TRAI Releases Recommendations On Entry Level Net-Worth Requirement Of MSOs In Cable TV Service

Posted by TRAI

The Telecom Regulatory Authority of India (TRAI) has released its recommendations on “Entry level Net-worth requirement of Multi System Operators (MSOs) in Cable TV Services”. A Multi System Operator (MSO) is an authorized service provider, providing cable TV services to its subscribers. The Rule 11(3) of Cable Television Network Rules, 1994 prescribes the criteria of the applicant for grant of MSO registration.

In this regard, a reference was received from Ministry of Information and Broadcasting (MIB) vide its letter dated 16th May, 2018 seeking recommendations of TRAI on the appropriate levels for fixation of entry level net-worth of the Multi System Operators (MSOs) for operationalizing cable TV digitization across the country. Further details of the reference were shared by MIB vide its letter dated 13th December 2018.

In order to deliberate on various aspects related to the matter and to seek inputs from the industry stakeholders on relevant issue, the Authority issued a detailed Consultation paper on “Entry Level Net Worth for MSOs in Cable TV Services”, on 9 thApril 2019. Subsequently, an open house discussion was held on 11thJune 2019, in Delhi, to seek the further views of the stakeholders on various issues.

Based on the comments of the stakeholders received during the above-mentioned consultation process and its own analysis, the Authority has finalized its recommendations on “Entry Level Net Worth requirement for MSO in Cable TV Services”. The Authority has noted that the New Regulatory Framework provides an enabling environment for Small and Medium MSOs and up scaling of LCOs to MSO.

After careful consideration the Authority has recommended that,’ … there is no necessity for fixation of a minimum entry level net worth for MSO registration. As at present, any individual, company, Corporate firm or LLP that fulfills provisions of the Cable TV Rules may be granted MSO registration.―BCS Bureau

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