TRAI releases recommendations on entry-level net-worth requirement of MSOs

In response to the Ministry of Information and Broadcasting’s request, and subsequent to an open house with the stakeholders, the Telecom Regulatory Authority of India (TRAI) has released its recommendations on entry-level net-worth requirement of multi-system operators (MSOs) in cable TV services.

An MSO is an authorized service provider, providing cable TV services to its subscribers. Rule 11(3) of Cable Television Network Rules, 1994, prescribes the criteria of the applicant for grant of MSO registration.

The Authority has finalized its recommendations.

• The Authority recommends that there is no necessity for fixation of a minimum entry-level net worth for MSO registration. At present, any individual, company, corporate firm, or LLP that fulfils provisions of the Cable TV Rules may be granted MSO registration.
• The Authority recommends that there is no basis for introducing minimum net-worth classification based on the area of operation for MSO registration. The DAS system enables subscription-based billing and there is no rationale for introducing area-wise registration.
• As the area-wise minimum net-worth classification for registration of MSO is not required, there is no need to prescribe minimum net worth for remote areas of Jammu & Kashmir or North-East region.
• The Authority recommends that there is no merit in introducing minimum net worth for registration of MSOs based on network cost criteria.
  The Authority recommends that MIB may prescribe a standard proforma for self-declaration of net worth by applicants seeking registration as MSOs.
• The Authority recommends that MIB may consider skill-development requirement of the sector and take appropriate action so that trained manpower is available to perform specialized tasks.