The Ministry of Information and Broadcasting (MIB) was authorised under the Indian Telegraph Act, 1885 to issue licences, permissions and registrations for broadcasting services. These include direct-to-home, Headend in the Sky, internet protocol television (IPTV), uplinking and downlinking of television channels, setting up of teleports/teleport hubs, purchase and use of digital satellite news gathering/satellite news gathering equipment, FM radio, and setting up of community radio stations. Further, under the Government of India (Allocation of Business) Rules, 1961, the MIB was
vested with authority over radio and television broadcasting.
Going forward, the authorisation of such broadcasting services will be required to be granted under Section 3(1)(a) of the Telecommunication Act, 2023, once the appointed date for this section is notified. Under Section 2(d) of the Telecommunications Act, 2023, “authorisation” refers to permission granted under this act for providing telecommunication services; establishing, operating, maintaining or expanding telecommunication networks; or possessing radio equipment.
A new transition path needs to be chalked out for current licensees/permission holders/registered entities to migrate to the new authorisation framework. This necessitates harmonising the existing policy guidelines administered by the MIB with the Telecommunication Act, 2023.
In July 2024, the MIB sought the Telecom Regulatory Authority of India’s (TRAI) recommendations on this matter. This was followed by TRAI’s consultation paper on the “Framework for Service Authorisations for provision of Broadcasting Services under the
Telecommunications Act, 2023”, released in October 2024, and an open house discussion in December 2024. A look at the key recommendations…
Authorisation for broadcasting services and its rules
In its consultation paper, TRAI sought opinions on service authorisation. Some stakeholders favoured the grant of service authorisation in the form of an authorisation document by the central government. A few of them proposed that the change should be limited to nomenclature only, while others emphasised that the terms and conditions of any rules determining authorisation should only be issued after considering TRAI’s recommendations. Certain safeguards were also suggested to protect the interests of authorised entities and consumers. These included transparency in the authorisation process, regulatory stability, non-discriminatory treatment with respect to spectrum and resource allocation, mandated service quality standards, fair revenue sharing, content regulation, and public interest and technology neutrality.
Conversely, some advocating for continuing the existing practice of issuing licences, citing reasons such as the efficacy of the existing regime, and regulatory certainty and predictability. Meanwhile, there was a view that broadcasting and telecommunications are inherently distinct services and the proposed framework for service authorisations for broadcasting services under the Telecommunications Act, 2023 weakens previous efforts to distinguish telecommunication from broadcasting and surpasses TRAI’s jurisdiction.
Further, while some stakeholders favoured the format of the authorisation document provided in the consultation paper, others preferred the contractual nature of the authorisation/licence. The former believed that “Name of the Channel” and “Category of the Channel” should be specified under the second set of rules, while the service authorisation format for teleports should replace “Name of Channel” with mention “Satellite”. Meanwhile, the latter believed that removing these terms from the licence and incorporating them under the Broadcasting (Grant of Service Authorisations) Rules would leave the service provider with no option but to challenge the law itself. Further, the definitions of “licensee” and “licensor” provided under Section 59 of the Telecommunications Act, 2023 (which provides for amendment to the TRAI Act, 1997) indicate that the act does not intend to make any distinction between licences and authorisations.
After analysing the issue, TRAI was of the view that the central government (MIB) should grant service authorisation for broadcasting services under Section 3(1)(a) of the Telecommunications Act, 2023. The terms and conditions for such broadcasting service authorisations should be notified as Rules under Section 56 of the Telecommunications Act, 2023, and the authorised entity will be required to abide by these rules. The MIB could issue orders/ directions/advisories/instructions as per the said rules notified under the Telecommunications Act, 2023. In line with the TRAI Act, 1997, the central government should seek TRAI’s recommendations before making any amendments to the terms and conditions of the authorisations. The authorised entity should be required to comply with the regulations/orders/directions issued by TRAI under the provisions of the TRAI Act, 1997, as amended from time to time. The authorised entity will be liable to pay the financial disincentives imposed by TRAI for the violation of the provisions of regulations/orders/directions issued by TRAI. In case the authorised entity defaults on the payment of financial disincentives, the MIB, upon TRAI’s advice should recover the amount from the bank guarantee/security deposit furnished under its respective service authorisation(s). TRAI’s decision regarding the imposition and amount of financial disincentives will be final, subject to appeal under the TRAI Act, 1997.
