TRAI Released Recommendations on Entry Level Net Worth Requirement for MSOs in Cable TV Services

TRAI Released Recommendations on Entry Level Net Worth Requirement for MSOs in Cable TV Services

The Telecom Regulatory Authority of India (TRAI) has filed its recommendations on Entry Level Net Worth requirement for Multi-System Operators (MSOs) in Cable TV Services. TRAI had received a reference from MIB dated 16th May, 2018 asking recommendations for implementation of Cable TV digitization across the country. Followed by Consultation Paper issues on 9th April, 2019, an open house discussion was held to seek views of stakeholders on various issues.

TRAI has recommended that there is no necessity for fixation of a minimum entry level net worth for MSO registration. As at present, any individual company, Corporate firm or LLP that fulfils provisions of the Cable TV Rules may be granted MSO registration.

TRAI has Released Following recommendations:

  • TRAI recommends that there is no basis for introducing minimum net worth classification based on the area of operation for MSO registration. The DAS system enables subscription-based billing and there is no rationale of introducing area-wise registration.
  • As the area-wise minimum net worth classification for registration of MSO is not required, there is no need to prescribe minimum net worth for remote areas of Jammu & Kashmir or North-East region.
  • TRAI recommends that there is no merit in introducing minimum net worth for registration of MSOs based on network cost criteria.
  • TRAI recommends that MIB may prescribe a standard proforma for self-declaration of net worth by applicants seeking registration as MSOs.
  • TRAI recommends that MIB may consider skill development requirement of the sector and take appropriate action so that trained manpower is available to perform specialized tasks.

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