Comments on the TRAI Consultation on Issues Related to a New Regulatory Framework for Broadcasting and Cable Services

Abstract

The Telecom Regulatory Authority of India (TRAI) released a consultation paper (CP) seeking comments related to the new regulatory framework for broadcasting and cable services. The CP seeks comments on issues pertaining to pricing of bouquet and individual TV channels, with a view to ensuring accessibility of programming, and equitable flow of revenues through the broadcasting value chain.

In our response, we point to how (a) there is insufficient evidence to adopt the measures that are proposed, (b) that tariff setting is a significantly intrusive option, and must be avoided where less intrusive options are available, (c) that TRAIs interventions must be designed to be proportionate. We therefore suggest that TRAI ought to engage in regulatory forbearance when it comes to the issue of setting rates at which channels should be included in a bouquet or at which consumers can be offered discounts. TRAI could also consider de-regulating pricing in select geographies, thereby providing an evidence base to gauge the effects of competition in the market. The broadcasting regulatory regime should focus on identifying specific harms arising in the sector such as that arising from monopolistic power (including discriminatory access to channels, information asymmetry problems, etc).

Keywords: Broadcasting, bouquet pricing, tariff setting