Consultation Paper on Framework for Service Authorisations for provision of Broadcasting Services under the Telecommunications Act, 2023

Consultation Paper No. 17/2024 Telecom Regulatory Authority of India Consultation Paper on Framework for Service Authorisations for provision of Broadcasting Services under the Telecommunications Act, 2023 30th October 2024 World Trade Centre 4th, 5th,6th & 7th Floor, Tower F Nauroji Nagar New Delhi-110029 Website: www.trai.gov.inWritten comments on the consultation paper are invited from the stakeholders by 20/11/2024. Counter-comments, if any, may be submitted by 27/11/2024. Please support your comments with detailed reasons and justifications. Comments and counter- comments will be posted on TRAI’s website: www.trai.gov.in. The comments and counter-comments may be sent, preferably in electronic form, to Shri Deepak Sharma, Advisor (B&CS), Telecom Regulatory Authority of India, on the email advbcs-2@trai.gov.in and jtadvisor-bcs@trai.gov.in. For any clarification/ information, Shri Deepak Sharma, Advisor (B&CS) may be contacted at Tel. No.: +91-11-20907774. iTable of Contents CHAPTER I: INTRODUCTION AND BACKGROUND .............................................................. 1 A.Overview of the Indian Broadcasting Sector ........................................................................ 1 B.MIB Reference dated 25.07.2024 ............................................................................................ 5 C.Extant Guidelines for the Broadcasting Services ............................................................... 7 D.Enactment of the Telecommunications Act, 2023 ........................................................... 11 E.Broadcasting Services and Cable Services as Telecommunication Service ............. 11 F. Scope of the Consultation Paper ............................................................................................ 12 CHAPTER II: AUTHORISATION FRAMEWORK FOR BROADCASTING SERVICES ... 13 A.Requirement of the Authorisation Framework for broadcasting services ................ 13 B.Relevant sections of the Telecommunications Act, 2023 ............................................... 18 C.Structure of the Authorisation Framework ........................................................................ 30 C1. Changes in the Definitions for service authorisation .............................................. 33 C2. Introduction of new authorisations .............................................................................. 36 C3. Scope of Service and Service Area of various service authorisations ................ 37 C4. Grant of Service Authorisation ....................................................................................... 40 C5. The Broadcasting (Television Programming, Television Distribution and Radio) Services ..................................................................................................................... 45 D.Migration from existing regime to authorisation framework ........................................ 47 E.Civil Penalties for breach of terms and conditions of authorisation .......................... 50 CHAPTER III: ISSUES RELATED TO BROADCASTING SERVICES ................................ 59 A.The Broadcasting (Television Programming) Services ..................................................... 62 A1. Extant Policy Guidelines ................................................................................................... 62 A2. Authorisation Framework ................................................................................................ 65 A3. New service likely to be introduced ............................................................................... 67 A4. Financial Conditions among Broadcasting (Television Programming) Services .................................................................................................................................................. 67 B.The Broadcasting (Television Distribution) Services ....................................................... 73 B1. Terms and Conditions: DTH and HITS Service Authorisation ............................. 75 B2. Financial conditions for DTH Service Authorisations ............................................. 76 B3. Financial conditions for HITS Service Authorisations ............................................ 81 B4. Harmonization among Distribution Services ............................................................. 82 B5. Terms and Conditions for IPTV Services ..................................................................... 88 C.The Broadcasting (Radio) Services ........................................................................................ 92 iiC1. FM Radio Broadcasting ..................................................................................................... 92 C2. Community Radio Stations ............................................................................................ 100 C3. Low Power Small Range FM Broadcasting................................................................ 102 C4. Digital Radio Broadcasting ............................................................................................ 106 CHAPTER IV: SUMMARY OF ISSUES FOR CONSULTATION ......................................... 110 List of Acronyms ............................................................................................................................ 125 Annexure-IA: MIB Reference dated 25.07.2024 .................................................................. 129 Annexure-IB: The Telecommunications Act, 2023 ............................................................. 133 Annexure-II: Draft Terms and Conditions to be included in the Broadcasting (Grant of Service Authorisations) Rules .............................................................................................. 159 Annexure III: Draft Terms and Conditions to be included in the Broadcasting (Television Programming, Television Distribution and Radio) Services Rules .......... 191 Annexure-IV: Uplinking/Downlinking Guidelines dated 09.11.2022 ......................... 332 Annexure-VA: DTH Guidelines amended upto 06.11.2007 ............................................ 366 Annexure-VB: DTH Amendment dated 30.12.2020 .......................................................... 394 Annexure-VC: DTH Operational Guidelines dated 16.09.2022 ..................................... 399 Annexure-VIA: HITS Guidelines dated 26.11.2009 ........................................................... 407 Annexure-VIB: HITS Amendment dated 06.11.2020 ........................................................ 421 Annexure-VII: IPTV Guidelines dated 08.09.2008 ............................................................. 425 Annexure-VIIIA: FM Radio Guidelines dated 25.07.2011 ................................................ 432 Annexure-VIIIB: FM Radio Amendment dated 21.01.2015 ............................................ 475 Annexure-VIIIC: FM Radio Amendment dated 04.10.2022 ............................................ 480 Annexure-VIIID: FM Radio Amendment dated 10.09.2024 ............................................ 483 Annexure-IX: CRS Guidelines dated 13.02.2024 ............................................................... 485 iiiCHAPTER I INTRODUCTION AND BACKGROUND A. Overview of the Indian Broadcasting Sector 1.1 Broadcasting means distribution of audio and video signals to a widely dispersed audience. Broadcasting as a mass communication media is a powerful tool to inform and educate the masses in a vast country like India. Broadcasting services are broadly classified into two categories: Radio broadcasting and Television broadcasting. 1.2 In India, broadcasting started about 13 years before All India Radio (AIR) came into existence. In June 19231, the Radio Club of Bombay made the first ever broadcast in the country. This was followed by the setting up of the Calcutta Radio Club five months later. In April 1930, the Indian Broadcasting Service, under the Department of Industries and Labour, commenced its operations on an experimental basis. On June 8, 1936, the Indian State Broadcasting Service became AIR. Radio broadcast was taken over by the Government and AIR was established. Until 2000, AIR was the sole radio broadcaster transmitting programs in Amplitude Modulation (AM) and Frequency Modulation (FM) frequencies. 1.3 In 2000, FM broadcasting was opened to private players. As on quarter ending June 20242, 388 private FM radio stations across 113 major cities provide radio broadcasting services in addition to 29 FM channels of AIR. Also, AIR3 has 591 stations that cover almost 90% of the country by area and 98% of the country’s population. 1 https://prasarbharati.gov.in/growth-development- air/#:~:text=Broadcasting%20in%20India%20actually%20began,Radio%20Club%20five%20mont hs%20later 2 https://trai.gov.in/sites/default/files/QPIR_09102024_0.pdf 3 https://prasarbharati.gov.in/homepage-air/ 11.4 Apart from AIR and private FM radio players, another significant contributor to the Indian radio broadcasting landscape are Community Radio Stations (CRS). In December 2002, the Government of India initially approved a policy granting licenses for the establishment of CRS to well-established educational institutions, including IITs/ IIMs. However, recognizing the importance of broader community participation, Government reconsidered the policy in 2006 and expanded it to include non- profit organizations such as civil society organizations and voluntary organizations. The policy guidelines issued in the year 2006, were subsequently amended in the year 2017, 2018 and 2022. To ensure financial sustainability of Community Radio Stations and to ensure growth of the Community Radio Sector, the Government notified the revised policy guidelines in February 2024. As on quarter ending June 2024, there are 499 operational CRS in India. 1.5 Akin to radio, growth story of the television (TV) broadcasting sector in India is also fascinating due to the content it delivers. The terrestrial broadcast of television service in Delhi commenced on 29th September 1959 by the state-owned Doordarshan (DD). During the 1982 Asian Games held in Delhi, terrestrial broadcasting saw major expansion with DD adding 20 new transmitters to the existing 211, to provide national coverage for the first time. Asian Games also introduced colour television broadcast in India. 1.6 Cable television commenced in 1989 with few cable TV operators distributing local video channels that transmitted movies and music content. Cable operators usually confined their operations within small areas, such as a housing complex. 1.7 During its inception, the cable TV distribution business was unregulated and fragmented, driven by thousands of small-scale 2operators with a scattered client base. Lack of regulation resulted in increasing disputes over market control, royalty payments, copyright violations, etc. To bring order to the cable TV sector, the Government promulgated the Cable Television Networks (Regulation) Ordinance 1994 and the Rules thereunder viz. the Cable Television Networks Rules, 1994 on 29th September 19944. The ordinance was later converted into the Cable Television Networks (Regulation) Act, 1995 on 25th March 19955, wherein provisions for cable operator registration, their obligations, programme code, etc., have been specified. 1.8 The advent of satellite television in India was triggered by the broadcast of the Gulf War in the 1990s. The coverage was made by the American news channel, Cable News Network (CNN) which in turn, drove the use of satellite dishes by the Indian cable operators for procuring CNN’s signals. The launch of Star TV and Zee TV in 1992 further stimulated the spread of cable TV. 1.9 According to a study conducted by the market research firm, from a mere 412,000 cable TV homes in January 1992, the number of cable homes went up to 1.2 million by November 1992. By the end of 1994, the firm estimated the numbers of cable and satellite homes at 11.8 million out of a total of 32.4 million TV-owning homes. The industry has since seen a double-digit growth with current estimates suggesting around 182 million6 television subscribers. 1.10 Further, in the year 1999, the Government brought in a standard policy/ regulatory framework for satellite broadcasters. The policy 4 https://www.indiacode.nic.in/bitstream/123456789/1928/4/aa1995-07.pdf 5 https://trai.gov.in/sites/default/files/Cable_Television_Network_Regulation_Act_1995.pdf 6 https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/topics/media-and- entertainment/2024/ey-in-india-s-media-entertainment-sector-is-innovating-for-the-future-03- 2024-v1.pdf 3for uplinking/ downlinking of TV channels encompasses the issues related to spectrum allocation, content regulation and other aspects. In the distribution sector, guidelines for Direct-to-Home (DTH) platform were issued in 2001 and DTH operations commenced in 2003. Subsequently, the Government notified the guidelines for Head-end-in-the-Sky (HITS) services and the Internet Protocol Television (IPTV). 1.11 As per the current scenario, TV broadcasting sector recognizes 329 broadcasters providing 912 private satellite TV channels as on quarter ending June 20247. In the distribution vertical, there are 8458 registered Multi System Operators (MSOs) as on 30th September 2024, 1 HITS operator, 4 pay DTH operators and 33 IPTV operators registered with the Ministry of Information of Broadcasting (MIB). Moreover, there are 81,706 cable operators registered in the country, as on 01st January 2022 as communicated to MIB by Department of Posts. Besides, Prasar Bharati, the public service broadcaster, provides broadcasting services under the brand name ‘Doordarshan’, and DTH services under the brand name ‘DD Free Dish’. 1.12 The licenses/ permissions/ registrations for the broadcasting services namely DTH, HITS, teleports, uplinking/ downlinking of TV channels, FM radio broadcasting, CRS, IPTV are granted by the Central Government through MIB under Indian Telegraph Act, 1885. In this regard, Section 60(1) of the Telecommunications Act, 2023 states that: ‘Subject to the other provisions of this section, the enactments namely, the Indian Telegraph Act, 1885, and the Indian Wireless Telegraphy Act, 1933, are hereby repealed’. 7 https://trai.gov.in/sites/default/files/QPIR_09102024_0.pdf 8 https://mib.gov.in/sites/default/files/Registered%20MSOs%20as%20on%2030.09.2024.pdf 41.13 However, the appointed date for implementation of Section 60 of the Telecommunications Act, 2023, is yet to be notified. On notification, the Indian Telegraph Act, 1885 shall stand repealed from the appointed date and the provisions contained in the Telecommunications Act, 2023, shall be applicable. Thereby, the licenses and permissions issued earlier may be required to be brought under the new service authorisations framework in accordance with the provisions of the Telecommunications Act, 2023. B. MIB Reference dated 25.07.2024 1.14 MIB vide its letter dated 25th July 2024 (attached as Annexure-IA), has sent a reference to Telecom Regulatory Authority of India (TRAI) under Section 11(1)(a) of the TRAI Act, 1997. Through the said reference, MIB has requested TRAI to provide its recommendations on the terms and conditions, including fees or charges; for obtaining authorisation from the Central Government to provide broadcasting services, with the objective of aligning it to the Telecommunications Act, 2023 (attached as Annexure-IB) and harmonizing the terms and conditions across various service providers. 1.15 The reference mentioned that Section 3(1)(a) of the Telecommunications Act, 2023 which is yet to be notified, provides for obtaining an authorisation by any entity/ person intending to provide telecommunication services, subject to such terms and conditions, including fees or charges, as may be prescribed. 1.16 As per the reference, many broadcasting platforms (which employ radio waves and spectrum for offering services) viz. DTH, HITS, IPTV, Uplinking/ Downlinking of channels (including teleports), DSNG, SNG, Community Radio, FM Radio etc. are issued license/ 5permission/ registration by MIB under Section 4 of the Indian Telegraph Act, 18859. This section grants the Central Government the exclusive privilege to issue licenses, and the MIB draws its power for issuing license/ permission/ registration. 1.17 Additionally, a brief background note on the various licenses, permissions and registrations, along with their respective policy guidelines issued by MIB under the Indian Telegraph Act, 1885, and other related issues concerning the Telecommunications Act, 2023, has been included as an annexure to the reference. 1.18 The following policy guidelines are required to be aligned in accordance with the provisions of the Telecommunications Act, 2023: i. License to provide Direct-to-Home (DTH) services are given as per the ‘Guidelines for obtaining license for providing Direct to Home (DTH) Broadcasting services in India’. ii. Permission to provide Headend in the Sky (HITS) services are given as per the ‘Guidelines for providing Headend in the Sky (HITS) Broadcasting services in India’. iii. Registration to provide Internet Protocol Television (IPTV) services to ISPs and MSOs are given as per the ‘Guidelines for provisioning Internet Protocol Television (IPTV) services’. iv. Permission to provide Teleport Services, Uplinking and Downlinking of television channels, Digital Satellite News Gathering (DSNG)/ Satellite News Gathering (SNG) are given as per the ‘Policy Guidelines for Uplinking and Downlinking of Television Channels’. 9 https://dot.gov.in/sites/default/files/the_indian_telegraph_act_1985_pdf.pdf 6v. Permission for FM Radio channels are given as per the ‘Policy guidelines for Phase-III expansion of FM Radio broadcasting through private agencies’. vi. License for setting up of Community Radio Stations (CRS) are given as per the ‘Policy Guidelines for setting up Community Radio Stations (CRS) in India’. 1.19 The background note has quoted Section 3(1), 3(2), 3(6) and 61 of the Telecommunications Act, 2023, and further stated that many other sections of the Telecommunications Act, 2023, may have either direct or indirect linkages with the terms and conditions of the authorisations for providing broadcasting services. 1.20 The reference further stated that the authorisation for such broadcasting services would be required to be granted under Section 3(1)(a) of the Telecommunications Act, 2023, once the appointed date for this section is notified. 1.21 According to the reference, it is crucial to align the extant policy guidelines with the Telecommunications Act, 2023, so that the terms and conditions for the authorisation of these broadcasting services may be notified as Rules to be made under the Telecommunications Act, 2023. C. Extant Guidelines for the Broadcasting Services ““ 1.22 MIB grants licenses, permissions and registrations for various broadcasting services, such as uplinking and downlinking of satellite TV channels, teleports, DSNG/ SNG, DTH, HITS, IPTV, FM radio and CRS, under the respective policy guidelines established under Section 4 of the Indian Telegraph Act, 1885. These existing guidelines are discussed in the following paragraphs. 71.23 Policy Guidelines for Uplinking/ Downlinking: On 9th November 202210 (annexed as Annexure-IV), MIB notified the consolidated guidelines for Uplinking and Downlinking of Satellite Television Channels in India, 2022, to ease and streamline issue of permissions to the companies/ LLPs registered in India for Uplinking and Downlinking of TV Channels, setting up of Teleports/ Teleport Hubs, use of DSNG)/ SNG/ Electronic News Gathering (ENG) systems, uplinking by Indian News agencies and temporary uplinking of a live event. The revised guidelines replaced the ‘Policy Guidelines for Uplinking of Television Channels’ and ‘Policy Guidelines for Downlinking of Television Channels’ dated 11th December 2011. These guidelines provide for the terms and conditions for issuing permissions to the companies/ LLPs registered in India to the following: i. Teleport/ Teleport Hub ii. Uplinking of Television channel iii. Downlinking of a Satellite TV channel iv. News Agency v. Purchase and hiring of DSNG/ SNG Equipment vi. Live coverage of events vii. Other related permissions 1.24 Policy Guidelines for Direct-to-Home (DTH) Services: The policy guidelines for obtaining license for providing DTH broadcasting service were laid down by MIB on 15th March 2001 (amended up to 2007)11 (annexed as Annexure-VA) and last amended up to 10https://mib.gov.in/sites/default/files/Guidelines%20for%20Uplinking%20and%20Downhinkin g%20of%20Satellite%20Television%20Channels%20in%20India%2C%202022.pdf 11 https://new.broadcastseva.gov.in/digigov-portal-web- app/jsp/mib/common/PDFContent/DTH_PDF/DTH%206.11.2007%20(1).pdf 8202012(annexed as Annexure-VB). Subsequently, the ‘Operational DTH Guidelines’ were issued by MIB on 16th September 202213 (annexed as Annexure-VC) with respect to license fee, platform service channels and sharing of infrastructure by DTH operators. 1.25 Policy Guidelines for Headend-in-the-Sky (HITS) Services: MIB laid the policy guidelines on 26th November 200914 (annexed as Annexure-VIA) for granting permission to the eligible entities to establish, maintain and operate HITS broadcasting service in India. Further, in the year 2020, MIB issued an amendment in the HITS guidelines dated 6th November 202015 (annexed as Annexure- VIB), permitting sharing of infrastructure. 1.26 Policy Guidelines for Internet Protocol Television (IPTV) Services: In October 2006, India witnessed launch of first IPTV service by Mahanagar Telephone Nigam Limited (MTNL). Recognizing the sector's potential, the Union Cabinet approved guidelines on 21st August 2008, to facilitate broadcasters sharing content with IPTV providers, aiming to enhance consumer access to television over broadband. Consequently, MIB issued detailed policy guidelines for IPTV operations on 8th September 200816 (annexed as Annexure-VII), accepting TRAI recommendations on ‘Provision of IPTV Services’ dated 4th January 200817. The guidelines were designed to establish clear principles for various IPTV platforms and to stimulate stakeholder participation in the Indian IPTV market. 12https://mib.gov.in/sites/default/files/Amendment%20in%20Guidelines%20for%20obtaining% 20license%20for%20providing%20DTH%20Broadcasting%20Services%20in%20India.pdf 13https://mib.gov.in/sites/default/files/%28English%20Version%29%20Operational%20Guideli nes%20for%20Direct-To- Home%20%28DTH%29%20Broadcasting%20service%20in%20India%20dated%2016.09.2022.pdf 14 https://mib.gov.in/sites/default/files/headend.pdf 15 https://mib.gov.in/sites/default/files/Amendment%20in%20HITS%20guidelines%20.pdf 16 https://mib.gov.in/sites/default/files/ilovepdf_merged_1.pdf 17 https://www.trai.gov.in/sites/default/files/recom4jan08.pdf 91.27 Policy Guidelines for FM Radio: The policy guidelines for FM radio broadcasting have been designed to govern the establishment and operation of FM radio stations by private entities. FM radio broadcasting (Phase-I) was launched by MIB in 1999. Building on the experience from Phase I, the Government announced the policy for Phase-II on 13th July 200518, with certain modifications. Phase III was initiated, aimed at establishing private FM radio channels in all cities with a population exceeding 1 lakh. Consequently, the Government issued the ‘Policy Guidelines for Phase-III of FM Radio Broadcasting’ on 25th July 201119 (annexed as Annexure-VIIIA), which have been further amended on 21st January 2015, 4th October 202220 and 10th September 202421 (annexed as Annexure- VIIIB, Annexure-VIIIC and Annexure-VIIID respectively). 1.28 Policy Guidelines for Community Radio Station (CRS): The Government announced its policy for the grant of permission for setting up of CRS in December 2002. The guidelines were subsequently amended in the year 2006, 2017, 2018 and 2022. To ensure financial sustainability of CRS and to ensure growth of the Community Radio Sector, the Government has carried out further amendments and issued the revised policy guidelines on 13th February 202422 (annexed as Annexure-IX). 18 https://mib.gov.in/sites/default/files/FM-PH-II-13072005.pdf 19 https://mib.gov.in/sites/default/files/PolicyGuidelines_FMPhaseIII%20%281%29.pdf 20 https://mib.gov.in/sites/default/files/Order%20dated%2004-1002922.pdf 21 https://mib.gov.in/broadcasting/order-dated-10092024-regarding-amendments-pvt-fm-radio- phase-iii-policy-guidelines 22https://mib.gov.in/sites/default/files/Amended%20Revised%20Policy%20Guidelines%20for%2 0setting%20up%20Community%20Radio%20Stations%20in%20India%20(13.02.2024).pdf 10D. Enactment of the Telecommunications Act, 2023 1.29 The Telecommunications Act, 202323, represents a comprehensive overhaul of the framework governing telecommunications in the modern digital era. The Telecommunications Act, 2023, was passed by the Parliament in December 2023, received the assent of President of India on 24th December 2023, and was published in the official Gazette on the same day. 1.30 The Telecommunications Act, 2023 amends and consolidates the law relating to development, expansion and operation of telecommunication services and telecommunication networks, assignment of spectrum, and for matters connected therewith or incidental thereto. It also repeals existing legislative framework like Indian Telegraph Act 1885 and Indian Wireless Telegraphy Act 193324 owing to huge technical advancements in the telecommunication sector and technologies. E. Broadcasting Services and Cable Services as Telecommunication Service 1.31 TRAI Act, 199725 defines ‘service provider’ and ‘licensee’ as follows: “‘service provider’ means the Government as a service provider and includes a licensee; ‘licensee’ means any person licensed under sub-section (1) of section 4 of the Indian Telegraph Act, 1885 for providing specific public telecommunication services;” 23 https://egazette.gov.in/WriteReadData/2023/250880.pdf 24https://dot.gov.in/sites/default/files/THE_INDIAN_WIRELESS_TELEGRAPHY_ACT_1933_1.pdf ?download=1 25 https://trai.gov.in/sites/default/files/The_TRAI_Act_1997.pdf 111.32 The Government in the year 2000 amended the TRAI Act, 1997 and included the proviso to section 2(1)(k) that enabled the Central Government to notify other service to be telecommunication service including broadcasting services. 1.33 In exercise of the powers conferred by the proviso to section 2(1)(k) of TRAI Act, 1997, the Central Government (Ministry of Communication and Information Technology) notified the broadcasting services and cable services to be telecommunication service vide Gazette Notification No. S.O. 44 (E) on 9th January 2004, thereby bringing the regulation of Broadcasting and Cable Services under the ambit of TRAI. F. Scope of the Consultation Paper 1.34 This consultation paper seeks comments/ feedback from stakeholders on the draft authorisation framework and the terms and conditions of broadcasting service authorisations to be included in the Rules to be made under the Telecommunications Act, 2023. Chapter I provides an overview and background of the broadcasting sector, and the details of the reference received. Chapter II outlines the structure and key issues related to the authorisation framework. Chapter III discusses the draft terms and conditions of authorisations for various broadcasting services, which are likely to be included in the Rules to be made under the Telecommunications Act, 2023, including harmonization of regulatory fees/ charges for similar services and some other provisions. Chapter IV summarizes the issues for consultation. 12CHAPTER II AUTHORISATION FRAMEWORK FOR BROADCASTING SERVICES A. Requirement of the Authorisation Framework for broadcasting services 2.1 As discussed in the preceding chapter and based on the reference received from MIB, presently, broadcasting service providers that utilize radio waves and spectrum for provision of services viz. DTH, HITS, IPTV, Uplinking/ Downlinking of channels (including teleports), DSNG/ SNG, FM Radio, Community Radio etc. are granted license, permission or registration by MIB under Section 4 of the Indian Telegraph Act, 1885. 2.2 Prior to the enactment of the Telecommunications Act, 2023, the Central Government held the exclusive right to grant licenses and establish, maintain or operate telegraph within India under Section 426 of the Indian Telegraph Act, 1885. The nodal ministry for broadcasting services, the MIB have been issuing license, registration, permission to the various broadcasting services under Section 4 of the Indian Telegraph Act, 1885. 2.3 After enactment of the Telecommunications Act, 2023, it is crucial that the existing policy guidelines governing broadcasting services, administered by MIB are also required to be aligned with the provisions of the Telecommunications Act, 2023, so that the terms 26 ‘ 4. Exclusive privilege in respect of telegraphs, and power to grant licenses.— (1) Within India the Central Government shall have the exclusive privilege of establishing, maintaining and working telegraphs: Provided that the Central Government may grant a license, on such conditions and in consideration of such payments as it thinks fit, to any person to establish, maintain or work a telegraph within any part of India: …’ 13and conditions for the authorisation to these broadcasting services may be notified as Rules under the Telecommunications Act, 2023. 2.4 It is important to note that among the abovementioned services, as per the extant IPTV guidelines, Telecom Access Service Providers (Unified Access Service Licensees, Cellular Mobile Telephone Service Licensees and Basic Service Licensees) having license to provide triple play services and ISPs with net worth more than Rs. 100 Crores and having permission from the licensor to provide IPTV or any other telecom service provider duly authorized by the Department of Telecom will be able to provide IPTV service under their licenses without requiring any further registration. Similarly, cable TV operators registered under Cable Television Network (Regulation) Act 1995 can provide IPTV services without requiring any further permission. IPTV system deliver digital television service using Internet Protocol (IP) over various high-speed Internet access technologies. 2.5 Given that the scope of Unified Service Authorisation, Access Service Authorisation and Internet Service Authorisation (as recommended by TRAI on 18th September 202427 in the framework for service authorisation) already covers IPTV services; and registered MSOs (under Cable Television Networks (Regulation) Act, 1995) are also permitted to offer IPTV services, therefore, there may not be a need to introduce a separate authorisation for IPTV. However, it is essential to include, the terms and conditions contained in the existing guidelines issued by MIB for provisioning IPTV services in India, in the Rules being framed, to align it with the provisions of the Telecommunications Act, 2023. 27 https://www.trai.gov.in/sites/default/files/Recommendation_18092024.pdf 142.6 The Indian Telegraph Act, 1885 did not provide any definition of the term ‘license’. However, the Telecommunications Act, 2023 provides a definition of the term ‘authorisation’ as under: "authorisation" means a permission, by whatever name called, granted under this Act for— (i) providing telecommunication services; (ii)establishing, operating, maintaining or expanding telecommunication networks; or (iii) possessing radio equipment; 2.7 As can be seen from the above, the term ‘authorisation’ has been defined as permission under the Telecommunications Act, 2023. Further, the Cambridge dictionary meaning of the word authorisation is ‘official permission for something to happen, or the act of giving someone official permission to do something’. Thus, it may be inferred that the term ‘authorisation’ under the Telecommunications Act, 2023 aligns with general dictionary meaning by clarifying the scope of permissions required for entities to provide telecommunication services, manage and expand networks or possess/ operate radio equipment. 2.8 Further, for providing broadcasting services under the Telecommunications Act, 2023, a person shall have to obtain an authorisation from the Central Government. At the level of nomenclature, this is in departure from the extant regime under the Indian Telegraph Act, 1885, under which the Central Government granted licenses for providing broadcasting services. Therefore, one of the effects of the enactment of the Telecommunications Act, 2023 would be that, henceforth, the entities desirous of providing broadcasting services in the country may need to obtain authorisations from the Central Government under the 15Telecommunications Act, 2023, instead of licenses under the Indian Telegraph Act, 1885. 2.9 The relevant extract of Section 3(1) of the Telecommunications Act, 2023 is reproduced below: ‘3. (1) Any person intending to— (a) provide telecommunication services; (b) establish, operate, maintain or expand telecommunication network; or (c) possess radio equipment, shall obtain an authorisation from the Central Government, subject to such terms and conditions, including fees or charges, as may be prescribed.’ 2.10 Section 59 of the Telecommunications Act, 2023 provides for amendment to the TRAI Act, 1997 for the definitions of licensee, licensor, telecommunication and telecommunication services in the following manner: "licensee" means an authorised entity providing telecommunication services under the Telecommunications Act, 2023, or registered for providing cable television network under the Cable Television Networks (Regulation) Act, 1995 or any other Act for the time being in force; "licensor" means the Central Government which grants an authorisation for telecommunication services under the Telecommunications Act, 2023, or registration under the Cable Television Networks (Regulation) Act, 1995 or any other Act for the time being in force; "telecommunication" shall have the meaning as assigned to it in the Telecommunications Act, 2023; 16"telecommunication services" means any service for telecommunication; 2.11 From the para above, it emerges that the registration for the cable services would continue to be governed by the Cable Television Networks (Regulation) Act, 1995. However, for other broadcasting services, the authorisations may have to be obtained under the Telecommunications Act, 2023. 2.12 In light of the provisions outlined in the Telecommunications Act, 2023, it may be necessary to discontinue the current practice of incorporating the terms and conditions of the license within the license document, policy guidelines, or permission letters. Instead, a concise Authorisation document may be issued by the Central Government to the Applicant Entity, encompassing essential details such as service area, scope of the service, validity period, information specific to the authorised entity, etc. and the terms and conditions governing the authorisation may be notified as Rules to be made under the Telecommunications Act, 2023. 2.13 In view of the above, stakeholders are requested to provide their comments on the question given below. Issue for Consultation Q1. Under Section 3(1) of the Telecommunications Act, 2023, the Applicant Entity may be granted an authorisation, in place of the extant practice of the grant of license/ permission from the Central Government. The terms and conditions governing the respective authorisation for broadcasting services may be notified by the Ministry of I&B as Rules to be made under the Telecommunications Act, 2023. In such a case, whether any safeguards are required to protect the reasonable interests of 17the Authorised Entities of the various broadcasting services? Kindly provide a detailed response with justifications. B. Relevant sections of the Telecommunications Act, 2023 2.14 Since the terms and conditions of broadcasting services are to be aligned with the provisions of the Telecommunications Act, 2023, the relevant sections are being discussed in the paras to follow. 2.15 Section 3(2) of Telecommunications Act, 2023 is reproduced below: ‘3(2) The Central Government may while making rules under sub- section (1) provide for different terms and conditions of authorisation for different types of telecommunication services, telecommunication network or radio equipment.’ 2.16 Section 3(6) of Telecommunications Act, 2023 provides for migration to new terms and conditions from the existing ones: ‘3(6) A licence, registration, permission, by whatever name called, granted prior to the appointed day under the Indian Telegraph Act, 1885 or the Indian Wireless Telegraphy Act, 1933, in respect of provision of telecommunication services or telecommunication network— (a) where a definite validity period is given, shall be entitled to continue to operate under the terms and conditions and for the duration as specified under such licence or registration or permission, or to migrate to such terms and conditions of the relevant authorisation, as may be prescribed; or (b) where a definite validity period is not given, shall be entitled to continue to operate on the terms and conditions of such licence or registration or permission for a period of five years from the appointed day, or to migrate to such terms and 18conditions of the relevant authorisation, as may be prescribed.’ 2.17 Section 4, 5, 6 and 7 of the Telecommunications Act, 2023 contains the provisions for assignment, re-farming and harmonisation, technologically neutral use and optimal utilisation of spectrum. Relevant clauses for broadcasting services include: ‘4. … (2) Any person intending to use spectrum shall require an assignment from the Central Government. (3) The Central Government may prescribe such terms and conditions as may be applicable, for such assignment of spectrum, including the frequency range, methodology for pricing, price, fees and charges, payment mechanism, duration and procedure for the same. … (8) Any spectrum assigned through the administrative process prior to the appointed day, shall continue to be valid on the terms and conditions on which it had been assigned, for a period of five years from the appointed day, or the date of expiry of such assignment, whichever is earlier. … 5. The Central Government may, to enable more efficient use of spectrum, re-farm or harmonise any frequency range assigned under section 4, subject to such terms and conditions, as may be prescribed.’ 6. The Central Government may enable the utilisation of the spectrum in a flexible, liberalised and technologically neutral manner, subject to such terms and conditions, including applicable fees and charges, as may be prescribed. 197. (1) The Central Government may, to promote optimal use of the available spectrum, assign a particular part of a spectrum that has already been assigned to an entity, known as the primary assignee, to one or more additional entities, known as the secondary assignees, where such secondary assignment does not cause harmful interference in the use of the relevant part of the spectrum by the primary assignee, subject to such terms and conditions as may be prescribed. …’ 2.18 Section 8 of the Telecommunications Act, 2023 contains provisions on establishment of monitoring and enforcement mechanism of the spectrum: ‘8. (1) The Central Government may establish by notification, such monitoring and enforcement mechanism as it may deem fit to ensure adherence to terms and conditions of spectrum utilisation and enable interference-free use of the assigned spectrum. (2) The Central Government may permit the sharing, trading, leasing and surrender of assigned spectrum, subject to the terms and conditions, including applicable fees or charges, as may be prescribed.’ 2.19 Section 18 of the Telecommunications Act, 2023 mentions on dispute resolution: ‘18. (1) The District Magistrate, or any other authority as notified by the Central Government, within whose jurisdiction the property is situated, shall have the exclusive powers to resolve any disputes under this Chapter, except for disputes referred to under sub-section (2) of this section. 