IPTV Likely To Be Under Cable Act

NEW DELHI, July :  The Internet Protocol TV (IPTV) is slated to be governed under the cable laws, as stakeholders including broadcasters and multi-system operators (MSOs) have sought the Telecom Regulatory Authority of India (Trai) to amend the Cable TV Networks (Regulation) Act, 1995, to this effect.

Responding to Trai’s proposal of excluding IPTV from the purview of cable Act, both Zee and Star TV have said the foreign direct investment (FDI) limit of 49% on cable services should also be applicable to IPTV.

Currently, IPTV attracts 74% FDI cap with Bharti Airtel and Reliance group holding IPTV licences. “Carving out IPTV from the purview of cable services would give undue advantage to IPTV as the cable companies opting for IPTV will attract 49% FDI, while those with telecom provider will be subject to 74% FDI,” Zee group said in its response sent to Trai.

Cable consortium MSO Alliance stated that if IPTV was kept outside the cable laws, cable operators could not upgrade their IPTV services to digital IPTV without unified licence.

The stakeholders urged Trai to amend the Act to include voice, video and data.

“The standardisation of IPTV equipment will only be applicable if the services are under the cable laws. This will provide a level-playing field,” cable services and data provider Hathway said in its response.

Price control on IPTV services also came under scanner with stakeholders demanding Trai to subject IPTV to tarrif orders. “IPTV will have to be subjected to price control mechanism, at least on its video part, once it is under the cable Act,” stakeholders said.

Star TV India said in its response that the price regulation should be made applicable to IPTV services. Ortel Communications said telecom companies providing IPTV would have to be registered under the cable Act.