The Telecom Regulatory Authority of India (TRAI) on Monday issued a consultation paper on issues related to market structure and competition in cable television services, and invited comments from stakeholders.

The move has been initiated following a reference from the Ministry of Information and Broadcasting (MIB), TRAI said in a statement, PTI reported from New Delhi.

The authority said the MIB had sought its recommendations on issues related to monopoly and market dominance in cable TV services on December 12, 2012.
Following a due consultation process, TRAI issued recommendations on the same on November 26, 2013, it added.
“The TRAI has now received a back reference, dated February 19, 2021, from the MIB mentioning therein that a considerable time has passed since the recommendations were made and that the media and entertainment (M&E) landscape has changed drastically, particularly with the advent of new digital technologies in this sector,” the authority said.
“And, therefore, the MIB felt that some of the issues need further consideration by the Authority and it may provide a fresh set of recommendations in the matter looking at the subsequent developments/expansion in the M&E sector,” it said.
Accordingly, a consultation paper on market structure and competition in cable TV services has been issued, it said.

Some industry observers said, a cursory reading of the consultation paper gives a feeling that TRAI, probably, is attempting to rein in the cable sector and also stop creation of monopolies of any type through mergers and acquisition.

Some of the discussion or talking points raised by the regulator include the following:

• Given that there are multiple options for consumers for availing television services, do you think that there is sufficient competition in the television distribution sector?
• Considering the current regulatory framework and the market structure, do you think there is a need to regulate the issue of monopoly/oligopoly/market dominance in the cable TV services?
• Keeping in view the market structure of television broadcast sector, suggest proactive measures that may address impending issues related to monopoly/market dominance in cable TV sector?
• Do you think that there are entry barriers in the Indian cable television sector? If yes, please provide the list and suggest suitable measures to address these? Do provide full justification for your response.
• Do you think there is a need to regulate LCOs to protect the interest of consumers and ensure growth/competition in the cable TV sector?
• What should be the norms of sharing infrastructure at the level of LCO to enable broadband services through the cable television infrastructure for last mile access? Is there a possibility that LCO may gain undue market control over broadband and other services within its area of operation?
• What should be the relevant market for measuring the market power of cable services? Do provide full justification for your response.
• Can a State or city or sub-city be identified as relevant geographic market for cable television services? What should be the factors in consideration while defining relevant geographic market for cable television services?
• Do you think that MSOs and their JVs should be treated as a single entity, while considering their strength in the relevant market?
• Which method is best suited for measuring the level of competition or market concentration of MSOs or LCOs in a relevant market?
• Do you think that HHI (Herfindahl-Hirschman Index) is appropriate to measure market concentration of MSOs in the relevant market?
• Do you think that there should be assessment of competition at LCOs level on district/ town basis?
• In cases where a MSO controls more than the prescribed threshold, what measures/ methodology should be adopted to regulate so as to bring the market share/HHI below the threshold level?
• Do you think that DTH services are not perfect substitute of cable television services? If yes, how the relevant market of DTH service providers differs with that of MSOs or other television distribution platform owners?
• M&A in the cable TV sector may lead to adoption of monopolistic practices by MSOs. Suggest the measures for curbing the monopolistic activities in the market.
• Ease of doing business should not be adversely affected by measures/regulations to check merger and acquisitions. What compliance mechanism or regulations should be brought on M&A to ensure that competition is not affected adversely, while ensuring no adverse impact on Ease of Doing Business?
• Should TRAI restrict the ambit of its recommendations only on certain kinds of MSOs?
• Do you agree with the disclosure and monitoring requirements mentioned in the 2013 recommendations to monitor the TV distribution market effectively from the perspective of monopoly/market dominance?
• Is there a need to recommend cross-holding restrictions amongst various categories of distribution platforms/service providers?