Sectoral regulator Trai today recommended prohibiting broadcasters from having control in distribution, as part of its media cross-holding guidelines. Broadcasters who did have controlling interest would have to restructure the stake holding pattern within three years.
In its recommendations on cross-media ownership, the Telecom Regulatory Authority of India (Trai) also said any entity having more than 20 per cent equity participation in a broadcasting company cannot have more than 20 per cent equity in a distributor, which includes multi-system operators (MSO), cable operators, direct tohome (DTH), head end in the sky (HITS) and Mobile TV.
"The broadcaster should not have any control in the distribution and vice-versa... The existing broadcasters who have control in distribution (MSO/cable/DTH) (should) be given sufficient time of three years for restructuring," it said.
On consolidation in the media industry, it said there was a need to ensure that plurality and diversity of views were maintained while suggesting the Ministry of Information and Broadcasting to conduct a detailed market study and analysis for identifying and determining safeguards.
After working out required safeguards, merger and acquisition guidelines for the sector may be issued to prevent media concentration and creation of significant market power, Trai said.
The regulator, however, said at this point of time no restriction should be imposed on cross control/ownership across telecom and media separately and the issue could be reviewed after two years.
"Considering the international scenario, stakeholders comments, present economic scenario, the distinct features of Indian scenario and other relevant factors, the authority has formed a view that it is better to put timely safeguards rather than look for corrective measures which become difficult for the industry to align in future," it said.
Trai had issued a consultation paper in September last year seeking comments from stakeholders on cross media holding and ownership.