Delhi HC upholds Trai's power as broadcast regulator

The Delhi High court today upheld the jurisdiction of TRAI to regulate the broadcasting sector and fix terms and conditions of interconnect agreement, including fixing tariffs of channels.

A Bench comprising Justice Vikramjeet Sen and Justice J P Singh passed the order on two separate petitions filed by Star India and Set Discovery challenging the authority of TRAI to regulate the broadcasting sector.

Rejecting the arguments of broadcasters, the court said: "The contention that inclusion of broadcaster in the definition of service provider of TRAI Act is ultra vires is summarily rejected."

The court also held that TRAI Act will regulate the broadcasting sector along with telecommunication till the government enacts a Broadcasting Act or a Convergence Bill to regulate telegraph, telecom and broadcasting sector.

Dismissing the petitions, the bench upheld provision of Section 2(1)(K) of TRAI Act, which empowers it to regulate

"The said proviso which empowers the central government to notify other services along with broadcasting to be treated as telecommunication services and there by fall within the paramaters of the TRAI Act," the bench said.

The court also refused to accept the contention of broadcasters that power of TRAI to fix tariff has resulted in lower profits.

Holding that no evidence was placed to substantiate that tariff fixation has adversely affected broadcasters, the court said: "The position is contrary since lower the subscription rates the larger will be the viewership".

"The fixation of tariffs by the Authority is within their competence even in regard to broadcasters," the Bench said, adding that market forces cannot be allowed to decide tariff mechanism.

The court also upheld TRAI's power to fix terms and conditions of interconnect agreement between broadcasters between service providers. "We cannot accept the argument that the law does not empower TRAI to fix terms of interconnection," the court said.