The Telecom Regulatory Authority of India has released a comprehensive consultation paper on issues relating to media ownership. This comes after the Information & Broadcasting Ministry asked TRAI to re-examine its recommendations on the issue with the advent of new digital technologies.

The consultation paper has sought views from stakeholders on the need, nature and levels of safeguard required in terms of media ownership especially when it comes to cross-media ownership and vertical integration in the broadcasting sector.

Influence of digital media

“In the backdrop of increased emphasis of the Government on digital literacy, high proportion of population under the age of 35 years, one of the lowest prices of internet, there has been a sharp rise in the presence and influence of digital media in the country. Covid-19 induced lockdowns have resulted in higher consumption through digital medium causing changes in consumer choices,” it said in its consultation paper. The regulator added that the media landscape has changed drastically since it last issued its recommendations on the issue in August, 2014.

The regulator has raised questions regarding whether there is a need for monitoring cross-media ownership and control given the media industry has expanded beyond conventional television and print medium to portals, IP based websites, video portals among others. “Media has the capacity to influence opinion of masses, more so the news media. Should there be a common mechanism to monitor ownership of print, television, radio, or other internet-based news media?,” the paper added.

While SEBI and CCI regulate mergers and acquisitions, the regulator has sought views on whether additional regulatory or monitoring mechanism is required especially for news media companies. It has also sought views on whether any entity should be restrained from entering the media sector in public interest.

TRAI noted that the digital media landscape is marked by the dominance of limited number of very large players who have the ability to consolidate by acquiring smaller players “reducing media pluralism.” It also noted that lack of accuracy of some online players is a concern. It has therefore sought views on which genres or if all genres -print media,TV, radio, online media, digital media or OTT-- should be considered for the purpose of overseeing of media ownership to ensure viewpoint plurality.

‘Adequate control’

With regards to addressing the issue of vertical integration in the broadcast sector, TRAI has sought opinion on whether players should be allowed to have interest in both broadcasting and distribution of channels which includes MSOs and DTH service providers. “Whether a ceiling of 20 per cent equity holding would be an adequate measure to determine “control” of an entity ....any entity which has been permitted/ licensed for television broadcasting (or has more than 20 per cent equity in a broadcasting company) shall not have more than 20 per cent equity in any Distributor (MSO/Cable operator, DTH operator, HITS operator, Mobile TV service provider) and vice-versa?,” it added

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