The Telecom Regulatory Authority of India (TRAI) has today released a consultation paper on Monopoly/ Market dominance in Cable TV services. MIB has sought recommendations of TRAI on restriction to be imposed on Multi System Operators (MSOs)/ Local Cable Operators (LCOs) to prevent monopolies/accumulation of interest in order to ensure fair competition, improved quality of service, and equity.
The cable TV services are provided by MSOs and LCOS in the country. There are currently no restrictions on the area of operation and accumulation of interest in terms of market share in a city, district, State or country by individual MSOs and LCOs in the cable TV sector. It has been observed in some States that the majority of the cable TV network is controlled by a single entity virtually monopolizing the distribution of cable TV services in these States. Such monopolies/ market dominance may not in the best interest of consumers and may have serious implications in terms of competition, pricing, quality of service and healthy growth of cable TV sector.
Accordingly, this consultation has been prepared for seeking comments from the stakeholders on issues related monopoly/ market dominance in the cable TV services. The paper discusses issues related to market power, relevant market and possible approaches to deal with the issue of monopoly/ market dominance in the context of distribution of cable TV services in the country. The approaches include, the restrictions based on area of operation and those based on the market share.
Written comments on the consultation paper are invited from the stakeholders by 24th June, 2013 and counter comments, if any, by 1st July 2013. The comments and counter comments may be sent, preferably in electronic form to Mr. Rajkumar Upadhyay, Advisor (B&CS), Telecom Regulatory Authority of India, on the e-mail: firstname.lastname@example.org or email@example.com. For any clarification / information, Shri Rajkumar Upadhyay, Advisor (B&CS) may be contacted at Tel. No.: +91-11-23220020, Fax: +91-11-23211998.
The full text of the Consultation Paper is available for download. Click Here.