20(2) If any dispute arises relating to compensation under sub- section (6) of section 11, sub-section (2) and sub-section (4) of section 12, and sub-section (5) of section 17, it shall, on an application made for that purpose by either of the disputing parties to the District Judge within whose jurisdiction the property is situated, be determined by him. (3) Every determination of a dispute by a District Magistrate or District Judge under this section, shall be final. (4) Nothing in sub-section (3) shall affect the right of any person to recover by suit the whole or any part of any compensation paid by the facility provider, from the person who has received the same.’ 2.20 Section 19 of the Telecommunications Act, 2023 provides power to the Central Government to notify standards: ‘19. The Central Government may notify standards and conformity assessment measures in respect of— (a) telecommunication equipment, telecommunication identifiers and telecommunication network; (b) telecommunication services, in consonance with any regulations notified by the Telecom Regulatory Authority of India from time to time; (c) manufacture, import, distribution and sale of telecommunication equipment; (d) telecommunication security, including identification, analysis and prevention of intrusion in telecommunication services and telecommunication networks; (e) cyber security for telecommunication services and telecommunication networks; and (f) encryption and data processing in telecommunication.’ 212.21 Section 21 of the Telecommunications Act, 2023 contains provisions on measures for national security: ‘21. The Central Government may, if satisfied that it is necessary or expedient so to do, in the interest of national security, friendly relations with foreign States, or in the event of war, by notification take such measures as are necessary in the circumstances of the case, including issuing directions in respect of the following, namely:— (a) use of telecommunication equipment, telecommunication services, telecommunication network and telecommunication identifiers; (b) standards applicable to manufacture, import and distribution of telecommunication equipment; (c) standards to be adopted by authorised entities or assignees; (d) procurement of telecommunication equipment and telecommunication services only from trusted sources; (e) suspension, removal or prohibition of the use of specified telecommunication equipment and telecommunication services from countries or person as may be notified; or (f) taking over the control and management of, or suspending the operation of, or entrusting any authority of the Central Government to manage any or all of any telecommunication services, or any telecommunication network or part thereof, connected with such telecommunication services.’ 2.22 Section 22(1) and 22(2) of the Telecommunications Act, 2023 provides the following: ‘22. (1) The Central Government may by rules provide for the measures to protect and ensure cyber security of telecommunication networks and telecommunication services. 22(2) The measures may include collection, analysis and dissemination of traffic data that is generated, transmitted, received or stored in telecommunication networks. …’ 2.23 Section 23 of the Telecommunications Act, 2023 provides power to the Central Government to give directions in public interest: ‘23. If it appears necessary or expedient so to do in the public interest, the Central Government may direct any authorised entity to transmit in its telecommunication services or telecommunication network, specific messages, in such manner as may be specified.’ 2.24 Section 32 of the Telecommunications Act, 2023 provides provisions for breach of terms and conditions for authorisation or assignment: ‘32. (1) In case of breach of any of the terms and conditions of authorisation or assignment granted under this Act, the Adjudicating Officer shall, pursuant to an inquiry under the provisions of this Chapter— (a) pass an order in writing in respect of one or both of the following, namely:— (i) direct such authorised entity, or assignee to do or abstain from doing any act or thing to prevent such breach or for such compliance; (ii) impose civil penalties as specified in the Second Schedule; and (b) make recommendations for the consideration of the Central Government regarding suspension, revocation, or curtailment of the duration of the authorisation or assignment. (2) The Central Government may, after due consideration of the recommendations of the Adjudicating Officer under clause (b) of 23sub-section (1), suspend, curtail or revoke the authorisation or assignment, as the case may be, which may be reversed if the substantial violation is remedied to the satisfaction of the Central Government. (3) While imposing penalties specified in the Second Schedule under this section and section 33, the Adjudicating Officer shall have due regard to the following factors, namely:— (a) nature, gravity and duration of the contravention, taking into account the scope of the contravention; (b) number of persons affected by such contravention, and the level of harm suffered by them; (c) intentional or negligent character of the contravention; (d) repetitive nature of the contravention; (e) action taken by the concerned person to mitigate the contravention, including by providing a voluntary undertaking under sub-section (1) or sub-section (2) of section 34; (f) revenue loss caused to the Central Government; (g) any aggravating factors relevant to the circumstances of the case, such as the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the contravention; and (h) any mitigating factors relevant to the circumstances of the case, such as the timely rectification of the contravention, or steps taken for the avoidance of loss as a result of the contravention.’ 2.25 Section 33 of the Telecommunications Act, 2023 provides provisions on contraventions of the Act: ‘33. (1) The Adjudicating Officer shall, upon receipt of a complaint in such form, manner and accompanied by such fees as may be prescribed, relating to contravention of this Act as 24specified in the Third Schedule, or suo motu, conduct an inquiry under the provisions of this Chapter, pass an order in writing specifying the civil penalty up to an amount as specified in the Third Schedule, payable by the person committing such contravention. (2) The provisions of the Third Schedule shall apply to the abetment of, or attempt to commit, or conspiracy to commit such contravention, as they apply to such contravention.’ 2.26 Section 41 of the Telecommunications Act, 2023 provides provisions on bar on jurisdiction: ‘41. No civil court shall have jurisdiction in respect of any matter which the Adjudicating Officer, the Designated Appeals Committee, the Central Government or the Telecom Disputes Settlement and Appellate Tribunal are empowered by or under this Chapter to determine.’ 2.27 Section 42 of the Telecommunications Act, 2023 provides general provisions relating to offence: ‘42. (1) Whoever provides telecommunication services or establishes telecommunication network without authorisation under sub- section (1) of section 3, or causes damage to critical telecommunication infrastructure shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend up to two crore rupees, or with both. (2) Whoever directly or indirectly or through personation— (a) gains or attempts to gain unauthorised access to a telecommunication network or to data of an authorised entity or transfers data of an authorised entity; or (b) intercepts a message unlawfully, 25shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend up to two crore rupees, or with both. (3) Whoever,— (a) possesses or uses without an authorisation, any equipment that blocks telecommunication; (b) uses telecommunication identifiers not allotted or permitted in accordance with sub-sections (8) and (9) of section 3; (c) tampers with telecommunication identifiers; (d) possesses radio equipment without an authorisation or an exemption that can accommodate more than specified number of subscriber identity modules; (e) obtains subscriber identity modules or other telecommunication identifiers through fraud, cheating or personation; (f) wilfully possesses radio equipment knowing that it uses unauthorised or tampered telecommunication identifiers, shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend up to fifty lakh rupees, or with both. (4) Whoever wilfully contravenes any measures specified in the notification on national security under section 21 shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend up to two crore rupees, or with both and the Central Government may, if it deems fit, also suspend or terminate the telecommunication service of such person. (5) Whoever causes damage to telecommunication network, other than critical telecommunication infrastructure shall be liable for 26compensation for the damage caused and fine which may extend up to fifty lakh rupees. (6) Whoever abets any offence, or attempts to commit, or conspires to commit an offence under this Act, shall if the act abetted or conspired is committed in consequence of such abetment or conspiracy, be punished with the punishment provided for the offence. (7) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences specified under this section shall be cognizable and non-bailable. (8) No court inferior to that of a Chief Metropolitan Magistrate or a Chief Judicial Magistrate of first class shall try any offence punishable under this Act.’ 2.28 Section 43 of the Telecommunications Act, 2023 provides provision for power to search: ‘43. Any officer authorised by the Central Government in this behalf, may search any building, vehicle, vessel, aircraft or place in which he has reason to believe that any unauthorised telecommunication network or telecommunication equipment or radio equipment in respect of which an offence punishable under section 42 has been committed, is kept or concealed and take possession thereof.’ 2.29 Section 44 of the Telecommunications Act, 2023 provides provision for supply for information to authorised officers: ‘44. Notwithstanding anything contained in any law for the time being in force, where the Central Government is satisfied that any information, document or record in possession or control of any 27authorised entity or assignee relating to any telecommunication service, telecommunication network or use of spectrum, availed by any entity or consumer or subscriber is necessary to be furnished in relation to any pending or apprehended civil or criminal proceedings, an officer, specially authorised in writing by the Central Government in this behalf, shall direct such authorised entity or assignee to furnish such information, document or record to him and the authorised entity or assignee shall comply with the direction of such officer.’ 2.30 Section 48 of the Telecommunications Act, 2023 provides provisions on prohibition of equipment which blocks telecommunication: ‘48. No person shall possess or use any equipment that blocks telecommunication unless permitted by the Central Government, or any authority authorised for specific purpose by the Central Government.’ 2.31 Section 52 of the Telecommunications Act, 2023 provides provisions on consistency with other laws: ‘52. (1) The provisions of this Act shall be in addition to, and not be construed in derogation of the provisions of any other law, and shall be construed as consistent with such law, for the time being in force. (2) If any conflict arises between a provision of this Act and a provision of any other law for the time being in force in the whole of India or restricted to the application within the territory of any State, the provision of this Act shall prevail to the extent of such conflict.’ 2.32 Further, Section 56 of the Telecommunications Act, 2023 inter-alia provides: 28‘56. (1) The Central Government may, by notification, and subject to the condition of previous publication, make rules not inconsistent with the provisions of this Act, to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a) the terms and conditions, including fees or charges for obtaining authorisation under sub-section (1) of section 3; (3) Every rule made under this Act and amendment to the Schedule made under section 57 shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or amendment to the Schedule or both Houses agree that the rule or amendment to the Schedule should not be made, the rule or amendment to the Schedule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or amendment to the Schedule.’ 2.33 Section 61 of the Telecommunications Act, 2023 provides the following: ‘61. All rules, orders, made or purported to have been made under the Indian Telegraph Act, 1885 or under the Indian Wireless Telegraphy Act, 1933, shall, in so far as they relate to matters for which provision is made in this Act and are not inconsistent therewith, be deemed to have been made under this Act as if this 29Act had been in force on the date on which such rules, orders were made, and shall continue in force unless and until they are superseded by any rules made under this Act.’ 2.34 The above-mentioned provisions and few others of the Telecommunications Act, 2023 have been referred and reflected in the draft terms and conditions of the authorisations as provided in the annexures, for aligning it with the Act. C. Structure of the Authorisation Framework 2.35 To provide the authorisation for broadcasting services under the Telecommunications Act, 2023, two categories of rules may be required to be framed as elaborated in the subsequent paras. 2.36 First category of Rules may be titled ‘The Broadcasting (Grant of Service Authorisations) Rules’, may encompass the broad contours required for obtaining authorisations for broadcasting services. The terms and conditions may include the broad scope and service areas of various services, eligibility conditions, and applicable fees such as processing and entry fee, along with the requirements for an initial bank guarantee for the applicant entity. Additionally, the terms and conditions may detail out the application process, grant of service authorisation, validity period, and other related terms and conditions. 2.37 The second category of rules, which may be referred to as ‘The Broadcasting (Television Programming, Television Distribution and Radio) Services Rules’ may require that, after obtaining authorisation for establishment, operation, and service provisioning, the authorised entity complies with the terms and conditions contained in these Rules while delivering the services for which authorisation is to be obtained from the Central Government. 30The Common Terms and Conditions applicable for television programming, television distribution and Radio services may be identified, collated and produced under ‘Common Terms and Conditions’. 2.38 As regards the rules for the second category, the detailed terms and conditions applicable to each broadcasting service, may be treated differently. In the television broadcasting sector, the content is created/ aggregated by the broadcasters and then arranged in the form of a television channel. These television channels are then distributed to Distribution Platform Operators (DPOs) for further retransmission to the consumers. The services involved in providing television channels to DPOs may be grouped together and collectively termed as The Broadcasting (Television Programming) Services. 2.39 Once a television channel is received by a distributor, it can be delivered to consumers through one of the four distribution methods: DTH, HITS, IPTV, or cable (via MSOs and its linked local cable operators) for distributing linear television services. Since MSOs and cable operators are registered under the Cable Television Networks (Regulation) Act, 1995, they may not be subject to the authorisation framework under the Telecommunications Act, 2023. Further, as recommended by TRAI, the scope of Unified Service Authorisation, Access Service Authorisation and Internet Service Authorisation covers authorisation to provide IPTV services too; and registered MSOs are also permitted to offer IPTV services, therefore, there may not be a need to introduce a separate authorisation for IPTV. However, only the terms and conditions for provisioning of IPTV services may be required to be drafted for inclusion in the Rules to be framed. 312.40 The terms and conditions for the distribution services (viz. DTH and HITS services) to be authorised under the Telecommunications Act, 2023 may be consolidated, along with terms and conditions of the IPTV services, based on their respective scope and other statutory obligations, may be referred to as the Broadcasting (Television Distribution) Services. 2.41 Similarly, the radio broadcasting may be further delineated in another part, namely the Broadcasting (Radio) Services. This may comprise terms and conditions for FM Radio broadcasting, Community Radio Stations, Low Power Small Range FM Radio Services and Digital Radio broadcasting. However, the terms and Conditions for the Digital Radio broadcasting may be provided, when notified by the Central Government. 2.42 In this context, Section 3(2) of the Telecommunications Act, 2023 also provides for different terms and conditions for different types of telecommunication services. The said Section is reproduced below: ‘(2) The Central Government may while making rules under sub- section (1) provide for different terms and conditions of authorisation for different types of telecommunication services, telecommunication network or radio equipment.’ 2.43 Building on the discussions above, broadcasting services may be broadly classified into three categories for the purpose of establishing the terms and conditions for service provisioning, as outlined below: i. The Broadcasting (Television Programming) Services ii. The Broadcasting (Television Distribution) Services iii. The Broadcasting (Radio) Services 322.44 Accordingly, the draft framework for broadcasting services authorisation under The Telecommunications Act, 2023 is depicted in Fig 2.1 below. Fig 2.1: Draft Authorisation Framework under the Telecommunications Act, 2023 • The Broadcasting (Grant of Service Authorisations) Rules • Terms and Conditions of Grant of Service Authorisations • The Broadcasting (Television Programming, Television Distribution and Radio) Services Rules • Common Terms and Conditions applicable to television Programming and Distribution and Radio broadcasting services • The Broadcasting (Television Programming) Services • Terms and Conditions for Satellite based broadcasting • Terms and Conditions for Ground based broadcasting • Terms and Conditions for Other Related Services • The Broadcasting (Television Distribution) Services • Terms and Conditions for DTH Services • Terms and Conditions for HITS Services • Terms and Conditions for IPTV Services • The Broadcasting (Radio) Services • Terms and Conditions for FM Radio broadcasting • Terms and Conditions for Community Radio Stations • Terms and Conditions for Low Power Small Range FM broadcasting • Terms and Conditions for Digital Radio broadcasting C1. Changes in the Definitions for service authorisation 2.45 The definitions and terminologies contained in various policy guidelines, regulations, acts governing and regulating the 33broadcasting sector have been collated in Schedule-I, attached with this Consultation Paper. These definitions may be utilized in the draft terms and conditions of Grant of Service Authorisations and Television Programming, Television Distribution and Radio Broadcasting. 2.46 Further, in order to broaden the scope, it may be necessary to introduce new definitions and amend some existing ones to reflect the evolving landscape of the broadcasting sector, e.g. ‘broadcaster’ means a person or a group of persons, or body corporate, or any organization or body who, after having obtained, in its name, authorization from the Central Government for its channels, is providing programming services; ‘Ground-Based Broadcasting’ may be defined as under: “Ground-Based Broadcasting” means providing programming services using terrestrial communication medium for delivering channels to the distributors of television channels 2.47 Additionally, the existing definitions and terminologies, may be amended as provided in the Table 2.1 below: Table 2.1: Changes in the existing definitions Existing Definition Draft Definition (Amended) 'DSNG/SNG' means Digital “SCG (Satellite Content Satellite News Gathering and Gathering)” refers to use of refers to a satellite based satellite based electronic electronic technology/equipment that technology/equipment that allows a reporter or a allows a TV representative of TV Channel to channel/Teleport/Teleport hub gather and provide the content 34to broadcast from remote to broadcaster from remote locations outside of a TV studio; locations outside the TV studio; 'ENG' services means Electronic ECG (Electronic Content News Gathering and refers to Gathering) refers to use of electronic technologies that electronic technologies that allows a TV allows a reporter or a Channel/Teleport/Teleport representative of TV Channel to Hub/news reporter to gather and provide the content broadcast from remote locations to broadcaster from remote outside the TV studio using locations outside the TV studio cellular using terrestrial communication network/internet/leased line or medium viz. cellular any other medium/equipment network/internet/leased line or (including bag pack), other than any other medium/equipment, by DSNG/SNG; excluding SCG; 2.48 Conventionally, the distributors of television channels have been termed as Distribution Platform Operators (DPOs). However, to align with it the authorisation terminology, the definitions of Distribution Services and Distribution Service Provider may be introduced as under: ‘Distribution services’ means distribution service within their respective scope of services provided by a DTH operator, HITS operator, IPTV operator or Multi-System Operator (MSO)’ ‘Distribution Service Provider’ shall include DTH operator, HITS operator, IPTV operator or Multi-System Operator (MSO)’ 2.49 As brought out above, the definitions and terminologies contained in various policy guidelines, regulations, acts governing and regulating the broadcasting sector have been collated and 35enumerated in Schedule-I, to be included in the draft terms and conditions of Grant of Service Authorisations and Television Programming, Television Distribution and Radio Broadcasting. Stakeholders are requested to provide their comments on the definitions provided in Schedule-I. Issue for Consultation Q2. The definitions to be used in the Rules to be made under the Telecommunications Act, 2023, governing the Grant of Service Authorisations and provisioning of the Broadcasting (Television Programming, Television Distribution and Radio) Services are drafted for consultation and are annexed as Schedule-I. Stakeholders are requested to submit their comments in respect of suitability of these definitions including any additions/ modifications/ deletions, if required. Kindly provide justifications for your response. C2. Introduction of new authorisations 2.50 On a reference from MIB, a consultation paper on ‘Regulatory Framework for Ground Based Broadcasters’ is already issued on 18th October 2024. Once the recommendations are issued and accepted, the ground-based broadcasting would also emerge as an alternate method for distributing the television channels from broadcasters to distributors, in addition to the existing practice of satellite transmission. Thus, ground-based broadcasting, utilizing terrestrial transmission methods, could be recognized as part of broadcasting authorisation or as a new authorisation, which may encompass transmission through cloud services, wireline and wireless communication networks, among others. 362.51 Additionally, TRAI in its Recommendations on ‘Issues related to Low Power Small Range FM Radio Broadcasting’ dated 21st September 202328 has recommended for establishing low power small range FM radio broadcasting services to be commercially used for drive-in theatres applications, which is under consideration of the Government. For this purpose, the provision for the authorisation of low power small range FM radio broadcasting service may also be created in the radio part, for the consideration of the Government, in line with the pending recommendation from TRAI. C3. Scope of Service and Service Area of various service authorisations 2.52 The scope of service covers the specific tasks, responsibilities, and activities that a service provider is authorized to perform, whereas, the service area refers to the geographic region or zone in which a service provider is permitted or authorised to offer its services. 2.53 The scope of service and service area of the existing broadcasting services are identified from the extant guidelines, and the same for the new services likely to be introduced are identified from consultation paper/ recommendations, which are listed in Table 2.1 below for consultation. Table 2.1: Scope of Service and Service Area of various Broadcasting Services S. Service Scope of Service Service No. Authorisation Area The Broadcasting (Television Programming) Services 28 https://www.trai.gov.in/sites/default/files/Recommendations_21092023.pdf 371. Television Channel Broadcasting i. Satellite-Based Broadcasting for a Television Channel Uplinking of a To uplink a television channel signal a. Television from anywhere in India to Satellite National Channel using Teleport/ Teleport Hub. To downlink a television channel Downlinking signal within India for reception by b. of a Television National the Distribution Service Providers. Channel To uplink a television channel signal Uplinking and from anywhere in India to Satellite downlinking of using Teleport/ Teleport Hub and c. National a Television also to downlink the TV channel Channel signal within India for reception by the Distribution Service Providers. Ground-Based To provide a television channel for Broadcasting reception within India to the National/ ii. of a Television Distribution Service Providers. State Channel News Agency To gather News and distribution 2. for television thereof to other news agencies and National channel(s) broadcasters in India. To establish, maintain and operate Teleport/Telep 3. teleport/teleport hub for uplinking of National ort Hub satellite TV channels. To gather content of live events Live coverage (News and current affairs/ Non-news of events by a and current affairs) from anywhere 4. Pan- India Foreign in India for broadcasting on its channel channel outside India. The Broadcasting (Television Distribution) Services To establish, maintain and operate 5. DTH DTH platform for providing DTH National broadcasting distribution services. 38To establish, maintain and operate 6. HITS HITS platform for providing HITS National broadcasting distribution services. The Broadcasting (Radio) Services To establish, maintain and operate FM Radio Pan- 7. FM radio station to broadcast Broadcasting India29 permitted services. To establish, maintain and operate Community Community Radio Station to serve Location 8. Radio Station the needs and interest of local Specific communities. To provide low power small range FM Radio service for captive use, wherein captive use scenarios covers a wide range of facilities, such as drive-in theatres, shopping malls, Low Power and sports complexes, among others Location/ Small Range where the permission holder utilizes 9. Event FM Radio low power FM to broadcast their own Specific30 Broadcasting content and services. Also to extend the services to third parties who intend to organize an event for a limited period at a specific place, such as an event ground or concert hall. To establish, maintain and operate Digital Radio To be 10. digital radio station to broadcast Broadcasting decided31 permitted services. 29 However, the authorised entity may be allowed to operate and provide Radio Broadcasting Services only in the city(ies), where it is allocated frequency spectrum through e-auction process. 30 The maximum permissible transmission range shall be 500 meters; the service area of frequency assignment shall be location-specific based on the precise geographical coordinates such as longitude and latitude of the intended service location (be it a building, stadium, convention centre, expo area etc.); and maximum permissible transmission power shall be 1 watt. 31 To be decided based on the outcome of the Consultation process on Digital Radio broadcast policy, which is under progress separately. 392.54 Apropos above, stakeholders may provide their feedback on the suggested scope of service and service area of the various service authorisations. Issue for Consultation Q3. A preliminary draft of Scope of Service for various Broadcasting services and the corresponding Service Area is provided in Table 2.1 for consultation. Whether the same appropriately covers the Scope of Service and Service Area? If not, stakeholders are requested to submit their comments, if any additions/ modifications/ deletions are required in the Scope of Service and Service Area, along with necessary justifications. C4. Grant of Service Authorisation 2.55 It is essential for any applicant entity seeking a specific broadcasting service to be well-informed about key parameters related to that service, including its scope, service area, eligibility criteria, validity period, etc. Furthermore, information regarding the applicable fees, such as processing fees, entry fees, bank guarantees, and security deposits, needs to be clearly specified. The procedural steps for obtaining service authorisation, along with other relevant conditions, may also be explicitly detailed in the rules governing the grant of service authorisations. The format of the draft authorisation document and its associated rules namely the Broadcasting (Grant of Service Authorisations) Rules are provided below in Fig 2.2 and Fig 2.3 respectively. 40Fig 2.2: Draft format for Grant of Service Authorisation GOVERNMENT OF INDIA MINISTRY OF INFORMATION AND BROADCASTING AUTHORISATION TO PROVIDE BROADCASTING SERVICES [under Section 3 of the Telecommunications Act, 2023 and subject to The Broadcasting (Grant of Service Authorisations) Rules and The Broadcasting (Television Programming, Television Distribution and Radio) Services Rules] Authorisation No. __________ Issue Date: [DD/MM/YYYY] Valid Up to: [DD/MM/YYYY] Details of Authorised Entity: Entity Category*:______________ Name of Entity: ___________________ Corporate Identification/ Registration Number: _________ Date of Incorporation/ Registration: ___________ Address: ________________ Name of the Channel**: ____________ Category of the Channel***: News & Current Affairs/ Non-news & Current Affairs Scope of Service: ________________ Service Area: ______________ Date: ________ **Applicable for both television programming and radio broadcasting ***Applicable only for television programming Signature of the Officer the Central Government: ________________ (On behalf of the President of India) * Entity Category may include: Registered Company/LLP/Autonomous bodies/State Agricultural Universities (SAU)/Indian Council of Agricultural Research (ICAR) institutions/Krishi Vigyan Kendras/Civil Society Organisations/Voluntary Organisations/Not for profit organisations set up by self-help groups (SHGs) and Farmer Producer Organisations/Non-Government Organisation/Government Organisation/Educational Institute/Public Charitable Trust/ Registered Society/Resident Welfare Association 41Fig 2.3: Terms and conditions to be included in the draft Broadcasting (Grant of Service Authorisations) Rules Sl. No. Description 1. Definitions 2. Scope and Service Area 3. Eligibility Conditions Provision of Broadcasting Services • Television Programming Services 4. • Television Distribution Services • Radio Broadcasting Services Processing Fee, Entry Fee, Bank Guarantee, Security Deposit 5. and Renewal Fee 6. Process of Application to obtain the Service Authorisation 7. Grant of Service Authorisation 8. Validity Period 9. Non-Exclusivity Clause 10. Assignment and Use of Spectrum Migration of the Licensees of the old regime in the new 11. Authorisation Framework 12. Security Conditions 2.56 Broadcasting services being a dynamic and technology intensive sector, the terms and conditions of the authorisations and the associated rules may be required to be amended from time-to-time to make it progressive and adaptive to the needs of time, for facilitating the growth and development of the sector. 2.57 A preliminary draft of Terms and Conditions for Grant of Service Authorisations are provided in Annexure-II. These may broadly 42include Definitions, Scope and Service Area, Eligibility Conditions, Application Processing Fee, Entry Fee, Bank Guarantee, Process of Application to obtain the Service Authorisation and other related conditions, Grant of Service Authorisation, Validity Period and Other Conditions. Issues for Consultation Q4. For the purpose of grant of authorisation under Section 3(1) of the Telecommunications Act, 2023, the Central Government may issue an authorisation document to the Applicant Entity containing the essential details viz. Name, Category and Address of entity, Scope of Service, Service Area, Validity etc. A draft format of authorisation document is given at Figure 2.2. Do you agree with the draft format or whether any changes are needed in the draft format of authorisation document? Please provide your response with necessary explanations. Q5. A preliminary draft of terms and conditions to be included in the first set of Rules i.e., for Grant of Service Authorisations is annexed as Annexure-II. Stakeholders are requested to submit their comments in the format provided below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. S. Description Term Proposed Reasons No. s and changes, with Condi if any detailed tions justificati No. ons 1. Definitions 2. Scope of Service and Service Area 3. Eligibility conditions 434. Provision of Broadcasting Services • Television Programming Services • Television Distribution Services • Radio Broadcasting Services 5. Processing Fee, Entry Fee, Bank Guarantee, Security Deposit and Renewal Fee 6. Process of Application to obtain the Service Authorisations 7. Grant of Service Authorisations 8. Validity Period 9. Non-exclusivity clause 10. Conditions for assignment and use of Spectrum 11. Migration of Existing service providers of old regime in the new Authorisation Framework 12. Security Conditions 44C5. The Broadcasting (Television Programming, Television Distribution and Radio) Services 2.58 Once an authorisation is granted by the Central Government to the authorised entity for a particular broadcasting service, the authorised entity may be governed by the terms and conditions prescribed in the Rules framed under the Telecommunications Act, 2023, which may be termed as Broadcasting (Television Programming, Television Distribution and Radio) Services Rules. 2.59 The Framework of the draft Broadcasting (Television Programming, Television Distribution and Radio) Services Rules, is depicted in Fig 2.4. 45Fig 2.4: Framework of the draft Broadcasting (Television Programming, Television Distribution and Radio) Services Rules Part Description Part-I COMMON TERMS AND CONDITIONS Specific Terms and Conditions for Authorisations THE BROADCASTING (TELEVISION PROGRAMMING) SERVICES • Television Channel Broadcasting o Satellite based Broadcasting of a Television Channel ▪ Uplinking of a Television Channel ▪ Downlinking of a Television Channel Part-II ▪ Uplinking & Downlinking of a Television Channel o Ground based Broadcasting of a Television Channel • News Agency for Television Channel(s) • Teleport/ Teleport Hub • Coverage of Live Event by Foreign Channel • Other services related to the Broadcasting (Television Programming) Services THE BROADCASTING (TELEVISION DISTRIBUTION) SERVICES • Direct to Home (DTH) Part-III • Headend in the Sky (HITS) • Terms and conditions for Internet Protocol Television (IPTV)* THE BROADCASTING (RADIO) SERVICES • FM Radio Broadcasting Part-IV • Community Radio Station • Low Power Small Range FM Radio Broadcasting • Digital Radio Broadcasting *Note: For the IPTV services only the terms and conditions to be included in the Rules to be made may be included. However, no separate authorisation 46needs to be issued, since the same is already covered under the scope of authorisations for Unified Services, Access services, Internet Services issued under the Telecommunications Act, 2023; as well as MSOs registered under the Cable Television Networks (Regulation) Act, 1995. Issue for Consultation Q6. Draft structure for covering terms & conditions for provision of services after grant of authorisations to be included in the second set of Rules, namely, The Broadcasting (Television Programming, Television Distribution and Radio) Services Rules, is shown in Figure 2.4 above for consultation. Whether changes are required in the said structure? Please support your response with proper justification. D. Migration from existing regime to authorisation framework 2.60 MIB, in its background note to the reference dated 25th July 2024, has inter-alia informed that, ‘Section 3(6) of the Telecommunications Act, 2023 provides that a license, registration, permission, by whatever name called, granted prior to the appointed day under the Indian Telegraph Act, 1885, in respect of provision of telecommunication services shall be entitled to continue to operate under the terms and conditions and for the duration as specified under such license or registration or permission, or to migrate to such terms and conditions of the relevant authorisation, as may be prescribed.’ 2.61 It may be understood from Section 3(6) of the Telecommunications Act, 2023, that an entity holding a license/ permission granted under the Indian Telegraph Act, 1885 may be entitled to continue to operate under the terms and conditions under such license/ permission, till the expiry of its current validity period. Alternatively, 47licensee/ permission holder, who intend to migrate to the regime of service authorisations granted under the Telecommunications Act, 2023, shall be entitled to migrate to the respective service authorisation. The renewal or extension of services may not be permissible in the extant framework, after notification of appointed date and the Rules. Therefore, for a licensee/ permission holder, whose existing validity of license/ permission is nearing expiration, and who wishes to continue its operation upon such expiration, may be required to either migrate to the new authorisation regime and get it renewed or apply for fresh authorisation well before expiry of the existing license/ permission. 2.62 In this context, it is desirable to prescribe specific terms and conditions outlining the procedure for migration of the existing licensee/ permission holder to the new authorisation regime under the Telecommunications Act, 2023. 2.63 There could be multiple approaches, however the following two approaches have been discussed here for migration to the new authorisation regime: i. Authorisation co-terminus with the existing validity period of the license/ permission ii. Authorisation with prescribed validity period for that service 2.64 First Approach: An online application requesting for migration may be provided, along with surrender/ submission of the existing license/ permission. This process may not incur any additional fees, such as processing or entry fees etc. In such a scenario, the remaining validity period of the existing service provider may be migrated to the authorisation framework. All terms and conditions for service provisioning may be governed by the rules made under the Telecommunications Act, 2023. 482.65 Second Approach: Authorisation may be valid for the prescribed validity period for the respective service authorisations from the effective date of Authorisation, irrespective of the validity period of the license/ permission already held. In this methodology, on migration, the Authorised Entity may be liable to pay the differential Entry Fee i.e. Entry Fee applicable for the service authorisation, if any, in which the Authorised Entity is getting migrated minus the Entry Fee (for balance validity period) already paid by the licensee/ permission holder in the old regime for the service authorisation(s) getting migrated. However, no Entry Fee refund shall be made by the Central Government. 