Consultation Paper No.

7/2022

Telecom Regulatory Authority of India

Consultation Paper

On

Renewal of Multi-System Operators (MSOs)

Registration

New Delhi, India

20th July 2022

Mahanagar Doorsanchar Bhawan

Jawahar Lal Nehru Marg

New Delhi - 110 002

Website: www.trai.gov.in

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Stakeholders are requested to send their comments &
Counter Comments, preferably in electronic format to the
following address

Shri. Anil Kumar Bhardwaj,

Advisor (B&CS)-II,
Telecom Regulatory Authority of India (TRAI),
Mahanagar Doorsanchar Bhawan,
J.L. Nehru Marg, (Old Minto Road)
New Delhi - 110002, India
Email: advbcs-2@trai.gov.in, & jtadvbcs-3@trai.gov.in

Last Date for submission of comments: 10th August 2022

Last Date for submission of counter comments:

17th August 2022

Comments will be posted on TRAI’s website

www.trai.gov.in. For any clarification/information, Mr.
Anil Kumar Bhardwaj (B&CS) may be contacted at
Telephone. No. +91-11-2323-7922.

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 TABLE OF CONTENTS

Chapter Topic Page No.

Chapter-I Introduction 04

Chapter-II Present policy for MSO Registration 10

Chapter-III Issues For Consultation 26

ANNEXURES

Annexure-I MIB circular dated 27.01.2017 29

Annexure-II MIB reference dated 07.02.2022 30

Regulatory Compliances to be submitted by

Annexure- III 32
MSOs

Glossary List of Acronyms 36

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 Chapter-I

INTRODUCTION

1.1 The Cable TV Industry in India commenced as an unregulated service

around late 1980s. The services were driven by the needs of the consumers
for alternate entertainment options to Doordarshan (DD). The cable TV
sector saw exponential growth with the launch of Star TV and Zee TV in
1992. As more and more local cable operators mushroomed across the
country, a need arose for regulating the service, leading to the promulgation
of the Cable Television Networks (Regulation) Act, 1995.

1.2 The Broadcasting and Cable Services were brought under the regulatory
ambit of Telecom Regulatory Authority of India (TRAI/Authority) on
09.01.2004.1 TRAI is vested with the responsibility of ensuring orderly
growth of the broadcasting sector while protecting the interests of the
consumers. TRAI has been issuing various regulations, tariff orders,
directions, etc. for achieving these objectives. TRAI’s regulatory framework
has ensured competition, fair play and equity in the sector.

1.3 Enabled by timely policy and regulatory interventions by the Government

and the Authority, the Indian broadcasting landscape has evolved over the
past decades. The television distribution sector presents a vibrant picture
with presence of multiple platforms such as cable TV, DTH, HITS, and IPTV.
As per industry reports, India has the second largest pay- TV market in the
world in terms of subscribers after China, with 197 million TV households
growing at 7.5% YoY.2 Primarily, the pay TV services are being delivered
through Cable TV and Direct to Home (DTH) systems. Other modes of TV

1 Ministry of Communications and Information Technology vide Notification No. 39 dated 09.01.2004 bearing
S.O. No. 44(E)
2 https://www.ey.com/en_in/media-entertainment/how-a-billion-screens-can-turn-india-into-an-m-e-

powerhouse
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 broadcasting, viz. Internet Protocol TV (IPTV) and Head-end In the Sky
(HITS), at present have small subscriber base in comparison to the Cable
TV and the DTH platforms.

1.4 The Cable Television Networks (Regulation) Act, 19953 (hereinafter referred
to as CTN Act), formalized the cable TV sector in India. Since then, the Pay
TV segment served through the cable networks has seen phenomenal
growth in every nook and corner of the country. The launch of more and
more satellite TV channels and diversity of content triggered a phenomenal
growth in cable TV networks across the country. However, it also resulted
in operational challenges for Local Cable Operators (LCOs) as their network
could not cater to higher number of television channels. In general, LCOs
did not have the sophisticated equipment and/or enough resources to
receive broadcast signals from large number of satellites before sending it
to their subscribers. In addition, other technology based evolutionary
factors, like advent of digital technologies and improvement in transmission
technology helped in evolution of a large intermediary, the Multi System
Operator (MSO). An MSO receives the signals of different television
channels, combines the same and transmits this combined feed to multiple
Local Cable Operators. MSOs stand at the middle point in the hierarchy of
the cable services sector between the broadcasters on one side and local
cable operators on the other. The MSOs established head-ends in metros
and major towns to receive TV signals from different TV broadcasters,
aggregate and distribute these signals to LCOs, who further transmit it to
subscribers through cables. In some instances, MSOs also provide the
services directly to their consumers.

