| Reason for these options: one system of addressability
cannot be feasible for the whole country, though in the long run the
system is the best way to bring about transparency in the industry.
It is also likely to suggest, according to sources in the government,
that making available content on a non-discriminatory basis to all
platforms should be opted for. But this condition too comes with
some riders.
Interestingly, taking a leaf from the telecom industry, the broadcast
and cable sector regulator also feels that inter-connect agreements
(read commercial agreements) between a local cable op and a MSO,
and a MSO and a broadcaster be registered with a designated authority
and should be in the public domain in those areas where conditional
access system (Cas) would be implemented.
The regulator feels that at the moment there is no coherent revenue
sharing mechanism existing in the broadcast and cable industry and
that in case of Cas, involvement of state government is a must.
This can also be interpreted as those states preferring Cas could
introduce and implement it.
Trai, is all for "transparent discounts" being offered
by broadcasters and service providers to consumers, but such discounts
should not exceed 20 per cent of the total price of a bouquet in
case of broadcasters.
The regulator, which is yet to submit its much-awaited recommendations
to the government (information and broadcasting ministry) and make
it public, also feels that the concept of minimum guarantee in case
of an agreement between an MSO and broadcaster should not be allowed
as its anti-competitive. As part of its objectives, Trai feels that
the aim of its recommendations should be to make available more
choice to the consumer, services at affordable prices and investments
for the overall good of the industry.
The regulator, is also likely to root for the fact that though
content should be made available on a nondiscriminatory basis to
all platforms, it would not apply on defaulters. In case of direct-to-home
(DTH) TV services, for example, this clause would come into play
when there are at least two operational licences in the field.
Additionally, it would be suggested that one administrative official
is appointed in every state to oversee the implementation of the
must-provide clause and interfere also in the affairs of the industry
if the latter is unable to sort out issues within itself.
Moreover, if a service has to be withdrawn by a content provider,
it needs to be advertised properly through ads in the local newspapers
and after serving a 30-day notice. On the issue of regulating advertisements
on pay channels, the regulator is likely to opine that it should
be left to self-regulation as most channels adhere to an international
model of between 10-12 minutes of commercial airtime every one hour.
In its draft recommendations, Trai has quoted Taiwan's example
at various places and also stated that the prices of pay channels
have grown at a CAGR of 70-80 per cent since 1993.
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