2.66 Validity period for Spectrum upon migration: As per the Telecommunications Act, 2023, the relevant provisions related to validity of spectrum assigned are reproduced below. ‘4(8). Any spectrum assigned through the administrative process prior to the appointed day, shall continue to be valid on the terms and conditions on which it had been assigned, for a period of five years from the appointed day, or the date of expiry of such assignment, whichever is earlier. 4(9). Any spectrum assigned through auction prior to the appointed day, shall continue to be valid on the terms and conditions on which it had been assigned.’ Therefore, upon migration to the new authorisation regime, the validity period for spectrum assignment may be governed as per above provisions. 2.67 In the above background, stakeholders are requested to provide their comments on the question given below. 49Issue for Consultation Q7. The two possible approaches for migration from the existing regime of license/ permission to the authorisation framework under the Telecommunications Act, 2023, has been discussed in the Section D of Chapter II. Which of these two or any other approach should be adopted for migrating the existing licensee/ permission holders to the service authorisation framework? Stakeholders are requested to provide their comments with detailed justifications. E. Civil Penalties for breach of terms and conditions of authorisation 2.68 Section 32 of the Telecommunications Act, 2023, prescribes the actions in case of breach of the terms of authorisation or assignment. 2.69 The Section 32 of the Telecommunications Act, 2023 is reproduced as: ‘32. (1) In case of breach of any of the terms and conditions of authorisation or assignment granted under this Act, the Adjudicating Officer shall, pursuant to an inquiry under the provisions of this Chapter— (a) pass an order in writing in respect of one or both of the following, namely:— (i) direct such authorised entity, or assignee to do or abstain from doing any act or thing to prevent such breach or for such compliance; (ii) impose civil penalties as specified in the Second Schedule; and 50(b) make recommendations for the consideration of the Central Government regarding suspension, revocation, or curtailment of the duration of the authorisation or assignment. (2) The Central Government may, after due consideration of the recommendations of the Adjudicating Officer under clause (b) of sub-section (1), suspend, curtail or revoke the authorisation or assignment, as the case may be, which may be reversed if the substantial violation is remedied to the satisfaction of the Central Government. (3) While imposing penalties specified in the Second Schedule under this section and section 33, the Adjudicating Officer shall have due regard to the following factors, namely:— (a) nature, gravity and duration of the contravention, taking into account the scope of the contravention; (b) number of persons affected by such contravention, and the level of harm suffered by them; (c) intentional or negligent character of the contravention; (d) repetitive nature of the contravention; (e) action taken by the concerned person to mitigate the contravention, including by providing a voluntary undertaking under sub-section (1) or sub-section (2) of section 34; (f) revenue loss caused to the Central Government; (g) any aggravating factors relevant to the circumstances of the case, such as the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the contravention; and 51(h) any mitigating factors relevant to the circumstances of the case, such as the timely rectification of the contravention, or steps taken for the avoidance of loss as a result of the contravention.’ 2.70 Further, the relevant clauses of the Section 35, 36 and 37 regarding appointment of Adjudicating Officers, Designated Appeals Committee and their powers is reproduced below: ‘35. (1) For the purposes of this Chapter, the Central Government shall, by an order published in the Official Gazette, appoint any officer of the Central Government not below the rank of Joint Secretary as one or more Adjudicating Officers for holding an inquiry in such manner as may be prescribed. 36. (1) The Central Government may, by an order published in the Official Gazette, appoint officers of the Central Government not below the rank of Additional Secretary, as members of one or more Designated Appeals Committee to which any person aggrieved by an order made by the Adjudicating Officer under sub-section (1) of section 32 or under section 33, may prefer an appeal. 37.(2) The Adjudicating Officer and Designated Appeals Committee shall have the same powers as a civil court, and all proceedings before it shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code.’ 2.71 The Second Schedule of the Telecommunications Act, 2023 provides for graded civil penalties depending on the category of the contravention, as given in Table 2.2 below: 52Table 2.2: Civil Penalties for breach of terms and conditions under Sections 32 and 34 of the Telecommunications Act, 2023 Categorisation Civil Penalty Severe Up to Rs. 5 crore Major Up to Rs. 1 crore Moderate Up to Rs. 10 lakh Minor Up to Rs. 1 lakh Non-severe Written warning 2.72 It is important to note that the existing Guidelines for various broadcasting services also contain provisions related to penalty for violation of the terms and conditions. The provisions for penalty laid in the various policy guidelines are discussed in detail in the subsequent paragraphs. 2.73 As per the extant DTH guidelines, for violation of license conditions, the Licensor may impose a penalty of up to Rs. 50 crores on the Licensee, in addition to other actions like revocation of the license. However, before taking such action, the Licensee would be given an opportunity to be heard, whereas the decision of the licensing authority shall be final. 2.74 The extant HITS guidelines contain provisions for termination of permission. In case of violation of terms and conditions of permission, the Government may impose penalties as follows: i. For first violation, the Permission may be suspended and broadcasting may be prohibited for up to 30 days. ii. For second violation, the Permission may be suspended and broadcasting may be prohibited for up to 90 days. 53iii. For third violation, the Permission may be revoked and broadcasting may be prohibited for the remaining period. iv. If the company fails to comply with the penalties within the prescribed time, the Permission may be revoked and the company may be disqualified from obtaining any fresh Permission for five years. 2.75 The Policy Guidelines for Uplinking and Downlinking of television channels comprises penalties for violation of programme and advertisement code and penalties for other terms and conditions. Clause 24 of the said policy guidelines is reproduced as under: ‘24. Consequences of violation of Programme and Advertisement Codes — (1) Where a channel is found to have broadcast a content which is in violation of the Programme Code and Advertising Code under the Cable Television Networks Regulation Act, 1995, it shall be liable for penal action, including one or more of the following: i. Advisory, to be communicated in writing to the entity; ii. Warning, to be communicated in writing to the entity; iii. An apology scroll, to be run on the channel; iv. A statement of apology to be read out by the Director/CEO of the entity on the channel; v. Directing the channel to be off-air for specified number of hours/days; vi. Suspension/revocation of permission (2) For the purpose of sub-para (1), the Ministry shall take action under the Cable Television Networks (Regulation) Act, 1995 and rules framed thereunder.’ 542.76 For violation of other terms and conditions, Clause 25 of the policy guidelines provide penal action for violation of other terms and conditions which is reproduced in Table 2.3: Table 2.3: Action for violation of terms and conditions of permission Sl. Violation Penal Action for violation No. (i) Delay in intimation regarding Warning change in shareholding pattern of the company (ii) Appointment of a Chief Warning, with the condition Executive Officer or that the Chief Executive Director/Designated Partner Officer or Director shall not without prior permission of the function in that capacity till Ministry such time the appointment is approved by the Ministry. (iii) Non-removal of Chief Prohibition of broadcast up to Executive Officer or 30 days; suspension of Director/Designated Partner permission in case of who has been denied security continued default clearance (iv) Showing dual logo/ logo or Order directing removal of name not permitted by the the dual logo/unpermitted Ministry logo; Prohibition of broadcast for up to 30 days for non- compliance (v) Not maintaining the stipulated Warning net worth for at least two consecutive financial years (vi) In respect of a channel, for Warning being non-operational continuously for more than 60 (but less than 90) days, without intimating the Ministry. 55(vii) In respect of a channel, for Suspension; revocation of being non-operational for a permission for continued continuous period exceeding default 90 days (viii) Non-payment of annual Prohibition of broadcast up to permission fees beyond a 30 days; Suspension of period of one year from the channel for continued default due date (ix) Non-registration for telecast of Warning and/or stoppage of a Live event by a non-news live broadcast; Prohibition of and current affairs channel broadcast upto 10 days, debarment from live broadcast for a period upto six months; (x) Telecast of an event Live by a Stoppage of live broadcast; non-news channel, content of prohibition of broadcast upto which is in contravention of 10 days the Programme Code (xi) Usage of non-permitted Prohibition of broadcast upto SNG/DSNG equipment 30 days; Suspension/ cancellation of permission for continued default (xii) Transfer of a channel without Suspension/cancellation of permission of the Ministry permission (xiii) Uplinking of a non- Forfeiture of Security permitted/suspended/cancell Deposit. The teleport would ed TV channel by a teleport be required to furnish fresh Operator Security Deposit within 15 days of forfeiture; Suspension/ cancellation of permission for continued default 2.77 Additionally, it is mentioned that in case of continued default of any one or more of the violations specified in the aforementioned table, the Ministry may impose a higher degree of penal action. However, 56no penal action shall be taken unless the company/ LLP has been given an opportunity of being heard. 2.78 In the case of FM Radio, penalties have been provisioned for non- operationalisation of the channel by the licensee within the prescribed time. This results in revocation of the permission and the permission holder gets debarred from allotment of another channel in the same city for a period of five years from the date of such revocation. The released frequency may be given to the next highest bidder or through new bidding. The permission holder needs to pay one year’s annual fee, which may be recovered from the Performance Bank Guarantee. Further, no claims are accepted against the Non- Refundable One Time Entry Fee (NOTEF) paid to the Government. Additionally, MIB may revoke the permission if the channel is closed down either continuously or intermittently for more than 180 days in any continuous period of 365 days for whatever reason. 2.79 In the policy guidelines for setting up CRS in India, it has been mentioned that in cases of violation of the conditions of content regulation and monitoring, Government may take cognizance either suo-moto or based on complaints and refer the matter to the Inter- Ministerial Committee (IMC) on Programme and Advertising Codes to recommend appropriate penalties. Before imposing any penalty, the Permission Holder shall be given an opportunity to present their case. 2.80 Penalties may include temporary suspension of the permission for up to one month for the first violation and up to three months for the second violation, depending on the gravity of violation. For any subsequent violation, the permission may be revoked, and in such cases, the permission holder shall be ineligible to apply for fresh permission for a period of five years. 572.81 Based on the discussions regarding the various penal provisions prescribed in the extant policy guidelines, it may be necessary within the new authorisation framework that any Authorised Entity, whether a broadcaster or distributor, if found violating the Programme Code or Advertising Code as prescribed by the Central Government, may be subject to penal action in accordance with the rules established under the Cable Television Networks (Regulation) Act, 1995. 2.82 In addition, for the breach of terms and conditions of authorisation or assignment, the Authorised Entity may be governed by the penal provisions of the Telecommunications Act, 2023. Accordingly, the stakeholders are requested to provide their comments on the question below. Issue for Consultation Q8. Contravention of the terms and conditions contained in the Rules to be made as well as non-adherence to the Programme Code and Advertising Code is likely to invite penal provisions. a. Whether the extant penal provisions for breach of terms and conditions of license/ permission are appropriate or required to be modified to align with the provisions of the Telecommunications Act, 2023? If so, please provide a detailed response with justifications. If not, whether the same should be adopted mutatis mutandis? Please provide a detailed response with necessary justifications. b. Further, in respect of violation of Programme Code and Advertising Code, whether the penal provisions should be adopted mutatis mutandis? If not, what modifications are required? Please provide your comments with necessary justifications. 58CHAPTER III ISSUES RELATED TO BROADCASTING SERVICES Common Terms and Conditions for The Broadcasting (Television Programming, Television Distribution and Radio) Services 3.1 As discussed in the previous chapter, the broadcasting sector operates under a range of guidelines established at different times. It may be required to streamline and consolidate the existing guidelines for ensuring uniformity across the sector. Bringing all the terms and conditions under one umbrella and extracting the commonalties, is likely to bring consistency and streamline the terms and conditions and make compliance easier for all the stakeholders involved. 3.2 MIB reference mentioned about harmonisation of the terms and conditions including fees or charges. For the purpose of harmonisation, a holistic review of the extant policy guidelines for various broadcasting services is required in the new authorisation framework and may be included in the draft terms and conditions to be notified as rules under the Telecommunications Act, 2023. 3.3 To achieve harmonisation, the terms and conditions for grant of service authorisations which inter-alia, may include scope and service area, eligibility conditions, process of application, validity period, migration etc. needs to be identified as discussed already in Chapter II. Additionally, similar terms and conditions applicable to all Broadcasting (Television Programming, Television Distribution and Radio) Services are identified, extracted from the various guidelines, integrated mutatis mutandis and placed in the Common Terms and Conditions in the draft authorisation framework. 593.4 By consolidating the common elements from these various guidelines into a unified set of Common Terms and Conditions, may simplify the process. These terms and conditions may be applicable to all the broadcasting service authorisations. These Common Terms and Conditions may include Definitions, provisions related to Assignment of Spectrum, Equity Holding in Other companies, Renewal of Authorisation, Modifications in the Terms and Conditions of Service Authorisation, Non-Exclusivity clause, Restrictions on Transfer of Service Authorisation, Provision of Service, Reporting Requirement w.r.t. Eligibility Conditions, Adherence to Programme Code and Advertisement Code, Financial Conditions, Commercial Conditions, Technical Conditions, Disaster/ Emergency/ Public Utility Services, Operating Conditions, Confidentiality, Force Majeure, Dispute with Other Parties, Dispute Resolution and Jurisdiction, Contravention of Rules/ Violation of Programme Code and Advertisement Code etc. 3.5 This structured unified approach may simplify compliance for service providers, reduce ambiguity and promote smoother operations within the sector. A preliminary draft of Common Terms and Conditions for the Authorisation Framework of the broadcasting services has been annexed as Part-I of Annexure-III for consultation. Issue for Consultation Q9. A preliminary draft of Common terms and conditions for inclusion in the second set of Rules for Broadcasting (Television Programming, Television Distribution and Radio) Services is annexed as Part-I of Annexure-III for consultation. Stakeholders are requested to submit their comments in the format given below, against the terms and conditions and indicate the 60corresponding changes, if any, with necessary reason and detailed justification thereof. S. Description Terms Proposed Reasons No. and changes, with Conditi if any detailed ons No. justifica tion 1. Definitions 2. Assignment of Spectrum 3. Equity Holding in Other companies 4. Renewal of Authorisation 5. Modifications in the Terms and Conditions of Service Authorisation 6. Non-Exclusivity clause 7. Restrictions on Transfer of Service Authorisation 8. Provision of Service 9. Reporting Requirement w.r.t. Eligibility Conditions 10. Adherence to Programme Code and Advertisement Code 11. Financial Conditions 12. Commercial Conditions 13. Technical Conditions 14. Disaster/ Emergency/ Public Utility Services 15. Operating Conditions 16. Confidentiality 17. Force Majeure 18. Dispute with Other Parties 19. Dispute Resolution and Jurisdiction 20. Contravention of Rules/ Violation of Programme 61Code and Advertisement Code A. The Broadcasting (Television Programming) Services 3.6 In pursuance of Union Cabinet decision, the ‘Guidelines for Uplinking and Downlinking of Television Channels in India, 2022’ was notified by MIB on 9th November 2022. The consolidated guidelines aim to ease out the permissions to the companies/ LLPs registered in India for Uplinking and Downlinking of TV Channel, setting up of Teleport/ Teleport Hub, purchase and use of DSNG/ SNG/ ENG systems, uplinking by Indian News agencies and temporary uplinking of a live event. A1. Extant Policy Guidelines 3.7 The extant policy guidelines for uplinking and downlinking of television channels comprises of certain conditions, which are common for the companies/ LLPs applying for the afore-mentioned services. Further, the process of application for these services may be divided into 3 parts: i. Furnishing of Application: Outlines the eligibility criteria and the requirement of processing fee, minimum net worth etc., FDI and clearance from MHA and DOS. ii. Grant of Permission: Fulfilling the application process and meeting the eligibility requirement, issuance of Letter of Intent (LoI) by MIB, with request to furnish the Performance Bank Guarantee (PBG) and Security Deposit. iii. Renewal of Permission: The Company/ LLP may like to renew its permission for continuity of service before the validity period expires. 623.8 In terms of numbers, as on quarter ending June 202432, approximately 912 private satellite TV channels have been permitted by MIB. The permission-wise number of permitted satellite TV channels is mentioned in the Table 3.1 below. Table 3.1: Permitted satellite TV channels Type of Permission Number of channels Uplinking only 10 Downlinking only 67 Both Uplinking & 835 downlinking Total 912 3.9 The above table denotes that there are three types of permissions in practice with respect to the television channels viz., uplinking only, downlinking only and both uplinking and downlinking, which may be defined as follows: i. Uplinking only: TV channel to be uplinked from India but downlinked abroad only. ii. Downlinking only: TV channel uplinked from abroad to be downlinked in India. iii. Uplinking and downlinking: TV channel to be uplinked as well as downlinked in India. 3.10 In the extant guidelines, a company/ LLP may apply for setting up a News Agency for being uplinked to a TV channel by following the application process mentioned above. Additionally, the company/ LLP is required to have working journalists employed by it who are accredited with the Press Information Bureau (PIB) on behalf of the 32 https://www.trai.gov.in/sites/default/files/QPIR_09102024_0.pdf 63company/ LLP. Further, a news agency is required to use uplinking for news-gathering and its further distribution to other new agencies and broadcasters only. However, it is not permitted to uplink TV programmes/ channels for direct reception by public. 3.11 In addition to the above, an applicant entity for setting up a Teleport/ Teleport Hub is required to install, upkeep and operate necessary equipment and systems for uplinking of the television channels. The extant guidelines provide the following definition of Teleport and Teleport Hub: ‘Teleport’ means an earth station facility from where multiple TV channels carrying audio, video content can be uplinked to a geostationary satellite on permitted frequency band, with due approval of WPC; ‘Teleport Hub’ means set-up of teleports for uplinking of TV channels where multiple antennas are installed for different satellites, and for each antenna for each satellite, Wireless Operating License from WPC is required to be obtained;’ 3.12 For domestic channels, provisions for live telecast by a news and current affairs channel and live uplinking of an event by a non-news and current affairs channel are provided in the extant guidelines. Further, another permission in the extant guidelines is Uplinking of Live event by a Foreign channel. A foreign channel/entity may be granted permission for live uplinking of an event for up to 12 months through a pre-designated permitted teleport. Certain conditions specific to this permission include: i. A binding agreement with a permitted teleport. ii. Payment of a processing fee of ₹1 lakh per day of Live telecast. 64iii. The uplinked news/ footage primarily be used for abroad and shall not be broadcast in India without downlinking permission and registration of the channel. iv. Subject to approval by the Ministry of External Affairs and Ministry of Home Affairs. A2. Authorisation Framework 3.13 With the enactment of the Telecommunications Act, 2023, it is important to note that the permission holders under the extant guidelines and the eligible entities shall be required to obtain authorisation from the Central Government as per Section 3(1) of the Telecommunications Act, 2023. Therefore, the eligible entity may be entitled to obtain ‘authorisation’ in place of ‘permission’ and thereafter be called as ‘Authorised Entity’. 3.14 Therefore, an Authorised Entity having obtained an authorisation to offer Broadcasting (Television Programming) Services may be required to adhere to the terms and conditions specified in the Broadcasting (Television Programming, Television Distribution and Radio) Services Rules. The Broadcasting (Television Programming) Services may cover the following four authorisations: i. Television Channel Broadcasting a. Satellite-based Broadcasting of a Television Channel, which comprise of • Uplinking of a Television Channel • Downlinking of a Television Channel • Uplinking and Downlinking of a Television Channel b. Ground-based Broadcasting of a Television Channel ii. News Agency for Television Channel(s) iii. Teleport/ Teleport Hub iv. Coverage of Live Event by Foreign Channel 653.15 Moreover, there are certain other permissions, which may be obtained from the Central Government during the currency of the validity period. These permissions may not require any separate authorisation, however such services may require permission under their respective service authorisations, as applicable, based on fulfilling certain conditions. These services may include the following: i. Purchase/ hiring and use of SCG33 equipment: This permission may be granted to the authorised entities having authorisation for either uplinking of a television channel or uplinking and downlinking of a television channel or teleport or Ground-based Broadcasting of a television channel. ii. Live telecast (via. news and current affairs channel/ non-news and current affairs channel): may be granted to the authorised entities having authorisation for either uplinking of a television channel or uplinking and downlinking of a television channel or Ground-based Broadcasting of a television channel iii. Change of name and logo of a TV channel iv. Change of satellite/ teleport v. Intimation for change of language/ mode of transmission etc. vi. Change of category of a TV channel vii. Change in operational status 3.16 Permissions from (iii. to vii.) may be required by a television channel during its authorisation period, as per the technical/ commercial requirement. 33 To further expand the scope of services, DSNG/ SNG may be renamed as Satellite Content Gathering (SCG). Therefore, scope of service may not only limit to transmit live coverage/ footage of news, further, it may extend to transmit various live events from remote location outside the TV studio. 66A3. New service likely to be introduced 3.17 ‘Ground-based Broadcasting (GBB)’ of a television channel may also emerge as an alternative method for delivering content from broadcaster to the distribution service provider. In such a case, the broadcaster may use terrestrial communication medium in place of satellite medium for distribution of television channel to the Distribution Service Providers. 3.18 Based on the MIB reference dated 2nd May 2024 regarding regulatory framework for ground-based broadcasting, TRAI has already issued a Consultation Paper on ‘Regulatory framework for Ground-based Broadcasters’ dated 18th October 202434. Authorisation for Ground-based Broadcasting, either separately or as a part of television channel broadcasting may be considered by the Central Government upon receiving TRAI recommendations. A4. Financial Conditions among Broadcasting (Television Programming) Services 3.19 The extant amount of various fees, period of permission, minimum net-worth, security deposit etc. are summarised below. Table 3.2: Period of Permission of TV Broadcasters/ Teleport/News Agency Categories Initial Period Renewal Processing Fee for (in years) (in years) Renewal (in Rs) Teleport/ 10 10 10 thousand TV channel News Agency 5 FYs 5 FYs 10 thousand 34 https://www.trai.gov.in/sites/default/files/CP_18102024_0.pdf 67Table 3.3: Applicable Fees on Broadcasters/ Teleport Operators/ News Agency (as per Uplinking Downlinking Guidelines of 2022) Bro Ta ed lec pa os rt te r/ Proc Fe es es ing NM ei tn i Wm ou rtm h P Gce uer af ro B ar a nm n tka en e P Rr fo eec nee e s f wosi r an l g PeA rmn Fn eisu esa il o n S De ec pu or sit ity (in Rs.) (in Rs.) (in Rs.) (in Rs.) (in Rs.) (in Rs.) Uplinking of 1st channel: News and 20 cr. 10,000 per Current 10,000 per 2 cr./ 2 lakh/ Additional channel 4 lakh Affairs channel channel channel channel :5 Channel cr. Uplinking of 1st channel: Non-News 10,000 per 5 cr. 10,000 per and Current 1 cr./ 2 lakh/ channel Additional channel 4 lakh Affairs channel channel channel: Channel 2.5 cr. Downlinking 1st channel: of News and 20 cr. From From 10,000 per 10,000 per Current Additional Not India-5 India- channel channel Affairs channel :5 Prescribed lakh/ 10 lakh/ Channel cr. channel channel Downlinking 1st channel: of Non-News Outside Outside 10,000 per 5 cr. 10,000 per and Current Not India-15 India- channel Additional channel Affairs Prescribed lakh/ 30 lakh/ channel: Channel channel channel 2.5 cr. 1st channel: 3 cr. Teleport 10,000 per 25 lakh/ 10,000 per 2 lakh/ 4 lakh/ Additional teleport teleport teleport teleport teleport channel: 1 cr. News Agency Not 10,000 Prescribed Not Not Not 10,000 10 lakh/ Not DSNG/SNG Prescribed Prescribed Prescribed van Prescribed 3.20 In addition to the above, there are certain other fees specified in the extant uplinking/ downlinking guidelines as per the following: • Processing Fee for Change of Category/ Satellite/ Teleport for TV Channel: Rs 10,000 68• Processing Fee for Change of name/ logo of TV Channel: Rs 1 lakh • One-time registration fee for downlinking TV Channels uplinked from other countries: Rs 10 lakh • Fees Live telecast of an event by a non-news channel o For national channel: Rs. 1 lakh per channel per day o For regional channel: Rs. 50,000 per channel per day 3.21 In order to harmonise the various applicable fees structure of the aforementioned television programming services may be reviewed. The comments of stakeholders are solicited in this regard. Issues for Consultation Q10. Whether any changes are required in the extant eligibility conditions in respect of minimum net worth for inclusion in the Rules to be made under the Telecommunications Act, 2023 for the following service authorisations? i. News & Current Affairs Television Channel ii. Non-news & Current Affairs Television Channel iii. Teleport/ Teleport Hub Stakeholders are requested to provide their comments with detailed justification. Q11. Whether any changes are required in the extant processing fee (for new authorisation/renewal), annual authorisation fee (erstwhile annual permission fee) and other fees applicable on the following for the formulation of the terms and conditions of the authorisation for these services? i. Uplinking of a Television Channel ii. Downlinking of a Television Channel iii. News Agency for Television Channel(s) 69iv. Teleport/ Teleport Hub v. Any other services related to Television Channels Stakeholders are requested to provide their comments with detailed justification. Q12. Whether any changes are required in the extant security deposit and performance bank guarantee applicable on the following for the formulation of the terms and conditions of the authorisation for these services? i. Uplinking of a Television Channel ii. Downlinking of a Television Channel iii. Teleport/ Teleport Hub iv. Purchase/hiring and use of SCG equipment Stakeholders are requested to provide their comments with detailed justification. 3.22 Based on the extant provisions, terms and conditions for service authorisation of television channels, News Agency for television channel(s), Coverage of Live Event by Foreign channel(s), Teleport have been identified, extracted from the policy guidelines, integrated mutatis mutandis and placed in the preliminary draft terms and conditions of the Broadcasting (Television Programming) Services, which is annexed as Part-II of Annexure-III for consultation. Issue for Consultation Q13. A preliminary draft of terms and conditions for inclusion in the second set of Rules for Broadcasting (Television Programming) Services is annexed as Part-II of Annexure-III for consultation. Stakeholders are requested to furnish their comments in the specified format given below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. 70S. Description Terms Proposed Reasons No. and changes, with Conditi if any detailed ons No. justification Television Channel Broadcasting i. Satellite-Based Broadcasting of a Television Channel a. Uplinking of a Television Channel 1. Operational Status 2. Special conditions for uplinking a satellite television channel 3. Transfer of authorisation of a TV channel 4. Renewal of Authorisations 5. Purchase/ hiring and use of SCG equipment 6. Live Telecast b. Downlinking of a Television Channel 1. Operational Status 2. Special conditions for downlinking a TV channel 3. Renewal of Authorisation 4. Transfer of authorisation of a TV channel c. Uplinking and Downlinking of a Television Channel All the terms and conditions of uplinking of television channel and downlinking of a television channel shall be applicable here ii. Ground-Based Broadcasting of a Television Channel To be framed, once a policy decision is notified by the Central Government. News Agency for television channel(s) 1. Special Conditions for News Agency for television Channel(s) 712. Renewal of Authorisation Teleport/Teleport Hub 1. Operational Status 2. Special Conditions 3. Renewal of Authorisation 4. Transfer of authorisation of a Teleport/ Teleport Hub 5. Purchase/ hiring and use of SCG equipment Coverage of Live Event by Foreign Channel 1. Terms and Conditions Other services related to Broadcasting (Television Programming) Services 1. Purchase/ hiring and use of SCG equipment 2. Live telecast by a news and current affairs channel 3. Live telecast of an event by a non-news and current affairs channel 4. Change of name and logo of a TV channel 5. Change of satellite/ teleport 6. Intimation of change of language/mode of transmission, etc. 7. Change of category of a TV channel 8. Change in operational status 72B. The Broadcasting (Television Distribution) Services 3.23 The television distribution services include DTH, HITS, IPTV and MSOs. However, as outlined in the previous chapter, MSOs are not included in the service authorisation framework under the Telecommunications Act, 2023, since MSOs and cable operators are registered under the Cable Television Networks (Regulation) Act, 1995. Further, provision of IPTV services are already covered within the scope of Unified Service Authorisation, Access Service Authorisation and Internet Service Authorisation (as recommended by TRAI on 18th September 202435 in the framework for service authorisation) and can also be provided by registered MSOs. Hence, IPTV services may not be treated as a separate authorisation. However, terms and conditions for providing IPTV services may be provided under the Broadcasting (Television Programming, Television Distribution and Radio) Services Rules. 3.24 Based on the discussion above, the remaining two distribution services viz. DTH and HITS services may qualify for requiring service authorisation for providing Broadcasting (Television Distribution) Services under the Broadcasting (Television Programming, Television Distribution and Radio) Services Rules. The extant policy guidelines for DTH and HITS services have been discussed briefly in the following paragraphs. 3.25 In March 2001, the guidelines for obtaining license to provide DTH broadcasting services in India was notified. Further, certain amendments have been made from time-to-time. The provisions and the amendments to guidelines for obtaining license for providing DTH services in India was issued on 30th December 2020, which superseded the relevant provisions of the guidelines issued on 15th 35 https://www.trai.gov.in/sites/default/files/Recommendation_18092024.pdf 73March 2001 and amended up to 6th November 2007.Additionally, the operational guidelines for DTH services were issued on 16th September 2022 w.r.t. license fees, platform service channels and infrastructure sharing. 3.26 Regarding HITS broadcasting services, MIB issued the policy guidelines on 26th November 2009 for granting permission to establish and operate HITS broadcasting services in India, based on the TRAI Recommendations dated 17th October 2007 on ‘Recommendations on Headend-In-The-Sky (HITS)’. Additionally, MIB on 6th November 2020 allowed infrastructure sharing in the HITS broadcasting services following TRAI’s Recommendations dated 29th March 2017 on ‘Sharing of Infrastructure in Television Broadcasting Distribution Sector’. 3.27 The extant guidelines for establishing and operating DTH and HITS services inter-alia include provisions such as eligibility criteria, period of license/ permission, procedure for application and grant of licences/ permissions. 3.28 The Broadcasting (Television Distribution) Services under the Broadcasting (Television Programming, Television Distribution and Radio) Services Rules may replace the extant individual guidelines for DTH services, HITS services and IPTV services. 3.29 In the authorisation regime, the DTH licensee and HITS permission holder may be referred to as ‘Authorised Entity’. The Authorised Entity would be required to obtain ‘authorisation’ under Section 3(1) of the Telecommunications Act, 2023, following the terms and conditions mentioned in the Broadcasting (Grant of Service Authorisations) Rules. 74B1. Terms and Conditions: DTH and HITS Service Authorisation 3.30 It may be seen from the extant policy guidelines that several conditions for DTH and HITS service authorisations are similar. For instance, any applicant company intending to set up and operate DTH and HITS services need to be an Indian Company registered under the Companies Act, 1956 or 2013. 3.31 Secondly, the applicant company is required to fulfil the terms and conditions of the Foreign Direct Investment (FDI) policy of the Government of India, as notified by the Department for Promotion of Industry and Internal Trade (DPIIT) from time-to-time. Notably, the FDI36 is capped at 100% through automatic route for DTH and HITS services. Similarly, there are other conditions which are identified and incorporated mutatis-mutandis. All such similar terms and conditions may be included in the ‘Common Terms and Conditions’, as mentioned in para 3.1 to 3.3. 3.32 The extant guidelines for DTH and HITS services prescribe distinct validity periods, Processing Fee, Bank Guarantee, Net-worth, Authorisation Fee (erstwhile License/Annual Fee). To align with the nature of their services, which involve distributing television broadcasts, the harmonization of the said services may be considered. The subsequent paragraphs discuss issues related to harmonization among the Television Distribution Services. 3.33 Additionally, there are certain specific terms and conditions including provisions related to technical standards, sharing of infrastructure, value added services, platform service channels by DTH services, financial conditions and other aspects, which may be defined separately each for DTH and HITS service authorisations. 36 https://dpiit.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020_0.pdf 75B2. Financial conditions for DTH Service Authorisations 3.34 The financial structure primarily includes parameters such as Entry Fee, Authorisation Fee and Bank Guarantee. The financial conditions for DTH service authorisations are discussed in the paras to follow. I. Entry Fee 3.35 The extant DTH guidelines prescribe a non-refundable entry fee of Rs. 10 crores for providing DTH Services. Moreover, TRAI in its Recommendations dated 23rd July 201437 on ‘Issues related to New DTH Licenses’ have also recommended Rs. 10 crores as the entry fee for the DTH services. II. Authorisation Fee 3.36 The extant ‘License Fee’ may be termed as ‘Authorisation Fee’ in the new Service Authorisation regime. 3.37 The existing DTH guidelines (via. 2020 amendment) prescribes annual license fee for DTH Services as 8% of Adjusted Gross Revenue (AGR), wherein AGR is calculated by excluding GST from Gross Revenue (GR). It is also mentioned that the minimum annual license fee shall be 10% of the entry fee and the authorisation fee is to be paid on a quarterly basis. 3.38 The definition of GR as provided in the extant guidelines is as follows: ‘Gross Revenue for this purpose would the gross inflow of cash, receivable or other consideration arising in the course of ordinary activities of the Direct to Home [DTH] enterprise from rendering of services and from the use by others of the enterprise resources 37 https://www.trai.gov.in/sites/default/files/DTH-Reco%28New-Licensing-Regime%29- uploaded.pdf 76yielding rent, interest, dividend, royalties, commissions etc. Gross revenue shall, therefore, be calculated, without deduction of taxes and agency commission, on the basis of billing rates, net of discounts to advertisers. Barter advertising contracts shall also be included in the gross revenues on the basis of relevant billing rates. In the case of licensee providing or receiving goods and service from other companies that are owned or controlled by the owners of the licensee, all such transactions shall be valued at normal commercial rates and included in the profit and loss accounts of the licensee to calculate its gross revenue.’ 