3 https://legislative.gov.in/sites/default/files/A1995-7.pdf
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 Figure 2: MSO in a Pay Distribution4 Chain

1.5 Further, the evolution of technology paved way for bringing digitization in
the cable TV sector. With the introduction of Digital Addressable system
(DAS), Government amended the Cable Television Networks Rules, 1994
(hereinafter referred to as CTN Rules) by issuing Cable Television Networks
(Amendment) Rules5, 2012 on 28th April 2012. As per the amended rules,
an MSO operating in DAS areas is required to take necessary permission
from Ministry of Information and Broadcasting (MIB), in addition to
registration as a cable operator. Section 4(3) of the Cable Television
Networks (Regulation) Act, 1995 states “On and from the date of issue of
notification under section 4A, no new registration in a state, city, town or area
notified under that section shall be granted to any cable operator who does
not undertake to transmit or re-transmit channels in an encrypted form
through a digital addressable system.”

4 Figure depicts MSO as a distributor. Obtaining TV channel signals from the broadcaster and further extending
the same to LCOs or the end consumer
5 Available at: https://mib.gov.in/sites/default/files/sda7.pdf

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 1.6 CTN Act, 1995 and the CTN Rules thereunder do not restrict the number of
MSOs/LCOs operating in any specific area. There are a few large MSOs
which operate in multiple states/Union territories, while other MSOs
operate either on a regional level or in a smaller area. In the initial stages of
digitization, MSO registrations were given for specific city, town, state, or
PAN India, in DAS notified areas as mentioned by the applicant MSO.
However, vide a circular dated 27th January 2017 (attached as Annexure-
I), MIB conveyed that all registered MSOs are free to operate in any part of
the country.

Context of Present Consultation:

1.7 As per the existing guidelines Ministry of Information and Broadcasting

(MIB) grants registrations to operate as MSO under the Rule 11A-11F of
The Cable Television Networks Rules, 1994. The applicant deposits a
processing fee of INR One lakh (Rs. 1,00,000/-) online on Bharatkosh
portal, and then along with the fee receipt and other requisite documents
applies online on Broadcast seva portal6 for registration as MSO. Post
scrutiny of eligibility and documents, security clearance from Ministry of
Home Affairs (MHA) is obtained before grant of the registration. Para 7.1
of MHA guidelines dated 25.06.2018 for assessment of proposals for
National Security Clearance states that, “The validity period of security
clearance will be co-terminus with the validity period of
license/permission granted by the administrative
ministries/departments. ln the case of contracts, the security clearance to
the bidders will be valid till the contract is valid. As regards renewal of
permission/license/registration, the ministry/department concerned,
shall forward the proposal in standard proforma at least 90 days in

6 https://new.broadcastseva.gov.in/digigov-portal-web-app/

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 advance to MHA”. The security clearance provided by MHA to an entity,
or its director(s) has a limited validity of ten years from the date of initial
grant of security clearance or period of license/permission, whichever is
earlier, as clarified in MHA O.M. dated 25.06.2018. The Ministry, as per
convention, grants MSO registration for a period of ten years.

1.8 Ministry of Information and Broadcasting (MIB) vide its letter no.
N-45001/6/2020- DAS Dated 7th February 2022 (attached as Annexure-II)
has made a reference to TRAI (hereinafter referred to as MIB Reference),
seeking its recommendations on referred aspects of the renewal of MSO
registrations. In its reference, MIB has stated that the policy guidelines for
uplinking/downlinking of channels prescribe ten years as the permission
period. The renewal period is also mentioned as ten years. In DTH sector,
the Guidelines mention the license validity for a period of twenty years,
renewable by ten years at a time. To maintain uniformity with DTH and
Broadcasting Sector and considering the validity of security clearance (as
mentioned earlier in Para 1.7), MIB has proposed to keep renewal period of
MSO registration after every ten years. The processing fee to be charged for
such renewal also needs to be decided. Accordingly, MIB in its reference
has requested TRAI under Section 11(1)(a)(ii) of the TRAI Act 1997, to give
its recommendations on the following aspects of the renewal of MSO
registrations:

(i) As there is no provision for renewal in the CTN Act, whether a provision
relating to renewal of MSO registration after every ten years be inserted
in the Rules.

(ii) Rule 11A of CTN Rules, 1994 prescribe processing fee of Rs. One Lakh
to be submitted with the application for MSO registration. The amount
of processing fee to be charged for such renewal, which shall also be
inserted in the Rules, may also be advised.

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1.9 MIB has sought the recommendations of TRAI on specific aspects, as
outlined in 1.8 (i) & (ii) above, for extension of the validity period of MSO
registration including the amount of processing fee. This Consultation Paper
has been prepared to seek the comments/views of the stakeholders on the
issues related to renewal of MSO registration. It is also noted that at present
there is no provision for renewal in the existing Guidelines for Registration
for HITS services. TRAI is of the view that in order to maintain uniformity
amongst different distribution platforms, the policy guidelines should have
a provision for renewal for HITS services also. Accordingly, TRAI may initiate
a separate consultation for renewal of HITS services, either on a reference
from MIB regarding this or on suo motu basis, as may be necessary.

For the present consultation, Chapter 2 of this consultation paper discusses

extant policy provisions related to MSO registration. The chapter also deals
with relevant aspects pertaining to the issues raised in the said MIB
reference and brings out the issues for consultation, seeking comments of
stakeholders. A summary of the issues for consultation is provided in
Chapter 3.

