Cable TV industry demands more time for financial disclosures

An initiative undertaken by the Telecom Regulatory Authority of India (Trai) to ensure that broadcasters, cable companies and operators, among others, make detailed financial disclosures of their business operations for the last three years is expected to be delayed, as all industry stakeholders have decided to seek more time. In fact, according to industry sources, several broadcasters, cable operators and others are opposed to sharing detailed financial numbers of their respective companies.

“We have made Trai aware of the possible hurdles in making such financial disclosures. Disclosures can happen, provided there is ample time and a consensus among those involved,” the legal head of a leading media house said on condition of anonymity. Trai wants to know the detailed financials of various stakeholders as part of its exercise on the issue of fixing taxes for cable TV services in non-CAS areas. “To obtain a realistic understanding of the financials and the operation of various stakeholders, we have asked for the detailed financials and other operational details from all stakeholders,” a Trai insider said. The regulator had given a deadline of August 17 for all stakeholders to make their submissions, but failed to get an all-round response from the stakeholders, sources in Trai said.

Various stakeholders, especially the privately-held ones like several broadcasters, cable operators and others, are divided on how much financial details to share with the sector regulator, fearing information leakages that may impact their future business prospects. “Trai wants to know details like how much did we pay in carriage fees to a particular cable operator and how much advertising revenue was generated on each of our channels. Such details, once out in the public domain, could lead to a severe undermining of future business negotiations,” a senior executive, representing a leading media house, said. “The Indian Broadcasting Foundation (IBF), the apex body of all leading broadcasters, recently met and decided to seek more time from Trai on the matter,” a senior IBF executive said. On its part, Trai has sought various financial disclosures from all stakeholders, including audited financial data and a break-up of key revenues and costs; insights into the operating model; carriage fees charges and ad revenue generated on the channels. It has also asked for details on the cost of operations from broadcasters, cable operators and MSOs, among others.

-Business Standard