3.39 Further, the licensees are required to maintain separate financial accounts, audited by Statutory Auditors. At the end of each financial year, the company need to provide a statement of GR as per the prescribed Form-D of the guidelines, certified by the auditors. This includes all relevant income heads and income from related parties as per Accounting Standards No. 18. 3.40 Consequently, on a reference from MIB, TRAI on 21st August 202338, issued its Recommendations on ‘License Fee and Policy Matters of DTH Services’, wherein the Authority have inter-alia recommended the definitions for Gross Revenue (GR), Applicable Gross Revenue (ApGR), Adjusted Gross Revenue (AGR), format of statement of revenue and license fee as revised Form-D, deduction verification process and the quantum of the license fee. These recommendations are discussed in the subsequent paragraphs. 3.41 The definitions of GR, ApGR and AGR recommended by TRAI in 21st August 2023 are reproduced as under: 38 https://trai.gov.in/sites/default/files/Recommendation_21082023.pdf 77Gross Revenue (GR) ‘The Gross Revenue shall comprise revenue accruing to the licenced entity by way of all operations/ activities and inclusive of all other revenue/ income on account of interest, dividend, rent, profit on sale of fixed assets, miscellaneous income etc. without any set-off for related items of expense. Explanation: 1. The Gross Revenue shall be inclusive of subscription fee, installation, activation, restoration, reactivation, relocation, visiting and other service charges, subscription and advertisement revenue from platform services channels, carriage fees, revenue from marketing and placement agreements, commissions received, revenue from sale, repair and maintenance of customer premises equipment, royalties, revenue from customer support service and any other revenue of the enterprise. 2. The Gross Revenue shall also include ancillary revenue accruing to the DTH licensee due to the privileges connected with the DTH licensee, such as income from property rent, revenue from sharing of infrastructure, revenue from sale of immoveable property, gains from foreign exchange rates fluctuations, insurance claims, bad debt recovered, excess provisions written back which has been established for maintaining and working of DTH service or any other such miscellaneous revenue received by the licensee. 3. In the case of licensee providing or receiving goods and service from other companies that are controlled* by the owners of the licensee, all such transactions shall be valued at normal commercial rates and included in the profit and loss accounts of the licensee to calculate its Gross Revenue. * “Control” as defined in Section 2(27) of the Companies Act 2013.’ Applicable Gross Revenue (ApGR) ‘DTH operators should calculate Applicable Gross Revenue (ApGR) for arriving at the revenue calculations for license fee. ApGR should be 78equal to the total Gross Revenue (GR) of the licensee as reduced by the following items: i. Revenue from activities under a license/ permission issued by Department of Telecommunications; ii. Reimbursement, if any, from the Government; and iii. List of other income* to be excluded from GR to arrive at ApGR: a. Income from Dividend; b. Income from Interest; c. Income from sale of fixed assets and securities; d. Gains from Foreign Exchange rates fluctuations; e. Income from property rent; f. Insurance claims; g. Bad Debts recovered; h. Excess Provisions written back. * subject to conditions given in Annexure-III39’ Adjusted Gross Revenue (AGR) ‘Adjusted Gross Revenue (AGR) is calculated by excluding Goods and Services Tax (GST) paid to the Government from the Applicable Gross Revenue (ApGR), if the ApGR had included as component of GST.’ 3.42 TRAI based on the definitions of GR, ApGR and AGR recommended statement of revenue and license fee (Form-D) and establishment of a robust deduction verification process through single window portal. 3.43 The quantum of license fee was recommended to be 3% of AGR and to be brought down to zero in the next three years. ‘DTH Licensee should pay an annual license fee equivalent to 3% of AGR. License Fee for DTH Licensees should be brought down to zero in next three years. DTH Licensees should not be charged any license fee after the end of the financial year 2026-2027.’ 39 Annexure-III of the TRAI Recommendations on ‘License Fee and Policy Matters of DTH Services’ dated 21st August 2023. 79III. Bank Guarantee 3.44 As per the extant DTH guidelines the applicant company need to submit a Bank Guarantee from a Scheduled Bank to MIB. Initially, the Bank Guarantee for the first two quarters should be Rs. 5 crore and thereafter, an amount equivalent to the estimated license fee for two quarters. For the existing Licensees, the Bank Guarantee is an amount equivalent to the estimated License Fee for two quarters. 3.45 Although TRAI in its Recommendations dated 21st August 2023, recommended the following w.r.t. the Bank Guarantee: a. The Licensee should submit an Initial Bank Guarantee from any Scheduled Bank to the Ministry of Information and Broadcasting for an amount of Rs. 5 crore for the first two quarters. b. Thereafter, the Licensee should submit a Bank Guarantee (covering Financial and Performance Bank Guarantee) from any Scheduled Bank to the Ministry of Information and Broadcasting for an amount equivalent to the Initial Bank Guarantee (i.e., Rs. 5 crore) or 20% of the estimated sum payable, equivalent to License Fee for two quarters and other dues not otherwise securitized, whichever is higher. c. Once the license fee becomes zero, the Licensee should submit a Bank Guarantee (Performance Bank Guarantee) for a fixed amount equivalent to the initial Bank Guarantee (i.e., Rs. 5 crore) from any Scheduled Bank to the Ministry of Information and Broadcasting, which should be valid for a minimum of one year and renewed every year to ensure it remains valid for the entire currency of the license Agreement. d. The Licensor should be at the liberty to encash the Bank Guarantee in full or part in the event of violation of any of the license condition. 80e. Electronic Bank Guarantee should be encouraged and permitted for ease of doing business.’ 3.46 However, TRAI recommendations dated 21st August 2023 are presently under consideration of the Government. Table 3.4 below depicts the summary of fee structure in the extant guidelines vis-a- vis recommendations made by TRAI for DTH Services: Table 3.4: Applicable Fee Structure on the DTH Licensees Fee As per the As per TRAI Structure of extant Recommendations dated DTH guidelines 21.08.2023 services License Fee 8% of AGR To pay an annual LF equivalent to 3% of AGR; LF should be brought down to zero in next three years. No LF to be charged after the end of FY 2026-2027. Bank Rs. 5 crore for Rs. 5 crore for the first two Guarantee the first two quarters. Thereafter, amount quarters, equivalent to Initial BG (i.e., 5 thereafter, 20% crore) or 20% of the License Fee of the License for two quarters, whichever is Fee for two higher. quarters. B3. Financial conditions for HITS Service Authorisations I. Entry Fee and Annual Fee 3.47 Based on TRAI Recommendations dated 17th October 200740 on ‘Recommendations on Headend-In-The-Sky (HITS)’, an applicant is 40 https://www.trai.gov.in/sites/default/files/rec17oct07.pdf 81required to pay a non-refundable entry fee of Rs. 10 crore. However, no annual fee prescribed for HITS services. II. Bank Guarantee 3.48 In line with the TRAI recommendations, the amount of bank guarantee is as follows: ‘5. BANK GUARANTEE 5.1 The applicant company shall, within one month of the issuance of SACFA clearance by WPC, submit to the Ministry of I & B, a Bank Guarantee from any Scheduled Bank in the format notified, for an amount of Rs.40 crores valid for a period of three years. …’ 3.49 Table 3.5 below depicts the summary of the existing charges for HITS services: Table 3.5: Fee Structure of the HITS services Amount Fee structure (as per extant guidelines) Entry Fee Rs. 10 crore Annual Fee Nil Bank Guarantee Rs. 40 crore valid for a period of three years B4. Harmonization among Distribution Services 3.50 In the evolving landscape of broadcasting, establishing robust financial conditions is crucial for the sustainable growth and development of the sector. Financial conditions such as application processing fees, entry fees and bank guarantees play a pivotal role in shaping the competitive environment, ensuring that only serious players enter and remain in the market. These conditions serve not 82only as a safeguard against non-serious entities but also as a mechanism to foster innovation and investment, thereby driving the overall progress of the industry. 3.51 Optimally determining these financial conditions is essential to strike a balance between encouraging new entrants and maintaining a level playing field for existing service providers. An overly stringent financial requirement might stifle innovation and limit the entry of new players, while overly lenient conditions could lead to market saturation with non-viable entities. Therefore, careful consideration and analysis are necessary to set these conditions at levels that promote healthy competition, incentivize long-term investment, and ensure the financial stability of the sector. 3.52 It is noteworthy to mention here that MIB in its reference has highlighted the issues of the harmonization of the terms and conditions for different licenses/ permission in the broadcasting sector, difference in regulatory fees viz., License Fee, Entry Fee, Bank Guarantee among service providers providing similar set of services. The subsequent paragraphs provide the detailed comparison of the parameters such as net worth, permission period, processing fee, entry fee, bank guarantee, license fee, etc. among the service providers offering similar services. 3.53 It has been observed that the process of applications as well as various other terms and conditions are similar for both DTH and HITS services. However, it is seen that there are variations in certain parameters such as minimum net worth, period of permission, processing fee, entry fee, bank guarantee, annual/ license fee and period of permission/ license. Table 3.6 shows the comparison of various fees among the distribution services. 83Table 3.6: Comparison of various fee structure among DPOs Cable/ Parameters DTH HITS IPTV MSO LCO Rs. 500 as Processing Not 1 lakh Not prescribed 1 lakh registratio Fee prescribed n fee As applicable for Unified Access/Access Entry Fee 10 cr. 10 cr. Not prescribed /Internet Service Providers ISP: 100 cr.41 Unified Not Access/Access Net-worth 10 cr. Not prescribed prescribed Service Providers: NIL MSO: NIL Unified Access/Access /Internet Not Rs. 500 as License Not Service 8% of AGR renewal Fee prescribed prescribed Providers: 8% fee of AGR MSO: NIL 40 cr. 5 cr. Initial, Bank Not Not thereafter Valid for 3 Not prescribed Guarantee prescribed prescribed LF of 2 qtr. years Validity License Period Period: 20 Permission Not prescribed (in years) Renewal: Period: 10 10 41 Earlier, ISP Licenses had a provision of net worth requirement of 100 crore for provision of IPTV services, however after introduction of the unified licensing regime in the year 2013, the said net-worth requirement of 100 crore for IPTV services was no longer applicable for the unified licensees, however the same, continued in the IPTV policy guidelines issued by MIB. 843.54 The broad observations from the Table 3.6 above are as follows: i. Minimum Net Worth: DTH and HITS being a pan India operation, requires larger investments for rolling out the service. Moreover, it is important that the service providers are able to withstand business fluctuations as they serve a very large number of consumers. One merit of net worth may be that it ensures the entry of genuinely serious and long-term players. It is pertinent to mention that the minimum net-worth requirement for HITS operators is Rs 10 crore, however, the same is not mentioned in the guidelines for obtaining license for providing DTH broadcasting services in India. Therefore, there may be a need to harmonise the requirement of the minimum net-worth for these services. ii. Processing Fee: Processing fee is typically used to cover the administrative costs of reviewing and processing the application for services. From the above table, it is seen that HITS operators are paying a processing fee of Rs. 1 lakh while processing fee for DTH operators have not been prescribed in the guidelines. Therefore, there may be a need to harmonise the processing fee for these services. iii. Entry Fee: Applicant for both DTH and HITS services are required to pay a non-refundable entry fee of Rs. 10 crore. iv. Bank Guarantee: DTH operators are required to provide an initial bank guarantee of Rs. 5 crore and thereafter continue with quarterly payments of the license fee. HITS, on the other hand, provide a bank guarantee of Rs. 40 crore, which is valid for 3 years. Therefore, there may be a need to harmonise the bank guarantee requirement for these services. 85v. License Fee: It is observed that DTH operators are required to pay a license fee at 8% of AGR, whereas HITS operators are not required to pay any license fee. Further, TRAI has recommended to lower the license fee for DTH services to 3% of AGR for the next three years and reduce zero thereafter, which is yet to be accepted by the Government. Therefore, there may be a need to harmonise the license fee for these services. vi. Period of License/Permission: DTH services are granted license for a period of 20 years with a renewal of 10 years. In HITS, the initial permission period is for 10 years with no provisions for renewal. Further, there are no renewal fees for both the services. Therefore, there may be a need to harmonise the period of permission for these services. 3.55 Apropos the above discussions regarding DTH and HITS services, the stakeholders are requested to provide their comments on the following questions: Issues for Consultation Q14. Whether the extant eligibility requirement in respect of minimum net worth is required to be harmonized under the terms and conditions of authorisation for DTH and HITS services? a. If yes, what should be the quantum of minimum net worth for these services? b. If no, reasons thereof. Stakeholders are requested to provide their comments along with detailed justification. Q15. Whether the following parameters applicable for DTH and HITS services should be reviewed while framing the terms and 86conditions of authorisation for these services? If yes, please suggest changes required, if any, on the following aspects, with detailed justifications: a. Period of authorisation (erstwhile license/ permission) b. Processing Fee c. Entry Fee d. Authorisation Fee (erstwhile License Fee) e. Bank Guarantee f. Renewal Fee 3.56 Based on the extant provisions, specific terms and conditions for service authorisation of DTH and HITS services have been identified, extracted from the policy guidelines, integrated mutatis mutandis and placed in the preliminary draft terms and conditions of the Broadcasting (Television Distribution) Services, which is annexed as Part-III of Annexure-III for consultation. Issue for Consultation Q16. A preliminary draft of terms and conditions for inclusion in the second set of Rules for Broadcasting (Television Distribution) Services in respect of Distribution Services (DTH/ HITS), is annexed as Part-III of Annexure-III for consultation. Stakeholders are requested to render their comments in the format specified in the table given below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. S.No Description Terms Proposed Reasons . and changes, with Condi if any detailed tions justificati No. on DTH Services 871. Authorisation Fee 2. Bank Guarantee 3. Vertically Integrated Entity: Reserving of operational channel carrying capacity 4. Non Transferable 5. Platform Service Channels 6. Sharing of Infrastructure by DTH operators 7. Prohibition of certain activities 8. Technical Standards and Other Obligations 9. Mandatory sharing/carrying of broadcast certain signals with Prasar Bharati 10. Value Added Services (VAS) 11. Miscellaneous HITS Services 1. Mandatory sharing/carrying of broadcast certain signals with Prasar Bharati 2. Technical Standards and Other Obligations 3. Sharing of Infrastructure by HITS operator 4. Value Added Services (VAS) 5. Prohibition of Certain Activities 6. Miscellaneous B5. Terms and Conditions for IPTV Services 3.57 MIB had issued guidelines for provisioning of IPTV Services on 08.09.2008 based on the TRAI's recommendations dated 04.01.2008. 883.58 However, it is pertinent to note that IPTV service providers are already licensed/ authorised or registered entities, either as unified access service providers, access service providers or internet service providers (normally referred to as TSPs/ISPs) under the Indian Telegraph Act, 1885 or the Telecommunications Act, 2023; or as MSOs registered under the Cable Television Networks (Regulation) Act, 1995. Therefore, IPTV providers may not be categorized under the authorisation regime of the Telecommunications Act, 2023. 3.59 However, it may be required to include in the Rules being framed, the terms and conditions contained in the existing guidelines issued by MIB for provisioning IPTV services in India, to align it with the provisions of the Telecommunications Act, 2023. Based on the extant provisions, terms and conditions for provisioning of IPTV services have been adopted mutatis mutandis and placed in the preliminary draft terms and conditions of the Broadcasting (Television Distribution) Services, which is annexed as Part-III of Annexure-III for consultation. Issue for Consultation Q17. The extant IPTV guidelines dated 08.09.2008 may be required to be amended to align with the provisions of the Telecommunications Act, 2023. A preliminary draft of terms and conditions for providing IPTV Services is annexed as Part- III of Annexure-III for consultation. Stakeholders are requested to provide their comments including addition/ modification/ deletion required, if any, with detailed justification. 89Net worth requirement for Internet Services to provide IPTV Service 3.60 The guidelines for provisioning IPTV services issued by MIB on 8th September 200842 provided the following for eligibility criteria: ‘Telecom Access Service Providers (Unified Access Service Licensees, Cellular Mobile Telephone Service Licensees and Basic Service Licensees) having license to provide triple play services and ISPs with net worth more than Rs. 100 Crores and having permission from the licensor to provide IPTV or any other telecom service provider duly authorized by the Department of Telecom will be able to provide IPTV service under their licenses without requiring any further registration. Similarly cable TV operators registered under Cable Television Network (Regulation) Act 1995 (referred as Cable Act hereafter) can provide IPTV services without requiring any further permission.’ 3.61 Since, at that point of time, similar condition existed in the scope of licence for ‘Internet Service’ under the ‘Licence Agreement for Provision of Internet Services’43 with DoT, which is reproduced as under: ‘Internet Access: Internet access means use of any device/technology/methodology to provide access to internet including IPTV and all content available without access restriction on Internet including web hosting, webcolocation but it does not include service provider’s configured Closed User Group Services (VPN). The content for IPTV shall be regulated as per law in force from time to time. Permission to provide IPTV services shall be 42 https://mib.gov.in/sites/default/files/ilovepdf_merged_1.pdf 43 https://www.saras.gov.in/main/License%20Agreement/ISP.pdf 90granted on application by licensee provided the licensee has networth of Rs. 100 crore or more.’ 3.62 However, under the License Agreement for Unified License44, notified in 2013, the requirement of minimum net worth for Internet Service have not been prescribed. The scope of ‘Internet Service’ in the ‘License Agreement for Unified License’ is reproduced below: ‘2. Scope of Internet Service: Scope of this Authorization covers the following: 2.1 (i) The Licensee may provide Internet access including IPTV…’ 3.63 TRAI in Recommendations dated 18th September 202445 on ‘Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023’ have recommended the following for the scope of Internet Service authorisation: ‘Scope of service (1) The Authorised Entity may provide Internet access service and Internet Protocol Television (IPTV)…’ 3.64 Further, TRAI has also recommended: ‘The Authority recommends that the Minimum equity and Minimum networth requirements for Internet Category A, B & C Service Authorisation and Internet (VNO) Category A, B & C Service Authorisation should remain unchanged at Nil.’ 3.65 Since, the requirement for the net worth of Rs. 100 crore for ISPs is no longer applicable in the Unified License (including ISP authorization) issued by DoT, the same is yet to be adopted in the IPTV guidelines issued by MIB. Therefore, it needs to be examined 44 https://www.saras.gov.in/main/License%20Agreement/Unified%20Licence.pdf 45 https://trai.gov.in/sites/default/files/Recommendation_18092024.pdf 91whether the net worth requirements for ISP authorisations to provide IPTV services may be removed. 3.66 In this background, the stakeholders are requested to provide their comments on the following question. Issue for Consultation Q18. Is there a need to review the minimum net worth requirement of Rs. 100 crore for ISPs to provide IPTV services, while framing the terms and conditions for provision of IPTV services in the new authorisation regime and whether it should be aligned with the terms and conditions of authorisation of Internet Services by Department of Telecommunications? Please provide your comments with detailed justification. C. The Broadcasting (Radio) Services 3.67 The next sections discuss the terms and conditions to be included in the service authorisation of radio broadcasting services. This includes FM Radio Broadcasting, Community Radio Stations, Low Power Small Range FM broadcasting and Digital Radio Broadcasting. C1. FM Radio Broadcasting 3.68 MIB initiated the first phase of FM radio broadcasting in 1999. In Phase-I of FM Radio, the government auctioned 108 FM radio channels in 40 cities. Out of these, only 21 FM radio channels became operational and subsequently migrated to Phase-II in 2005. Phase-II of FM Radio commenced in 2005 when a total of 337 channels were put on bid across 91 cities having population equal to or more than 3 lakhs. Of 337 channels, 222 channels became operational. At the end of Phase-II, 243 FM Radio channels were operational in 86 cities. 923.69 In Phase-III expansion of FM radio, 966 FM radio channels are to be made available in 333 cities. In the first batch of Phase-III, 135 private FM Radio channels in 69 cities were put to auction in 2015. Out of these, 96 FM Radio channels in 55 cities have been successfully auctioned. In the second batch of Phase-III, 266 private FM Radio channels in 92 cities were put to auction in 2016. Out of these, 66 FM Radio channels in 48 cities have been successfully auctioned5. At the end of September 2017, 322 FM radio stations have been made operational in 86 cities by 34 private FM Radio broadcasters. 3.70 Moreover, the Union Cabinet on 28th August 202446 approved the expansion of private FM radio channels in 234 new cities under Batch III of FM Phase III auction. 3.71 The provisions of the existing guidelines are to be replaced by the terms and conditions to be contained in the Rules to be framed under the Telecommunications Act, 2023. Therefore, the FM Radio Broadcasting Service may be a service authorisation under the Telecommunications Act, 2023. The existing permission holders may be given the option to either continue their services under the existing permission till its validity period or migrate to the new authorisation regime. It is to be noted that after notification of appointed date of Section 3 of the Telecommunications Act, 2023, there may not be possibility of renewal/ extension of existing permission. Process followed as per the existing guidelines 3.72 The extant policy guidelines on FM radio broadcasting includes eligibility criteria, period of permission, financial conditions such as 46https://mib.gov.in/sites/default/files/List%20of%20234%20new%20cities%20approved%20by %20Union%20Cabinet%20on%2028.08.2024%20for%20expansion%20of%20Pvt%20FM%20Radi o%20services.pdf 93annual fee, entry fee, processing fee, bank guarantee etc. Further there are provisions on reserve price and payment methodology and other terms and conditions. 3.73 As per the existing guidelines, an eligible applicant entity participates in the e-auction process after fulfilling the requirement of payment of Processing Fee, Earnest Money Deposit (EMD), etc. After the results of e-auction process is declared, the successful bidder is required to deposit 25% of the Successful Bid Amount as Bid Deposit within 5 calendar days of the close of the Auction and deposit the balance amount within 15 days of the close of the Auction. 3.74 Upon receipt of the Successful Bid Amount within the stipulated time, MIB issues the Letter of Intent (LOI) and thereafter signs the Grant of Permission Agreement (GOPA) with the successful bidder. A detailed time schedule for signing the GOPA, time schedule for operationalisation and time schedule in totality has been provided in the guidelines. 3.75 Further, the timelines provided included the provisions with respect to Agreement with Prasar Bharati and Leased Transmission Infrastructure (LTI) and Agreement with Broadcast Engineering Consultants India Limited (BECIL) and Common Transmission Infrastructure (CTI) creation etc., after the grant of LOI. 3.76 At present MIB conducts auctions for FM radio channels in specified cities. Successful bidders are required to pay the auction determined price for operating FM radio channels for a period of 15 years and seek allocation of spectrum from WPC Wing of DoT. Subsequently, MIB grants permission agreement to successful bidder for operating FM radio channel for 15 years. For this permission, a FM radio broadcaster pays applicable annual fee to 94the Government. In addition, a FM radio broadcaster is required to pay an annual royalty charges of Rs 3,37,500 to WPC for the spectrum allocated to it. In a way, a FM radio broadcaster pays following charges for the spectrum allocated to it – (a) upfront auction determined price to MIB for grant of permission agreement, and (b) an annual royalty charge of Rs. 3,37,500 to WPC for the spectrum allocated to it. 3.77 The levy of spectrum charges (including royalty charges for spectrum and license fee for radio equipment) from the users to whom radio frequency assignment is made through administrative process is governed by the Order dated 11th December 202347 notified by WPC. 3.78 Further, DoT vide its Order dated 21st June 202248 has done away with the Spectrum Usage Charges (SUC) for spectrum acquired through auctions held after 15.09.2021 in different access spectrum bands. However, SUC is continued to be levied for the spectrum allocated through auctions held earlier. Inputs of stakeholders 3.79 In the case of radio broadcasting services, spectrum is bundled with the permission to operate FM radio channel. Though the permission is granted based on e-auction, however, the spectrum allocation is treated as administrative allocation. During the Open House Discussion (OHD) held on 10th October 2024 on the Consultation Paper on ‘Reserve Prices for auction of FM Radio channels’, the radio operators have suggested to unbundle the permission and spectrum allocation. After unbundling, the authorised entities may take part in e-auction for allocation of spectrum for radio channels. It may be 47 https://dot.gov.in/sites/default/files/Spectrum%20usage%20charges.pdf?download=1 48 https://dot.gov.in/sites/default/files/SUC%20Order_0.pdf?download=1 95recalled here that in the telecom regime, the Unified License has been delinked from the spectrum and licensed service providers are allowed to take part in e-auction for allocation of spectrum. 3.80 From the above discussion, it may be inferred that on unbundling of license and spectrum, the relevant DoT/WPC Orders are likely to become applicable to radio broadcasting services automatically. Process to be followed in the Authorisation framework 3.81 In the new authorisation framework, obligations related to LTI lease and CTI creation etc. may be covered in the NIA and the Information Memorandum itself and may not appear in the terms and conditions to be included in the Rules. The rationale behind including the details in NIA/ Information Memorandum is that these obligations are subject to change from time to time as per the technology and or the scenario therein. The authorised entities shall be required to deposit Earnest Money, in the form of Bank Guarantee which is 25% of the reserve price of that city per channel. Successful bidders need to deposit a portion of the bid amount which is 25% of the successful bid amount within specified timeframes, and failure to do so may result in disqualification and forfeiture of EMD. All conditions related to e-auction i.e. EMD, payment methodology, roll out obligations etc. may be contained in NIA and associated Information Memorandum. 3.82 Further, GOPA may be replaced with the service authorisation to be granted by the Central Government to the Authorised Entity. Moreover, the process of allocating frequency spectrum for FM Radio Broadcasting through an e-auction process may be done only after the grant of service authorisation, unlike the extant situation wherein successful bidder is granted GOPA post the e-auction 96process. In such a case, an applicant entity willing to provide radio services may be required to meet the following: i. Entry Fee: which may be kept minimal (say ‘NIL’) ii. Processing Fee: which may be kept same as that of Television Programming Services (i.e., say Rs. 10,000) iii. Minimum net-worth criteria: which may be ≥Rs. 50 lakhs as prescribed for D category cities and cities with population upto 1 lakh or Category ‘E’ as proposed in the Consultation Paper on ‘Reserve Prices for auction of FM Radio channels’ dated 1st August 202449. iv. Annual Authorisation Fee: 4% of GR, after the authorised entity have been successfully allocated frequency spectrum in the e- auction. 3.83 Further, the Service Area for radio services may be made Pan India, which would allow the authorised entity to participate in the e- auction process held in any city across India. However, only the authorised entity may be allowed to operate and provide radio broadcasting services only in the city(ies), where it is allocated frequency spectrum through e-auction process. 3.84 The net-worth requirements for city wise auctions may be continued as per existing guidelines, which may be required to be assessed at the time of participation in e-auction as being done presently. 3.85 In the authorisation framework, the e-auction process after grant of service authorisation may consists of four stages, which may be as under: i. Stage-I or the invitation stage where authorised entity willing to participate in auction process to submit their applications. 49 https://www.trai.gov.in/sites/default/files/CP_01082024.pdf 97ii. Stage-II or the pre-qualification stage include the processes to check the eligibility conditions for the entities participating in the auction. iii. Stage-III or the auction stage where eligible entities participate in the auction process. iv. Stage-IV or the final stage where the final auction price is determined, the successful bidder is selected, and the auction is closed. Financial Conditions in the extant guidelines for FM Radio 3.86 Further, the financial structure prescribed in the extant guidelines such as Processing Fee, Entry Fee and Authorisation Fee (erstwhile Annual Fee) for participation in e-auction are as follows: a. Application Processing Fee: The applicant shall pay a non- refundable application processing fee of Rs. 25,000/- payable to MIB. b. Non-Refundable One Time Entry Fee (NOTEF): Determined through auction c. Annual Fee: The permission holder needs to pay an Annual Fee to the Government each year, calculated as 4% of the FM channel's Gross Revenue (GR) or 2.5% of NOTEF for the concerned city, whichever is higher. Permission holders in Northeast states, Jammu & Kashmir, and island territories will pay 2% of GR or 1.25% of NOTEF, whichever is higher, for three (03) years. However, TRAI has issued its recommendations on ‘Issues related to FM Radio Broadcasting’ on 5th September 202350, which inter-alia recommended the revision of the license fee. 50 https://www.trai.gov.in/sites/default/files/Recommendation_05092023.pdf 98Accepting the same, recently MIB released an amendment dated 10th September 202451, the annual fee has been delinked from the NOTEF. In the uncovered 234 new cities under Batch-III FM Phase- III auction, the permission holder needs to pay an Annual Fee of 4% of GR (excluding GST). Permission holders in uncovered new cities in Northeast states, Jammu & Kashmir and island territories shall pay an Annual Fee of 2% of GR (excluding GST) for 3 years. Table 3.8 below summaries the financial conditions for FM Radio channels: Table 3.8: Financial Conditions Parameters Amount Rs. 25,000 Processing Fee Determined through auction Entry Fee For existing permission holders: 4% of GR or 2.5% of NOTEF, whichever is higher Authorisation Fee Northeast states, Jammu & Kashmir (erstwhile Annual and island territories: 2% of GR or Fee) 1.25% of NOTEF, whichever is higher For 234 new cities where auction is to be conducted: 4% of GR (excluding GST) 3.87 In view of the above, stakeholders are requested to provide their comments on the following question: Issue for Consultation Q19. In order to unbundle the authorisation from the spectrum allocation, the authorisation for providing FM Radio services is required to be obtained first, and thereafter an authorised entity 51 https://mib.gov.in/broadcasting/order-dated-10092024-regarding-amendments-pvt-fm-radio- phase-iii-policy-guidelines 99is allowed to participate in the e-auction process for allocation of spectrum in a particular city. In such a scenario, stakeholders are requested to provide their comments with detailed justification on the following: a. Whether the scope of service for the FM radio service be made Pan-India instead of City to allow an authorised entity to participate in e-auction process of any City in India? b. What should be the prescribed entry fee, processing fee requirement for obtaining such FM Radio broadcasting service authorisation? c. What should be the minimum net-worth requirement for obtaining service authorisation for FM Radio broadcasting services? C2. Community Radio Stations 3.88 In December 2002, the Government of India has approved policy for granting licenses to well-established educational institutions, including IITs and IIMs, to set up Community Radio Stations (CRS). In 2006, the policy was broadened to include 'Non-profit' organisations like civil society and voluntary organisations, allowing greater participation on issues of development and social change. The policy guidelines of 2006 were subsequently amended in 2017, 2018 and 2022. To ensure the financial sustainability and growth of the Community Radio Stations, further amendments have been carried out and the revised policy guidelines have been issued on 13th February 2024. 3.89 The extant guidelines consist of provisions on basic principles, eligibility criteria, selection process and processing of applications, GOPA and other conditions. Nonetheless, the provisions in the extant guidelines are required to be replaced with terms and 100conditions to be notified under the Telecommunications Act, 2023. Accordingly, Community Radio Stations may be given the option to migrate to new authorisation regime. 3.90 While drafting the terms and conditions, the eligibility criteria and basic principles have been brought together as well as the selection process have been adopted mutatis-mutandis. Furthermore, GOPA may be replaced with the Authorisation document, as being done for FM radio broadcasting services. 3.91 According to the policy guidelines, organizations applying to operate a CRS need to adhere to certain basic principles. They need to be explicitly ‘not-for-profit’ organizations with at least three years of proven service record to the local community. CRS should be designed to serve the local community within their coverage area and have an ownership and management structure that reflects the community they serve. Additionally, organizations are required to be legal entities registered under a relevant act for at least three years at the time of application. Further, NGOs, registered societies, and Public Charitable Trusts need to be listed on the NITI Aayog's NGO Darpan portal and provide their Unique ID with the application. 3.92 The eligibility criteria, as per the guidelines for applying for CRS licenses include community-based organizations such as State Agriculture Universities (SAUs), ICAR institutions, Krishi Vigyan Kendras, autonomous bodies, civil society organizations, voluntary organizations, registered societies, public charitable trusts, not-for- profit organizations by Self Help Groups (SHGs) and Farmer Producer Organizations (FPOs) as well as educational institutions. However, individuals, political parties and their affiliates, profit- driven organizations, entities banned by the Union or State Governments, and religious bodies are not eligible to operate a CRS. 1013.93 Under the existing guidelines, the selection process for CRS involves the formation of an Inter-Ministerial Committee (IMC) chaired by the Secretary, MIB. Applications are received from both government and private institutions/ organisations, where LOI is issued subject to availability of Frequency spot provided by Ministry of Communications. Additionally, private institutions are also required to secure clearances from the Ministries of Home Affairs and Defence. Additionally, the guidelines specify timelines for obtaining these clearances before signing the GOPA. C3. Low Power Small Range FM Broadcasting 3.94 A low power FM transmission system commercially find its utility in Drive-in theatre application to transmit movie audio to the audience. In addition to drive-in theatres, several other use cases of low power small range FM radio broadcasting which may cater to specific locations and reception areas can be identified. Examples include hospital radio services, amusement parks, business premises, closed communities such as residential complexes, small habitations, commentary for local events such as air shows and sports events. 3.95 Based on a reference received from MIB, TRAI issued its Recommendations on 21st September 202352 on ‘Issues related to Low Power Small Range FM Radio Broadcasting’. The recommendations covered key areas, including the introduction of a new category of service providers for low power small range FM broadcasting, scope of services, process for obtaining permission, equipment standards, frequency allocation and the terms and conditions of the license. The terms and conditions contained 52 https://www.trai.gov.in/sites/default/files/Recommendations_21092023.pdf 102eligibility criteria, license period, entry and license fees, area of operation, spectrum allocation and technical parameters. 3.96 Regarding introduction of new category of service providers for low power small range FM broadcasting, it has been mentioned that low power small range FM broadcasting need to be subject to a licensing, registration, or authorization requirement to ensure proper monitoring and regulation. ‘The Authority recommends that the low power small range FM radio broadcasting services should be allowed only after grant of a License/Registration/Authorization. The Authority recommends that a new category of service provider for provision of low power small range FM Radio should be introduced, called ‘Low Power Small Range FM Radio Broadcasting.’ 