***********

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 Chapter-II

POLICY FOR MSO REGISTRATION

2.1 In General, Cable TV, along with DTH, is the pre-dominant platform for
receiving TV broadcast. In a typical cable television distribution chain, MSO
receives programming service from broadcaster and re-transmits the same to
the consumer, either directly or through one or more LCOs. Registration of
MSOs progressed in consonance with the phase-wise implementation of DAS.
The number of registered MSOs has steadily increased from 29 in 2012 to
1451 by 2017. New Regulatory Framework also provided further growth. The
framework provides a mechanism of time bound provisioning of signals for
television channels for MSOs. Figure 3 shows year-wise number of registered
MSOs as per information7 on MIB website:

Cumulative no. of Registered MSOs

1800 1747 1762
1696
1602
1600
1451 1452
1400

1200 1083
1000

800
580
600

400
159
200 29 70

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(MAR
22)

Figure 3: Year-wise Cumulative MSOs registered with MIB

7 https://mib.gov.in/sites/default/files/List%20of%20Registered%20MSOs%20as%20on%2031.03.2022_0.pdf
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 2.2 The Government enacted the Cable Television Networks (Regulation)
Ordinance, 1994, on 29th September 1994 that set down rules for registration
of cable TV operators and introduced the Programme Code and the Advertising
Code8. In order to replace the said ordinance by an Act, the Cable Television
Networks (Regulation) bill was introduced in Parliament. Subsequently this
ordinance was converted into the Cable Television Networks (Regulation) Act
1995 on 25th March 1995, to regulate the operation of cable television
networks in the country.

2.3 With the introduction of digital addressable system (DAS), Government has
amended the Cable Television Networks Rules, 1994, by issuing the Cable
Television Networks (Amendment) Rules, 2012, on 28th April 20129. For any
company or individual intending to provide cable television network services
with DAS, it is mandatory to register with MIB and take necessary permissions
from MIB.

Provisions under Cable Television Networks Rules, 1994 & Cable

Television Networks (Regulation), Act, 1995

2.4 Chapter II of the Cable Television Networks (Regulation), Act, 1995 deals with
the regulation of Cable Television Network.

a) Section (3) reads as, “no person shall operate a cable television network
unless he is registered as a cable operator under this Act.”

b) Section 4(2) reads as, “the cable operator shall fulfill such eligibility criteria
and conditions as may be prescribed and different eligibility criteria may be
prescribed for different categories of cable operators.”

c) Section 4(4) reads as, “an application under sub-section (1) shall be made in
such form and be accompanied by such documents and fees as may be

8 https://mib.gov.in/sites/default/files/pac1.pdf
9 https://mib.gov.in/sites/default/files/sda7.pdf
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 prescribed.”

d) Section 4(5) of the CTN Act, 1995 deals with the renewal of registration of
a Cable Operator subject to terms and conditions prescribed under
Sections 4(6) of the Act.

e) Section 4(6) reads as, “Without prejudice to the compliance of eligibility

criteria for registration of cable operators, the Central Government may
prescribe, having regard to the interests of the sovereignty and integrity of
India, the security of the State, friendly relations with foreign States, public
order, decency or morality, foreign relation or contempt of court, defamation
or incitement to an offence, such terms and conditions of registration
including additional criteria or conditions to be fulfilled by the cable
operator.”

Further, Section 22 of the Act gives power to the Central Government to

frame Rules, by notification in the official Gazette, with regard to inter alia
the eligibility criteria for “different categories of cable operators” (thereby
implicitly including MSOs) under Section 4(2) of the CTN Act and the terms
and conditions of registration under Section 4(6) of the Act.

2.5 The Central government had made the Cable Television Networks Rules, 1994
(CTN Rules) in exercise of the powers conferred by sub-section (1) of Section
22 of the Cable Television Networks (Regulation) Ordinance, 1994 (Ordinance
No.9 of 1994). The CTN Rules, 1994 define ‘Multi-System Operator (MSO)’
under Rule 2 (ee) as “a cable operator who receives a programming service from
a broadcaster and/ or his authorized agencies and re-transmits the same or
transmits his own programming service for simultaneous reception either by
multiple subscribers directly or through one or more local cable operators (LCOs)
and includes his authorized distribution agencies by whatever name called.”
Rule 11A of the CTN Rules deals with the application for registration as a
multi-system operator and states-
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 “(1) For the purpose of operation of cable television network services with
digital addressable system in a notified area, a person who desires to
provide such service shall make an application for registration as Multi-
System Operator to the registering authority in Form 6.

(2) Every application under sub-rule (1) shall be accompanied by –

• a processing fee of rupees one lakh;

• declaration in Form 2.

The rules do not prescribe any other fee or charges except the processing fee
for the MSO. MIB Reference (Annexure-II) reiterates that Rule 11A of CTN
Rules, 1994 prescribe processing fee of Rs. One Lakh to be submitted with
the application for MSO registration. The CTN Rules do not prescribe any
procedure or processing fee for renewal of MSO registration.

