Sony, Discovery want TRAI to probe functioning of cable TV operators

Sony Footage Networks India and Discovery Communications have requested for an investigation into doable cartelisation and collusion within the cable TV phase.

In a letter to the Telecom Regulatory Authority of India (TRAI), Discovery mentioned that there are situations the place a dominant distribution platform operator (DPO) has made it tough for some broadcasters to have entry to its distribution community for carrying content material to customers.

“It has been noticed in lots of States that almost all of the cable TV community is managed by a single entity, just about monopolising the distribution of cable TV providers in these States. Such monopolies and market dominance will not be in the very best curiosity of customers, and should have severe implications by way of competitors, high quality of service and wholesome progress of the cable TV sector,” mentioned Discovery.

Cross-ownership

A key challenge raised by the broadcasters is that sure entities have cross-holding throughout the tv worth chain, from proudly owning sure broadcasters in addition to distribution platforms, that are cable operators. Because of this cross-ownership, cable operators will give preferential therapy to the channels owned by their mother or father entity whereas avoiding the channels of their rivals.

“There’s a want to control sure unhealthy practices/points in cable TV providers because of the existence of cross-holding within the sector, each vertically and horizontally. This cross-holding can result in preferential therapy by DPOs to members of their very own group,” mentioned Sony Footage Networks.

TRAI has floated a session paper to overview the market competitiveness of the tv providers distribution sector.

In response to this paper, Sony mentioned that TRAI ought to make sure that “no channel needs to be given choice by a cable operator over its competitor attributable to the truth that a vertically built-in group, to which such channel belongs, owns a part of or controls the mentioned cable operator, straight or not directly”. Sony needs additionally needs data concerning placement, carriage, subscription of such channels on the operator’s community, and any price or income accruing to such group needs to be mandated to be shared with the TRAI. Furthermore, Sony additionally needs guidelines and laws in place in order that all these direct or oblique ownerships are additionally topic to regulatory scrutiny.

Native competitors

Lack of native competitors amongst cable operators worsens the impression of those cross-holdings. “It’s a matter of indisputable fact that the extent of competitors within the MSOs’ enterprise isn’t uniform throughout the nation. Sure States (Delhi, Karnataka, Rajasthan, West Bengal, and Maharashtra) have many MSOs offering their providers, whereas in sure different States like Tamil Nadu, Punjab, Orissa, Kerala, Uttar Pradesh and Andhra Pradesh, the cable tv market is dominated by one or two MSOs,” mentioned Discovery.

Discovery mentioned there’s a have to arrange authorities on the State stage to provoke an investigation in addition to persecute and sanction such anticompetitive behaviour.

Sony, nonetheless, cautions that investigation and exploration into these anticompetitive practices needs to be left with the Competitors Fee of India, a physique arrange by the federal government for such duties.

“Market dominance is a specialist discipline which needs to be left to professional statutory our bodies (like CCI) to find out. TRAI ought to go away it to the CCI to resolve if market dominance exists and whether or not there’s an adversarial impact on competitors,” mentioned Sony.