Trai says licensing for cable TV needed

BY OUR SPECIAL CORRESPONDENT

New Delhi

July 15: The Telecom Regulatory Authority of India (Trai) has said that the cable television industry as also multi-system operators should be brought under a licensing regime. At present, cable TV services in the country only have to be registered. The cable TV network in the country by the end of 2007 had grown to reach nearly 78 million homes.

Trai, in its draft recommendations on the "Restructuring of the cable TV sector", has said that the introduction of a licensing regime will, among other things, help innovations and investment in the sector. It has also noted that in the absence of a regulatory framework for the cable TV sector, "the growth so far may not be sustainable and slow down the future development and inclusion of advance services in the sector".

Reacting to the draft recommendations, the Cable Operators’ Federation of India has said that the draft recommendations will help the cable industry. The federation said that the levying of a licence fee won’t increase the charges for consumers. Trai has suggested that an entry fee of between Rs 10,000 to Rs 1 lakh along with cess should be imposed on cable operators.