Trai asked to re-examine entry of govts in broadcasting, distribution

NEW DELHI: The Telecom Regulatory Authority of India (Trai) has been asked by the Information and Broadcasting (I&B) Ministry to examine whether central or state governments and their entities can enter the television broadcasting and distribution sectors.

Even as the Government has always held the view that central and state governments should not be allowed to enter this arena, the latest action appears to have been triggered by demands from the West Bengal and Tamil Nadu governments to set up their own television channels. The Ministry also admitted that it had received similar requests from other entities of the central government.

The issue of granting permission to state governments or its organs to run Cable TV Networks has been drawing attention of the ministry from time to time particularly with reference to the TRAI recommendations restricting such entities from entering into broadcasting and distribution activities.

The Ministry has therefore sought the views of TRAI regarding the entry in the broadcaster sector of central government ministries and departments / central government-owned companies / central government undertakings / joint venture of the central government and the private sector / central government funded entities; and state government departments/ state government-owned companies / state government undertakings / joint venture of the state government and the private sector / state government funded entities.

TRAI in its recommendations on ?Issues relating to entry of certain entities into Broadcasting and Distribution activities? dated 12 November 2008 was of the view that the state government and their organs may not be permitted to enter into broadcasting and distribution activities.

Under the policy guidelines for uplinking and downlinking of television channels, an applicant seeking permission to set up an uplinking hub / Teleport or uplink/downlink a TV Channel should be a company registered in India under the Companies Act 1956 irrespective of its management control.

The move assumes significance in view of significant growth in the broadcasting sector at a time when the number of TV channels and cable connections in India have grown exponentially.

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