3.97 In the context of obtaining license/ registration/ authorisation for low power small range FM broadcasting services, it was recommended that an online application process may be followed. The recommendation reads as under: ‘The license/registration/authorization for the ‘Low Power Small Range FM Radio Broadcasting’ should be granted through a simple registration process via an online application portal.’ 3.98 Further, the recommendations also covered terms and conditions such as eligibility criteria, license period, fee structure, frequency assignment, service area and transmission power. Accordingly, the recommendations for low power small range FM broadcasting are as under: 103Eligibility Criteria: ‘The Authority recommends that the following should be eligible to hold license/ registration/ authorization for ‘Low Power Small Range FM Broadcasting’: a. Individuals who are citizens of India and above eighteen years of age. Following are not eligible to hold license/ registration/authorization for ‘Low Power Small Range FM Broadcasting’: i. A person with an unsound mind and stands so declared by a competent court; ii. A person who is an un-discharged insolvent iii. A person convicted by a court of any offense, whether involving moral turpitude or otherwise. b. A company registered under the Companies Act 2013 including LLP and partnership firms. Following are not eligible to hold license/ registration/ authorization for ‘Low Power Small Range FM Broadcasting’: i. Political Parties and their affiliate organizations; [including students, women’s, trade unions and such other wings affiliated to these parties] ii. A company controlled by or associated with a political body; iii. A company controlled by or associated with a religious body; iv. A company that has been convicted by a court of any offense, whether involving moral turpitude or otherwise.’ Validity Period: Permission period for 'Low Power Small Range FM Radio Broadcasting' service: a. Up to thirty days b. Up to five years. 104a. For permission up to thirty days, applicants should be required to provide proof of right to use the land or property for which the low- power small-range FM radio broadcasting permission is being sought at the time of submitting initial application. b. For permission up to five years the applicant should provide proof of ownership of the property/premises. In case the property is not owned by the applicant, the authorization of use of property should be submitted on an annual basis.’ Fee Structure: No application/entry fee should be levied. i. Fee of Rs. 1000/- for a permission up to thirty days ii. Fee of Rs. 10,000/- per annum for a permission up to five years. Frequency Assignment: i. WPC should conduct a thorough evaluation and reserve appropriate frequency spots for the specific needs of low-power, small-range FM broadcasting. ii. Frequency for low power small range FM broadcasting should be assigned administratively by WPC through online portal within two days of submitting the application. iii. License/Registration/Authorization holders for low power small range FM broadcasting should be allowed to deploy any type of transmission technologies (analog/digital/any other).’ Service Area: i. The maximum permissible transmission range of ‘Low Power Small Range Radio Broadcasting’ should be 500 meters. ii. The licensed area of frequency assignment in case of low power small range FM be defined as location-specific based on the precise geographical coordinates such as longitude and latitude of the of the intended service location ((be it a building, stadium, convention center, expo area etc.).’ 105Transmission Power: ‘Maximum permissible transmission power of 1 watt for low power small range FM broadcasting.’ 3.99 However, these recommendations are pending for consideration by the Government. Once, a decision will be taken on this issue, Low Power Small Range FM broadcasting may also be made as a separate authorisation. C4. Digital Radio Broadcasting 3.100 At present, the policy for radio broadcasting provides for FM radio broadcasting by private companies is an analogue system. Given the advantages offered by digital radio, such as, improved audio quality, increased spectrum efficiency, more channels within the same bandwidth, it may be required to expand the scope of radio broadcasting services to include digital radio broadcasting. However, the terms and conditions may be decided based on the outcome of the Consultation process on Digital Radio broadcast policy, which is under progress separately. However, there may be a possibility of adoption of the terms and conditions applicable for FM radio mutatis-mutandis for Digital Radio Broadcasting. 3.101 Based on the discussions above, the terms and conditions for service authorisation of FM Radio broadcasting, Community Radio Stations, Low Power Small Range FM broadcasting and Digital Radio broadcasting have been identified and placed in the preliminary draft terms and conditions of the Broadcasting (Radio) Services, which is annexed as Part-IV of Annexure-III for consultation. 106Issue for Consultation Q20. A preliminary draft of terms and conditions for inclusion in the second set of Rules for the Broadcasting (Radio) Services is annexed as Part-IV of Annexure-III for consultation. Stakeholders are requested to furnish their comments in the specified format given below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. S. Description Terms Propo Reasons No. and sed with Condit chang detailed ions es, if justifica No. any tion FM Radio Broadcasting 1. Restructuring of Entity 2. Restrictions on operation of Multiple channels in a city 3. Cross Media Ownership 4. Annual Authorisation Fee 5. News and current affairs programmes 6. Programme Content 7. Prohibition of Certain Activities 8. Penalty for Non operationalisation of services 9. Networking 10. Technical Parameters and Standards 11. Number of Frequencies 10712. Co-location 13. Frequency allocation and SACFA clearance 14. Mandatory sharing of certain broadcast signals with Prasar Bharati 15. Monitoring and requirement to furnish information 16. Inspection 17. Surrender of Authorisation 18. Provisions relating to data broadcasting services in FM/ Digital sub carriers 19. Miscellaneous Community Radio Stations 1. Content regulation & monitoring 2. Imposition of penalty/ revocation of Authorisation 3. Transmitter Power and Range 4. Funding & Sustenance 5. Other Terms and Conditions Low Power Small Range FM Radio 1. Provision of Low Power Small Range FM Radio Broadcasting 2. Low Power Small Range FM Radio Broadcasting Service Obligations Digital Radio Broadcasting To be decided based on the outcome of the Consultation process on Digital Radio broadcast policy, which is 108under progress separately. However, there may be a possibility of adoption of the terms and conditions applicable for FM radio mutatis-mutandis for Digital Radio Broadcasting. Any other Issue Q21. Stakeholders may provide other comments, if any, relevant to the issues related to terms and conditions, including regulatory fees for the broadcasting services authorisations with justifications thereof. 109CHAPTER IV SUMMARY OF ISSUES FOR CONSULTATION General Q1. Under Section 3(1) of the Telecommunications Act, 2023, the Applicant Entity may be granted an authorisation, in place of the extant practice of the grant of license/ permission from the Central Government. The terms and conditions governing the respective authorisation for broadcasting services may be notified by the Ministry of I&B as Rules to be made under the Telecommunications Act, 2023. In such a case, whether any safeguards are required to protect the reasonable interests of the Authorised Entities of the various broadcasting services? Kindly provide a detailed response with justifications. Q2. The definitions to be used in the Rules to be made under the Telecommunications Act, 2023, governing the Grant of Service Authorisations and provisioning of the Broadcasting (Television Programming, Television Distribution and Radio) Services are drafted for consultation and are annexed as Schedule-I. Stakeholders are requested to submit their comments in respect of suitability of these definitions including any additions/ modifications/ deletions, if required. Kindly provide justifications for your response. Scope and Service Area Q3. A preliminary draft of Scope of Service for various Broadcasting services and the corresponding Service Area is provided in Table 2.1 for consultation. Whether the same appropriately covers the Scope of Service and Service Area? If not, stakeholders are requested to submit their comments, if any additions/ 110modifications/ deletions are required in the Scope of Service and Service Area, along with necessary justifications. Authorisation Document Q4. For the purpose of grant of authorisation under Section 3(1) of the Telecommunications Act, 2023, the Central Government may issue an authorisation document to the Applicant Entity containing the essential details viz. Name, Category and Address of entity, Scope of Service, Service Area, Validity etc. A draft format of authorisation document is given at Figure 2.2. Do you agree with the draft format or whether any changes are needed in the draft format of authorisation document? Please provide your response with necessary explanations. Terms and Conditions for Grant of Service Authorisations Q5. A preliminary draft of terms and conditions to be included in the first set of Rules i.e., for Grant of Service Authorisations is annexed as Annexure-II. Stakeholders are requested to submit their comments in the format provided below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. S. Description Terms Propose Reason No. and d s with Conditi change detaile ons No. s, d if any justific ations 1. Definitions 2. Scope of Service and Service Area 3. Eligibility conditions 1114. Provision of Broadcasting Services • Television Programming Services • Television Distribution Services • Radio Broadcasting Services 5. Processing Fee, Entry Fee, Bank Guarantee, Security Deposit and Renewal Fee 6. Process of Application to obtain the Service Authorisations 7. Grant of Service Authorisations 8. Validity Period 9. Non-exclusivity clause 10. Conditions for assignment and use of Spectrum 11. Migration of Existing service providers of old regime in the new Authorisation Framework 12. Security Conditions Framework for Television Programming, Television Distribution and Radio Broadcasting Q6. Draft structure for covering terms & conditions for provision of services after grant of authorisations to be included in the 112second set of Rules, namely, The Broadcasting (Television Programming, Television Distribution and Radio) Services Rules, is shown in Figure 2.4 above for consultation. Whether changes are required in the said structure? Please support your response with proper justification. Migration Methodology Q7. The two possible approaches for migration from the existing regime of license/ permission to the authorisation framework under the Telecommunications Act, 2023, has been discussed in the Section D of Chapter II. Which of these two or any other approach should be adopted for migrating the existing licensee/ permission holders to the service authorisation framework? Stakeholders are requested to provide their comments with detailed justifications. Penal Provisions Q8. Contravention of the terms and conditions contained in the Rules to be made as well as non-adherence to the Programme Code and Advertising Code is likely to invite penal provisions. a. Whether the extant penal provisions for breach of terms and conditions of license/ permission are appropriate or required to be modified to align with the provisions of the Telecommunications Act, 2023? If so, please provide a detailed response with justifications. If not, whether the said penal provisions should be adopted mutatis mutandis? Please provide a detailed response with necessary justifications. b . c. Further, in respect of violation of Programme Code and Advertising Code, whether the penal provisions should be 113adopted mutatis mutandis? If not, what modifications are required? Please provide your comments with necessary justifications. The Broadcasting (Television Programming, Television Distribution and Radio) Services Q9. A preliminary draft of Common terms and conditions for inclusion in the second set of Rules for Broadcasting (Television Programming, Television Distribution and Radio) Services is annexed as Part-I of Annexure-III for consultation. Stakeholders are requested to submit their comments in the format given below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. S. Description Terms Proposed Reasons No. and changes, with Conditi if any detailed ons No. justifica tion 1. Definitions 2. Assignment of Spectrum 3. Equity Holding in Other companies 4. Renewal of Authorisation 5. Modifications in the Terms and Conditions of Service Authorisation 6. Non-Exclusivity clause 7. Restrictions on Transfer of Service Authorisation 8. Provision of Service 9. Reporting Requirement w.r.t. Eligibility Conditions 11410. Adherence to Programme Code and Advertisement Code 11. Financial Conditions 12. Commercial Conditions 13. Technical Conditions 14. Disaster/ Emergency/ Public Utility Services 15. Operating Conditions 16. Confidentiality 17. Force Majeure 18. Dispute with Other Parties 19. Dispute Resolution and Jurisdiction 20. Contravention of Rules/ Violation of Programme Code and Advertisement Code The Broadcasting (Television Programming) Services Q10. Whether any changes are required in the extant eligibility conditions in respect of minimum net worth for inclusion in the Rules to be made under the Telecommunications Act, 2023 for the following service authorisations? i. News & Current Affairs TV Channel ii. Non-news & Current Affairs TV Channel iii. Teleport/ Teleport Hub Stakeholders are requested to provide their comments with detailed justification. Q11. Whether any changes are required in the extant processing fee (for new authorisation/renewal), annual authorisation fee 115(erstwhile annual permission fee) and other fees applicable on the following for the formulation of the terms and conditions of the authorisation for these services? i. Uplinking of a Television Channel ii. Downlinking of a Television Channel iii. News Agency for Television Channel(s) iv. Teleport/ Teleport Hub v. Any other services related to Television Channels Stakeholders are requested to provide their comments with detailed justification. Q12. Whether any changes are required in the extant security deposit and performance bank guarantee applicable on the following for the formulation of the terms and conditions of the authorisation for these services? i. Uplinking of a Television Channel ii. Downlinking of a Television Channel iii. Teleport/ Teleport Hub iv. Purchase/hiring and use of SCG equipment Stakeholders are requested to provide their comments with detailed justification. Q13. A preliminary draft of terms and conditions for inclusion in the second set of Rules for The Broadcasting (Television Programming) Services is annexed as Part-II of Annexure-III for consultation. Stakeholders are requested to furnish their comments in the specified format given below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. 116S. Description Terms Proposed Reasons No. and changes, with Conditi if any detailed ons No. justification Satellite-based Broadcasting of a Television Channel i. Uplinking of a Television Channel 1. Operational Status 2. Special conditions for uplinking a satellite television channel 3. Transfer of authorisation of a TV channel 4. Renewal of Authorisations 5. Purchase/ hiring and use of SCG equipment 6. Live Telecast ii. Downlinking of a Television Channel 1. Operational Status 2. Special conditions for downlinking a TV channel 3. Renewal of Authorisation 4. Transfer of authorisation of a TV channel iii. Uplinking and Downlinking of a Television Channel All the terms and conditions of uplinking of TV channel and downlinking of a Television Channel shall be applicable here Ground-based Broadcasting of a Television Channel To be framed, once a policy decision is taken by the Government, in this regard. News Agency for television channel(s) 1. Special conditions for News Agency for Television Channel 2. Renewal of Authorisation 117Teleport/Teleport Hub 1. Operational Status 2. Special Conditions 3. Renewal of Authorisation 4. Transfer of authorisation of a Teleport/ Teleport Hub 5. Purchase/ hiring and use of SCG equipment Coverage of Live Event by Foreign Channel 1. Terms and Conditions Other services related to Broadcasting (Television Programming) Services 1. Purchase/ hiring and use of SCG equipment 2. Live telecast by a news and current affairs channel 3. Live telecast of an event by a non-news and current affairs channel 4. Change of name and logo of a TV channel 5. Change of satellite/ teleport 6. Intimation of change of language/mode of transmission, etc. 7. Change of category of a TV channel 8. Change in operational status The Broadcasting (Television Distribution) Services Q14. Whether the extant eligibility requirement in respect of minimum net worth is required to be harmonized under the 118terms and conditions of authorisation for DTH and HITS services? a. If yes, what should be the quantum of minimum net worth for these services? b. If no, reasons thereof. Stakeholders are requested to provide their comments along with detailed justification. Q15. Whether the following parameters applicable for DTH and HITS services should be reviewed while framing the terms and conditions of authorisation for these services? If yes, please suggest changes required, if any, on the following aspects, with detailed justifications: a. Period of authorisation (erstwhile license/ permission) b. Processing Fee c. Entry Fee d. Authorisation Fee (erstwhile License Fee) e. Bank Guarantee f. Renewal Fee Q16. A preliminary draft of terms and conditions for inclusion in the second set of Rules for the Broadcasting (Television Distribution) Services in respect of Distribution Services (DTH/ HITS), is annexed as Part-III of Annexure-III for consultation. Stakeholders are requested to render their comments in the format specified in the table given below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. 119S.No Description Terms Proposed Reasons . and changes, with Condi if any detailed tions justificati No. on DTH Services 1. Authorisation Fee 2. Bank Guarantee 3. Vertically Integrated Entity: Reserving of operational channel carrying capacity 4. Non Transferable 5. Platform Service Channels 6. Sharing of Infrastructure by DTH operators 7. Prohibition of certain activities 8. Technical Standards and Other Obligations 9. Mandatory sharing/carrying of broadcast certain signals with Prasar Bharati 10. Value Added Services (VAS) 11. Miscellaneous HITS Services 1. Mandatory sharing/carrying of broadcast certain signals with Prasar Bharati 2. Technical Standards and Other Obligations 3. Sharing of Infrastructure by HITS operator 4. Value Added Services (VAS) 5. Prohibition of Certain Activities 6. Miscellaneous 120Q17. The extant IPTV guidelines dated 08.09.2008 may be required to be amended to align with the provisions of the Telecommunications Act, 2023. A preliminary draft of terms and conditions for providing IPTV Services is annexed as Part- III of Annexure-III for consultation. Stakeholders are requested to provide their comments including addition/ modification/ deletion required, if any, with detailed justification. Q18. Is there a need to review the minimum net worth requirement of Rs. 100 crore for ISPs to provide IPTV services, while framing the terms and conditions for provision of IPTV services in the new authorisation regime and whether it should be aligned with the terms and conditions of authorisation of Internet Services by Department of Telecommunications? Please provide your comments with detailed justification. The Broadcasting (Radio) Services Q19. In order to unbundle the authorisation from the spectrum allocation, the authorisation for providing FM Radio services is required to be obtained first, and thereafter an authorised entity is allowed to participate in the e-auction process for allocation of spectrum in a particular city. In such a scenario, stakeholders are requested to provide their comments with detailed justification on the following: a. Whether the scope of service for the FM radio service be made Pan-India instead of City to allow an authorised entity to participate in e-auction process of any City in India? b. What should be the prescribed entry fee, processing fee requirement for obtaining such FM Radio broadcasting service authorisation? 121c. What should be the minimum net-worth requirement for obtaining service authorisation for FM Radio broadcasting services? Q20. A preliminary draft of terms and conditions for inclusion in the second set of Rules for the Broadcasting (Radio) Services is annexed as Part-IV of Annexure-III for consultation. Stakeholders are requested to furnish their comments in the specified format given below, against the terms and conditions and indicate the corresponding changes, if any, with necessary reason and detailed justification thereof. S. Description Terms Propo Reasons No. and sed with Condit chang detailed ions es, if justificati No. any on FM Radio Broadcasting 1. Restructuring of Entity 2. Restrictions on operation of Multiple channels in a city 3. Cross Media Ownership 4. Annual Authorisation Fee 5. News and current affairs programmes 6. Programme Content 7. Prohibition of Certain Activities 8. Penalty for Non operationalisation of services 9. Networking 10. Technical Parameters and Standards 12211. Number of Frequencies 12. Co-location 13. Frequency allocation and SACFA clearance 14. Mandatory sharing of certain broadcast signals with Prasar Bharati 15. Monitoring and requirement to furnish information 16. Inspection 17. Surrender of Authorisation 18. Provisions relating to data broadcasting services in FM/ Digital sub carriers 19. Miscellaneous Community Radio Stations 1. Content regulation & monitoring 2. Imposition of penalty/ revocation of Authorisation 3. Transmitter Power and Range 4. Funding & Sustenance 5. Other Terms and Conditions Low Power Small Range FM Radio 1. Provision of Low Power Small Range FM Radio Broadcasting 2. Low Power Small Range FM Radio Broadcasting Service Obligations Digital Radio Broadcasting 123To be decided based on the outcome of the Consultation process of Digital Radio Broadcast policy, which is under progress separately. However, there may be a possibility of adoption of the terms and conditions applicable for FM radio mutatis-mutandis for Digital Radio Broadcasting. Any Other Issue Q21. Stakeholders may provide other comments, if any, relevant to the issues related to terms and conditions, including regulatory fees for the broadcasting services authorisations with justifications thereof. 124List of Acronyms Abbreviations Descriptions AIR All India Radio AM Amplitude Modulation AGR Adjusted Gross Revenue ApGR Applicable Gross Revenue BECIL Broadcast Engineering Consultants India Limited BIS Bureau of Indian Standards BNS Bharatiya Nyaya Sanhita CAS Conditional Access System CEO Chief Executive Officer CFO Chief Financial Officer CNN Cable News Network CPE Customer Premise Equipment CRS Community Radio Station CTI Common Transmission Infrastructure DD Doordarshan DOS Department of Space DoT Department of Telecommunications DPIIT Department for Promotion of Industry and Internal Trade DPO Distribution Platform Operator DSNG Digital Satellite News Gathering DTH Direct-to-Home ECG Electronic Content Gathering 125EHAAT Effective Height of Antenna above Average Terrain EMD Earnest Money Deposit ENG Electronic News Gathering EPG Electronic Programme Guide ERP Effective Radiated Power FDI Foreign Direct Investment FM Frequency Modulation FPO Farmer Producer Organizations GBB Ground-based Broadcasting GOPA Grant of Permission Agreement GR Gross Revenue GST Goods and Service Tax HAAT Height of Antenna above Average Terrain HITS Headend in the Sky HUF Hindu Undivided Family ICAR Indian Council of Agricultural Research IIM Indian Institutes of Management IIT Indian Institutes of Technology IMC Inter-Ministerial Committee INSAT Indian National Satellite System IP Internet Protocol IPTV Internet Protocol Television ISP Internet Service Provider ITU International Telecommunication Union LCO Local cable operator 126LLP Limited Liability Partnership LOI Letter of Intent LTI Leased Transmission Infrastructure MHA Ministry of Home Affairs MIB Ministry of Information and Broadcasting MRP Maximum Retail Price MSO Multi-System Operator MTNL Mahanagar Telephone Nigam Limited NGO Non-Governmental Organization NIA Notice Inviting Application NOC No Objection Certificate NOCC Network Operation and Control Centre NOTEF Non-Refundable One Time Entry Fee OHD Open House Discussion PIB Press Information Bureau PBG Performance Bank Guarantee QoS Quality of Service SACFA Standing Advisory Committee on Radio Frequency Allocation SAU State Agriculture University SCG Satellite Content Gathering SHG Self Help Group SMC SATCOM Monitoring Centre SMS Subscriber Management System SNG Satellite News Gathering STB Set Top Box 127SUC Spectrum Usage Charge TEC Telecommunication Engineering Centre TRAI Telecom Regulatory Authority of India TSP Telecom Service Provider VAS Value Added Service WOL Wireless Operational License WPC Wireless Planning and Coordination 128Annexure-IA: MIB Reference dated 25.07.2024 129130131132Annexure-IB: The Telecommunications Act, 2023 133134135136137138139140141142143144145146147148149150151152153154155156157158Annexure-II: Draft Terms and Conditions to be included in the Broadcasting (Grant of Service Authorisations) Rules INDEX S.No. Topic Page No. 1. Definitions 160 2. Scope of Service and Service Area 160 3. 163 Eligibility Conditions Provision of Broadcasting Services • Television Programming Services 4. 175 • Television Distribution Services • Radio Broadcasting Services Processing Fee, Entry Fee, Bank Guarantee, 5. 177 Security Deposit and Renewal Fee Process of Application to obtain the Service 6. 177 Authorisations 7. Grant of Service Authorisations 184 8. Validity Period 185 9. Non-Exclusivity Clause 187 10. Condition for assignment and use of Spectrum 187 Migration of Existing service providers of the old 11. 188 regime in the new Authorisation Framework 12. Security Conditions 190 159DRAFT TERMS AND CONDITIONS TO BE INCLUDED IN THE BROADCASTING (GRANT OF SERVICE AUTHORISATIONS) RULES 1. Definitions: In these rules, unless the context otherwise requires, the words and expressions used are defined in Schedule-I. Further, the words and expressions not defined in Schedule-I but defined in the Telecommunications Act, 2023 shall have the meanings respectively assigned to them in the said Act. 2. Scope of Service and Service Area: The scope of service and respective service area for the authorisation of various broadcasting services are listed in Table 2.1. Table 2.1: Scope of Service and Service Area for Broadcasting Services S.N Service Scope of Service Service o Authorisation Area The Broadcasting (Television Programming) Services 1. Television Channel Broadcasting i. Satellite Based Broadcasting for a Television Channel Uplinking of a To uplink a television channel signal a. Television from anywhere in India to Satellite National Channel using Teleport/ Teleport Hub. Downlinking of a To downlink a television channel b. Television signal within India for reception by the National Channel Distribution Service Providers. To uplink a television channel signal Uplinking and c. from anywhere in India to Satellite National Downlinking of a using Teleport/ Teleport Hub and also 160Television to downlink the television channel Channel signal within India for reception by the Distribution Service Providers. Ground Based To provide a television Channel for Broadcasting for reception within India to the National/ ii. a Television Distribution Service Providers. State Channel News Agency for To gather News and distribution 2. Television thereof to other news agencies and National Channel(s) broadcasters in India. To establish, maintain and operate Teleport/Teleport 3. teleport/teleport hub for uplinking of National Hub satellite television channels. To gather content of live events (News Coverage of Live and current affairs/ Non-news and 4. Event by Foreign National current affairs) from anywhere in India Channel for broadcasting on its channel. The Broadcasting (Television Distribution) Services To establish, maintain and operate 5. DTH DTH platform for providing National broadcasting distribution services. To establish, maintain and operate 6. HITS HITS platform for providing National broadcasting distribution services. The Broadcasting (Radio) Services To establish, maintain and operate FM FM Radio 7. Radio Station to broadcast permitted Pan-India* Broadcasting services. 161To establish, maintain and operate Community Community Radio Station to serve the Location 8. Radio Station needs and interest of local Specific communities. To provide low power small range FM Radio service for captive use, wherein captive use scenarios cover a wide range of facilities, such as drive-in theatres, shopping malls, and sports Low Power small complexes, among others where the Location/ 9. range FM Radio permission holder utilizes low power Event Broadcasting FM to broadcast their own content and Specific** services. Also to extend the services to third parties who intend to organize an event for a limited period at a specific place, such as an event ground or concert hall. To establish, maintain and operate Digital Radio To be 10. Digital Radio Station to broadcast Broadcasting decided*** permitted services. *Note 1: However, the authorised entity may be allowed to operate and provide Radio Broadcasting Services only in the city(ies), where it is allocated frequency spectrum through e-auction process. **Note 2: i. The maximum permissible transmission range of ‘Low Power Small Range Radio Broadcasting’ shall be 500 meters. ii. The service area of frequency assignment in case of low power small range FM shall be location-specific based on the precise geographical coordinates such as longitude and latitude of the intended service location (be it a building, stadium, convention centre, expo area etc.). 162iv. Maximum permissible transmission power shall be 1 watt for low power small range FM broadcasting. *** Note 3: To be decided based on outcome of consultation process on Digital Radio Broadcast Policy, which is under progress separately. 3. Eligibility Conditions: (a) Conditions for Broadcasting (Television Programming, Television Distribution and Radio) Services: (1) The applicant entity shall be an Indian Company, registered under the Indian Companies Act, 1956 or 2013 or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008. (2) The applicant entity shall fulfil all the terms and conditions laid down in the Foreign Direct investment (FDI) policy of the Government of India, as notified by the Department of Promotion of Industry and Internal Trade (DPIIT) from time to time. For this purpose, the applicant entity shall intimate the Ministry of Information & Broadcasting regarding FDI at the time of application as well as whenever any change in the FDI in the company takes place, within 15 days of effect of such change. (3) The applicant company shall make full disclosure, at the time of application, of Shareholders Agreements, Loan Agreements and such other Agreements that are finalized or are proposed to be entered into. (4) The applicant entity shall have a minimum net worth of an amount specified in the Table 3.1 as on the closing day of the financial year immediately preceding the year in which the application is made, as reflected in its audited/ unaudited balance sheet of that financial year. 163Table 3.1: Net worth of an Applicant Entity Sl. Applicant Net worth (In Rs.) No. Company The Broadcasting (Television Programming) Services 1. Television Channel Broadcasting i. Satellite Based Broadcasting for a Television Channel a. Uplinking of a 1st Television Channel - 20 cr. Television Additional Channel - 5 cr. Channel b. Downlinking 1st Television Channel - 20 cr. of a Television Additional Channel - 5 cr. Channel c. Uplinking and 1st Television Channel - 40 cr. Downlinking Additional Channel - 10 cr. of a Television Channel ii. Ground Based To be provisioned when notified by the Broadcasting Central Government for a Television Channel 2. News Agency [Not Prescribed] for Television Channel(s) 3. Teleport/ 1st Teleport - 3 cr. Teleport Hub Additional Teleport- 1 cr. 4. Coverage of [Not Prescribed] Live event by foreign channel 164The Broadcasting (Television Distribution) Services 5. DTH [Not Prescribed] 6. HITS 10 cr. The Broadcasting (Radio) Services 7. FM Radio • E category: To be provisioned when Broadcasting notified by the Central Government • D category Cities and cities with population up to 1 lakh: 50 Lakh • C category Cities: Rs. 1 Crore • B category Cities: Rs. 2 Crore • A category Cities: Rs. 3 Crore • A+ category Cities Rs. 3 Crore • All categories of Cities in all regions: 10 Crore 8. Community [Not Prescribed] Radio Station 9. Low Power [Not Prescribed] small range FM Radio Broadcasting 10. To be decided based on outcome of Digital Radio consultation process on Digital Radio Broadcasting Broadcast Policy, which is under progress separately. (5) The applicant entity shall always have Indian management control with majority representatives on the Board, as well as Key 165managerial personal, Editorial staff, the Chief Executive of the company being resident Indian citizens. (6) The applicant entity shall intimate the names, address and details of a person, not being resident of India, who are in the Board of Directors of the company or proposed to be included in the Board of Directors of the company. (7) The applicant entity shall disclose the name, address and details of every foreigner/ NRI to be employed/ engaged in the company/ LLP either as a consultant or by any other designation for more than 60 days in a year, or, as a regular employee. (8) The Company Directors, Managing Director, Chief Executive Officer (CEO) and Chief Financial Officer (CFO) shall be required to be security cleared from the Ministry of Home Affairs. (9) The applicant entity shall intimate the Central Government regarding change in the directorship, key executives, within 15 days of effect of such change. (10) The applicant entity shall have a commercial presence in India with its principal place of business in India. (b) Eligibility Conditions specific to Uplinking of a Television Channel (1) The applicant company shall furnish, along with the application, the proposed name and logo of the channel along with the Trade Marks Registration certificate regarding the ownership of the name and logo, or the application furnished for such certificate. Provided that if the proposed name and logo are not owned or applied for by the company/LLP, then a No Objection Certificate (NOC) from the registered trademark owner, or from a person who has been using the trademark in any class for a continuous period of at least one year immediately prior to the date of NOC and has made an application for registration of the trademark in the relevant class for broadcast, shall be furnished by the company/LLP. 166(2) Majority of the Directors on the Board of Directors of the company and key managerial personnel and editorial staff of the entity shall be Indian residents. (3) The company/ LLP shall have complete management control, operational independence and control over its resources and assets and shall have adequate financial strength to operate the channel. (4) In respect of a news and current affairs channel, the management and control of the applicant company/LLP shall be in Indian hands and its Chief Executive Officer (CEO), and/ or Head of the channel known by any designation, shall be a resident Indian. (c) Eligibility Condition specific to Downlinking of a Television Channel (1) The applicant entity shall either own the channel, or shall enjoy, for the territory of India, exclusive marketing/ distribution rights for the same, inclusive of the rights to the advertisement and subscription revenues for the channel and shall submit proof at the time of the application. Provided that where the applicant entity shall have exclusive marketing/ distribution rights, it shall also have and habitually exercise in India, an authority to conclude contracts on behalf of the owner of the channel or habitually conclude contracts or habitually play the principal role leading to conclusion of contract by the owner of the channel and contracts are: (a) In the name of the owner of the channel; or (b) For the transfer of the ownership of, or for the granting of the right to use, property owned by the owner of the channel or that the owner of the channel has the right to use; or for the provision of services by the owner of the channel. 167(2) It furnishes technical details such as Nomenclature, Make, Model, Name and Address of the Manufacturers of the equipment/ instruments to be used for downlinking and distribution, the Block schematic diagram of the downlinking and distribution system and also demonstrate the facilities for monitoring and storing record for 90 days. (3) The downlinked channel shall have authorisation for broadcast by the regulatory or licensing authority of the country of transmission, proof of which, shall be submitted at the time of application. (d) Eligibility Conditions specific to News Agency for Television Channel(s): The company/ LLP shall have working journalists employed by it who are accredited with the Press Information Bureau (PIB) on behalf of the company/LLP. (e) Conditions for FM Radio Broadcasting 1) The applicant entity shall be an Indian Company, incorporated under the Companies Act, 1956 or 2013. Provided that the applicant entity is neither controlled by nor associated with any person or body or organisation, either directly or indirectly, and having interest in the following: a) A Trust, Society or Non-Profit Organisation; b) A religious body wherein a religious body refers to a body whose objectives are wholly or mainly of a religious nature or a body, which is controlled by a religious body or an associate of the religious body; c) A Political body, wherein a political body refers to a body whose objectives are wholly or mainly of a political nature, or a body affiliated to a political body, or a body corporate, which is an associate of a body corporate controlled, held by, operating in association or controlling a body of political nature as referred above; and 168d) An Advertising agency. Provided further that the applicant entity shall not be eligible if either it is having same management or is a holding company or a subsidiary company of any company either operating the same services in the same city or an applicant for the same service in the same city; Provided further that more than one Inter-Connected undertaking53 either operating the same services in the same city or an applicant for the same service in the same city shall not be eligible; Provided also that the applicant entity is not related to: a) Any company controlled by a person convicted of an offence involving moral turpitude or money laundering/drug trafficking, terrorist activities or declared as insolvent or applied for being declared insolvent; b) A company that has been debarred from taking part in any future bidding process. 2) The financial eligibility of the applicant entity shall be assessed based on the minimum net worth required as per the city category in each region as specified in Table 3.1. Region shall mean North or East or South or West region, comprising states/ union territories as under: North Region: J&K, Ladakh, Punjab, Himachal Pradesh, Haryana, Rajasthan, Delhi, Uttar Pradesh, Uttarakhand & Chandigarh. East Region: Arunachal Pradesh, Assam, Bihar, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura, West Bengal, Andaman & Nicobar Islands. 