Technology has been the biggest disruptor in the broadcast sector: TRAI Chairman

The audio-visual sector in India is one of the 12 Champion Sectors identified by the Government of India because of its employment and growth potential. However, the sector is subjected to multiple onerous regulations and FDI restrictions. As the sector transitions into a “new normal”, there are lessons for Indian policy makers from global best practices that allow free market principles to unlock investments, innovation, employment opportunities and value creation in the sector to make India, the creative hub of the world.

Also read: Content creation has never been more democratic, say experts

“Technology has changed the landscape of broadcasting sector, including the distribution, production side, and entire value chain,” noted R S Sharma, Chairman, Telecom Regulatory Authority of India (TRAI), while addressing a webinar on ‘Regulating Creativity: Overcoming Legacy Challenges to Shape the Future of M&E’, organised during FICCI Frames 2020. According to Sharma, technology has been the biggest disruptor. “There is a huge convergence happening in this sector and the habits of the people have also seen a change. This has provided new opportunities for growth in the sector,” he added.

According to the TRAI Chairman, it is the proliferation of high-speed networks in cheaper, smarter devices that will result in rapid growth of the Video on Demand and the OTT services. “Convergence of technology in broadcasting sector would enable optimal utilisation of networks and encourage mergers and acquisition in telecom and broadcasting operations. This will result in an increased competition and cost pressures separation of services and application from the networks, and offer opportunity for innovation to meet the consumer demand,” he added.

Sharma further said that the approach of TRAI is of a very light touch regulation and that the regulatory authority wahted the market forces to operate. “Market is the best determinant and the best accelerator for adoption of new technology, new demands and satisfying the consumer. Till the time there is fair play, transparency, and we don’t intervene,” he added.

Highlighting the role of competition and safeguarding the consumer interests, Sharma said that the consumer deserves to know the cost of what they are consuming. “Consumers should not suffer, the competition must play but it should be done in a manner which gives full freedom of choice to the consumers,” he added.

Commenting on the emerging technologies, Sharma said, “With the new technologies, there will again be a disruption and the emerging trends will necessitate realigning of the existing regulatory framework. Regulation should ensure that the technological developments are not throttled, but they are allowed to grow.”

Ajit Pai, Chairman, Federal Communications Commission, while highlighting the new technologies in the US, said that more than 60 per cent of video streaming worldwide is on mobile devices. “We are introducing the concept of WI-FI 6, the next generation of internet in the US. Another game-changer for the media and entertainment industry will be 5G.” He further said that mobile gaming will be a huge market in coming years.

Speaking at the webinar, Atul Kumar Tiwari, Additional Secretary, Ministry of Information & Broadcasting, said that as the lockdown goes away, the discretionary consumption expenditure will also rise, leading to growth in M&E sector. He further said that the Ministry is in consultation with all concerned stakeholders to get infrastructure status for the broadcasting sector.

Jyoti Jindgar Bhanot, Secretary I/C, Competition Commission of India (CCI), noted here that while the convergence has brought a lot of efficiencies, at the same time it cannot be ruled out that there is room for anti-competitive action.

Vivek Couto, Executive Director & Co-Founder, Media Partners Asia (MPA), moderated the session.