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The Telecom Disputes and Settlement Appellate Tribunal (TDSAT) on Wednesday dismissed appeals filed by broadcasters against a Telecom Regulatory Authority of India (TRAI) ruling to fix advertisements at 12 minute an hour.
The decision to dismiss the petitions came after the Supreme Court on Friday said that the telecom tribunal cannot admit petitions challenging the rules laid down by TRAI. Broadcasters are now expected to approach the High court as the dismissals also mean that the TRAI regulation will be in effect from today.
Broadcasters led by the News Broadcasters Association of India had challenged the cap fixed by TRAI at TDSAT and a verdict regarding the same was expected this month. There are 780 channels operated between the 350 broadcasters in India and the telecom authority had in October implemented the rule to bring in regulations regarding advertisements after the government embarked on a nationwide digitization process.
"It is definitely a blow to the broadcasters. They are in discussion with each other. The logical step would be to approach the high court, but the concerned broadcasters need to reach a consensus before that”, a senior official at a broadcaster said.
According to industry experts, the top four entertainment channels in the country led by Star may not be irked by the implementation of the ad cap while the news broadcasters and smaller channels are likely to be affected. Currently, less than 15% of the 300-350 broadcasters comply with the rule according to industry experts.
A number of broadcasters follow a 16 minute cap on advertisements which include 14 minutes of commercially sold promotion time and 2 minutes of self promotion. “The number of broadcasters who comply with the rule is less than 15% and many were waiting for the TDSAT to give its verdict regarding the same. We will have a meeting with TRAI tomorrow and clarity will emerge after that”, a senior member from a body that represents broadcasters said.
Star TV, country’s largest broadcaster had earlier told Business Standard that it was complying with the norms. "We are in full compliance of the regulations since Oct 1, the TDSAT order notwithstanding", a spokesperson for the company said. Meanwhile MSM and Network 18 were unavailable to comment on the matter.
During the hearing held at the TDSAT last month, the broadcasters had pointed out that TRAI did not have the enough power to regulate content and was only restricted to licencing. “If this goes to the High court, then the entire process is only expected to go on for longer as the high court will start from scratch”, the industry official added.