53The term “Inter Connected Undertakings” shall have the same meaning as assigned to it in the Monopolies and Restrictive Trade Practices Act, 1969 169South Region: Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, and Puducherry, Lakshadweep. West Region: Chhattisgarh, Goa, Gujarat, Madhya Pradesh, Maharashtra, Daman & Diu and Dadar and Nagar Haveli. Note: Illustration-I: For two or more C category cities in the same region, Net Worth of Rs. 1 crore is required. If the two C category cities are in two different regions, Net Worth of Rs. 2 crore is required. Illustration-II: Net Worth requirement for two or more B category cities in one region will suffice the net worth requirement for a combination of two or more B category or lower category cities [i.e. cities in C, D and J&K/ Ladakh/ NE (border) categories] also in the same region. Similarly, Net Worth requirement for other categories will be assessed. 3) The applicant entity shall indicate the category(ies) of city(ies) and the region(s) it desires to bid for at the time of bidding and its eligibility shall be determined accordingly. In case the applicant does not wish to intimate these details and wishes to have the option to take part in any or all categories in all the regions, the applicant entity must have the minimum net worth of Rs 10 Crore. 4) The cut-off date for determination of net worth shall be as mentioned in the Notice Inviting Applications (NIA). 5) The applicant entity shall submit the Net worth Certificate as per the proforma given at Schedule-II which should be certified by Statutory Auditors of the Company duly supported by certified accounts. It is further clarified that the net worth of only the applicant company shall be considered to determine the eligibility and the net worth of holding companies or subsidiaries or group 170companies or interconnected undertakings shall not be taken into account. 6) The existing Authorised Entities shall also be required to fulfil the net worth criteria and submit the Net worth Certificate. 7) The amount of One Time Entry Fee already paid to the Government shall not be taken as a tangible asset either in full or in part for the purposes of calculation of net worth. 8) The applicant entity shall be required to furnish the following information: (i) Names of Directors. (ii) Directorship or other executive positions held by the Directors in other companies/organizations with details of such companies/organizations. (iii) Names of the key executives, i.e. Chief Executive Officer, and Heads of Finance, Marketing and Creative Departments, if any in position. 9) All Directors on the Board of Directors of the Company, all key executives, CEO known by any designation, Head of the channel shall be resident Indians. 10) The company as well as all Directors on the Board shall be security cleared. The company shall take prior permission of the Government before effecting any change in the Board of Directors. 11) Authorisation shall be granted only in cases where equity held by the largest Indian shareholder is at least 51% of the total equity, excluding the equity held by Scheduled Banks and Public Financial Institutions as defined in the Section 4A of the Companies Act, 1956 or Section 2(77) of Companies Act 2013. The term largest Indian shareholder, used in this clause, shall include any or a combination of the following: 171(i) In the case of an individual shareholder, (a) The individual shareholder. (b) A relative of the shareholder within the meaning of Section 6 of the Companies Act, 1956 or Section 2(77) of Companies Act 2013. (c) A company/ group of companies in which the individual shareholder/Hindu Undivided Family (HUF) to which he belongs has management and controlling interest. (ii) In the case of an Indian company, (a) The Indian company (b) A group of Indian companies under the same management and ownership control. For this Clause, “Indian company” shall be a company, which must have a resident Indian or a relative as defined under Section 6 of the Companies Act, 1956 or Section 2(77) of Companies Act 2013/ Hindu Undivided Family (HUF), either singly or in combination holding at least 51% of the shares. Provided that in case of a combination of all or any of the entities mentioned in Sub-Clause (1) and (2) above, each of the parties shall have entered into a legally binding agreement to act as a single unit in managing the matters of the applicant company. 12) The ‘largest Indian shareholder’ as defined in Para 11 exercises management control over the entity. 13) The authorised entity may, with prior approval of the Ministry of Information and Broadcasting, be allowed to change the composition of the ‘largest Indian shareholder' subject to the condition that the shareholding of the ‘largest Indian shareholder’ does not reduce below 51% till a period of three years from the date on which all the channels allotted to the company holding permission stand operationalised. 172(f) Eligibility Conditions for Community Radio Station (CRS) (1) The following types of applicant entities shall be eligible for making an application for grant of authorisation for setting up Community Radio Stations in India: (i) ‘Not-for-Profit’ Community Based Organisations, viz: a. State Agriculture Universities (SAUs); b. Indian Council of Agricultural Research (ICAR) institutions; c. Krishi Vigyan Kendras; d. Autonomous Bodies; e. Civil Society Organisations; f. Voluntary Organisations; g. Registered Societies; h. Public Charitable Trusts; i. Organizations set up by Self Help Groups (SHGs); j. Farmer Producer Organizations (FPOs); Provided that the organisation shall have a proven record of at least three years of service to the local community at the time of application. Further, the CRS, to be operated by it, should be designed to serve the local community in its coverage area. In addition, it should have an ownership and management structure that is reflective of the community that the CRS seeks to serve. Also, the organisation must be a legal entity i.e. it should be registered under any such act relevant to the purpose and the registration, at the time of application, should be at least three years old. Provided also that Non-Government Organisations, registered societies and Public Charitable Trusts shall be registered on NITI Aayog’s NGO Darpan portal, and the applicant entity shall provide its Unique ID along with the application. 173(ii) Educational institutions. Provided that the following types of entities shall not be eligible for authorisation for setting up Community Radio Stations in India: a. Individuals; b. Political Parties and their affiliate organisations; [including students, women’s, trade unions and such other wings affiliated to these parties; c. Organisations operating with a motive to earn profit; d. Organisations expressly banned by the Union and State Governments; and e. Religious bodies. (2) The applicant entity shall always have Indian management control with majority representatives on the Board, as well as the Chief Executive of the entity being a resident Indian citizen. (3) The applicant entity shall obtain frequency assignment as per section 4 of the Telecommunications Act, 2023 and SACFA clearance, before commissioning the Community Radio Station. (g) Eligibility Conditions for Low Power Small Range FM Radio Broadcasting (1) The following shall be eligible for grant of service authorization for ‘Low Power Small Range FM Radio Broadcasting’: i. Individuals who are citizens of India and above eighteen years of age. ii. A company registered under the Companies Act 2013 including LLP and partnership firms. (2) The following shall not be eligible for grant of service authorization for ‘Low Power Small Range FM Broadcasting’: i. A person with an unsound mind and stands so declared by a competent court; 174ii. A person who is an un-discharged insolvent iii. A person convicted by a court of any offense, whether involving moral turpitude or otherwise. iv. Political Parties and their affiliate organizations; [including students, women’s, trade unions and such other wings affiliated to these parties] v. A company controlled by or associated with a political body; vi. A company controlled by or associated with a religious body; vii. A company that has been convicted by a court of any offense, whether involving moral turpitude or otherwise. (3) Proof of Property where Low Power Small Range FM Radio Service is intended to be operated i. For authorisation up to 30 days: The applicant entity shall be required to provide proof of right to use the land or property for which the low-power small-range FM radio broadcasting permission is being sought at the time of submitting initial application. ii. For authorisation up to 5 years: The applicant entity shall provide proof of ownership of the property/premises. In case the property is not owned by the applicant, the authorization of use of property shall be submitted on an annual basis. (h) Conditions for Digital Radio Broadcasting: To be decided based on outcome of consultation process on Digital Radio Broadcast Policy, which is under progress separately. 4. Provision of Broadcasting Services (1) Television Programming Services: The Authorised Entity, i.e. a Broadcaster, shall provide its channel to Distribution Service Providers for onward retransmission to the end consumer. In case of provision of services through the satellite media, the Authorised Entity shall obtain uplinking/ downlinking authorisation, 175as required, and abide by the prevalent Government rules, orders, directions, guidelines or regulations on the subject as amended from time to time, including Indian space policy, etc. for use of space segment and setting up of the Earth Station etc. The Authorised Entity shall also obtain clearance from SATCOM Monitoring Centre (SMC), apart from obtaining SACFA clearance. The clearance from other authorities, as may be applicable, shall also be obtained by the Authorised Entity. Use of other communication medium for provision of television channel to DSPs may be permitted as and when the policy for ground- based broadcasting (GBB) is notified by the Central Government. (2) Television Distribution Services: The Authorised Entity, i.e. a Distribution Service Provider (DTH/HITS), shall provide broadcasting distribution services using DTH/ HITS platform to the end consumer i.e. in case of DTH directly to end consumer and in case of HITS to end consumer either directly or via Local Cable Operator (LCO). Further, the Authorised Entity shall obtain required permissions for usage of satellite (including frequency spectrum) and abide by the prevalent Government rules, orders, directions, guidelines or regulations on the subject as amended from time to time, including Indian space policy, etc. for use of space segment and setting up of the Earth Station etc. The Authorised Entity shall also obtain clearance from SATCOM Monitoring Centre (SMC), apart from obtaining SACFA clearance. The clearance from other authorities, as may be applicable, shall also be obtained. (3) Radio Broadcasting Services: The Authorised entity i.e. the entity authorised to provide permitted services in respect of FM Radio Broadcasting, Community Radio Station, Low Power Small Range FM Broadcasting, Digital Radio Broadcasting shall carryout radio broadcasting in the allocated frequency band for provision of service to the end users. The authorised entity shall abide by the laid down 176procedure for Frequency Allocation by the Central Government. Further, the authorised entity shall pay applicable fee/royalty charge as prescribed by Wireless Planning and Coordination (WPC). Also, The Authorised Entity shall obtain clearance from SATCOM Monitoring Centre (SMC), apart from obtaining SACFA clearance. The clearance from other authorities, as may be applicable, shall also be obtained. 5. Processing Fee, Entry Fee, Bank Guarantee, Security Deposit and Renewal Fee: The details of processing fee, entry fee, bank guarantee, security deposit and renewal fee for various broadcasting (programming and distribution) services is listed in Schedule-III. 6. Process of Application to obtain the Service Authorisations (1) The Broadcasting (Television Programming and Distribution) Services (a) The applicant entity shall submit the application through online portal as specified by Ministry of Information & Broadcasting. (b) While submitting the application, the applicant entity may separately apply for each service authorisation in various service areas. (c) The online application shall be processed from the viewpoint of eligibility conditions and shall be subjected to clearance and approval by the Department of Space and Ministry of Home Affairs (MHA), as applicable. (d) The applicant entity shall pay applicable Non-Refundable Processing Fee as prescribed in Schedule-III along with the application for issue of authorisation on the prescribed online portal. 177(e) All kinds of fees and other dues payable to the Central Government shall be deposited in Bharat Kosh. (f) The grant of authorisation to the applicant entity shall be based on the claims, representations and submissions made by the applicant and duly certified by the authorised official/ company secretary/ statutory auditor of the entity. (g) The applicant entity is advised to ascertain their eligibility for the authorisations applied for, with utmost care and diligence. In case the applicant is found to be ineligible for the grant of authorisation sought by the applicant, the applicant shall be informed accordingly, and processing fee shall be forfeited. (h) The grant of authorisation to the applicant entity shall be subject to security clearance of the Board of Directors and key executives of the entity by the Ministry of Home Affairs (MHA). (i) The applicant entity shall make disclosure in its application of all its Shareholders, Loan Agreements and such other Agreements that are finalized. (j) The grant of authorisation shall be subject to fulfilment of all eligibility conditions and other requirements as under: The applicant entity pays the applicable authorisation fee for the first year as specified in Schedule-III. In case of spectrum use, the applicant entity pays the applicable fees/ royalty to the WPC and abides by all the terms and conditions laid down for the purpose by the Department of Space and WPC. In case of uplinking of a television channel, the applicant entity shall uplink only those television channels from the permitted teleport, which have been authorised by the 178Central Government, and stops uplinking a television channel as soon as authorisation for such channel is withdrawn or suspended by the Central Government, or on specific order of the Central Government to stop such uplinking for such time period as may be specified in that order; In case of use of satellite medium, the online application shall be subject to approval by the Department of Space. In case of use of Terrestrial Communication Medium (other than satellite), the entity shall broadcast only those television channels, which have been authorised by the Central Government, and stops broadcasting a television channel as soon as authorisation for such channel is withdrawn or suspended by the Central Government, or on specific order of the Central Government to stop such broadcasting for such time period as may be specified in that order; The entity shall be required to comply with the roll out obligation for operationalisation as specified in Schedule-IV. (k) The Central Government shall preferably, within 30 days of receiving clearance and approval of MHA and other authorities, and after satisfying itself that the applicant entity is fit for grant of authorisation, issue a Letter of Intent (LoI) requesting the entity to pay the applicable non-refundable entry fee and submit security deposit and requisite bank guarantee as mentioned in Schedule-III within the stipulated period. (l) After receipt of applicable non-refundable entry-fee, security deposit and bank guarantee by the Central Government, the applicant entity shall be granted authorisation by the Central 179Government for providing broadcasting (television programming) services. (m) For the grant of service authorisation, a unique authorisation number shall be generated in the format highlighting the authorised service, scope of service and service area. (n) On receipt of authorisation for providing broadcasting (programming and distribution) services, the authorised entity shall take appropriate steps to seek various clearances including SACFA clearance from WPC, as required before commencement of service. (o) If, at any time, any averment made or information furnished for obtaining the authorisation is found incorrect, the application and/ or the authorisation, if granted based on such application, may invite penalties and/ or cancellation/withdrawal as maybe deemed fit by the Central Government. All the fees paid till such date shall stand forfeited. The security deposit shall be refunded, and the bank guarantee shall be returned after adjustment of outstanding dues, if any. (2) The Broadcasting (Radio) Services (a) FM Radio Broadcasting i. The applicant entity shall submit the application through online portal as specified by Ministry of Information & Broadcasting. ii. The applicant entity shall deposit a onetime non-refundable processing fee of Rs 10,000 through Bharatkosh. iii. After completion of the process of application and fulfilling the terms and conditions of grant of service authorisation, for FM Radio Broadcasting the applicant entity shall be granted service 180authorisation under Section 3(1) of the Telecommunications Act, 2023. iv. Thereafter, the authorised entity shall be eligible to participate in the e-auction for a channel in a particular city. v. The successful bid amount arrived at through an ascending e- auction process, shall be treated as Non-Refundable One-Time Entry Fees (NOTEF). The Ministry of Information & Broadcasting (MIB) shall separately issue a Notice Inviting Application (NIA) including detailed Information Memorandum for e-auction, in due course, enabling the prospective bidders to participate, and also indicating the cities to be taken up for auction along with their respective reserve prices, roll out obligations and any other obligations and respective timelines for operationalisation of the channel(s). The information memorandum may also include any fee to be paid by the prospective bidders for participation in the e-auction process. The provisions set out in the NIA (or any other applicable laws, rules, regulations or other statutory provisions) are definitive and take precedence. vi. The ascending e-auction process for granting authorisation for channels shall consist of four Stages. Stage-I: Invitation stage, wherein prospective bidders submit their applications. Stage-II: Pre-qualification stage to include, screening of applications, publication of ownership details and pre- qualification test. It is clarified that the existing permission holders/ authorised entities shall also be required to satisfy the prescribed eligibility conditions to become eligible for participating in the auction. Stage-III: Auction stage, wherein only applicants qualifying in accordance with prescribed eligibility criteria will be allowed to 181participate in the auction process (for bidding for specific channels in different cities). Stage-IV: Final stage, where the final auction price shall be determined, successful bidder shall be declared, and the auction is closed. vii. The auction shall be undertaken city-wise and channel wise and the reserve price foreach city shall be set out upfront. Every pre- qualified bidder may bid for channel(s) in each city within the prescribed limit on ownership of channels for that city for each channel. viii. Earnest Money Deposit (EMD): Prospective bidders for a channel shall be required to furnish EMD, along with the application for pre-qualification. The EMD, which shall be 25% of the reserve price of that city per channel, may be in the form of a Bank Guarantee from a Scheduled Bank (as per the format specified by the Ministry) or in the form of a demand draft in favour of the authorised officer of the Ministry and payable at New Delhi/ Delhi. ix. Payment Methodology: i. Successful Bidders shall deposit 25% of the Successful Bid Amount as Bid Deposit within 5 calendar days of the close of the Auction, failing which the Earnest Money Deposit shall stand forfeited. ii. Successful Bidders shall deposit the balance amount (Successful Bid Amount Less Bid Deposit) within 15 calendar days of the close of the Auction, failing which its Earnest Money Deposit and its Bid Deposit shall stand forfeited. x. Blacklisting and Forfeiture: Any successful bidder, who fails to deposit the bid amount for any channel within the prescribed period, shall be disqualified from taking part in subsequent 182biddings for a period of five years. Further, the EMD shall also be forfeited. xi. Upon receipt of the Successful Bid Amount within the stipulated time, and fulfilment of other conditions as specified, the successful bidder shall be issued a Letter of Intent (LOI) to enable the entity to obtain frequency allocation, SACFA clearance, achieve financial closure and appoint all key executives, enter into agreements for successful operationalisation of the authorised channel(s). Successful Bidders shall obtain SACFA clearance and Frequency Allocation from the Wireless Planning and Coordination (WPC) as per the prescribed procedure. xii. If, at any time, any averment made or information furnished for obtaining the authorisation is found incorrect, the application and/ or the authorisation, if granted based on such application, shall invite penalties and/ or cancelation/withdrawal as maybe deemed fit by the Central Government. All the fees paid till such date shall stand forfeited. The security deposit shall be refunded, and the bank guarantee shall be returned after adjustment of outstanding dues, if any. (b) Community Radio Station (CRS) i. The applicant entity shall submit the application through online portal as specified by Ministry of Information & Broadcasting. ii. The applicant entity shall pay Non-Refundable Processing Fee of Rs. 2500 along with the application. iii. Based on the applications, the availability of frequency spot at the location proposed by the applicants in their respective applications shall be got assessed from WPC wing of Ministry of Communication, who should normally respond within a period of 3 months. 183iv. The geographical area (including the names of villages / institutions etc.) shall be clearly spelt out along with the location of the transmitter and antenna in the application form. v. Before considering their application for grant of authorisation, in case of Private institutions/ Organisations, requisite clearance from Ministries of Home Affairs, Defence shall be sought, which should normally be given within a period of 3 months by the respective Ministries. vi. Thereafter, the applications for grant of authorisation for setting up Community Radio Station shall be placed before An Inter- Ministerial Committee (IMC) under the Chairmanship of Secretary, Ministry of Information & Broadcasting. The decision of IMC shall be final. Based on the decision of IMC, a Letter of Intent (LoI) may be issued to eligible applicants for grant of authorisation on submission of performance bank guarantee (PBG) of Rs 25000/- from a scheduled bank in the format prescribed in Schedule-V. vii. The LOI holder shall submit PBG within the period prescribed in the LOI for grant of authorisation. Thereafter, the authorisation for setting up Community Radio Station shall be granted. The validity of authorisation shall be for a period of 10 years. In case of non- submission of PBG within the stipulated time, the LoI shall stand cancelled. viii. The authorised entity shall operationalise the CRS within a period of 6 months from the date of grant of authorisation. 7. Grant of Service Authorisations: (1) After completion of the process of application and fulfilling the terms and conditions of grant of service authorisation, the applicant entity shall be granted an under Section 3(1) of the 184Telecommunications Act, 2023 in the format prescribed at Schedule- VI. (2) The Central Government may, for reasons to be recorded in writing, refuse to grant service authorisation; Provided that every such refusal shall be communicated to the applicant entity along with reasons for refusal. (c) Low Power Small Range FM Radio Broadcasting i. The applicant entity shall submit the application through online portal as specified by Ministry of Information & Broadcasting. ii. The applicant entity shall deposit a onetime non-refundable processing fee of Rs 1000 for requirement of authorisation up to 30 days and Rs 10,000 per annum for requirement of authorisation up to 5 years through Bharatkosh. iii. After completion of the process of application and fulfilling the terms and conditions of grant of service authorisation, for FM radio broadcasting the applicant entity shall be granted service authorisation under Section 3(1) of the Telecommunications Act, 2023. (d) Digital Radio Broadcasting: To be decided based on outcome of consultation process on Digital Radio Broadcast Policy, which is under progress separately. 8. Validity Period (1) The validity period of various broadcasting services authorised by the Central Government are listed in Table 8.1 below: Table 8.1: Validity Period for Authorised Entities Sl. No. Authorised Services Validity Period Remarks (in years) Broadcasting (Television Programming) Services 1851. Television Channel Broadcasting i. Satellite Based Broadcasting for a Television Channel a. Uplinking of a Television 10 Valid from the end of Channel* the month in which the channel becomes operational b. Downlinking of a Television 10 Valid from the end of Channel* the month in which the service authorisation is granted c. Uplinking and Downlinking 10 of a Television Channel ii. Ground Based Broadcasting To be for a Television Channel provisioned when notified by the Central Government 2. News Agency for Television 5 For 5 financial years Channel(s) from end of the month in which the service authorisation is granted 3. Teleport/ Teleport Hub 10 4. Coverage of Live Event by 1 Foreign Channel Broadcasting (Television Distribution) Services 5. DTH 20 6. HITS 10 Broadcasting (Radio) Services 1867. FM Radio Broadcasting 15 Valid from the date of operationalisation of the channel 8. Community Radio Station 10 9. Low Power small range FM • Up to 30 days Radio Broadcasting • Up to 5 Years 10. Digital Radio Broadcasting To be provisioned when notified by the Central Government *Note: Authorisation for downlinking a television channel, which is uplinked from other country, shall be ten years from the end of month in which the authorisation is issued. Provided that in respect of a television channel that has been uplinked from India, the authorisation for downlinking shall be co- terminus with the authorisation for uplinking of the television channel. 9. Non-exclusivity clause: The service authorisations will be granted on a non-exclusive basis i.e. without any restriction on the number of entrants for provision of any service in the respective Service Area as applicable. 10. Conditions for assignment and use of Spectrum: (1) Grant of service authorisation does not confer any right to assignment and use of spectrum for which separate specific Frequency Assignment shall be required. (2) The Wireless Planning & Coordination (WPC) Wing of the Department of Telecommunication, Ministry of Communication shall issue SACFA clearance to the Authorised Entity as soon as possible after receiving the application of the same and shall assign frequency as per Section 4 of the Telecommunications Act, 2023, subject to 187fulfilment of the necessary terms and conditions as may be required by WPC. (3) The authorised entity shall pay the applicable fee/ royalty charges for use of frequency spectrum as prescribed by WPC. 11. Migration of Existing service providers of old regime in the new Authorisation Framework: The migration of existing service providers of old regime to the new Authorisation Framework shall be carried out as per Section 3(6) of the Telecommunications Act, 2023. The provisions with respect to existing authorised entity for migration in new authorisation framework are as under: (1) Notwithstanding anything contained in the terms and conditions of permission issued earlier, these terms and conditions will also be applicable to the existing permission holders. (2) A licensee/ permission holder, whose validity is nearing expiration shall need to mandatorily migrate to the new authorisation regime for continuity of its operations. The renewal of services may not be permitted in the extant framework, after notification of appointed date and the Rules. (3) Migration to new authorisation regime may be taken in following manner: i. An online application requesting for migration may be provided, along with surrender/ submission of the existing license/ permission. This process shall not incur any additional fees, such as processing or entry fees etc. In such a scenario, the remaining validity period of the existing service provider shall be migrated to the authorisation framework. All terms and conditions for service provisioning shall be governed by the rules made under the Telecommunications Act, 2023. OR 188ii. Authorisation may be valid for the prescribed validity period for the respective service authorisations from the effective date of Authorisation, irrespective of the validity period of the License/ permission already held. On migration, the Authorised Entity shall be liable to pay the differential Entry Fee i.e. Entry Fee applicable for the service authorisation in which the Authorised Entity is getting migrated minus the Entry Fee (for balance validity period) already paid by the licensee/permission holder in the old regime for the service authorisation(s) getting migrated. iii. Further, the Minimum Authorisation Fee, as applicable, for an old licensee/permission holder migrating to new regime shall be calculated based on the Entry Fee specified under the new regime. For migrating licensee, for authorisations with ‘Nil’ Entry Fee, the Minimum Authorisation Fee shall be as prescribed under the new service authorisation. iv. In case an existing permission holder, holding radio frequency/ spectrum acquired through auction (e.g. FM radio operator) or for which market determined price has been paid, migrates to the service authorisation granted under the Telecommunications Act, 2023, such spectrum shall continue to be valid till its validity on the terms and conditions on which it had been assigned. v. In case an existing Licensee/permission holder, holding administratively assigned radio frequency/spectrum (e.g., teleport, television channel, DTH, HITS, CRS etc.) migrates to the service authorisation granted under the Telecommunications Act, 2023, such spectrum shall continue to be valid on the terms and conditions on which it had been assigned, for a period of five years from the appointed day of section 4(8) of the Telecommunications 189Act, 2023, or the date of expiry of such spectrum, whichever is earlier. [Note: To be finalised based on the outcome of the ongoing Consultation] 12. Security Conditions: (1) All foreign personnel likely to be deployed by the Authorised Entity for installation, operation and maintenance of the Authorised Entity’s network shall be security cleared by the Government of India prior to their deployment. The security clearance will be obtained from the Ministry of Home Affairs, Government of India, who will follow standard drill in the matter. (2) The Central Government shall have the right to take over the Service, equipment and networks of the Authorised Entity or revoke/ terminate/ suspend the Authorisation either in part or in whole of the Service area in the interest of national security or in case of emergency or war or low intensity conflict or any other eventuality in public interest as declared by the Government of India. Any specific orders or direction from the Government issued under such conditions shall be immediately applicable to the Authorised Entity without loss of time and shall be strictly complied with. Further, the Central Government reserves the right to keep any area out of the operation zone of the service if implications of security so require. Provided that any taking over or suspension of authorisation, issuance of an order and exclusion of an area, as described above shall neither be a ground of extension of Authorisation validity period or expansion of area in different corner or reduction of duly payable fee. However, the Authorisation Fee payable to the Central Government will not be required to be paid for the period for which the operation of the authorisation remains suspended in whole. 190Annexure III: Draft Terms and Conditions to be included in the Broadcasting (Television Programming, Television Distribution and Radio) Services Rules INDEX Part Description Page No. Part-I Chapter 1: COMMON TERMS AND CONDITIONS FOR THE 192 BROADCASTING (TELEVISION PROGRAMMING, TELEVISION DISTRIBUTION AND RADIO) SERVICES Specific Terms and Conditions for Authorisations Part-II THE BROADCASTING (TELEVISION PROGRAMMING) 211 SERVICES Chapter 2.1: Television Channel Broadcasting Section I: Satellite Based Broadcasting for a Television Channel a) Uplinking of a Television Channel b) Downlinking of a Television Channel c) Uplinking & Downlinking of a Television Channel Section II: Ground Based Broadcasting of a Television Channel Chapter 2.2: News Agency for Television Channel(s) Chapter 2.3: Teleport/ Teleport Hub Chapter 2.4: Coverage of Live Event by Foreign Channel Chapter 2.5: Other Services related to Broadcasting (Television Programming) Services Part-III THE BROADCASTING (TELEVISION DISTRIBUTION) 232 SERVICES Chapter 3.1: Direct to Home (DTH) Chapter 3.2: Headend in the Sky (HITS) Chapter 3.3: Terms and Conditions for Internet Protocol Television (IPTV)) Services Part-IV THE BROADCASTING (RADIO) SERVICES 262 Chapter 4.1: FM Radio Broadcasting Chapter 4.2: Community Radio Stations Chapter 4.3: Low Power Small Range FM Radio Broadcasting Chapter 4.4: Digital Radio Broadcasting , *Note: For IPTV services, only the Terms and Conditions to be included in the Rules have been drafted. 191CHAPTER 1: COMMON TERMS AND CONDITIONS FOR THE BROADCASTING (TELEVISION PROGRAMMING, TELEVISION DISTRIBUTION AND RADIO) SERVICES INDEX S.No. Description Page No. Common Terms and Conditions 1. Definitions 193 2. Assignment of Spectrum 193 3. Equity Holding in Other Companies 193 4. Renewal of Authorisation 197 5. Modifications in the Terms and Conditions of 199 Authorisation 6. Non-Exclusivity Clause 199 7. Restrictions on Transfer of Service Authorisation 200 8. Provision of Service 201 9. Reporting Requirements with respect to Eligibility 202 Conditions 10. Adherence to Programme Code and Advertisement 203 Code 11. Financial Conditions 203 12. Commercial Conditions 204 13. Technical Conditions 204 14. Disaster/ Emergency/ Public Utility Services 205 15. Operating Conditions 205 16. Confidentiality 206 17. Force Majeure 208 18. Dispute with Other Parties 209 19. Dispute Resolution and Jurisdiction 209 20. Contravention of Rules/ Violation of Programme Code 210 and Advertisement Code 192CHAPTER 1: COMMON TERMS AND CONDITIONS 1. Definitions– In these rules, unless the context otherwise requires, the words and expressions used are defined in Schedule-I. Further, the words and expressions not defined in Schedule-I but defined in the Telecommunications Act, 2023 shall have the meanings respectively assigned to them in the said Act. 2. Assignment of Spectrum: As per Section 4(4) of the Telecommunications Act, 2023, spectrum assignments for Broadcasting (Programming and Distribution) services shall be done through administrative process. The Authorised Entity shall adhere to the terms and conditions laid down by Department of Space and WPC Wing, Ministry of Communications including payment of applicable fee/ royalty to WPC Wing for use of spectrum. 3. Equity Holding in Other Companies (1) The Broadcasting (Television Programming) Services (a) The Ministry shall have the right to suspend the authorisation of a channel for a specified period or cancel its authorisation in public interest or in the interest of national security to prevent its misuse, including where the authorised entity is found to have misused the authorisation by passing on or enabling or contracting out to any other person the operations or any other core functions/activities of the channel through an explicit or implicit agreement or arrangement, or there is a substantive change in ownership of the authorised entity leading to complete change in the management control of the authorised entity without prior permission of the Ministry, and the authorised entity shall be required to immediately comply with any directives of the Ministry. 193Provided that an authorised entity having authorisation of a service, within 15 days of change of its shareholding pattern or partnership pattern or FDI pattern, submit the details of the revised pattern and/or names/details of all the investors/partners on the online portal as specified by the Ministry of Information and Broadcasting, in the prescribed format as prescribed under section 44 of the Telecommunications Act, 2023. Change in shareholding/partnership pattern shall include change involving 10% or more in the equity holding/partnership share by any individual or an entity. (2) The Broadcasting (Television Distribution) Services (a) For DTH service authorisation i. The Authorised Entity shall not allow Broadcasting Companies and/or Cable Network Companies to collectively hold or own more than 20% of the total paid up equity in its company at any time during the authorisation period. The authorised entity shall submit the equity distribution in the prescribed proforma specified in Schedule-VII, once within one month of start of every financial year. The Government may call for details of equity holding of the authorised entity at such times as considered necessary. ii. The authorised entity shall not hold or own more than 20% equity share in a broadcasting and/or Cable Network Company. The authorised entity shall submit the details of investment, every year once, within one month of start of that financial year. The Government may call for details of investment made by the authorised entity in the equity of other companies at such times as considered necessary. 