Digital TV to bring better content, fee transparency

To combat the artificial bandwidth shortage created by cable operators and the loss of revenue to the government, the Cable Television Networks (Regulation) Amendment Act, 2011, has been passed to digitize the analogue TV network across the country. Experts foresee that successful digitization and its related aspects will revive the sick industry within a few years.

The act prescribes digitization in four phases, starting with Delhi, Kolkata, Mumbai and Chennai, and gradually covering the remaining cities on the basis of population.

Implementation

As a consequence of digitization, all analogue licences held by local cable operators (LCOs) will be cancelled and LCOs will have to procure digital cable TV licences. The Telecom Regulatory Authority of India (TRAI) has worked out a scheme to regulate the carriage fee charged by multi-system operators (MSOs), in an attempt to make process less discriminatory and more transparent, and TRAI retains the power to intervene when necessary.

Naik Naik & Co, founded by Ameet Naik, is a full-service law firm with specific focus on entertainment, real estate, retail and technology. It has three offices in Mumbai and two in New Delhi. Madhu Gadodia (madhuchaudhary@nnico.com) is a partner and Anushree Rauta (anushreerauta@nnico.com) is an associate at the firm.