2.6 The CTN Rules, 1994, do not have an express provision about renewal of MSO
registrations. However, Rule 3 of the said Rules, 1994 deals with the
application for registration as a cable television network in India. Rule 3(1)
states that, “every application for registration as a cable television network in
India shall be made in writing in Form 1 and shall be renewable after every
twelve months”. Rule 3(3)(a) states that, “every application for registration or
renewal of registration shall be accompanied by – (i) a fee of rupees five hundred
only; and (ii) the requisite documents mentioned in Form 1 and Form 2 (attached
in the said Rules, 1994)”. Read with other relevant provisions of the CTN Rules
and the CTN Act, these provisions pertain to the renewal of Local Cable
Operator (LCO).

2.7 Rule 11 of the Cable Television Networks Rules 1994 (as amended) prescribes
that an applicant seeking registration for operating as an MSO can be an
individual, an association of individuals or body of individuals, whether

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 incorporated or not, or a company. The eligibility criteria for an applicant
multi-system operator as per Rule 11(B), CTN Rules 1994 are as follows: —

“a) where the applicant is a person, he shall be a citizen of India and not less
than eighteen years of age;

b) where the applicant is an association of Individuals or body of individuals,

whether incorporated or not, the members of such an association or body shall
be citizens of India and not less than eighteen years of age;

c) where the applicant is a company, such company shall be a company

registered under the Companies Act, 1956 and shall be subject to such
conditions relating to foreign direct investment as may be decided by the
Central Government;

d) the applicant shall not be an undischarged insolvent;

e) the applicant shall not be a person of unsound mind as declared by a-

competent court;

f) the applicant shall not be convicted of any criminal offence”.

2.8 Rule 11(3) of CTN Rules, 1994 prescribes, inter alia, the financial strength of
the applicant for grant of MSO registration, without explicitly defining or
quantifying it. Further, Ministry has been granting MSO registration to those
applicants who have positive net-worth. Previously, vide letter no.
2/31/2016- DAS Dated 16th May 2018, MIB requested TRAI to give its
recommendations on the appropriate entry level net worth for the MSOs. In
response, the Authority in its Recommendations10 on Entry Level Net worth
requirement of Multi-system Operators in Cable TV services dated 22nd July
2019 had recommended that there is no necessity for fixation of a minimum
entry level net worth for MSO registration. As prevalent, any individual,

10 https://www.trai.gov.in/sites/default/files/Recommendation_MSO_22072019_0.pdf
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 company, corporate firm, or LLP that fulfils provisions of the CTN Rules, may
be granted MSO registration. These recommendations have been accepted by
the government.

2.9 Initially, the MSO registration was issued for a specific city or Town or a State
or on a pan-India basis as per the request of the applicant. However, vide
circular dated 27th Jan 2017 (Annexure-I), the Ministry of Information and
Broadcasting (MIB) conveyed that all the MSOs with a valid registration are
free to operate in any part of the country.

2.10 As per extant provisions, any individual, company, corporate firm, or LLP
that fulfils provisions of the CTN Rules, may be granted MSO registration.
MIB has developed a new Broadcast Seva portal (Figure 4) for submitting the
applications online for MSO registration. The portal provides a single point
facility to the stakeholders to request for required permission, registrations,
licenses, etc. issued by the Ministry of Information and Broadcasting for
broadcast related activities.

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 Figure 4: Broadcast Seva Portal for submitting applications11

2.11 For registration of MSO, the applicant is required to make an application to

MIB by logging on to the Broadcast Seva portal. The eligibility criteria, entry
requirements, and list of documents are prescribed on the portal. Post scrutiny
of eligibility and documents, security clearance from MHA is obtained before
grant of the registration. The security clearance provided by MHA to an entity,
or its director(s) has a limited validity of ten years from the date of initial grant
of security clearance or period of license permission, whichever is earlier, as
per MHA O.M. dated 25.06.2018.

2.12 As per the extant provision under the CTN Rules, an MSO registration has a
validity period of 10 years. There is no provision for an extension or a renewal,
implying that at the end of the 10-year period of validity, the registration
expires. While the Guidelines may be silent on the provision of an extension
or a renewal, it could not possibly be the intent of policy to effectively disallow
existing service providers from continuing business beyond the initial
registration period of 10 years. Starting a cable television distribution business
entails considerable investment of resources. It would, therefore, be a
reasonable expectation on the part of MSO licensees that, before the expiry of
the initial 10-year registration, they would apply for renewal/ extension of the
existing registration so that they could continue their business.

2.13 Further, it is important to note that such renewal/ re-registration process has
to be a time-bound activity as it needs to be completed before the expiry of
existing registration. This is necessary as the existing service providers have
large number of consumers. Therefore, any registered MSO should strive to
apply for renewal at least few months before the expiry of registration.
Furthermore, in case an existing service provider has applied for renewal and
the decision of renewal is pending, then in the interest of consumers, the

11 https://new.broadcastseva.gov.in/digigov-portal-web-app/
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 service provisioning may be allowed to continue on provisional basis.