TRAI also recommended that the rules for broadcasting services that are to be notified by the central government under Section 56 of the Telecommunications Act, 2023 should be organised into two categories – the Broadcasting (Grant of Service Authorisations) Rules; and the Broadcasting (Television Channel Broadcasting, Television Channel Distribution, and Radio Broadcasting) Services Rules. The first set of rules would offer the broad contours of various service authorisations, whereas the second set would give the detailed terms and conditions for providing services under each category of service authorisation. Moreover, the service authorisation granted by the central government under Section 3(1)(a) of the Telecommunications Act, 2023 should be in the form of an authorisation document, containing the essential details of the service authorisation.
Framework for broadcasting services
With regard to the changes required in the draft structure outlining the terms and conditions for service provision after the grant of authorisations, most stakeholders submitted comments in favour of the draft. They believed that the draft structure effectively addressed areas such as consumer protection, technological inclusivity and public interest obligations. Those who disagreed argued that adopting a one-size-fits-all concept for all common terms and conditions may be too rigid and bifurcating “the broadcasting (television programming, television distribution and radio) services” into two additional categories would add further complexity. There was also a view that OTT platforms and Prasar Bharati should be included under Broadcasting Distribution Platforms to ensure a level playing field.
The authority concluded that the terms and conditions for broadcasting (television channel broadcasting, television channel distribution, and radio broadcasting) services, to be notified as rules under the Telecommunications Act, 2023, should be categorised as: common terms and conditions; and specific terms and conditions for TV channel broadcasting, TV channel distribution and radio broadcasting services. TRAI also recommended bringing the registration of multisystem operators and local cable operators under the Telecommunications Act, 2023. Moreover, it recommended separate authorisation for free ad-supported streaming television channels under Television Channel Distribution Services. It urged the MIB to take an early decision on TRAI’s recommendations on “Ease of Doing Business in Telecom and Broadcasting Sector” issued on May 2, 2023.
Other key recommendations
TRAI has recommended that the MIB consider introducing new broadcasting services: “Ground-based Broadcasting of a Television Channel” under Television Channel Broadcasting Services and “Low Power Small Range Radio Service” under Radio Broadcasting Services. Further, it has extensively laid out the migration framework for existing service providers, emphasising that migration should be voluntary, free of cost and available until the expiry of the existing licence/permission. The government should establish a simple application-based process through the portal. The eligibility conditions recommended for the grant of service authorisation to new applicants should also apply to the existing licensees/permission holders intending to migrate. The validity period for the respective service authorisations should commence from the effective date of migration to the authorisation regime.
Additionally, the authority is promoting voluntary infrastructure sharing among broadcasting service providers, telecom service providers, infrastructure providers or any other service providers, wherever technically and commercially feasible. Notably, TRAI recommended eliminating the compulsory co-location requirement for radio broadcasting services, providing operators with greater operational flexibility. In a bid to enhance customer choice and reduce e-waste, TRAI has also recommended the adoption of interoperable set-top boxes for television services, with standards defined by the Telecommunication Engineering Centre. Finally, the regulator has supported removing the minimum net worth requirement of Rs 1 billion for internet service providers for providing IPTV services. It has also recommended the harmonisation of financial requirements, particularly within “Television Channel Distribution Services”.
In sum, TRAI’s latest recommendations are significantly different from the previous regulatory structure. These include transitioning from a traditional licensing system to the issuance of an authorisation document, introduction of new broadcasting services, harmonising terms and conditions for service provisioning and financial requirements and infrastructure sharing. The aim is to streamline regulatory processes around broadcasting, enhance resource sharing and improve customer experience.
Nikhaar Gogna