194(b) For HITS service authorisation i. Broadcasting Company(ies) and/or company(ies) having authorisation for DTH services shall not be allowed to collectively hold or own more than 20% of the total paid up equity in the company at any time during the authorisation period. Simultaneously, the authorised entity for HITS services shall not hold or own more than 20% equity share in a broadcasting company and/or company having authorisation for DTH service. ii. Further, any entity or person holding more than 20% equity in a company having authorisation for HITS services shall not hold more than 20% equity in any other Broadcasting Company(ies) and/or DTH company and vice-versa. This restriction, however, shall not apply to financial institutional investors. However, there shall not be any restriction on equity holdings between a company having authorisation for HITS service and a MSO/cable operator company. (c) Any change in the equity structure of the authorised entity as well as amendment to shareholders agreement, wherever applicable, shall be intimated to the Central Government as prescribed under section 44 of the Telecommunications Act, 2023 and any such change shall only be carried out in consultation and with prior approval of the Central Government. (d) While determining the shareholding of an entity or person as mentioned above, both its direct and indirect shareholding shall be included. The principle and methodology to determine the level of indirect holding shall be as prescribed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry from time to time. 195(3) The Broadcasting (Radio) Services FM Radio Broadcasting (a) If during the currency of the authorisation period, government policy on FDI/FII is modified, the authorised entities shall be obliged to conform to the applicable terms and conditions as amended from time to time within a period of six months from the date of such notification, failing which the entity shall be treated as noncompliant for Service Authorisation, and shall be liable for punitive action. (b) An authorised entity, whether with or without foreign investment, shall not be permitted to change the ownership pattern through transfer of shares of the majority shareholders/promoters to any new shareholders without the written permission of the Ministry of Information & Broadcasting. The term majority shareholders/promoters shall be construed to mean the persons constituting the ‘largest Indian shareholder’ as specified under the Companies Act, 1956 or 2013. (c) The authorised entity may, with prior approval of the Ministry of Information and Broadcasting, be allowed to change the composition of the ‘largest Indian shareholder' subject to the condition that the shareholding of the ‘largest Indian shareholder’ does not reduce below 51% till a period of three years from the date on which all the channels allotted to the entity granted service authorisation stands operationalised. (d) The authorised entity may, with prior approval of the Ministry of Information and Broadcasting, dilute the total shareholding of the constituents of the ‘largest Indian shareholder’ of the company as it existed at the time of submission of bids to a level below 51% only after a period of three years from the date on which all the channels 196allotted to the entity granted service authorisation stands operationalised. This will be further subject to the condition that the revised ownership pattern has a ‘largest Indian shareholder’ with a legally binding agreement amongst its constituents in compliance of the prescribed eligibility conditions. (e) Any restructuring of the entity/reorganization of Radio Broadcasting (FM/Digital) authorisations between different holding entities/ subsidiaries/ interconnected undertakings/ entities with same management may be done only with prior approval of the Central Government. Provided that the entities holding the service, authorisation shall continue to conform to the prescribed eligibility conditions. 4. Renewal of Authorisation The Broadcasting (Programming and Distribution) Services (1) The details of renewal of service authorisations and its applicable fees for Broadcasting (Programming and Distribution) Services are listed in Table 5.1. (2) The basic terms and conditions for renewal of the authorisation are listed as under: (i) The authorised entity shall apply for renewal of authorisation at least three months prior to the end of the month in which the previous authorisation is due to expire, through online portal as prescribed by Ministry of Information and Broadcasting along with the applicable renewal fees specified in Table 5.1. (ii) The application for renewal of service authorisation shall be subject to the fulfilment of the prescribed eligibility conditions 197as prescribed in the terms and conditions of service authorisation. (iii)The authorised entity applying for renewal of authorisation shall not be found guilty of violation of terms and conditions of authorisation, including the violation of Programme Code of Advertisement Code on five or more occasions during the period of authorisation. Table 5.1: Renewal Period (in years) and Fees (in ₹) for Renewal of Service Authorisations Sl. Authorised Entities Renewal Period Renewal Fee No. (in years) (in ₹) Broadcasting (Television Programming) Services 1. Television Channel Broadcasting i. Satellite Based Broadcasting for a Television Channel a. Uplinking of a Television 10 10,000 per channel Channel b. Downlinking of a Television 10 10,000 per channel channel c. Uplinking and Downlinking 10 20,000 per channel of a Television Channel ii. Ground Based Broadcasting To be provisioned when notified by the for a Television Channel Central Government 2. News Agency for Television 5 10 thousand Channel(s) 1983. Teleport/ Teleport Hub 10 10 thousand 4. Coverage of Live event by [Not Prescribed] foreign channel Broadcasting (Television Distribution) Services 5. DTH 10 [Not Prescribed] 6. HITS [Not Prescribed] Broadcasting (Radio) Services 7. FM Radio Broadcasting [Not Prescribed] 8. Community Radio Station 5 [Not Prescribed] 9. Low Power small range FM [Not Prescribed] radio channel 10. Digital Radio Broadcasting To be decided 5. Modifications in the Terms and Conditions of Service Authorisation The Central Government may, at any time, amend the rules containing the terms and conditions of the Service Authorisation, if in the opinion of the Central Government it is necessary or expedient to do so in public interest or in the interest of the security of the State or for proper conduct of the Broadcasting (Programming and Distribution) Services. 6. Non-Exclusivity Clause The service authorisations shall be granted on a non-exclusive basis i.e. without any restriction on the number of entrants for provision of any service in the Service Area as applicable. 1997. Restrictions on Transfer of Service Authorisation (1) The Authorised Entity shall not, without the prior written consent of the Central Government as described below, either directly or indirectly, assign or transfer the Service Authorisation in any manner whatsoever to a third party or enter into any agreement for sub-authorise and/or partnership relating to any subject matter of the Authorisation to any third party either in whole or in part i.e. no sub leasing/partnership/third party interest shall be created. (2) For provision of the service by the authorised entity, the authorised entity may appoint or employ franchisee, agents, distributors and employees. (3) The Central Government shall have the right to direct the authorised entity to warn, penalize or terminate the services of the franchisee or agent or distributor or employee (servant), after considering any report of conduct or antecedents detrimental to the security of the nation. The decision of the Central Government in this regard shall be final and binding and, in any case, the Authorised Entity shall bear all liabilities in the matter and keep the Central Government indemnified for all claims, cost, charges or damages in this respect. (4) Mergers, demergers or acquisitions, or other forms of restructuring shall be subject to the Rules notified under section 3(5) of the Telecommunications Act, 2023. (5) Further, the Authorised Entity may transfer or assign the Service Authorisation with prior written approval of the Central Government, in the following circumstances, and if otherwise, no compromise in competition occurs in the provisions of Telecommunication Services: 200(a) When transfer or assignment is required in accordance with the Rules on creation of security Interest notified by the Central Government under section 45 of the Telecommunications Act, 2023; (b) Whenever amalgamation or restructuring i.e. merger or demerger is sanctioned and approved by the Tribunal as per the law in force; in accordance with the provisions; more particularly Sections 230 to 233 of Companies Act, 2013; provided that scheme of amalgamation or restructuring is formulated in such a manner that it shall be effective only after the written approval of the Central Government for transfer/merger of Authorisations as per the Rules notified under section 3(5) of the Telecommunications Act, 2023. 8. Provision of Service (1) The Authorised Entity shall make its own arrangements for all infrastructure involved in providing the service and shall be solely responsible for the installation, networking, operation and commissioning of necessary infrastructure, equipment and systems, treatment of user complaints, issue of bills to its users, collection of revenue, attending to claims and damages arising out of its operations etc. However, the Authorised Entity may share the infrastructure as permitted under the operating conditions. (2) The Authorised Entity shall follow the measures notified by the Central Government under Section 21 of the Telecommunications Act, 2023 in respect of the procurement of equipment for provisioning of broadcasting services only from trusted sources. (3) The Authorised Entity shall follow the measures prescribed by the Central Government under Section 22 of the Telecommunications Act, 2023 wherein the authorised entity shall not use any equipment, which are identified as unlawful and/ or render network security vulnerable. Also, the authorised entities of broadcasting 201(programming and distribution) services shall adhere to TRAI Act, 1997 and its amendments issued from time to time and all related regulations/ directions/ laws / rules/ orders and guidelines on the subject. (4) The Authorised Entity shall ensure compliance to the regulations on Quality of Service (QoS), as prescribed by the TRAI from time to time. The responsibility of ensuring end-to-end QoS shall be that of the Authorised Entity. (5) The Authorised Entity shall intimate to the Central Government well in advance before the proposed date of commencement of any broadcasting service in any Service Area containing the details of network and required facilities for monitoring of the service installed by the Authorised Entity. (6) The Authorised Entity shall intimate to the Central Government and Regulatory Bodies of the commencement of Broadcasting (Programming and Distribution) Service within 15 days of such commencement. (7) Compliance to the scope of the authorisation and requisite monitoring facilities, wherever applicable, shall be demonstrated to the Central Government within 90 days from the date of commencement of service by the Authorised Entity. 9. Reporting Requirement with respect to Eligibility Conditions (1) The Authorised Entity shall submit compliance report regarding compliance of FDI norms and security conditions as per the applicable terms and conditions specified from time to time by the Central Government. 202(2) The Authorised Entity shall also ensure that any change in shareholding shall be subject to all applicable statutory permissions under Laws of India. (3) Change in the name of Authorised Entity, as per the provisions of the Indian Companies Act, 1956 or 2013 shall have to be intimated to the Central Government in writing along with certified copy of the name change certificate within 30 days from the date of issue of such certificate by Registrar of Companies. In case the Authorised Entity is not covered under the Indian Companies Act, 1956 or 2013, the change in the name of the Authorised Entity shall be as certified by the Chartered Accountant/ Cost Accountant. 10. Adherence to Programme Code and Advertisement Code (1) The Authorised Entity shall ensure adherence to the Programme Code and Advertisement Code as laid down under the Cable Television Networks (Regulation) Act, 1995 and the Rules framed thereunder, or any other code made applicable. (2) Adherence to any other Code/ Standards, Guidelines/ Restrictions prescribed by the Central Government for regulation of content on television channels from time to time. (3) The Authorised Entity shall ensure that the subscribers of the service do not have access to any pornographic channel or to secret/ anti-national messaging and the like through the Distribution Service platform. If the Authorised Entity fails to do so, the Service Authorisation shall be revoked and the entity shall be disqualified to hold any such authorisation in future for a period of five (5) years, apart from liability for punishment under other applicable laws. 11. Financial Conditions: The details of Processing Fee, Entry Fee, Authorisation Fee, Bank Guarantee, Security Deposit and other charges are specified in Schedule-III. 20312. Commercial Conditions The Authorised Entity shall charge the tariffs for the Service as per the Tariff orders/ regulations/ directions/ decisions issued by TRAI from time to time. The Authorised Entity shall also fulfil requirements regarding publication of tariffs, notifications and provision of information as directed by TRAI through its orders/ regulations/ directions issued from time to time as per the provisions of TRAI Act, 1997 as amended from time to time. 13. Technical Conditions (1) The Authorised Entity may provide the Broadcasting (Programming and Distribution) services using any technology as per prescribed standards in the service area as per scope of services under the Authorisation(s). However, in case the Authorised Entity obtains frequency/ spectrum, the use of technology shall be governed by the terms and conditions of the assignment of spectrum. (2) The Authorised Entity shall provide the details of the technology proposed to be deployed for operation of the service to the Central Government. (3) For providing the Service, the Authorised Entity shall utilize any type of equipment and product that meet TEC standards, wherever made mandatory by the Central Government from time to time. In the absence of mandatory TEC standard, the Authorised Entity may utilize only those equipment and products which meet the Indian Standards/ International Standards. (4) The Authorised Entity shall be responsible to ensure that the Customer Premises Equipment (CPE) is operated in accordance with the terms and conditions of the Authorisation and the associated rules and relevant instructions/ directions/ orders issued by Central Government/ TRAI. 204(5) The Authorised Entity shall have the right to undertake the sale, hire, purchase, lease or rent of the Customer Premises Equipment (CPE). Users shall be given the option to obtain the user terminals from any source meeting the standards prescribed in Clause 4 above. 14. Disaster/ Emergency/ Public Utility Services The Authorised Entity shall follow the guidelines/ directions/ standard operating procedures as may be prescribed for the disaster management/ emergency response services or any other instruction issued by the Central Government in this regard from time to time. 15. Operating Conditions (1) User Registration and Provision of Service (a) The Authorised Entity shall register demand/ request for the Broadcasting (Programming and Distribution) service without any discrimination from any user, at any place in the service area for the service(s) authorised and provide the service, unless otherwise directed by the Central Government. (b) The Authorised Entity shall not in any manner discriminate between users and provide services on the same commercial principle. The Authorised Entity shall clearly define the scope of Service to the user(s) at the time of entering into contract with such user(s). Before commencement of Service in an area, the Authorised Entity shall notify and publicise the address/ URL where any user can register demand/ request for Broadcasting (Programming and Distribution) Service. Any change of this address/ URL shall be duly notified by the Authorised Entity. Provided that nothing contained herein will affect or prejudice the rights of the Authorised Entity to carry out a check on credit worthiness of applicants for its services. 205(2) Obligations imposed on the Authorised Entity (a) The provisions of the Telecommunications Act, 2023, shall be applicable to the Authorised Entity. (b) The Authorised Entity shall furnish all necessary means and facilities as required for the public emergency or public safety as prescribed in Section 20(2) of the Telecommunications Act, 2023 whenever occasion so demands. Nothing provided and contained anywhere in the Authorisation shall be deemed to affect adversely anything provided or laid under the provisions of the Telecommunications Act, 2023 or any other law on the subject in force. (3) Right to Inspect (a) If considered necessary, for reasons to be recorded in writing, the Central Government may cause inspection of the physical premise/ location, to ascertain the veracity of the claims made in the application and the authorised entity shall allow such inspection. (b) The Central Government or its authorized representative, shall have the right to assess and inspect sites and broadcasting equipment(s) used for extending the service. The Authorised Entity will provide the necessary facilities for monitoring of the system in the Authorised Service Area, as required by the Central Government or its authorized representative(s). The inspection will ordinarily be carried out after reasonable notice except in circumstances when giving such a notice will defeat the very purpose of the inspection. 16. Confidentiality (1) Subject to terms and conditions of the authorisation, the Authorised Entity shall take all necessary steps to safeguard the privacy and 206confidentiality of any information about a third party and its business to whom it provides the Service and from whom it has acquired such information by virtue of the Service provided and shall use its best endeavours to secure that: (a) No person acting on behalf of the Authorised Entity, or the Authorised Entity divulges or uses any such information except as may be necessary while providing such Service to the Third Party; and (b) No such person seeks such information other than is necessary for the purpose of providing Service to the Third Party. Provided the above para shall not apply where: (i) The information relates to a specific party and that party has consented in writing to such information being divulged or used, and such information is divulged or used in accordance with the terms of that consent; or (ii) The information is already open to the public and otherwise known. (iii) The Authorised Entity shall take necessary steps to ensure that the Authorised Entity and any person(s) acting on its behalf observe confidentiality of user’s information. (iv) The Authorised Entity shall, prior to commencement of Service, confirm in writing to the Central Government that the Authorised Entity has taken all necessary steps to ensure that it and its employees shall observe confidentiality of user’s information. 20717. Force Majeure (1) If at any time, during the currency of authorisation, the performance of any obligation either in whole or in part by any party is prevented or delayed, by reason of war, hostility, acts of enemy, civil commotion, sabotage, fire, flood, act of state or centre, explosion, epidemic, quarantine restriction, strikes materially affecting the performance of any obligations of affected party, or act of God (all or any of these hereinafter referred to as Force Majeure Event), neither party shall, by reason of such Force Majeure Event be entitled to terminate the service authorisation, nor shall either party have any claim for damages against the other, in respect of such non- performance or delay in performance provided notice of happenings of any such Force Majeure Event is given by either party to the other, within 21 days from the date of occurrence thereof. Provided further that services under currency of authorisation shall be resumed as soon as practicable, after such Force Majeure event comes to an end or ceases to exist. The decision of the Government of India as to whether the services may be so resumed or not, shall be final and conclusive. (a) If the broadcast of the authorised entity remains discontinued due to such Force Majeure event for more than two months, the parties shall meet and discuss the future course of action. (b) The Government of India shall not be obliged to grant any rebate in Annual Fee on account of Force Majeure event referred to above, where the Permission Holder decides to continue the broadcast. Provided, however, the Government of India may at its discretion allow rebate in appropriate case in case the broadcast cannot be continued, even after two months of the occurrence of the event. 20818. Disputes with Other Parties In the event of any dispute between the authorised entity and any party other than the Central Government (including in relation to the authorisation and/or Broadcasting services, etc.) due to any reason whatsoever, it shall be the sole liability of the authorised entity to resolve such dispute amicably or otherwise with the other party and the Central Government shall have no liability whatsoever in this regard. Further, the authorised entity shall undertake to fully indemnify and keep the Central Government harmless in respect of any action, claim, suit, proceeding, damage or notice to/against the Government for any act of omission or commission on the part of the authorised entity, its agents, employees, representatives or servants. Provided that if any such third-party dispute arises on account of no observance or breach of any rules or regulations by the authorised entity as provided, the Government shall also have the right to take any action against the authorised entity as provided herein. 19. Dispute Resolution and Jurisdiction (1) Dispute resolution shall be as per the provisions of the Telecommunications Act, 2023 and Telecom Regulatory Authority of India Act, 1997 as amended from time to time or such other laws applicable to resolution of such dispute. (2) Subject to section 41 of the Telecommunications Act, 2023 the Court at New Delhi shall have the jurisdiction over all disputes. 20920. Contravention of Rules/ Violation of Programme Code or Advertisement Code (1) The cases of contravention of these Rules shall be governed by the provisions contained in Chapter VIII (Adjudication of Certain Contraventions) of the Telecommunications Act, 2023. (2) For the violation of the Programme Code or Advertisement Code, an Authorised Entity, shall be governed by the Cable Television Networks (Regulation) Act, 1995 and the rules made thereunder. 210PART-II: DRAFT SPECIFIC TERMS AND CONDITIONS OF THE BROADCASTING (TELEVISION PROGRAMMING) SERVICES INDEX Chapter Description Page No. 2.1 Television Channel Broadcasting 212 i. Satellite Based Broadcasting of a Television Channel a) Uplinking of a Television Channel b) Downlinking of a Television Channel c) Uplinking and Downlinking of a Television Channel ii. Ground Based Broadcasting of a Television Channel 2.2 News Agency for Television Channel(s) 219 2.3 Teleport/Teleport Hub 220 2.4 Coverage of Live Event by Foreign Channel 223 2.5 Other services related to Broadcasting (Television 224 Programming) Services Section-I: Purchase/ Hiring and use of SCG equipment Section-II: Live Telecast by a news and current affairs channel Section-III: Live Telecast of an event by a non-news and current affairs channel Section-IV: Change of Name and Logo of a television channel Section-V: Change of Satellite/ Teleport Section-VI: Intimation for change of language/ mode of transmission etc. Section-VII: Change of Category of a Television channel Section-VIII: Change in Operational Status 211CHAPTER 2.1: TELEVISION CHANNEL BROADCASTING UPLINKING OF A TELEVISION CHANNEL 1. Operational Status: The authorised entity shall, on operationalisation of a television channel, inform the Central Government or its specified agency regarding the operational status along with all its technical parameters. 2. Special conditions for uplinking a satellite television channel (1) The authorised entity shall in addition to the above-mentioned conditions also comply with the following: (a) Uplinking may be done in the Frequency Band specified by the authorised entity, after due approval of WPC wing, Ministry of Communication and other concerned authorities, subject to the further condition that uplinking in any band (other than C band) shall only be in encrypted mode; (b) The authorised entity shall keep record of the content uplinked for a period of 90 days and produce the same before any agency of the Central Government, as and when required. (c) The authorised entity shall furnish such information, as may be required by the Central Government from time to time. (d) The authorised entity shall provide necessary monitoring facility, at its own cost, for monitoring of programmes or their content by the representatives of the Ministry of Information & Broadcasting or any other Central Government agency as and when required. (e) The terms and conditions laid down by Department of Space and WPC Wing, Ministry of Communications including payment of applicable fee/ royalty to WPC Wing for use of spectrum. 2123. Transfer of authorisation of a Television Channel (1) The authorisation of a television channel may be transferred by an authorised entity only with prior approval of the Central Government. (2) Transfer of authorisation of a television channel shall be permitted only under the following situations: (a) Merger/demerger/amalgamation is duly approved by the Court/Tribunal in accordance with the provisions of the Companies Act, 1956 or 2013 or the Limited Liability Act, 2008, and the authorised entity files a copy of the order of the Court/ Tribunal sanctioning the said scheme; (b) Transfer of business or undertaking in accordance with the provisions of applicable law, and the authorised entity files a copy of the agreement/ arrangement executed between itself and the transferee entity; (c) Transfer within Group Company, and the entity files an undertaking stating that the transfer is within the Group Companies. Explanation 1: "Group Company" in relation to a company means a company, which is under the same management and/or has the same promoters as the other company or over which that other company exercises significant influence or control and shall also include an associate company, subsidiary company, holding company or a joint venture company. Explanation 2: For the purpose of this clause significant influence means control of at least 20% of the total paid up share capital or having the right to appoint at least one third of the Board of Directors by way of agreement or otherwise. (d) The transfer of channel shall be subject to fulfilment of following conditions: 213(i) The new entity is eligible as per the eligibility conditions under the terms and conditions of Grant of Authorisation, including the net worth and the entity and its Directors/Designated Partners are security cleared. (ii) The new entity undertakes to comply with all the terms and conditions of Grant of Authorisation. (iii) There shall be lock-in period of one year from the date of operationalization of a channel, during which the channel cannot be transferred to another unrelated entity. 4. Renewal of Authorisation (1) The authorised entity may apply for renewal of authorisation, at least three months prior to the end of the month in which the initial authorisation is expiring, on the online portal specified by the Ministry of Information & Broadcasting along with fees specified in Schedule-III. (2) The renewal of authorisation shall be for a period of ten years and shall be subject to conditions similar to that required for obtaining service authorisation; Provided that the channel is not found guilty of violation of terms and conditions of authorisation, including the violation of Programme Code or Advertisement Code on five or more occasions during the currency of authorisation. 5. Purchase/Hiring and use of SCG Equipment: The authorised entity shall be permitted to purchase/ hiring and use the SCG equipment within the scope of their authorisation, subject to separate permission for the same as per the terms and conditions under these rules. 2146. Live telecast: The entity authorised for uplinking of a Television Channel (News and Current affairs/ Non-news and Current Affairs) shall be permitted to carryout Live telecast of event(s) using either SCG equipment or ECG service within the scope of their authorisation, subject to separate permission/ registration for the same as per the terms and conditions under these rules. DOWNLINKING OF A TELEVISION CHANNEL 1. Operational Status: The authorised entity shall, on operationalisation of a television channel, inform the Central Government or its specified agency regarding the operational status along with all its technical parameters. 2. Special Conditions for Downlinking of a Television Channel (1) The authorised entity shall ensure compliance to the provisions of Sports Broadcasting Signals (Mandatory sharing with Prasar Bharati) Act, 2007 (11 of 2007) and the Rules, Guidelines, Notifications issued thereunder. (2) The authorised entity shall provide Satellite television Channel signal reception decoders to MSOs/ Cable Operators registered under the Cable Television Networks (Regulation) Act 1995 or to a DTH operator authorised under the terms and conditions of the broadcasting (programming and distribution) services and rules notified therein or to an Internet Protocol Television (IPTV) Service Provider duly permitted under their existing Telecom License or authorized by Department of Telecommunications or to a HITS operator duly authorised under the terms and conditions of the broadcasting (programming and distribution) services and rules notified therein. 215(3) The authorised entity shall obtain prior approval of the Central Government before undertaking any upgradation, expansion or other changes in the downlinking and distribution system/network configuration. (4) The authorised entity shall ensure that any of its channels, which is not authorised or prohibited from being telecasted or transmitted or re-transmitted in India, under the Cable Television Networks (Regulation) Act 1995 or under the terms and conditions of the broadcasting (programming and distribution) services and rules notified therein or any other law for the time being in force, cannot be received in India through encryption or any other means. (5) The authorised entity shall adhere to the norms, rules and regulations prescribed by any regulatory authority set up to regulate and monitor the broadcast services in the country. (6) The authorised entity shall keep a record of programmes downlinked for a period of 90 days and produce the same before any agency of the Central Government as and when required. (7) The authorised entity shall provide the necessary monitoring facility at its own cost for monitoring of programmes or content by the representative of the Ministry or any Central Government agency, as and when required. (8) In the event of any war, calamity/national security concerns, the Central Government shall have the power to prohibit for a specified period the downlinking/ reception/ transmission and re- transmission of any or all channels. 3. Renewal of Authorisation (1) The authorised entity may apply for renewal of authorisation, at least three months prior to the end of the month in which the initial authorisation is expiring, on the online portal specified by the 216Ministry of Information & Broadcasting along with fees specified in Schedule-III. (2) The renewal of authorisation shall be for a period of ten years and shall be subject to conditions similar to that required for obtaining service authorisation; Provided that the channel is not found guilty of violation of terms and conditions of authorisation, including the violation of Programme Code or Advertisement Code on five or more occasions during the currency of authorisation. 4. Transfer of authorisation of a Television Channel (1) The authorisation of a television channel may be transferred by an authorised entity only with prior approval of the Central Government. (2) Transfer of authorisation of a television channel shall be permitted only under the following situations: (a) merger/demerger/amalgamation is duly approved by the Court/Tribunal in accordance with the provisions of the Companies Act, 1956 or 2013 or the Limited Liability Act, 2008, and the authorised entity files a copy of the order of the Court/ Tribunal sanctioning the said scheme; (b) transfer of business or undertaking in accordance with the provisions of applicable law, and the authorised entity files a copy of the agreement/ arrangement executed between itself and the transferee entity; (c) transfer within Group Company, and the entity files an undertaking stating that the transfer is within the Group Companies. Explanation 1: "Group Company" in relation to a company means a company, which is under the same management and/or has the same promoters as the other company or over 217which that other company exercises significant influence or control and shall also include an associate company, subsidiary company, holding company or a joint venture company. Explanation 2: For the purpose of this clause significant influence means control of at least 20% of the total paid up share capital or having the right to appoint at least one third of the Board of Directors by way of agreement or otherwise. (d) The transfer of channel shall be subject to fulfilment of following conditions: (i) The new entity is eligible as per the eligibility conditions under the terms and conditions of Grant of Authorisation, including the net worth and the entity and its Directors/Designated Partners are security cleared. (ii) The new entity undertakes to comply with all the terms and conditions of Grant of Authorisation. (iii) There shall be lock-in period of one year from the date of operationalization of a channel, during which the channel cannot be transferred to another unrelated entity. UPLINKING AND DOWNLINKING OF A TELEVISION CHANNEL All the terms and conditions of uplinking of a television channel and downlinking of a television channel shall be applicable for grant of authorisation/ currency of authorisation/ renewal of authorisation. GROUND BASED BROADCASTING (GBB) The terms and conditions for authorisation of Ground Based Broadcasting (GBB) may be framed once the said service in notified by the Central Government. 218CHAPTER 2.2: NEWS AGENCY FOR TELEVISION CHANNEL(S) 1. Special conditions for News Agency for Television Channel(s): (1) The Authorised Entity shall use uplinking for newsgathering and its further distribution to other news agencies/broadcasters only. (2) The Authorised Entity shall not uplink television programmes/ channels for direct reception by public. (3) The Authorised Entity shall continue to have accreditation of PIB during the period of permission Provided that if at any time the Authorised Entity ceases to have PIB accreditation, the authorisation of the news agency shall be cancelled forthwith. 2. Renewal of Authorisation: The authorisation of News Agency for a Television Channel may be renewed for a period of five years, on application made by the applicant entity on the online portal specified by the Ministry of Information & Broadcasting along with the renewal fee as specified Schedule-III, subject to fulfilment of the terms and conditions of the grant of fresh authorisation. 219CHAPTER 2.3: TELEPORT/ TELEPORT HUB 1. Operational Status: The authorised entity shall as soon as the teleport becomes operational, inform the Central Government or its specified agencies regarding its operational status, along with all its technical parameters. 2. Special Condition: The Authorised Entity shall uplink only those television channels which have been authorised by the Central Government, and stops uplinking a television channel as soon as authorisation for such channel is withdrawn or suspended by the Central Government, or on specific order of the Central Government to stop such uplinking for such time period as may be specified in that order. 3. Renewal of Authorisation (1) An authorised entity may apply for renewal of authorisation at least three months prior to the end of the month in which the initial authorisation is due to expire, on the online portal as specified by the Ministry of Information and Broadcasting along with payment of renewal fee as specified in Schedule-III. (2) The renewal of authorisation shall be for a period of ten years. 4. Transfer of authorisation of a Teleport/ Teleport Hub (1) The authorisation of a Teleport/ Teleport hub may be transferred by an authorised entity only with prior approval of the Central Government. (2) Transfer of authorisation of a Teleport/ Teleport hub shall be permitted only under the following situations: (a) merger/demerger/amalgamation is duly approved by the Court/Tribunal in accordance with the provisions of the Companies Act, 1956 or 2013 or the Limited Liability Act, 2008, 220and the authorised entity files a copy of the order of the Court/ Tribunal sanctioning the said scheme; (b) transfer of business or undertaking in accordance with the provisions of applicable law, and the authorised entity files a copy of the agreement/ arrangement executed between itself and the transferee entity; (c) transfer within Group Company, and the entity files an undertaking stating that the transfer is within the Group Companies. Explanation 1: "Group Company" in relation to a company means a company, which is under the same management and/or has the same promoters as the other company or over which that other company exercises significant influence or control and shall also include an associate company, subsidiary company, holding company or a joint venture company. Explanation 2: For the purpose of this clause significant influence means control of at least 20% of the total paid up share capital or having the right to appoint at least one third of the Board of Directors by way of agreement or otherwise. (3) The transfer of Teleport/ Teleport hub shall be subject to fulfilment of following conditions: (a) The new entity is eligible as per the eligibility conditions under the terms and conditions of Grant of Authorisation, including the net worth and the entity and its Directors/Designated Partners are security cleared. (b) The new entity undertakes to comply with all the terms and conditions of Grant of Authorisation. (c) There shall be lock-in period of one year from the date of operationalization of a channel, during which the channel cannot be transferred to another unrelated entity. 2215. Purchase/Hiring and use of SCG Equipment: The authorised entity shall be permitted to purchase/ hire and use the SCG equipment within the scope of their authorisation, subject to separate permission for the same as per the terms and conditions under these rules. 222CHAPTER 2.4: COVERAGE OF LIVE EVENT BY A FOREIGN CHANNEL 1. Terms and Conditions: The authorisation for coverage of Live event by a foreign channel may be granted to a foreign channel/ entity up to 12 months at a time for live uplinking of an event from time to time through a predesignated authorised teleport, by way of an application made in his behalf on the online portal specified by the Ministry of Information and Broadcasting, subject to approval by the Ministry of External Affairs and the Ministry of Home Affairs and also the following conditions: (1) The applicant entity has a binding agreement with an authorised teleport/ teleport hub for the currency of authorisation. (2) The applicant entity pays a processing fee of one lakh rupees per day for Live telecast. (3) The news/ footage so uplinked shall be primarily for the usage abroad by the foreign channel/ news agency and shall not be broadcasted in India without authorisation of downlinking of the channel. 