2.14 Apropos the above, the issues for consultation are:

1. What should be the period of extension/renewal, to be prescribed in

the Cable Television Networks (Regulation) Act, 1995 /Cable
Television Networks Rules, 1994, on the expiry of the initial period
of permission of MSO registration? Please elaborate your response
with justification.

2. Whether a one-time fee should be levied at the time of renewal of the

MSO registration? If yes, please suggest amount of fee for such
renewal to be prescribed in the Cable Television Networks
(Regulation) Act, 1995 /Cable Television Networks Rules, 1994.
Please provide detailed reasoning for your comment.

3. Should a time window be prescribed before the expiry of MSO

registration, within which the MSO shall apply for renewal of the MSO
registration?

4. In case an MSO has applied for renewal, and the final decision on
renewal is pending, what should be the provision to ensure continuity
of service for the consumers on expiry of previous registration?

5. In case an MSO hasn’t applied for renewal before the expiry of its
registration:

i. What should be the status of services by such MSO after the

expiry of registration? As per extant guidelines/ regulations an
MSO with valid registration only can get the signals of a
television channel. Should a broadcaster disconnect the
television channels for such MSOs whose registration has
expired?

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 ii. Should existing registered operational MSOs be provided with
an extended time beyond the original registration period for
applying for renewal? What should be the maximum time after
expiry up to which an application for renewal can be entertained
by MIB?

iii. Should there be an additional fee for such applications that are
received after the expiry of registration period?

Guidelines for Renewal of Registration for television service providers

other than MSO

2.15 For deliberating on the issue of the period of existing MSO registration and its
renewal, it would be prudent to review the relevant provisions, on the subject,
that have been made in other distribution platforms of the broadcasting
sector. It may be appropriate to mention here that as per the guidelines for
Provisioning of Internet Protocol Television (IPTV) Services issued by Ministry
of Information & Broadcasting vide its letter No. 16/03/2006-BP&L. Vol. III
dated 08.09.2008, all telecom licensees/Cable Operators before providing
IPTV will give a self-certified declaration to I&B, DoT and TRAI giving details
such as license/registration under which IPTV service is proposed. No
separate registration is required for provisioning of IPTV services as per extant
guidelines. However, the relevant provision in vogue for renewal of the
registration for other distribution platform operators, along with the renewal
policy for the LCOs is discussed below:

(A). Guidelines for LCO Registration12

2.16 Any applicant who is desirous of providing cable television network services

12https://new.broadcastseva.gov.in/digigov-portal-web-app/

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 as a local cable operator with digital addressable system needs to apply for
registration from the registering authority as per the procedure detailed below:

a. Application for registration as local cable operator shall be made in writing in

Form 1 as prescribed in the Cable Television Networks Rules 1994.

b. The application shall be addressed to the registering authority i.e., the Head
Post Master of a Head Post Office of the area within whose territorial
jurisdiction the office of the cable operator is situated, and delivered in his
office in Form 1.

c. The application for registration or renewal of registration shall be accompanied

by

o a fee of Rs. five hundred only; and

o the requisite documents mentioned in Form 1 and an undertaking as in Form

2 prescribed in the Cable Television Networks Rules 1994.

d. The application for issue of duplicate certificate of registration shall be

accompanied by

o a fee of Rs. two hundred and fifty only; and

o the requisite documents mentioned in Form 1 prescribed in the Cable

Television Networks Rules 1994.

e. The amount of fee shall be deposited in the Head Post Office where the
application for registration or renewal of registration or issue of duplicate
certificate of registration is being made.

f. LCO registration may be renewed after every twelve months

g. The applicant could be individual, association or body of individuals, or a

company registered under the Companies Act.

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 2.17 Renewal terms and process for the LCOs have been kept identical to the initial
registration, in terms of eligibility, validity period and fee.

(B). Direct-To-Home (DTH) Registration

2.18 The Government had issued “Guidelines for Obtaining License for Providing
Direct-to-Home (DTH) Broadcasting Services in India” on 15th March 200113
which marked the beginning of DTH services in India.

Period of license for DTH services:

2.19 The period of license for DTH services previously was 10 years from the date
of issue of wireless operational license by Wireless planning and Coordination
Wing of Ministry of Communications. MIB has subsequently issued
amendments14 to the guidelines for obtaining licenses for providing DTH
services in India on 30th December 2020. The license period for DTH
operations has been increased from the existing period of 10 years to 20 years
from the date of issue of wireless operational license (WOL) by WPC and
renewal by 10 years at a time. While the amendments specify the annual
license fee along with other applicable fee payable by the DTH operators, no
separate fee for renewal of DTH license has been prescribed in the said
amendments to the policy guidelines for DTH broadcasting services.

(C) Headend-in-the Sky (HITS) Registration

2.20 “Guidelines for Providing Headend-in-the-Sky (HITS) Broadcasting Service

in India” were issued by MIB on 26th November 200915. The amendment to
the guidelines were later issued by MIB on 6th November 202016 through
which MIB has also permitted sharing of infrastructure by HITS operators.
The process for obtaining permission is similar to that of DTH services.

