TRAI to recommend infra sharing between DTH and HITS operators

Telecom Regulatory Authority of India (TRAI) is set to recommend sharing of back-end infrastructure between satellite TV service distributors to aid them cut their costs of operations. The proposals were also aimed at increasing competition in the distribution segment by boosting entry of more players, particularly in the direct-to-home and headend-in-the-sky (HITS) services, according to a TRAI official.

The recommendations are likely to be made public today and these will be sent to the Ministry of Information and Broadcasting for its consideration and approval.

Another major recommendation likely to be included is a proposal to allow sharing of satellite transponders and earth station facilities by a DTH operator with other DTH players and distribution platforms. TRAI feels sharing of transponders would not only address their demand-supply mismatch but also reduce both capital and operating expenditure of the companies and therefore also spur competition. This will increase affordability for the subscribers.

"In case of a shared satellite capacity/transponder, the licencee in whose name it has been issued will continue to be responsible for ensuring compliance with all licence conditions," the official added.

The changes suggested by TRAI would require amending the licence conditions which so far barred many of the conditions TRAI is set to propose. Another proposal that will require changes to the licence conditions will allow sharing of signals by HITS companies with multi-system operators.

At present, there are more than 900 multi-system operators providing cable TV services through digital addressable systems and 60,000 cable operators. There are six private DTH companies, a few internet TV service providers and two HITS operators. These platforms together carry around 900 satellite TV channels.

The proposals, if approved by the ministry, will not be obligated on any stakeholder, but only make it optional for them, the official concluded.