In April 2019, the Telecom Regulatory Authority of India (TRAI) had issued a consultation paper to deliberate whether there is a need to fix entry level net worth requirement for multi-system operators (MSOs) in cable TV services.
AIDCF said: “The financial strength will out-rightly give the regulator/information and broadcasting ministry an insight into the seriousness and sustainability of an MSO and also its strength to comply with…regulations framed by TRAI.”
Eligibility of minimum net worth will not only put a check on the violation of rules by MSOs but also ascertain the sustainability and growth of MSOs and cable sector, said AIDCF.
At present, to get a licence for operating as an MSO, any individual or company can do so by paying a processing fee of Rs 1 lakh, which does not present a filter for serious and non-serious players.
AIDCF’s members include DEN Networks, Hathway Digital, GTPL Hathway, IndusInd Media and Communications.