India’s broadcast regulator TRAI said on Wednesday that as adequate competition exists in the TV distribution sector, additional regulations at this point of time is not required, though the situation would be monitored for future regulatory interventions

“In view of sufficient competition in the cable television distribution sector at present, the Authority recommends that there is no need to introduce any additional regulations or take any corrective measures to enhance the level of competition in cable TV distribution sector,” the Telecom Regulatory Authority of India (TRAI) said in its recommendations on ‘Market Structure/Competition in Cable TV Services’.

“By and large no monopoly is prevailing or subsisting in the cable television industry. Though there may be some pockets in some cities where only one Multi-Systems Operator may be providing services, the consumers have other options to avail connection such as DTH players, etc. Therefore, the television distribution market does not suffer from the ills of monopoly to a great extent,” TRAI stressed.

Though some stakeholders have raised concerns over vertical integration resulting in adverse effect on competition, TRAI said with regards to such cross-holdings in terms of vertical and horizontal integration and mergers & acquisitions (M&As), a separate consultation paper has been issued.

“Issues related to distortion of competition by vertically aligned entities will be discussed at greater length through the consultation on ‘Issues relating to Media Ownership’.

“In view of above, discussions with respect to other issues related to monopoly/market dominance/competition in cable TV sector such as entry barriers, relevant market, treatment of MSOs and its joint ventures  as a single entity, level of competition, market control, market dominance, merger & acquisition, disclosure and monitoring requirements, etc. does not entail further specific analysis,” TRAI explained in its recommendations.

Still the regulator has exhorted the government to initiate some measures to further liberalise ease of doing business for the video distribution sector.

“The Authority recommends that the Government may take suitable measures to facilitate and promote sharing of cable infrastructure by local cable operator with telecom service providers to enable last mile for provision of broadband services. The Government may issue necessary amendments to existing rules/ guidelines, to enable use of last mile infrastructure created by cable operators by TSPs for promoting broadband connections.

“The Government may amend the rules under the Cable Television Networks (Regulation), Act 1995 to explicitly indicate the following:

“Cable operators may strive to provide last mile access to Access service providers/Internet Service Providers in a fair, transparent and non-discriminatory manner for proliferation of broadband services,” TRAI said.

Quoting from an earlier set of suggestions to the government on the manual process of registration and renewal of registrations for MSOs and LCOs as being “quite cumbersome”, TRAI has said it has inherent inefficiency and causes delays, leading to a situation where cable operators run their network without valid registrations.

“The Interconnection Regulations made by TRAI prescribes that multi-system operators shall enter into interconnection agreement only with those cable operators who have valid registration. Better usage of ICT can enable smooth and hassle-free registration. Accordingly, TRAI had recommended that the registration of LCO and its renewal should be carried out through online portal. These recommendations are yet to be implemented by MIB. TRAI is of the view that these recommendations should be implemented by MIB at the earliest,” the regulator made its intentions clear vis-à-vis the government.

Further, a rapid pace of technological developments has enabled provision of internet and telephone services over cable TV networks. The cable TV networks have already expanded and cover a large proportion of the country. Therefore, many cable operators have started offering broadband services by taking feeds from the Internet service providers (ISPs) and Telecom service providers (TSPs), it said.

Pointing out that it has followed a light touch regulatory approach since its inception, TRAI said it will continue to closely monitor any “instance of abuse of market dominance”. If expedient, TRAI may take suitable measures to restrict any discriminatory/distortionary practices that adversely affects other stakeholders and consumers in particular, it said.