TRAI to make interconnect agreements mandatory for providing signals

After considering the comments received from various stakeholders, Telecom Regulatory Authority of India (TRAI) has released the draft Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) (Sixth Amendment) Regulations 2015 where it emphasized the issue about signing of interconnection agreement between broadcasters and MSOs.

In regulation 5 of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations, 2012 (9 of 2012), (hereinafter referred to as the principal regulations) it has been mentioned that: “It shall also be mandatory for the broadcaster to enter into written interconnection agreement with the multi system operator for retransmission of the pay channel(s) even if nil subscription fee is charged by the broadcaster or paid by the cable operator”.

It also mentioned that this is to ensure that inconvenience is not caused to the consumers by sudden disconnections of signals due to failure of the service providers to enter into new interconnection agreements, it shall be mandatory for the service providers to enter into new agreements twenty one days prior to the date of expiry of the existing agreement:

Provided that the broadcaster or multi system operator, as the case may be shall, sixty days prior to the date of expiry of the existing interconnection agreement, give notice to the multi system operator or the linked local cable operator, as the case may be, to enter into the new agreement. Also in case the service providers fail to enter into new interconnection agreement the multi system operator or the linked local cable operator, as the case may be, shall, fifteen days prior to the date of expiry of the agreement inform the consumer the disconnection of signals.

TRAI stated that while examining the details of interconnections submitted by the Broadcasters and Multi System Operators (MSOs), it has come to the notice that in many cases the signals of TV channels are being provided by the broadcasters to MSOs and MSOs to Local Cable Operators (LCOs) even in the absence of valid Interconnection agreement in writing. It has also been observed that in cases where existing interconnection agreement has expired, the same is neither renewed nor a new agreement is signed even after expiry of several months from the date of expiry of existing interconnection agreement. It has been observed that in several cases agreements are delayed on the pretext of continued mutual negotiations, but continue retransmission of signal which often results into disputes and sometimes sudden disconnection that affects quality of service to consumers. The present regulations which provide scope for mutual negotiations even after expiry of the agreement may be one of the causes for such disputes among stakeholders

With this, another area which required attention is ambiguity related to the effective date of applicability of new agreements. There is confusion on whether the new agreement should apply from the date of entering into the new agreement or from the date of expiry of earlier agreement.

Therefore, TRAI has studied and reviewed the present regulations which provide scope for mutual negotiations even after expiry of the agreement has been reviewed so that no signal can be provided after expiry of the interconnection agreement between the service providers.

The draft also added that: “Sometimes this results into avoidable price dispute leading to sudden disconnection of signals of TV channels and inconvenience to the consumers. Instances have brought to the notice where review of the price from retrospective effect resulted in arrear recovery from the consumers. Therefore, strong need is felt to make it clear in the regulations that re-transmission of TV signals should not take place between service providers without valid written interconnection agreement and new agreement is entered between them well before the expiry of the existing interconnection agreement. Therefore, the Authority felt that the regulation 5 of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations 2012 may be reviewed in consultation with the stakeholders. Accordingly, the proposed Draft amendment is placed seeking comments of the stakeholders”.