13 https://mib.gov.in/sites/default/files/GuidelinesforDTHServiceDated15.3.2001.pdf
14 https://mib.gov.in/broadcasting/direct-homedth
15 https://mib.gov.in/sites/default/files/headend.pdf
16 https://mib.gov.in/sites/default/files/Amendment%20in%20HITS%20guidelines%20.pdf
Page 20 of 37
 Period of Permission for HITS services:

2.21 Permission for providing HITS service will be valid for a period of 10 years from
the date of issue of wireless operational license (WOL) by Wireless planning and
Coordination Wing of Ministry of Communications and Information Technology.

2.22 While the mechanism for obtaining permission as prescribed in the Guidelines
for Providing HITS Broadcasting Service in India is similar to that of DTH
services, these guidelines do not include an express provision for
extension/renewal of permission period for HITS services unlike the case of DTH
services (which is renewable by 10 years at a time).

2.23 As stated earlier, TRAI has taken note of the fact that at present there is no
provision for renewal in the existing Guidelines for Registration for HITS
services. Therefore, there is a need to make appropriate provisions for extension
of license/permission period for HITS platform as well, for the sake of uniformity
across all distribution platforms as far as provision for renewal of registration/
permission/ license is concerned. The MIB Reference has sought the
recommendations of TRAI on specific aspects, as outlined under para 1.8 (i) &
(ii) in the previous chapter, for extension of the validity period of MSO
registration including the amount of processing fee. Hence, TRAI is of the view
that the issue of renewal provisions for HITS services need to be taken up in a
separate consultation paper, either on a reference from MIB regarding this or
on suo motu basis, as expedient in the matter.

Regulatory Provisions

2.24 To enable the Indian broadcasting sector to realize the gains of digitization,
TRAI, after due consultation process, published a comprehensive regulatory
framework for DAS on 03.03.2017. This framework comprised of the
Telecommunication (Broadcasting and Cable) Services Interconnection
(Addressable Systems) Regulations, 2017, the Telecommunication

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 (Broadcasting and Cable) Services Standards of Quality of Service and
Consumer Protection (Addressable Systems) Regulations, 2017 and the
Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable
Systems) Tariff Order, 2017 for providing broadcasting services. This
framework was notified in March 2017. However, it came into effect from
29.12.2018 after satisfying legal pronouncements. The regulatory framework,
by its design, has brought transparency, non-discrimination and level playing
field among various players across the value chain. All Distribution platform
Operators (DTH/MSO/HITS/IPTV) are required to ensure the compliance to
these regulations and extant regulatory framework in general.

2.25 The New Regulatory framework, together with the Cable Television Networks
(Regulation) Act, 1995/ Cable Television Networks Rules, 1994 paved the way
for evolution of the cable television services from an unregulated,
unstructured sector to a structured, technology driven, vibrant sector. The
regulatory framework has nudged the sector towards a new structure, wherein
all the stakeholders, from content provider to distributor to end consumer,
operate in a transparent, trust-based ecosystem. On the other hand, the CTN
Act/ CTN Rules have been continuously evolving to provide a simple
registration process for the MSOs and LCOs and to enable a business
opportunity for the entrepreneurs without any deterrent entry barriers to
speak of.

2.26 As mentioned earlier, there are 1762 MSOs who have been provided MSO
registration by MIB up to March 2022. Further, as per inputs from leading
broadcasters, nearly 900 MSOs have active agreements with pay TV
broadcasters. However, there is a significant gap in reporting of compliance
by these MSOs despite continuous monitoring efforts by TRAI. For instance,
only 363 MSOs had undergone the mandatory audit in 2021, citing
miscellaneous reasons including Covid situation. It is understood that similar
shortfalls are also being observed by the ministry regarding compliance of the

Page 22 of 37
 terms and conditions of the MSO registration granted by MIB. Few smaller &
medium MSOs have either merged their operation or formed joint venture (JV)
with bigger MSOs having subscriber base more than one lakh. However, the
acquired MSOs have not reported the new status to TRAI or MIB. Apart from
this, many of MSOs who have been issued MSO registration by MIB after
2017, are yet to comply with the provisions of the CTN Act/Rules including
the extant regulatory framework. MIB has also issued an advisory dated
21.02.202217 for regular updating of the subscriber base data on the
Management Information System (MIS) of the Ministry.

