| Asked if details of the proposed interconnection agreement
are being delayed because of criticism that it could encourage indirect
monopoly and also to address the issue of channels hopping bouquets,
Baijal said, "Those certainly are issues that need to be addressed."
He, however, ruled out a long delay in issuing the final order.
"What we will be issuing is not a consultation paper. It's
a draft of the interconnect agreements and in the final order we
may incorporate some valid suggestions from the stakeholders of
the industry," Baijal explained, adding, that this precaution
is being taken as, unlike in telecom sector,
the number of service providers are much more in the broadcast and
cable sector.
According to the former-bureaucrat-turned-regulator of the telecom,
broadcast and cable sectors, the final order on the interconnection
agreements should get issued over the next fortnight.
In its 1 October comprehensive recommendations on the broadcast
and cable sector, Trai had dwelt broadly on various issues relating
to the interconnection agreement aspect. The issues highlighted
by the regulator in its report under the heading Interconnection
Agreements, which is yet to be accepted by the government, were
as follows:
· The revenue sharing arrangements among broadcasters, MSOs
and LCO (local cable ops) shall take place out of the proceeds of
the amount payable by the subscriber.
· The interconnect agreements should clearly indicate the
maximum retail price (MRP) of a pay channel or bouquet of channels,
distribution margins for MSOs/independent cable operators. Similarly
the agreements between MSOs and LCOs should clearly indicate MRP
and margins for LCOs.
· The service providers shall mutually negotiate and decide
on the revenue arrangements
· Where parties are not able to arrive at an agreement within
30 days of initiating such a process for revenue sharing, the Authority
on the request of either of the party, will issue regulations under
the powers conferred upon it under section 11(1)(b)(ii) and (iv)
of Trai Act.
· All MSOs and LCOs will file interconnect agreements between
them with the authorised officers for registration.
· All Broadcasters, DTH operators, HITS operators, and MSOs
will file agreements between them to deliver the TV channels, with
the Authority for registration
· TRAI will shortly come out with a revised regulation on
registration of interconnection agreements.
· No broadcaster or MSO shall cut off the signals to an MSO
or cable operator without giving at least one month's notice giving
in brief the reasons for the proposed action. Such notice shall
also be given in two local newspapers having wide circulation so
that consumers are also aware of the dispute and can take steps
to protect their interests. The Authority will shortly be issuing
regulations on general principles of
interconnection. These will also include the provision relating
to disconnection of signals.
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