Overview of Telecom & Broadcasting Sectors
Total Page：16
File Type：pdf, Size：1020Kb
OVERVIEW OF TELECOM & BROADCASTING SECTORS 1 2 OVERVIEW The Telecom Regulatory Authority of India (TRAI) has been working for last 20 years with a mission to ensure that the interests of consumers and service providers are protected. Efforts have been made for creation of conducive environment for the growth of telecommunications, broadcasting & cable services sector and nurture it in a manner to enable India to play a leading role in the emerging global information society. The Authority initiated various measures to promote the growth and development of the telecom and broadcasting sectors during 2016-17. These measures have resulted in overall benefits to the consumer in terms of choice of services, affordable tariff, better quality of services etc, as is evident from the exponential growth in these sectors. The year 2016-17 in Telecom sector saw the advent and adaptation of 4G services. With the entry of new player, the tariffs reduced further and the data usage proliferated. The number of mobile base stations also jumped during the year further improving coverage and reach. With increased availability of smart phones, India is witnessing a data revolution. The mobile services are serving as a major backbone on which the important sectors of economy like banking, health and education are riding. During the year, while discharging various recommendatory and regulatory functions, TRAI has tried to address various issues faced by the telecom sector. Recommendations were made to the Government on key issues concerning telecommunications sector such as “Proliferation of Broadband through Public Wi-Fi Networks”, “Complaint/ Grievance Redressal in the Telecom sector”, “Spectrum Usage Charges and Presumptive Adjusted Gross Revenue for Internet Service Providers and Small Aperture Terminal Service Providers”, “In-Building Access by Telecom Service Providers”, “Licensing Framework for Audio Conferencing/ Audio Tex/ Voice Mail Services”, “Encouraging data usage in Rural Areas through provisioning of free data”, and “Aadhaar based e-KYC services”. In relation to telecommunication tariff, TRAI continued with the general policy of forbearance in respect of most services. Amendments in Telecom Tariff 3 Order (TTO) were made to enable more effective of subscribers, and a conducive regulatory and affordable mobile banking. environment. TRAI also took several effective measures in the Continuing this trend, the Telecom Sector interest of broadcasting consumers. For instance, witnessed substantial growth in the number of in the Broadcasting sector, digitisation of the cable subscribers during the year 2016-17 also. At the sector, which aims at empowering the consumer end of the financial year, the subscriber base was and providing him better service quality and 1194.58 million out of which 1170.18 million enhanced choice, was continuously pursued and were wireless subscribers. During the year, monitored against various odds and challenges. wireless subscriber base recorded an increase Digitization, with specific focus on cable TV of 136.55 million, while the overall tele-density sector was scheduled to be executed in four increased from 83.36 to 92.98. The year also phases and all these phases of implementation saw increase in rural tele-density from 51.37 to were completed by 31st March 2017 accordingly. 56.91 while the urban tele-density also increased The Authority also initiated a number of steps from 154.01 to 171.80. During the year 2016-17, aimed towards bringing in measures to ensure 63.63 million subscribers have submitted their stability and uniform growth of the sector that porting requests to different service providers is presently undergoing a huge transformation for availing Mobile Number Portability (MNP) from the erstwhile analog era. The Authority has facility. With this the MNP requests increased prescribed new regulatory framework for digital from 209.13 million at the end of March 2016 addressable systems to bring transparency, non- to 272.76 million at the end of March 2017. The discrimination, ensure level playing field among Internet subscriber base in the country as on 31st stakeholders and to provide enhanced choice to March 2017 stood at 422.19 million as compared consumers. Enabling such an environment will to 342.65 million as on 31st March 2016. The total encourage future investments and bring about broadband subscriber base in the country has faster development in the broadcasting and cable increased from 149.75 million as on 31st March services sector. 2016 to 276.52 million as on 31st March 2017. 