Even as LCOs are voicing their concerns over their future role in the television landscape in India, the broadcasting regulatory, Telecom Regulatory Authority of India (TRAI), has released its recommendations on the ‘Monopoly/Market dominance in Cable TV services. The authority has addressed the power wielded by the MSOs in the country.
In the statement TRAI has mentioned, “Currently there are no restrictions on the area of operation and accumulation of interest in terms of market share in a city, district, state or country by MSOs. It has been observed in some states that a single entity has, over a period of time, acquired ‘control’ of several MSOs and LCOs, virtually monopolising cable TV distribution in that market. Cases of market dominance by MSOs have been reported at various forums.”
According to TRAI, it has recommended putting a cap of 50% on MSO stake in any state in the country. The regulator has gone onto mentioning that increasing monopoly is not in the best interests of the consumers at the end of the day. It has also raised the issue of how such monopolies could affect the quality of services provided as well as the pricing levied on the customers and also the growth of channel distribution market.
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