TRAI regulation 4 of 2024 · 08 Jul 2024
Official title
The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Sixth Amendment) Regulations, 2024
Official record
Open source pageSummary
The Telecom Regulatory Authority of India (TRAI) has amended the 2017 Interconnection Regulations for addressable systems. Key updates include: (1) mandating that broadcasters and distributors sign fresh or amended interconnection agreements when RIOs are updated due to regulatory changes; (2) revising carriage fee calculations, capping the fee at 25 paise per channel per subscriber per month, with a maximum total of Rs. 5 lakh per channel per month; (3) introducing a financial disincentive framework for non-compliance, with penalties ranging from warnings to Rs. 1 lakh per contravention, subject to annual caps; and (4) updating subscription reporting requirements. These regulations apply across India and come into force 90 days after their publication in the Official Gazette.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART III, SECTION 4 TELECOM REGULATORY AUTHORITY OF INDIA NOTIFICATION THE TELECOMMUNICATION (BROADCASTING AND CABLE) SERVICES INTERCONNECTION (ADDRESSABLE SYSTEMS) (SIXTH AMENDMENT) REGULATIONS, 2024 (4 of 2024)
New Delhi, 8/7/2024
F. No. RG-8/1/(9)/2021-B AND CS(1 AND 3).— In exercise of the powers conferred by section 36, read with sub-clauses (ii), (iii) and (iv) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), read with notification of the Central Government, in the Ministry of Communication and Information Technology (Department of Telecommunications), No. 39, —
(a) issued, in exercise of the powers conferred upon the Central Government under clause (d) of sub-section (1) of section 11 and proviso to clause (k) of sub-section (1) of section 2 of the said Act, and
(b) published under notification No. S.O.44 (E) and 45 (E) dated the 9th January, 2004 in the Gazette of India, Extraordinary, Part II, Section 3,—
the Telecom Regulatory Authority of India hereby makes the following regulations to further amend the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017 (1 of 2017), namely:-
(2) These regulations shall apply throughout the territory of India.
(3) These shall come into force after ninety days from the date of their publication in the Official Gazette.
“(jja) “regulations” means the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017;”;
In regulation 4 of the principal regulations, in sub-regulation (4), in item (f), the second proviso shall be omitted.
In regulation 7 of the principal regulations, after sub-regulation (9), the following proviso shall be inserted, namely:-
“Provided that in the event an amendment in the reference interconnection offer becomes mandatory due to any amendment in extant regulations or orders notified by the Authority, the broadcasters and distributors shall sign fresh interconnection agreements or make suitable amendments to their existing interconnection agreements, in accordance with the amended reference interconnection offer, as per the timelines specified by the Authority.”
(a) for sub-regulation (2), the following sub-regulation shall be substituted, namely:-
“(2) The reference interconnection offer, referred to in sub-regulation (1), shall contain the technical and commercial terms and conditions relating to, including but not limited to, target market, rate of carriage fee per month, average active subscriber base at the time of publication of the reference interconnection offer, discounts, if any, offered on the rate of carriage fee, manner of calculation of carriage fee payable to the distributor and other necessary conditions:
Provided that the rate of carriage fee per channel, per subscriber, per month to be declared by a distributor of television channels shall not exceed twenty-five paisa and the total carriage fee payable for such television channel per month, by a broadcaster to a distributor of television channels, shall, in no case, exceed rupees five lakh:
Provided further that a distributor of television channels shall calculate the carriage fee amount for television channels as per the provisions specified in the Schedule I, which shall change with the change in monthly subscription percentage of such television channels.”
(b) after sub-regulation (8), the following proviso shall be inserted, namely:-
“Provided that in the event an amendment in the reference interconnection offer becomes mandatory due to any amendment in extant regulations or orders notified by the Authority, the broadcasters and distributors shall sign fresh interconnection agreements or make suitable amendments to their existing interconnection agreements, in accordance with the amended reference interconnection offer, as per the timelines specified by the Authority.”
“20A Consequences for failure to comply with the provisions of the regulations by the broadcaster or distributor.— (1) If any broadcaster or distributor of television channels, as the case may be, contravenes the provisions of the regulations, it shall, without prejudice to the terms and conditions of its license or permission or registration, or the Act or rules or regulations or order made or direction issued thereunder, be liable to pay the financial disincentive specified in Schedule XI, as the Authority or an officer authorized by the Authority, as the case may be, may by order direct:
Provided that in a calendar year the maximum financial disincentive levied, shall in no case exceed two lakh rupees for all the contraventions of regulations mentioned under Group A in Table 1 of Schedule XI:
Provided also that in a calendar year the maximum financial disincentive levied, shall in no case exceed five lakh rupees for all the contraventions of regulations mentioned under Group B in Table 1 of Schedule XI:
Provided also that the maximum financial disincentives imposed on a service provider for all the contraventions in a calendar year shall not exceed five lakh rupees:
Provided also that no order for payment of financial disincentive shall be made by the Authority, or an officer authorized by the Authority, unless the broadcaster or the distributor, as the case may be, has been given a reasonable opportunity of representation against the contravention of the regulations observed:
(2) The amount payable by way of financial disincentive under these regulations shall be remitted to such head of account as may be specified by the Authority.
20B Consequences for the failure of the service providers to pay financial disincentive within the stipulated time.— (1) If a service provider fails to make payment of financial disincentive under regulation 20A within the stipulated period, it shall be liable to pay interest at a rate which will be two per cent above the one year Marginal Cost of Lending Rate (MCLR) of State Bank of India applicable as on the beginning of the Financial Year (namely 1st April) in which last day of the stipulated period falls and the interest shall be compounded annually.
Explanation: For the purposes of this regulation, a part of the month shall be reckoned as a full month for the purpose of calculation of interest and a month shall be reckoned as an English calendar month.”
“Schedule I (Refer sub-regulation (2) of the regulation 8)
Calculation of the carriage fee amount
The carriage fee amount, for each month or part thereof, during the term of the interconnection agreement shall be calculated as given below:-
| Sl. | Calculation of the carriage fee amount |
|---|---|
| 1. | If monthly subscription for a channel in the target market is less than twenty percent of the average active subscriber base of the distributor in that month in the target market, the carriage fee amount shall be equal to the rate of carriage fee per channel, per subscriber, per month, as agreed under the interconnection agreement, multiplied by the average active subscriber base of the distributor in that month in the target market. |
| 2. | If monthly subscription for a channel in the target market is greater than or equal to twenty percent of the average active subscriber base of the distributor in that month in the target market, the carriage fee amount shall be equal to 'Nil'. |