2. The significant events relating to Telecom In order to create an enabling and stable and Broadcasting sectors during the year environment for telecommunications services 2016-17 are detailed below: and to ensure greater access, transparency, non-discrimination, consumer protection, and I. Telecom Sector stable growth in functioning of the sector, The Indian telecom industry is the second largest a comprehensive review of the regulatory in the world in terms of the number of subscribers. framework for the telecommunications sector, The sector has witnessed exponential growth which includes tariff, interconnection and over the last few years primarily due to affordable quality of service, has been undertaken by TRAI. tariffs, wider availability, roll out of facilities To ensure transparency while effecting any and services such as Mobile Number Portability change in the existing regulatory framework, (MNP), 3G and 4G, evolving consumption patterns TRAI issues consultation papers which gives an 4 opportunity to the stakeholders to deliberate Providers”. and offer their comments on the proposed In order to keep abreast with the changing regulatory framework. As part of this critical policy and regulatory requirements of the exercise that ensures that robust regulation telecommunications sector, TRAI also issued emerges from the consultative process, TRAI the following key amendment regulations and issued various important consultation papers guidelines in the course of the last financial year: inviting written comments / counter comments from the stakeholders during the financial 1. The Mobile Banking (Quality of Service) year ending March 31st, 2017. These included (Second Amendment) Regulations, 2016 consultation Papers on “Regulatory Principles of 2. Telecom Consumers Protection (Tenth Tariff Assessment”, “Net Neutrality”, “Model for Amendment) Regulations, 2016 Nation-wide Interoperable and Scalable Public 3. Guidelines for Telecom Service Providers Wi-Fi Networks”, “Approach towards Sustainable for ensuring transparency and uniformity Telecommunications”, “Review of Interconnection in the process of tariff recharges/payments Usage Charges” and “ Review of network related through Third Party Apps/Websites Quality of Service standards for Cellular Mobile Telephone Service”. ii Broadcasting Sector An important aspect of TRAI’s functions as The significant events relating to broadcasting and mandated under the TRAI Act is to make cable services during this period are as follows: recommendations to the Government on diverse i. The broadcasting sector consists of subjects including market structure, entry of new Television and Radio Services. India has operators in the sector, the licencing framework, the world’s second largest TV market in management of scarce resources such as the world after China. The pay TV universe spectrum, consumer safety and security etc. consists of around 921 million Cable TV Under this mandate, several significant policy subscribers and 63.61 million active DTH regulatory recommendations were made during subscribers. The terrestrial TV network of the year which included recommendations on Doordarshan serves about 922 per cent ‘“Licensing Framework for Audio Conferencing/ of country’s population through a vast Audio Tex/ Voice Mail Services”, “Aadhaar based network of terrestrial transmitters. e-KYC services”, “In-Building Access by Telecom ii. There are 48 pay broadcasters, an Service Providers” ,“Proliferation of Broadband estimated 60,000 cable operators, through Public Wi-Fi Networks”, “Complaint/ 13273 Multi System Operators (MSOs) Grievance Redressal in the Telecom sector” registered with Ministry of Information and “Spectrum Usage Charges and Presumptive and Broadcasting (MIB), six pay DTH Adjusted Gross Revenue for Internet Service operators, in addition to the public Providers and Small Aperture Terminal Service service broadcaster - Doordarshan 1 Source : FICCI –KPMG Indian Media and Entertainment Report 2017 2 Source : MIB Annual Report 2016-17 3 Source : MIB website www.mib.gov.in 5 providing a free-to-air DTH service. Of dependent on advertisement revenues the 888 registered TV channels with the and has registered a growth of around Ministry of Information and Broadcasting 6.37 percent during the year 2016-17. at the close of financial year 2016-17, Advertisement revenues have also risen 212 are SD pay TV channels (including 5 from Rs. 1923.91 crore in 2015-16 to advertisement–free pay channels) and 83 2046.54 crore in year 2016-17. are HD Pay TV channels. iv. The last decade has witnessed significant iii. India’s television industry grew from Rs changes in the dynamics of the Cable 54,2001 crore in 2015-16 to Rs 58,8001 & Satellite (C&S)