Broadcasters cannot control distribution: Regulator

India PR Wire :
The telecom watchdog Wednesday said broadcasters should not have any control over distribution operations and vice-versa. 'Any entity having more than 20 percent equity participation in a broadcasting company cannot have more than 20 percent equity in a distributor (operators of cable, DTH, or mobile TV operators) and vice-versa,' Telecom Regulatory Authority of India (TRAI) said in a statement.

TRAI also said there will be no restriction on cross-ownership across telecommunications and media companies, a decision which it may review after two years. Talking about limiting the number of licences to be held by a single entity, the regulator said: 'The current restrictions, policies and recommendations on these are adequate for the time being'. The telecom watchdog is of the view that the current global financial crisis has impacted the Indian media industry, particularly the print media. 'In such a situation, while all the steps are being taken to help the media industry get through the situation and reduce the impact of slowdown, it is essential that none of the safeguards have an adverse impact on the sector,' it said.

Zee News :
New Delhi, Feb 25: Sectoral regulator TRAI on Wednesday recommended prohibiting broadcasters from having control in distribution and restructure stake holding, if they have, in three years, as part of its media cross-holding guidelines. In its recommendations on cross-media ownership, the Telecom Regulatory Authority of India (TRAI) also said any entity having more than 20 percent equity participation in a broadcasting company cannot have more than 20 percent equity in a distributor, which includes multi-system operators (MSO), cable operators, direct to home (DTH), head end in the sky (HITS) and Mobile TV.

"The broadcaster should not have any control in the distribution and vice-versa... the existing broadcasters who have control in distribution (MSO/cable/DTH) (should) be given sufficient time of three years for restructuring," it said. On consolidation in the media industry, it said there was a need to ensure that plurality and diversity of views were maintained while suggesting the Ministry of Information and Broadcasting to conduct a detailed market study and analysis for identifying and determining safeguards.

After working out required safeguards, merger and acquisition guidelines for the sector may be issued to prevent media concentration and creation of significant market power, TRAI said. The regulator, however, said at this point of time no restriction should be imposed on cross control/ownership across telecom and media separately and the issue could be reviewed after two years. "Considering the international scenario, stakeholders comments, present economic scenario, the distinct features of Indian scenario and other relevant factors, the authority has formed a view that it is better to put timely safeguards rather than look for corrective measures which become difficult for the industry to align in future," it said. TRAI had issued a consultation paper in September last year seeking comments from stakeholders on cross media holding and ownership.

What this means ??
That means Sun TV cannot have more than 20 % stake in SCV and vice versa. ZEE, Star would also have similar problems.

TRAI also issued regulations for cable operators according to which it is mandatory for them to issue receipts (this is done to ascertain correct subscriber base, which is always a bone of contention between channels & distributors), quality, maintaining helpdesk from 8.00 am to 8.00 pm everyday, maintaining six-hour power backup etc.