Cable television operators are afraid the Telecom Regulatory Authority of India's recommendations on promoting competition in the cable distribution business will lead to it being monopolised by big broadcasters.
Cable operators said the recommendations were fraught with danger and had the potential to further aggravate the vertical monopolies established by some broadcasters with interests in cable distribution.
The regulator said broadcasters would not be held to be in violation of the must provide condition if it was ensured that the signals were provided through a particular designated agent/distributor or any other intermediary and not directly.
The operators, represented by associations like the Cable Operators' Federation of India, National Cable and Telecommunications Association and Cable Networks Associations, said this would lead to broadcasters appointing their own multi-system operators or distribution arms as agents, who could thereafter make terms and conditions for giving feed to rival networks very difficult. In case they do give the feed, it could be of poorer quality than that given to their own subscribers.
"This will lead to all surviving competition to succumb to their (broadcasters) needs by either going out of business or working under the agent cable networks, thereby completing the process of vertical monopolisation," the three associations have said, in a representation to Trai chairman Pradip Baijal.
The operators also wanted the regulator to give a clear definition of the word 'agent' as mentioned in its recommendations.
"We feel Trai should clarify that an agent, if so appointed, must provide services identical to those being provided by the broadcaster i.e., Broadcast services through integrated receiver decoders connected to satellite. In addition, it must be clarified that the broadcaster's agent should not be a cable operator or in any way connected with cable television distribution," they added.
Trai on Friday submitted its recommendations to the government. This is a part of Trai's efforts to regulate the country's cable distribution and broadcasting services.