Saturday 16 February 2013

TRAI Issues Consultation Paper on Media Ownership

The Telecom Regulatory Authority of India (TRAI) released a consultation paper on issues related to media cross-ownership on 15 February 2013 and sought comments from stakeholders on the subject. 
The Information and Broadcasting ministry had earlier referred the matter to the Regulator after Manish Tewari, Minister for Information & Broadcasting just after taking over in November 2012, showed concern or growing monopolies in media and wished to control them through regulatory measures. 

In a statement released here, TRAI said the Indian media scape is witnessing several changes that may have far reaching consequences. 
"Major players of print, television and radio sectors are seeking expansion of their business interests in various segments of the print and broadcasting sectors leading to horizontal integration of media entities," TRAI said. 
"Also, more and more broadcasting companies owning television channels are venturing into distribution segments ie cable TV, DTH, HITS, IPTV etc while distribution segment companies are entering into television broadcasting, leading to vertical integration in the broadcasting sector," it added. 
In its consultation paper, TRAI also noted the impact on the media of ownership by entities that are related to political parties, businesses or corporates. 
"So as to ensure media pluralism and to counter the ills of monopolies it is felt that reasonable restrictions may need to be put in place on ownership in the media sector," TRAI said in its statement. 
Restrictions on media ownership exist in many major international markets, it said. 
TRAI added that media ownership rules should be so designed to strike a balance between ensuring a degree of plurality of media sources and content, and a level playing field for companies operating in the media sector on the one hand and providing freedom to companies to expand, innovate and invest on the other. 
TRAI has sought comments on several issues like disqualification of certain entities from entry into the media sector. Methodology to measure ownership of media, identification of media segments and genres where ownership rules are to applied. 
TRAI is also looking at deliberating ways to devise ownership rules for vertical integration between broadcasting and distribution entities and also to prescribe norms for mandatory disclosures by media entities. 
TRAI sought comments from stake holders by 8 March 2013 and counter comments by 15 March 2013. 
A full text of the Consultation paper is placed on Cable Quest Website www.cable-quest.in & TRAI Website. 
As the matter is extremely important for the survival of cable operators, this Consultation is expected to have very high number of responses from LCOs. 
Summary of Consultation Issues 
General Disqualifications 
Q1: In your opinion, are there other entities, apart from entities such as political parties, religious bodies, Government or government aided bodies which have already been recommended by TRAI to be disqualified from entry into the broadcasting and distribution sectors, which should also be disqualified from entry into the media sector? Please elaborate your response with justifications. 
Q2: Should the licensor, either suo motu or based on the recommendations of the regulator, be empowered to disqualify any entity from entering the media sector in public interest? For instance, should the licensor or the regulator be empowered to disqualify (or recommend for disqualification) a person who is subject to undue influence by a disqualified person. 
Media Ownership/ Control 
Q3: Should ownership/ control of an entity over a media outlet be measured in terms of equity holding? If so, would a restriction on equity holding of 20% (as recommended by TRAI in its recommendations on Media Ownership dated 25th Feb 2009) be an appropriate threshold? Else, please suggest any other threshold value, with justification? 
Q4: In case your response to Q3 is in the negative, what other measure(s) of ownership/ control should be used? Please support your view with a detailed methodology to measure ownership/ control over a media outlet. 
Media Ownership rules 
Q5: Should only news and current affairs genre or all genres be considered while devising ways and means to ensure viewpoint plurality? Please elaborate your response with justifications. 
Q6: Which media amongst the following would be relevant for devising ways and means of ensuring viewpoint plurality? 
(i)Print media viz. Newspaper & magazine 
(ii)Television 
(iii)Radio 
(iv)Online media 
(v)All or some of the above 
Q7: Should the relevant markets be distinguished on the basis of languages spoken in them for evaluating concentration in media ownership? If your response is in the affirmative, which languages should be included in the present exercise? 
Q8: If your response to Q7 is in the negative, what should be the alternative basis for distinguishing between various relevant markets? 
Q9: Which of the following metrics should be used to measure the level of consumption of media outlets in a relevant market? 
(i)Volume of consumption 
(ii)(ii) Reach 
(iii)(iii) Revenue 
(iv)(iv) Any other 
Please elaborate your response with justifications. 
Q10: In case your response to Q9 is „Any other‟ metric, you may support your view with a fully developed methodology to measure the level of consumption of various media outlets using this metric. 
Q11: Which of the following methods should be used for measuring concentration in any media segment of a relevant market? 
(i)C3 
(ii)(ii) HHI 
(iii)(iii) Any other 
Q12: If your response to Q11 is „Any other‟ method, you may support your view with a fully developed methodology for measuring concentration in any media segment of a relevant market using this method. 
Q13: Would Diversity Index be an appropriate measure for overall concentration (including within media and cross media) in a relevant market? 
