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TRAI releases consultation paper on media ownership

24-September-2008
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TRAI releases consultation paper on media ownership

TRAI has released a consultation paper on media ownership. The I&B Ministry had sought TRAI’s recommendations on the need for cross media and ownership restrictions in India for radio, broadcasting and print media.

The Government has provided for restrictions in ownership of companies seeking licenses/ permissions/ registrations under various policy guidelines issued from time to time for the electronic media. As of now, such restrictions are in place with respect to DTH services and private FM radio.

TRAI has also been recommending similar restrictions in its various recommendations on private terrestrial TV, Headend-In-The-Sky (HITS) and mobile TV. These have come at different times and stages of growth. Therefore, there is a need to lay down a holistic and clear cut approach towards cross-media and ownership restrictions for the future growth of these sectors.

The I&B Ministry has identified the issues that are to be deliberated more widely and deeply as firstly there is the need for cross media and ownership restrictions, and whether the existing laws are adequate to address the concerns or a separate legislation is needed. Second issue is that with more and more broadcasting and telecom companies foraying into delivery of service, whether there should be restrictions on ownership of cable/ DTH/ IPTV/ mobile TV companies by broadcasting/ telecom companies or vice-versa, and thirdly, study the policy structure and restrictions in other parts of the world.

It was clarified by the I&B Ministry that looking at the increasing trend of the print media entering into broadcasting sector, to examine the issue in its entirety, the Authority in the present context should also include print media while examining the need for any cross media restrictions vis-à-vis broadcast media.

Media ownership is a subject of intense debate and Government review in both developed and developing countries around the world. Nearly all developed democratic countries like the US, the UK, Canada, Australia, France, etc., have restrictions on common and cross media ownership. Many of these countries have recently reviewed the media ownership rules.

The main concern is regarding having effective control/ ownership of radio, TV and print media. A prevalent practice is to restrict the control to two out of the three media. Also, there are restrictions in the broadcaster controlling the delivery services. The control is measured in terms of equity participation, geographical area (coverage), viewership/ circulation, number of licenses, etc.

The issue of cross media restrictions have been addressed in an inclusive manner in the consultation paper, covering broadcasting services, print media and other miscellaneous ownership within the fold of telecom, information and broadcasting.

The objective of this paper is to provide for competition, diversity and plurality of players, news and views. The issues under consideration are cross media ownership across different segments of media such as print/ television/ radio (horizontal integration), cross holding restrictions to prevent consolidation, including ‘vertical integration’ within a media segment such as television or radio, market share in the city/ state/ country within each media segment and cross control/ ownership across telecom and media segments.

The consultation paper gives a snapshot of the Indian media market, giving the present scenario in various sectors such as television, radio and print media, the extant policies and relevant recommendations. The international scenario, giving the comparative policy structure with respect to similar restrictions in other countries like Australia, Canada, European Union, France, the UK and the US, has been provided. The media ownership rules and control, the methodologies to measure concentration and plurality and the specific issues for consultation are also discussed.

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