Trai to curb cable TV sector cartels

Information and broadcasting minister Manish Tewari has initiated a move to rein in monopolies in the cable TV sector so that viewers get a wider choice of programmes with digitisation poised to enter the second phase, which will cover 38 cities across the country and is expected to be completed by March 31, 2013.

"I have requested the ministry to make a reference to the Telecom Regulatory Authority of India ( Trai) as to how do we ensure that monopolies do not continue to exist in the market because monopolies are the antithesis of choice," Tewari told journalists on Monday.

Trai will draw up specific guidelines "as to how we can deal with this issue as we go forth into digitisation between now and 2014", Tewari further said.

The government move comes in the wake of complaints by several stakeholders, including consumer groups and even politicians, who said that monopolies exist in their area of operation. Several Congress MLAs from Punjab, Tewari's home state, had earlier written to the ministry to check monopolisation of cable TV, controlled by the ruling Akali Dal.

Asked whether he had taken the step keeping in mind the domination by certain players in the multi- system operators ( MSOs) category in states like Punjab, Tewari replied, "Essentially, this is not about Punjab or about any state. I think the issue is very germane. When you are trying to create a transparent architecture which empowers the consumer, I think in the process of empowerment, it is also essential that they need to have a wider choice in terms of operators that they could choose from."

Tewari said such a mechanism has to be put in place on the lines of sectoral caps in telecom and the FM radio auction. The minister added that Trai would be asked to look into monopolies whether they exist at local, state or regional level, and also into a gamut of other related issues.

The minister added that 96 per cent of homes with cable connection have switched to digital platform in the four metros.

Questioned over Mamata Banerjee's opposition to digitisation, the minister shot back, " If I am correct ... I read that she had placed order for settop boxes for Writers' Building the day the deadline came to an end. This clearly shows that the digitisation process is a good move for the consumers and the sector as a whole."

Asked if he is in favour of bringing news broadcasters under the ambit of the Press Council, Tewari said that the government favours self- regulation. "The entire effort is to try and find a golden mean between Article 19 (of the Constitution), the caveat to Article 19 and how the entire process will work. If at all there is extreme aberration, the government has inherent powers as a licensor that it can use."

"But on balance we would like to lean on the side of self- regulation and if at all stakeholders do desire that we play some role in strengthening those self- regulatory mechanisms, then we are prepared to look at it with an open mind," Tewari further added.