2.27 Pursuant to the said situation, it may be prudent for the licensing authority
to be satisfied with the compliance of the MSOs with the terms and conditions
of their registration and the extant regulatory framework, prior to permitting
the extension of their services. In the interest of promoting ease of doing
business, a hassle-free approach may be adopted for such verification of
compliances of MSOs at the time of application for renewal of MSO
registration. It may be reasonable to include a provision in the CTN Act/Rules
for the MSOs to report their status of compliance with the extant regulatory
framework to TRAI or MIB, before they may be granted renewal of registration.
For the compliance monitoring purpose, TRAI has identified key regulatory
provisions, the list of which is enclosed as Annexure III. The stakeholders
may examine the list and provide their suggestions along with any
modifications proposed in the list of compliances to be considered mandatory,
prior to the grant of renewal of MSO registration. Further, it may be
appropriate to highlight the list of documents that may be necessary to be
submitted at the time of application for renewal of MSO registration to the
licensing authority for such verification of compliances. TRAI welcomes
suggestions for such list of documents which may include, but may not be
limited to, self-certification by the MSOs regarding their status of compliance,

17 https://mib.gov.in/sites/default/files/Advisory%20for%20MIS.pdf
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 any NOC provided by TRAI/MIB/licensing authority, audit reports etc. as the
case may be, as long as it is in tandem with ease of doing business in the
television distribution network.

2.28 For continuity and long-term planning of the business, renewal of

license/registration would be a basic requirement/expectation of the licensee.
Further, the period of renewal should neither be too long nor too short. In
view of this, it may be appropriate to incorporate, in the CTN Act/ CTN Rules,
a provision that indicates the period of extension/renewal, relevant
processing fee, as may be applicable, and the procedure to be followed in
future for the extension/renewal of the MSO registration on their expiry. The
licensor should have the flexibility to modify the terms and conditions for
extension/renewal of the registration.

2.29 Apropos the above, the issues for consultation are:

1. Should some qualifying conditions be prescribed for renewal of MSO

registration, under which the MSO, along with the application for
renewal, shall be required to submit its compliance status with the
terms and conditions of registration and the extant regulatory
framework?

Please provide the details of:

(i) List of necessary compliances that should be mandatory for

considering renewal of MSO registration,

(ii) List of documents, which may include, but may not be limited to,
self-certifications, NOCs from TRAI/MIB/licensing authority, audit
reports etc. that would be required to be submitted for verification of
such compliances at the time of application,

Page 24 of 37
 (iii) Any other mandatory requirements for verification of status of
compliances of the MSOs before grant of renewal of registration.

Please elaborate your suggestions with reasons for the mandatory

requirement of each compliance in tandem with ease of doing
business in the television distribution network.

2. Should there be any additional terms and conditions for renewal of

the permission for MSO registration? Please elaborate.

3. Stakeholders may also provide their comments on any other issue

relevant to the present consultation.

Page 25 of 37
 Chapter-III

ISSUES FOR CONSULTATION

Stakeholders are requested to provide their comments on the following issues:

3.1 What should be the period of extension/renewal, to be prescribed

in the Cable Television Networks (Regulation) Act, 1995 /Cable
Television Networks Rules, 1994, on the expiry of the initial period
of permission of MSO registration? Please elaborate your response
with justification.

3.2 Whether a one-time fee should be levied at the time of renewal of

the MSO registration? If yes, please suggest amount of fee for such
renewal to be prescribed in the Cable Television Networks
(Regulation) Act, 1995 /Cable Television Networks Rules, 1994.
Please provide detailed reasoning for your comment.

3.3 Should a time window be prescribed before the expiry of MSO

registration, within which the MSO shall apply for renewal of the
MSO registration?

3.4 In case an MSO has applied for renewal, and the final decision on
renewal is pending, what should be the provision to ensure
continuity of service for the consumers on expiry of previous
registration?

3.5 In case an MSO hasn’t applied for renewal before the expiry of its
registration:

3.5.1 What should be the status of services by such MSO after

the expiry of registration? As per extant guidelines/
regulations an MSO with valid registration only can get
the signals of a television channel. Should a broadcaster

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 disconnect the television channels for such MSOs whose
registration has expired?

3.5.2 Should existing registered operational MSOs be provided

with an extended time beyond the original registration
period for applying for renewal? What should be the
maximum time after expiry up to which an application for
renewal can be entertained by MIB?

3.5.3 Should there be an additional fee for such applications

that are received after the expiry of registration period?

3.6 Should some qualifying conditions be prescribed for renewal of

MSO registration, under which the MSO, along with the application
for renewal, shall be required to submit its compliance status with
the terms and conditions of registration and the extant regulatory
framework?

Please provide the details of:

(i) List of necessary compliances that should be mandatory for

considering renewal of MSO registration,

(ii) List of documents, which may include, but may not be limited
to, self-certifications, NOCs from TRAI/MIB/licensing authority,
audit reports etc. that would be required to be submitted for
verification of such compliances at the time of application,

(iii) Any other mandatory requirements for verification of status of

compliances of the MSOs before grant of renewal of registration.

Please elaborate your suggestions with reasons for the mandatory

requirement of each compliance in tandem with ease of doing
business in the television distribution network.
Page 27 of 37
3.7 Should there be any additional terms and conditions for renewal
of the permission for MSO registration? Please elaborate.

3.8 Stakeholders may also provide their comments on any other

issue relevant to the present consultation.

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 ANNEXURE-I

Page 29 of 37
 ANNEXURE-II

Page 30 of 37
Page 31 of 37
 ANNEXURE-III

REGULATORY COMPLIANCES TO BE SUBMITTED BY MSOs

Sl. Regulation / Compliance Required Remarks

No Order
.

