TRAI's new plan throws small broadcasters into panic mode

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With the Telecom Regulatory Authority of India (TRAI) planning to regulate channel bouquets, small channels and broadcasters are staring at an uncertain future, Business Standard reports.

The telecom regulator, in a consultation paper released earlier this month, began a review of the new regulatory framework for small broadcasters. It targeted three 'issues'- channels being bundled into bouquets, heavy discounting within bouquets and lack of consumer choice. To tackle these, it suggested reintroduction of a limit on the discounts within bouquets and reconsidering the channel ceiling price which is currently Rs 19 per channel.

The regulator added that the excessive number of channel bouquets confused customers, and hence it was against the spirit of transparency and free choice.

However, experts differ with the regulator's take on the matter. The paper added that according to experts, rethinking the concept of channel bouquets could harm small broadcasters.

"Bouquets allow large as well as independent broadcasters to bundle those channels that are not in the consideration set of consumers along with popular channels. This is a worldwide practice and India is no exception," Girish Menon, partner and head, media and entertainment, KPMG India told BS.

Many broadcasters also concurred with his view, adding that the move, if implemented by TRAI, could force small players to shut shop or find an alternative business model.