Q14: In case your response to Q13 is in the affirmative, how should the weights be assigned to the different media segments in a relevant market in order to calculate the Diversity Index Score of the relevant market? 
Q15: Would it be appropriate to have a “1 out of 3 rule” i.e. to restrict any entity having ownership/control in an outlet of a media segment of a relevant market from acquiring or retaining ownership/control over outlets belonging to any other media segment? Please elaborate your response with justifications. 
Q16: Alternatively, would it be appropriate to have a “2 out of 3 rule” or a “1 out of 2 rule”? In case you support the “1 out of 2 rule”, which media segments should be considered for imposition of restriction? Please elaborate your response with justifications. 
Q17: Would it be appropriate to restrict any entity having ownership/ control in a media segment of a relevant market with a market share of more than a threshold level (say 20%) in that media segment from acquiring or retaining ownership/ control in the other media segments of the relevant market? Please elaborate your response with justifications. 
Q18: In case your response to Q17 is in the affirmative, what should be such threshold level of market share? Please elaborate your response with justifications. 
Q19: Would it be appropriate to lay down restrictions on cross media ownership only in those relevant markets where at least two media segments are highly concentrated using HHI as a tool to measure concentration? Please elaborate your response with justifications. 
Q20: In case your response to Q19 is in the affirmative, please comment on the suitability of the following rules for cross media ownership: 
(i)No restriction on cross media ownership is applied on any entity having ownership/ control in the media segments of such a relevant market in case its contribution to the HHI of not more than one concentrated media segment is above 1000. (For methodology of calculation please refer para 5.42) 
(ii)In case an entity having ownership/ control in the media segments of such a relevant market contributes 1000 or more in the HHI of two or more concentrated media segments separately, the entity shall have to dilute its equity in its media outlet(s) in such a manner that its contribution in the HHI of not more than one concentrated media segment of that relevant market remains above 1000 within three years. 
Q21: Would it be appropriate to lay down the restrictions on cross media ownership only in highly concentrated relevant markets using Diversity Index Score as a tool to measure concentration? Please elaborate your response with justifications. 
Q22: In case your response to Q21 is in the affirmative, please comment on the suitability of the following rules for cross media ownership in such relevant markets:
(i)No restriction on cross media ownership is applied on the entities contributing less than 1000 in the Diversity Index Score in such a relevant market. 
(ii)(ii) In case any entity contributes 1000 or more in the Diversity Index Score of such a relevant market, the entity shall have to dilute its equity in the media outlets in such a manner that the contribution of the entity in the Diversity Index Score of the relevant market reduces below 1000 within three years. Q23: You may also suggest any other method for devising cross media ownership rules along with a detailed methodology. 
Q24: In case cross media ownership rules are laid down in the country, what should be the periodicity of review of such rules? 
Q25: In case media ownership rules are laid down in the country, how much time should be given for complying with the prescribed rules to existing entities in the media sector, which are in breach of the rules? Please elaborate your response with justifications. 
Mergers and Acquisitions 
Q26: In your opinion, should additional restrictions be applied for M&A in media sector? Please elaborate your response with justifications. 
Q27: In case your response to Q26 is in the affirmative, should such restrictions be in terms of minimum number of independent entities in the relevant market or maximum Diversity Index Score or any other method. Please elaborate your response with justifications. 
Vertical Integration 
Q28: Should any entity be allowed to have interest in both broadcasting and distribution companies/entities? 
If ‘Yes’, how would the issues that arise out of vertical integration be addressed? 
If ‘No’, whether a restriction on equity holding of 20% would be an adequate measure to determine „control‟ of an entity i.e. any entity which has been permitted/ licensed for television broadcasting or has more than 20% equity in a broadcasting company shall not have more than 20% equity in any Distributor (MSO/Cable operator, DTH operator, HITS operator, Mobile TV service provider) and vice-versa? 
You are welcome to suggest any other measures to determine ‘control’ and the limits thereof between the broadcasting and distribution entities. 
Mandatory Disclosures 
Q29: What additional parameters, other than those listed in para 7.10 (i), could be relevant with respect to mandatory disclosures for effective monitoring and compliance of media ownership rules? 
Q30: What should be the periodicity of such disclosures? 
Q31: Should the disclosures made by the media entities be made available in the public domain? Other Issues 
Stakeholders may also provide their comments on any other issue relevant to the present consultation.

Source:
http://cablequest.org/news/national-news/item/1702-trai-issues-consultation-paper-on-media-ownership.htmlSource: http://cablequest.org/news/national-news/item/1702-trai-issues-consultation-paper-on-media-ownership.html

No comments:

Post a Comment

Aadhaar leak: EPFO discontinues services provided through Common Service Centre

Following fear of Aadhaar data leak, the Employees Provident Fund Organisation (EPFO) on May 2 said it has discontinued services provided t...