Regulation 4(4) of Declaration of State-wise Target Headend wise details

1
the Interconnection Market. to be displayed on its
Regulations, 2017 website by Multi-
System Operators
Total channel carrying capacity of (MSOs)
2 distribution network in terms of
SD channels

List of channels available on the

3
network

No. of channels for which signals

of television channels requested
4
from broadcaster and agreement
signed

Spare channel capacity available

5
in network

List of channels, in chronological

order, for which requests have
6
been received from the
broadcasters for distribution

Regulation 8 of the Publication of Reference Reference

7 Interconnection Interconnection Offer (RIO) by Interconnection Offer
Regulations, 2017 Distributor of television channels (RIO) to be made
available on the
website and also to be
filed in B&CS
Page 32 of 37
 Integrated Portal
(BIPS)

Regulation 10 of Interconnection Agreements To provide

the Interconnection between Broadcasters and Broadcaster wise
8
Regulations, 2017 Distributor of television channels number of agreements
details

Regulation 12 of Interconnection Agreements Total No. of linked

the Interconnection between Distributor of television LCOs including no. of
Regulations, 2017 channels and Local cable Agreements entered
9 operator with LCOs based on
Model Interconnection
Agreement (MIA)/
Standard
Interconnection
Agreement (SIA)

Regulation 15 of Cause Audit of CAS/SMS and Mandatory for

the Interconnection other related system by an Distribution Platform
10 Regulations, 2017 auditor Operators (DPOs) to
carry DAS Audit once
in a Calendar year

Regulation 20 of Compliance Officer details along To provide Name,

the Interconnection with authenticated copy of board Complete Address,
Regulations, 2017 resolution authorising the contact number and
11 designation of such compliance Email address of
officer Compliance officer
once and after every
change, if any

Clause 7 of the Declaration of Network Capacity To declare on the

Tariff Order, 2017 Fee (NCF) and manner of offering website
of channels by distributors of
television channels (to be reported (a) Region-wise NCF,
12
to TRAI and made available on per month for up to
website) 200 channels
(excluding mandatory
DD channels)

Page 33 of 37
 (b) Region-wise NCF
for more than 200
Channels

(c) Region-wise NCF,

per month, for each
additional TV
connection beyond
first TV connection in
a multi-TV home

List of channels with name, List of Free to Air

nature & language (to be reported (FTA) channels list
to TRAI and made available on and list of Pay
website) Channels declared
13
with Maximum Retail
Price (MRP) /
Distributor Retail
Price (DRP)

List of all Bouquets of pay List of Broadcaster

channels formed by broadcasters Bouquets declared
and distributor of television with MRP/DRP and
14 channels which are available on List of DPO Bouquets
DPO platform (to be reported to declared with DRP
TRAI and made available on
website)

Devising of Consumer Application Copy of CAF to be

form (CAF) containing the made available on
Regulation 3(5) of
information as provided in website and also
15 the QoS
Schedule-I of the regulation provided through
Regulations
[either in electronic form or print LCOs to the
form] subscribers

To offer Consumer Premises Details of CPE also be

Regulation 24 (3) of Equipment (CPE) or Set Top Box made available on the
(STB) to every consumer under website by DPOs
16 the QoS
following schemes: -
Regulations, 2017
(i) Outright purchase scheme or

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 (ii) Rental scheme

Regulation 25 of Customer Care Centre To provided Web

the QoS based complaint
Regulations (i) Toll Free Number management system
17
(ii) Details of Nodal officers (state-
wise)

Regulation 31 of Establish and maintain website To provide

the QoS for purpose of publicity of
Regulations information related to (a) Hyperlink for
broadcasting services Consumer corner on
the home page,
containing
information in
accordance with
Schedule-II of these
18 regulations.

(b) Hyperlink for

Subscriber Corner
having provision for
login to subscribers to
access information in
accordance with
Schedule-III of these
regulations

Page 35 of 37
 List of Acronyms

Abbreviations Description

BS Broadcast Seva

CTN Act Cable Television Networks

(Regulation) Act, 1995

CTN Rules Cable Television Networks Rules, 1994

DAS Digital Addressable System

DTH Direct-to-Home Systems

GOPA Grant of Permission Agreement

HITS Head-End in The Sky

IPTV Internet Protocol TV

LCO Local Cable Operator

MIB / I&B Ministry of Information and Broadcasting

MSO Multi System Operator

MHA Ministry of Home Affairs

PBG Performance Bank Guarantee

SMS Subscriber Management System

SACFA Standing Advisory Committee on Radio Frequency

Page 36 of 37
 Allocation

INR Indian Rupee

SP Service Provider

WPC Wireless Planning and Coordination

TRAI Telecom Regulatory Authority of India

NCF Network Capacity Fee

MIA Model Interconnection Agreement

SIA Standard Interconnection Agreement

CPE Customer Premises Equipment

MRP Maximum Retail Price

DRP Distributor Retail Price

FTA Free To Air

STB Set To Box

RIO Reference Interconnection Offer

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