I&B ministry mulls curbs on multi-system operators

The I&B ministry is actively considering restrictions on the monopolistic practices of MSOs (multi-system operators) by putting a 50% cap on their market share. This move comes in the wake a blackout of two TV channels, Times Now and India News, in Uttar Pradesh by cable operators, who are controlled by MSOs, allegedly under political pressure.

I&B minister Manish Tewari said, "We are seriously looking at introducing a cap on the market share of MSOs to stop monopolistic practices, whether due to political pressure or political ownership, to protect plurality and diversity of content."

He added that the ministry will finalize its views by the end of the week. The minister also said what had happened in UP has been going on for years in Punjab.

On November 2013, TRAI had described UP as one of the markets that were dominated by a single MSO. Other states that have a single MSO include Tamil Nadu, Punjab, Orissa, Kerala and Andhra Pradesh.

In order to curb the dominance of a single player in the cable distribution sector across states, TRAI had recommended restriction of up to 50% of the market share for a single MSO in a relevant market. TRAI also wanted changes in cable laws so that merger and acquisition activities between local cable operators and MSOs would require its approval.

In its recommendations to the I&B ministry, TRAI had also approved the Herfindahl Hirschman Index (HHI) for measuring the level of competition or market concentration in a state. "The Authority recommends that the threshold value for any individual or 'group' entity contribution to the market HHI should be no more than 2,500," TRAI said. The recommendations were sent to the inter-ministerial committee in I&B ministry which is likely to take a view on the matter soon.

Source: http://cablequest.org/news/digitization-news/item/4053-i-b-ministry-mulls-curbs-on-multi-system-operators.htmlSource: http://cablequest.org/news/digitization-news/item/4053-i-b-ministry-mulls-curbs-on-multi-system-operators.html