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TRAI recommends no minimum entry net worth for MSO registration

TRAI released its recommendations on entry level net-worth of MSOs

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MUMBAI: The Telecom Regulatory Authority of India (TRAI) has recommended that there is no need to fix a minimum entry-level net worth for MSO registration. Moreover, it also added that there is no basis for introducing minimum net worth classification based on the area of operation for MSOs.

TRAI on Monday released its recommendations on "Entry level net-worth requirement of multi system operators (MSOs) in cable TV services". Based on the written submissions of stakeholders and discussions in the open house discussions, recommendations have been framed by the regulatory body.

Other recommendations include:

·         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 specialised tasks.

The regulatory body issued a detailed consultation paper on "Entry Level Net Worth for MSOs in Cable TV Services" on 9 April. Post this, an open house discussion was held in New Delhi in June. The recommendations were finalised after looking at the comments received for the consultation paper and its own analysis.

TRAI also mentioned that with the new regulatory framework in place, small and medium-size MSOs have it better.

Earlier, TRAI also received a reference from Ministry of Information and Broadcasting (MIB) in 2018 seeking recommendations of the former on the appropriate levels for fixation of entry-level net-worth of the multi system operators (MSOs) for operationalising cable TV digitisation across the country.

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