TRAI Rules In Favour Of Smaller Cable Operators; Says No Need To Define Entry-Level Net Worth To Enter Cable TV Business

Smaller cable TV operators have received a boost in the arm after the Telecom Regulatory Authority of India (TRAI) ruled against the idea of fixing minimum entry-level net worth in the sector, the New Indian Express reports.

Various stakeholders including broadcasters, their partners and various cable TV/Multi-System Operators (MSOs) had proposed for the need to define the entry-level net worth for MSOs. They contended that the MSO industry is capital intensive, and hence requires substantial funds to build basic infrastructure.

However, the regulator rejected the idea. TRAI said that any individual, company, corporate firm or LLP that fulfils provisions of the Cable TV Rules can be granted Multi-System Operator registration.

The decision comes in favour of the other branch of stakeholders who believed there was no need to define net worth for MSOs, as they would benefit only established businesses.

“India has more than 1,000 operational MSOs, which is quite large a number. Yet, given the size of the country, there is ample scope for further development and expansion of the sector,” TRAI said.

A minimum net worth criterion or entry would discourage the growth of smaller MSOs is distant areas, and hence hindering the incubation and growth of regional channels, the regulator adds.