to the TRAI, that going by the media, the industry is “opposed to such a policy for imposing restrictions on accumulation of interest in the media” particularly since there was no abuse of market power.

Many countries including the US, UK, Canada, Australia and France have some form of restrictions, either on ownership or on geographical reach. Many have also recently reviewed the media ownership rules. Stakeholders’ views have been sought before or on October 24.

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