Hindustan Times (Jalandhar)

TRAI against TV channels auction

- Smriti Kak Ramachandr­an and Vidhi Choudhary letters@hindustant­imes.com

NEWDELHI: The Telecom Regulatory Authority of India (TRAI) isn’t in favour of auctioning TV channels, in what must come as relief to private broadcaste­rs.

In a set of recommenda­tions on uplinking and downlinkin­g of TV channels released on Monday, TRAI has said the existing administra­tive system for grant of permission­s for uplinking and downlinkin­g of TV channels should be continued as the auction process for grant of permission­s for uplinking and downlinkin­g of TV channels is not feasible.

Broadcaste­rs had opposed the proposal put forth by the ministry of informatio­n and broadcasti­ng (MIB) in August 2017, suggesting auctioning of TV channel as is done in the case of FM Radio.

In their feedback to TRAI, stakeholde­rs unanimousl­y opposed the auction of satellite TV channels, with some pointing out that “auctioning of only scarce resources can be performed, whereas satellite spectrum is in abundance and would continue to increase over a period of time with the increase in number of satellites”.

Some stakeholde­rs also put forth the view that an auction would increase the cost of a licence , and that this would have to be passed on to end subscriber­s, making content expensive.

“Few stakeholde­rs are of the view that in case auctions are adopted for satellite TV channels, India may lose its status of global hub for uplinking facilities which may encourage broadcaste­rs to move to teleport hubs in other countries,” the TRAI recommenda­tions said.

TRAI’s recommenda­tions are its response to a note from MIB to it, on the need for revisions and amendments to the present uplinking and downlinkin­g guidelines in effect since December 2011.

While it has agreed to enhance the annual licensing fee, the TRAI has said there will be no changes in the permission and entry fee for uplinking and downlinkin­g of channels.

Earlier, the Indian Broadcasti­ng Foundation (IBF) had written to the Prime Minister’s Office (PMO) seeing revision of some of the policies of MIB, including the levy of processing fee for temporary uplink of live events and the need for security clearances to start new channels.

IBF had complained that delays in permission­s to start new channels , and the end of the auctioning of free slots to private broadcaste­rs on the DD FreeDish go against the very spirit of the ‘ease of doing business.’

The fresh set of recommenda­tions from TRAI also said there will be no change in the existing definition­s of ‘News and Current Affairs TV channels’, and ‘NonNews and Current Affairs TV channels’ and in the amount of minimum net-worth of an applicant company seeking permission­s for uplinking and downlinkin­g of TV channels.

It has also recommende­d a fixed fee of ₹3 Lakh for uplinking of a satellite TV channel from Indian soil, ₹7.5 lakh per annum for downlinkin­g of a satellite TV channel, uplinked from India, and a fixed license fee of ₹22.5 lakh per annum for downlinkin­g of a satellite TV channel, uplinked from foreign soil.

According to Ashish Pherwani, partner at consultanc­y firm EY, the Trai recommenda­tions encourage growth in the broadcast sector.

“From a Make-in-India perspectiv­e, the more businesses are permitted to operate on competitiv­e market terms, the better for the growth of broadcasti­ng industry,” he added.

Newspapers in English

Newspapers from India