223CHAPTER 2.5: OTHER SERVICES RELATED TO BROADCASTING (TELEVISON PROGRAMMING) SERVICES SECTION-I: PURCHASE/HIRING AND USE OF SCG EQUIPMENT 1. Purchase/Hiring and use of SCG equipment (1) The entities authorised by the Central Government for the following Broadcasting (Television Programming) Services are eligible for purchase of SCG equipment and its use: a) Company/ LLP having authorisation for operating a teleport, for the period of such authorisation; b) Company/ LLP having authorisation for uplinking a television channel, for the period of such authorisation; c) Company/ LLP having authorisation of a news agency for television channel(s), for the period of such authorisation. (2) Authorised entity(ies) referred to in sub-para (1) above may, for the purpose of seeking permission for purchase and use of a SCG equipment, apply online on the portal prescribed by Central Government along with documents specified therein on payment of processing fee as specified in Schedule-III. (3) The Central Government shall, after satisfying itself that the application is in order and the proposal is otherwise fit for approval, preferably within 15 days of the receipt of the application, grant authorisation to the entity for purchase and use of the equipment, subject to the following conditions: a) The SCG signals should only be transmitted to the teleport of the authorised entity and uplinked for broadcasting through permitted satellite through that teleport only. b) The company/ LLP shall follow the roll out obligations as specified in Schedule-IV. 224c) The use of SCG shall be permitted only in those areas/regions/States which are not specifically prohibited by Ministry of Home Affairs. d) The entity shall submit the purchase documents of SCG terminals and inform the Ministry of Information & Broadcasting about placement of these terminals at the various locations. e) The company/LLP permitted to use SCG shall apply to WPC for frequency assignment. f) The authorised entity shall maintain a daily record of the location and the events which have been covered and uplinked by SCG terminals and downlinked at their main satellite earth station and produce the same before the licensing authority or its authorized representative, which will include officers of Ministry of Home Affairs, as and when required. g) The authorised entity shall not enter defence installations. h) The SCG equipment should not be taken in the areas cordoned off from security point of view. i) The authorised entity(ies) desiring to use SCG shall submit an undertaking that the equipment shall be used for live news gathering and footage collection for captive use only in the format prescribed by the Ministry of Information & Broadcasting. j) Violations of any of the aforementioned terms and conditions may lead to revocation/ cancellation of the permission to use the SCG equipment. k) The Central Government may modify the conditions laid down or incorporate new conditions, as and when considered necessary. l) The authorised entity shall abide by the terms and conditions laid down by the Department of Space and WPC Wing, Ministry 225of Communications including payment of applicable fees/ royalty to WPC Wing for use of spectrum. m) The authorised entity shall provide a suitable hardware and software solution to the agency specified by the Ministry of Information & Broadcasting to view Live, the location of all authorised SCG/ ECG terminals. 2. Use of SCG Equipment (1) The use of SCG shall be permitted to News and Current Affairs channels uplinked from India for live news/ footage collection and point-to-point transmission. (2) A News agency having service authorisation may use SCG for collection/ transmission of news/ footage. (3) An entity having a permitted non-news channel which is uplinked from its own authorised teleport, may use SCG equipment for their authorised channels, for transfer of video feeds to the authorised teleport. (4) Only teleport operators/ channel owners authorised by the Central Government and Doordarshan may hire SCG equipment/ infrastructure from other broadcasters who are authorised to uplink from India. (5) The uplinking shall be carried in encrypted mode, so as to be receivable only in closed user group. The signal shall only be downlinked at the authorised teleport of the authorised entity and uplinked for broadcasting through permitted satellite through that teleport only. (6) Any unauthorised usage/ hiring of SCG, either by a non-authorised entity or by an authorised channel owner shall be deemed to be a violation. 226(7) A non-news or a foreign channel may use the services of an authorised SCG equipment for the purposes of Live coverage of an event(s). SECTION-II: LIVE TELECAST BY A NEWS AND CURRENT AFFAIRS CHANNEL 1. Live telecast by a news and current affairs channel (1) An Indian news channel authorised by the Central Government may uplink content by using the SCG equipment permitted to it, or by hiring such equipment from any other authorised entity and shall register such hiring of the equipment on the online portal as prescribed by the Ministry of Information & Broadcasting. (2) An Indian news channel authorised by the Central Government may also use an ECG service to provide content and shall register such service on the online portal as prescribed by the Ministry of Information& Broadcasting. SECTION-III: LIVE TELECAST OF AN EVENT BY A NON-NEWS AND CURRENT AFFAIRS CHANNEL 1. Live Telecast of an event by a non-news and current affairs channel (1) An Indian non-news and current affairs channel authorised by the Central Government may, for the purpose of uplinking a Live event, from India, register itself on the online portal as prescribed by the Ministry of Information& Broadcasting on payment of such fees as specified in Schedule-III, at least 15 days preceding the first date of a live event, and furnishing such details and documents as may be specified in the application, including the following : (a) Date, time, venue and name of the event; 227(b) Channel’s/teleport's willingness to broadcast/ uplink the proposed programme/event; (c) Due authorisation of the event owner along with specific dates and timings of the proposed programme/ event; (d) Frequency assigned under Section 4 of the Telecommunications Act, 2023 by WPC wing, Department of Telecommunication (DoT)to the teleport operator authorised by the Central Government, where a SCG equipment or any such technology is used requiring use of frequency; or (e) Where an ECG service is used, detailed specification thereof. Provided that if a non-news channel uplinks an Live event without registering itself, it shall be liable for penal action as prescribed by the Central Government under the rules notified therein. Provided further that, a non-news channel shall not telecast any Live event which is in contravention of the Programme and Advertising Code laid down in the Cable Television Network Rules, 1994 and other relevant Acts/ rules/ orders/ directions/ guidelines therein. (2) Registration on the online portal prescribed by the Ministry of Information & Broadcasting shall enable the authorised entity to seek approval/ NOC of other concerned authorities for broadcasting the Live event, and no separate authorisation need to be obtained. (3) Decision as to whether the Live event being uplinked is of the nature of news and current affairs or not will be that of the Central Government and shall be binding on the authorised entity. (4) The authorised entity shall abide by the terms and conditions laid down by Department of Space and WPC Wing, Ministry of Communications including payment of applicable fees/royalty to WPC Wing for use of spectrum. 228SECTION-IV: CHANGE OF NAME AND LOGO OF A TELEVISION CHANNEL 1. Change of name and logo of a television channel (1) An authorised entity shall display on the authorised television channel only that name and logo which has been approved by the Ministry of Information & Broadcasting. Provided that display of name/ logo other than that permitted or display of dual logo would be treated as a violation under the notified rules therein. (2) An authorised entity may apply for change of name and logo along with requisite documents on the online portal as prescribed by the Ministry of Information & Broadcasting on payment of processing fees specified in Schedule-III. (3) The Central Government shall, preferably within 15 days of receipt of the application, grant permission for the change applied for, after being satisfied that the application is in order in all respect. (4) The authorised entity shall pay the applicable amendment fees to WPC Wing for amending the relevant aspects in the document of frequency assignment. SECTION-V: CHANGE OF SATELLITE/ TELEPORT 1. Change of satellite/ teleport (1) The entity authorised for uplinking a television channel shall apply for change of satellite/ teleport on the online portal as prescribed by the Ministry of Information & Broadcasting on payment of processing fees specified in Schedule-III, along with a valid agreement with the satellite/ teleport service provider. 229(2) The application submitted on the online portal prescribed by the Ministry of Information & Broadcasting shall be forwarded online on the portal of the Department of Space for further processing. (3) The Ministry of Information & Broadcasting shall, preferably within 15 days of receiving clearance to the proposed change from the Department of Space, grant permission to the authorised entity for the proposed change. (4) In respect of change in satellite/ teleport of the downlinked channel the entity authorised for downlinking the channel may furnish an intimation of change on the online portal as prescribed by the Ministry of Information & Broadcasting. SECTION-VI: INTIMATION FOR CHANGE OF LANGUAGE/ MODE OF TRANSMISSION, ETC. 1. Intimation for change of language/ mode of transmission etc. (1) An entity authorised by the Central Government under the Broadcasting (Grant of Service Authorisations) Rules for uplinking/downlinking a channel may furnish intimation on the online portal as prescribed by the Ministry of Information & Broadcasting for the following: (a) Change in language of transmission; (b) Change in mode of transmission; (c) Change in address and such other relevant particulars of the company/LLP; (d) Resignation of a Director/Designated Partner/Chief Executive Officer; 230SECTION-VII: CHANGE OF CATEGORY OF A TELEVISION CHANNEL 1. Change of category of a television channel (1) Where an authorised entity intends to change the category of the channel, from non-news and current affairs to news and current affairs or vice-versa, the authorised entity may apply for the same on the portal specified by the Ministry of Information & Broadcasting, on payment of the requisite fee as in Schedule-III. (2) The Ministry of Information & Broadcasting shall process the application from the viewpoint of eligibility and other conditions and grant permission for change of category, specifying the conditions of such permission, preferably within 30 days of the receipt of such application and receiving clearance or No Objection from the Ministry of Home Affairs, wherever required. SECTION-VIII: CHANGE IN OPERATIONAL STATUS 1. Change in operational status (1) A television channel is required to remain operational during the currency of the authorisation. (2) Where a television channel is unable to remain operational for a continuous period of more than 60 days, the authorised entity shall inform the Ministry of Information & broadcasting of the status along with reason for the channel remaining non-operational. Provided that failure to inform the Ministry of Information & Broadcasting regarding non-operational status of a channel beyond a continuous period of 60 days will be deemed to be a violation under the rules notified therein. Provided further that the channel shall not remain non- operational for a continuous period exceeding 90 days. 231PART-III: DRAFT SPECIFIC TERMS AND CONDITIONS OF THE BROADCASTING (TELEVISION DISTRIBUTION) SERVICES INDEX Chapter Description Page No. 3.1 DTH 233 3.2 HITS 247 Draft Terms and Conditions for Internet Protocol 3.3 256 Television (IPTV) Services 232CHAPTER 3.1: DIRECT TO HOME (DTH) SERVICES 1. Authorisation Fee (1) The authorised entity shall pay an annual authorisation fee equivalent to 3% of Adjusted Gross Revenue (AGR). The Authorisation Fee for the authorised entity shall be brought down to zero after the end of the financial year 2026-2027. (2) Gross Revenue shall comprise revenue accruing to the authorised entity by way of all operations/ activities and inclusive of all other revenue/ income on account of interest, dividend, rent, profit on sale of fixed assets, miscellaneous income etc. without any set-off for related items of expense. [Explanation: 1. The Gross Revenue shall be inclusive of subscription fee, installation, activation, restoration, reactivation, relocation, visiting and other service charges, subscription and advertisement revenue from platform services channels, carriage fees, revenue from marketing and placement agreements, commissions received, revenue from sale, repair and maintenance of customer premises equipment, royalties, revenue from customer support service and any other revenue of the enterprise. 2. The Gross Revenue shall also include ancillary revenue accruing to the DTH authorisation due to the privileges connected with the authorised entity, such as income from property rent, revenue from sharing of infrastructure, revenue from sale of immoveable property, gains from foreign exchange rates fluctuations, insurance claims, bad debt recovered, excess provisions written back which has been established for maintaining and working of 233DTH service or any other such miscellaneous revenue received by the authorised entity. 3. In the case of authorised entity providing or receiving goods and service from other companies that are controlled* by the owners of the authorised entity, all such transactions shall be valued at normal commercial rates and included in the profit and loss accounts of the authorised entity to calculate its Gross Revenue. [*Note: “Control” as defined in Section 2(27) of the Companies Act 2013.] (3) The DTH operators shall calculate Applicable Gross Revenue (ApGR) for arriving at the revenue calculations for authorisation fee. ApGR shall be equal to the total Gross Revenue (GR) of the authorised entity as reduced by the following items: i. Revenue from activities under authorisation/ permission issued by Department of Telecommunications; ii. Reimbursement, if any, from the Government; and iii. List of other income* to be excluded from GR to arrive at ApGR: a. Income from Dividend; b. Income from Interest; c. Income from sale of fixed assets and securities; d. Gains from Foreign Exchange rates fluctuations; e. Income from property rent; f. Insurance claims; g. Bad Debts recovered; h. Excess Provisions written back. * subject to conditions given in Schedule-IX. (4) The Adjusted Gross Revenue (AGR) shall be calculated by excluding Goods and Services Tax (GST) paid to the Government from the Applicable Gross Revenue (ApGR), if the ApGR had included as component of GST. 234(5) The format for submission of Statement of Revenue and Authorisation Fee for the authorised entity is prescribed in Schedule-IX. The submission of the Statement of Revenue and Authorisation Fee shall be made end-to-end online with facility to upload all the related documents in digital mode via single window system. (6) The minimum annual authorisation fee shall be subject to 10% of the Entry Fee. (7) The authorisation fee is to be paid on a quarterly basis, the quantum thereof to be equal to the actual authorisation Fee payable for the preceding quarter. The first payment of authorisation fee for the previous quarter shall be made on the basis of provisional account for the quarter within one month of the end of a particular quarter. The annual settlement of the authorisation Fee shall be done at the end of the financial year (8) The payment of authorisation fee for the 4th quarter shall be made after adjustments and settlements of accounts for the whole year and on the basis of the finalised audited statement of the entity and latest by 30th September succeeding the financial year. (9) The Central Government shall have the right to modify the authorisation fee as a fixed percentage of AGR during the currency of authorisation. 2. Bank Guarantee (1) The authorised entity shall submit an Initial Bank Guarantee from any Scheduled Bank to the Central Government for an amount of Rs. 5 crore for the first two quarters. (2) Thereafter, the authorised entity shall submit a Bank Guarantee (covering Financial and Performance Bank Guarantee) from any Scheduled Bank to the Central Government for an amount 235equivalent to the Initial Bank Guarantee (i.e., Rs. 5 crore) or 20% of the estimated sum payable, equivalent to Authorisation Fee for two quarters and other dues not otherwise securitized, whichever is higher. (3) Once the Authorisation Fee becomes zero, the authorised entity shall submit a Bank Guarantee (Performance Bank Guarantee) for a fixed amount equivalent to the initial Bank Guarantee (i.e., Rs. 5 crore) from any Scheduled Bank to the Central Government, which shall be valid for a minimum of one year and renewed every year to ensure it remains valid for the entire currency of the authorisation. (4) The Central Government shall be at the liberty to encash the Bank Guarantee in full or part in the event of violation of any of the terms and conditions of the service authorisations. (5) Electronic Bank Guarantee shall be encouraged and permitted for ease of doing business. 3. Vertically Integrated Entity: Reserving of Operational Channel Capacity A vertically integrated entity will not reserve more than 15% of the operational channel capacity for its vertically integrated operator. The rest of the capacity is to be offered to the other broadcasters on a non-discriminatory basis. 4. Non-Transferable: The authorisation shall not be transferred without the prior approval of the Central Government. 2365. Platform Service Channels (1) The Platform Services (PS) are programs transmitted by Distribution Service Provider exclusively to their own subscribers and does not include Doordarshan channels and television channels authorised by the Central Government. PS shall not include foreign television channels that are not authorised in India. (2) The programme transmitted by the DTH operator as a platform service shall be exclusive and the same shall not be permitted to be shared directly or indirectly with any other Distribution Service Provider. (3) In case the same programme is found available on the PS of any other Distribution Service Provider, the Central Government may issue direction to immediately stop the transmission of such programme. The Central Government also reserves the right for cancellation of authorisation of such PS of the DTH operator. (4) Total number of authorised PS for a DTH operator shall be capped to 5% of the total channel carrying capacity of the DTH operator platform. (5) A onetime non-refundable registration fee of ₹10,000 per PS channel shall be charged from an authorised entity authorised to provide DTH services. (6) The DTH operator shall provide an option of activation/deactivation of platform services as prescribed in the orders/ directions/ regulations issued by TRAI from time-to-time (7) The platform services channels shall be categorised under the genre 'Platform Services' in the Electronic Programmable Guide (EPG) subject to orders/ directions/ regulations issued by TRAI from time- to-time. 237(8) The respective maximum retail price (MRP) of the platform service shall be displayed in the EPG against each platform service subject to orders/ directions/ regulations issued by TRAI from time-to-time. (9) A provision for putting a caption as 'Platform Services' shall be required to distinguish the platform services from the linear channels. (10) A DTH operator, who wants to operate Platform Service Channel, is required to furnish an application with the Central Government in the prescribed proforma as specified in Schedule-VIII. 6. Sharing of Infrastructure by DTH operators (1) General sharing of the infrastructure - Wherever technically feasible, the DTH operator may share the DTH Platform infrastructure on voluntary basis. The infrastructure sharing of DTH platform will be allowed for DTH services only and not for other Distribution Service Providers like MSOs or HITS operators. (2) For infrastructure sharing the new entity and existing authorised entity shall jointly submit a detailed proposal for infrastructure sharing giving details of the infrastructure proposed to be shared and, in the manner, infrastructure is proposed to be shared as well as roles and responsibilities of each to Ministry of Information & Broadcasting with a copy to WPC wing of Ministry of Communication and SATCOM Monitoring Centre (SMC), Department of Telecommunication (DoT). The proposal shall contain: (a) Acceptance from all concerned stakeholders for sharing the infrastructure. (b) Copies of the Agreements between the parties sharing the infrastructure with conditions stipulated in the guidelines. 238(c) An undertaking by all the parties proposing to share the infrastructure that under the sharing arrangement proposed, there shall not be any violation of any Rules. (3) No Objection/ Permission for sharing of infrastructure shall be subject to security clearance by Ministry of Home Affairs; Clearance of satellite use and transponder sharing from Department of Space; spectrum allocation issued by Wireless Planning and Coordination Wing; and SATCOM Monitoring Centre (SMC) certification. (4) The sharing of the Satellite resources and Up-linking infrastructure (on voluntary basis) shall be allowed with the written permission of Ministry of Information &Broadcasting, Department of Space, WPC wing and SATCOM Monitoring Centre (SMC), Department of Telecommunication (DoT). (5) For a new entity to use existing DTH platform and infrastructure, the condition in the terms and conditions relating to hiring of satellite capacity and setting up of the Earth station, shall stand modified accordingly to the extent as per these Rules. (6) However, the DTH operator providing DTH service using the shared infrastructure with another operator may establish, maintain and operate its own DTH platform at a later stage within the currency of authorisation, following due procedures. (7) To ensure continuity of service to subscribers in the event of any disaster, the operator shall have arrangement of sharing disaster recovery system in hot-standby mode. (8) The applicant for infrastructure sharing/ new authorised DTH operator proposing to share the transport stream of television channels shall have valid written inter-connection agreements with the concerned broadcasters for distribution of pay Television Channels to the subscribers. 239(9) For Conditional Access Systems (CAS) & Subscriber Management System (SMS), sharing parties may use common hardware. Details of such arrangement may be intimated to Ministry of Information & Broadcasting and broadcasters, 30 days in advance. However, the respective operator shall be accountable for integrity and security of CAS and SMS data pertaining to the respective operator. Maintenance of historical logs of data of CAS and SMS for two years shall be the responsibility of respective operator individually. (10) Allowing access to CAS & SMS for audit purpose and also to the authorised officers of the Central Government and their representatives shall be the responsibility of the respective operator individually. (11) For transport stream sharing each distributor shall be individually responsible for setting up the system and processes, which ensure that the broadcasters may be able to exercise right for disconnection in case of default of payment or due to any other reason in terms of inter connection agreements between the broadcaster and the distributor and the relevant regulations in place. (12) The sharing of infrastructure shall be subjected to following conditions: (a) The adherence and compliance to all the provisions of the terms and conditions on the rules to be issued by Ministry of Information & Broadcasting and WPC & SATCOM Monitoring Centre (SMC), Department of Telecommunication (DoT)for grant of authorisation to the DTH operator shall be the responsibility of the existing operator and the new entity proposing to share the infrastructure to the extent as may be required/ applicable individually. 240(b) Each distributor in sharing environment shall undertake to ensure the encryption of signals and addressability to all the subscribers in all circumstances and provide requisite access for audit or for authorized officers of Government wherever demanded. (c) Accountability of operators is ensured with reference to the SMS, their respective subscribers and to the respective state Governments and local administration as well as to the Central Government on all relevant aspects of Tax collection. (d) Compliance to TRAI regulation pertaining to CAS/SMS, Finger printing, STB as per Schedule III of ‘The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017’ and as amended shall be the responsibility of the respective operator individually to ensure proper reporting of subscriber's base, checking unauthorised distribution and piracy. Note: Please note that all permissions& approvals and final uplinking permission in all cases shall continue to be taken from SATCOM Monitoring Centre (SMC) as per terms and conditions/ rules/ guidelines, norms and practice. 7. Prohibition of certain activities (1) The authorised entity shall not carry any channel(s) prohibited by the Ministry of Information & Broadcasting. (2) The authorised entity shall ensure that its facilities are not used for transmitting any objectionable or obscene content, messages or communication inconsistent with the laws of India. The use of the facility or service for anti-national activities shall be construed as an offence punishable under the Bharatiya Nyaya Sanhita (BNS), 2412023 and applicable laws and shall attract immediate termination of service authorisation. (3) The Central Government reserves the right to prohibit the transmission or reception of programmes in the interest of national security or in the event of emergency/ war or similar situation. Notwithstanding any agreement between the authorised entity and the content providers, the authorised entity shall stop forthwith, transmission of television channel(s) or any content, as and when directed to do so by the Central Government or any other designated lawful authority. (4) Except with prior approval of the Central Government, the authorised entity shall not either directly or indirectly assign or transfer its right in any manner whatsoever under this authorisation to any other party or enter into agreement for sub- authorisation and/ or partnership relating to any subject matter of the authorisation to any third party either in whole or in part. Any violation of the terms and conditions shall be construed as breach of the service authorisation shall be liable for withdrawal of authorisation. (5) The authorised entity shall not carry the signals of a broadcaster against whom any regulatory body, tribunal or court have found the following (a) refused access on a non-discriminatory basis to another DTH operator contrary to the Regulations of TRAI; (b) violated the provisions of any law relating to competition including the Competition Act, 2002 and as amended. [Explanation: It shall be the sole responsibility of the authorised entity to ascertain before carrying the signals on its platform whether any broadcaster(s) has been found to be in violation of the above conditions or not. In respect of Television Channel(s) 242already being carried on the platform, the authorised entity shall ascertain from every source including the Central Government, TRAI, Tribunal or a Court, whether concerned broadcaster(s) or the channel(s) is in violation of the above conditions. If any violation so comes to its notice, the authorised entity shall forthwith discontinue to carry the channel(s) of the said broadcaster] The authorised entity shall not enter into any exclusive contract for distribution of Television Channels. (6) The authorised entity shall not carry or include in his DTH Service any television broadcast or channel which has not been granted authorisation by the Central Government for being viewed within the territory of India. Provided that the authorised entity may continue to carry or include in his DTH Service any television broadcast or channel, which has made an application for authorisation to the Central Government on or before the date of notification/ order of these terms and conditions/ rules, for a period of six months from the date of such notification/ order or till such authorisation has been granted or refused, whichever is earlier. 8. Technical Standards and Other Obligations (1) Set Top Box (STB) offered by an authorised entity shall have such specifications as laid down by the Bureau of Indian Standards (BIS) / Telecommunication Engineering Centre (TEC) from time to time in accordance with Section 19 of the Telecommunications Act, 2023. (2) The Open Architecture (non-proprietary) Set Top Box, which shall ensure technical compatibility and effective interoperability among different DTH operator, shall have such specifications as laid down by the Government from time to time. 243(3) The authorised entity shall ensure subscriber’s interests, through a Conditional Access System (CAS), which is compatible with an open Architecture (non-proprietary) Set Top Box. (4) The authorised entity shall ensure subscriber’s interests through a Subscriber Management System (SMS) for an efficient, responsive and accurate billing and collection system. (5) The authorised entity shall not use any equipment, which is identified as unlawful. (6) All content provided by the DTH platform to the subscribers, irrespective of its source, shall pass through the encryption and conditional access system, located within the Earth Station, situated in Indian territory. (7) The authorised entity shall provide access to various content provider(s)/ channel(s) on a non-discriminatory basis. (8) The authorised entity shall adhere to any terms and conditions/ rules/ regulations/ guidelines/ directions which may be laid down by the Central Government in the interest of consumer such as pricing of bouquet(s) or tier(s) of channels, etc. (9) The authorised entity shall carry or include in his DTH service the television channels which have been notified for mandatory and compulsory carriage as per provisions of section 8 of the Cable Television Networks (Regulation) Act, 1995 as amended, except for the regional television channels, failing which the Central Government shall be at liberty to take action in accordance with the Sections 32 and 33 of the Telecommunications Act, 2023. Provided further that the authorised entity shall carry other channels of Prasar Bharati not covered under this clause, on most favourable financial terms offered to any other channel. 2449. Mandatory sharing/ carrying of certain broadcast signals with Prasar Bharati (1) The authorised entity shall ensure that channels carried by and telecasting sporting events have ensured compliance with the provisions of Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act, 2007. (2) The Central Government shall have the right to notify the number and names of television channel or channels of Prasar Bharati or any other television channel for compulsory carriage by the HITS provider in his service and the manner of reception and retransmission of such channels. (3) The authorised entity shall carry other television channel(s) of Prasar Bharati on the most favourable financial terms offered to any other channel. 10. Value Added Services (VAS) The DTH facility shall not be used for other modes of communication, including voice, fax, data, communication, Internet, etc. unless specific authorisation for these value-added services has been obtained from the competent authority. The authorised entity shall be able to use its network for providing other value-added services, which otherwise do not require any specific authorisation. Services, which require a specific authorisation from the competent authority may only be provided after obtaining such authorisation. However, the authorised entity is required to give prior information of all value- added services to be provided by it to the Central Government. 24511. Miscellaneous (1) Preference to Indian Satellites and Intersystem Co-ordination (a) Though an authorised entity may use the bandwidth capacity for DTH service on both Indian as well as foreign satellites, proposals envisaging use of Indian satellites shall be extended preferential treatment. (b) The authorised entity shall ensure that its operation shall conform to the provisions of inter-system co-ordination agreement between Indian National Satellite System (INSAT) and the satellite being used by the authorised entity. (2) Notwithstanding any clause anywhere else in the service authorisation, the authorised entities shall have to adhere to the regulations, order, directions of the regulatory authority. (3) The authorised entity shall obtain the necessary environmental clearances, wherever required. The authorised entity shall comply with relevant provisions of the laws of India. In case of non- compliance of any of the aforesaid requirement, the Central Government shall have the right to revoke/ withdraw the authorisation of the authorised entity. 246CHAPTER 3.2: HEADEND IN THE SKY (HITS) SERVICES 1. Mandatory sharing/ carrying of certain broadcast signals with Prasar Bharati (4) The authorised entity shall ensure that channels carried by and telecasting sporting events have ensured compliance with the provisions of Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act, 2007. (5) The Central Government shall have the right to notify the number and names of television channel or channels of Prasar Bharati or any other television channel for compulsory carriage by the HITS provider in his service and the manner of reception and retransmission of such channels. (6) The authorised entity shall carry other television channel(s) of Prasar Bharati on the most favourable financial terms offered to any other channel. 2. Technical Standards and Other Obligations (1) The authorised entity shall furnish technical details such as Nomenclature, make, model, name and address of the manufacturers of the equipment/ instruments to be used for broadcasting, distribution and reception system, the Block schematic diagram and also demonstrate the facilities for monitoring and storing record for 90 days. (2) The entity may uplink in 'C' Band or 'Ku' Band only. Uplinking shall be permitted both to Indian as well as foreign satellites. However, where the entity does not have a satellite of its own or of its group entities, proposals envisaging use of Indian satellites shall be 247accorded preferential treatment. Satellite to be used should have been coordinated with INSAT System. (3) The authorised entity shall be required to provide signals directly from his satellite only to the registered MSOs/ Cable operators and under no circumstances shall the authorised entity provide signals directly from his satellite to the consumer. However, the authorised entity shall not be barred from providing signals, through his own cable network if any, to consumers also after first downlinking the signals to his terrestrial receiving station. The signals shall be provided only through Set Top Box (STB) conforming to National Standards in accordance with Section 19 of the Telecommunications Act, 2023. (4) The authorised entity shall be required to provide commercial interoperability with respect to its set top boxes so that if the subscribers decide to switch over to any other distribution service provider or platform, they may be able to do so at least cost. Commercial interoperability here shall mean that in addition to offering the receiver set on an outright purchase basis, a subscriber shall also have the option to purchase it on a hire-purchase basis or rental basis with a provision to return the set top box on such terms and conditions as may be laid down by regulations issued by TRAI. (5) The addressability provided to every subscriber shall be capable of blocking any unwanted channel or group of channels by the authorised entity. (6) The authorised entity shall ensure subscriber's interests through a Subscriber Management System (SMS) for an efficient, responsive and accurate billing and collection system. 248(7) The authorised entity shall provide access to various content provider(s)/ channel(s) on a non-discriminatory basis. (8) The authorised entity shall not use any equipment, which is identified as unlawful/or render network security vulnerable. (9) All contents provided by the authorised entity to the subscribers, irrespective of its source, shall pass through the encryption and digital addressable system located within the earth-station situated in Indian territory. 3. Sharing of Infrastructure by HITS operator (1) General Sharing of the infrastructure - Wherever technically feasible, the authorised entity may share the platform infrastructure on voluntary basis, in flexible ways, for distribution of television channels provided that the signals of the HITS platform are distributed to subscribers through Cable operator only and the encryption of signals, addressability and liabilities are not compromised. (2) Sharing of its transport stream transmitted by HITS platforms, between HITS operators and MSOs shall be permitted. (3) The HITS platform shall not be allowed to be used as teleport for up linking of television channels. (4) HITS operator willing to share its transport stream with an MSO, shall ensure that MSO has valid written interconnection agreement with the concerned broadcasters for distribution of Pay television channels to the subscribers. (5) For sharing of infrastructure by HITS operator with MSO, the operator shall be allowed sharing only on Indian controlled satellites. A written permission from Department of Space (DOS) shall be required in this regard. 249(6) For infrastructure sharing, the new entity(ies) and existing authorised entity(ies) shall jointly submit a detailed proposal for infrastructure sharing giving details of infrastructure proposed to be shared and in the manner infrastructure is proposed to be shared as well as roles and responsibilities of each party to Ministry of Information and Broadcasting with a copy each to SATCOM Monitoring Centre (SMC) and WPC wing, Department of Telecommunication (DoT). The proposal shall contain: (i) Acceptance from all concerned stakeholders for sharing the infrastructure inwriting. (ii) No Objection / Permission for sharing of infrastructure shall be subject to: a. Security clearance by Ministry of Home Affairs; b. Clearance of satellite use and transponder sharing from Department of Space; c. Spectrum allocation issued by Wireless Planning and Coordination Wing, Department of Telecommunication (DoT); d. SATCOM Monitoring Centre (SMC) certification. (iii) Copies of the Agreements between the parties sharing the infrastructure with conditions stipulated in the terms and conditions. (iv) An undertaking by all the parties proposing to share the infrastructure that there shall not be any violation of these Rules. (7) The sharing of the Satellite resources and Up-linking infrastructure (on voluntary basis) shall be allowed with the written permission of Ministry of Information & Broadcasting, WPC wing and SATCOM Monitoring Centre (SMC), Department of Telecommunication. 250(8) To enable sharing of HITS infrastructure and Transport stream, the condition in the existing guidelines/ terms and conditions relating to hiring of satellite capacity and setting up of the Earth station, shall stand modified accordingly to the extent as per the provisions contained in the Rules relating to the Broadcasting (Grant of Service Authorisations) and the Broadcasting (Programming and Distribution) Services. (9) To ensure continuity of service to subscribers in the event of any disaster, the HITS operator shall have arrangement of sharing disaster recovery system in hot standby mode. (10) For Conditional Access System (CAS) & Subscriber Management System (SMS), sharing parties may use common hardware. Details of such arrangement shall be intimated to Ministry of Information & Broadcasting and broadcasters, 30 days in advance. However, the respective HITS operator, MSO/cable operator shall be accountable for integrity and security of CAS and SMS data pertaining to the respective operator. (11) Maintenance of historical logs of data of CAS and SMS for two years shall be the responsibility of respective operators individually. (12) The access to CAS & SMS for audit purpose and also to the authorised officers of Central Government and their representatives shall also be the responsibility of the respective operator individually. (13) For transport stream sharing each operator shall be individually responsible for setting up the system and processes which ensure that the broadcasters can exercise right for disconnection in case of default of payment or due to any other reason in terms of inter connection agreements between the broadcaster and the operator as well as the relevant regulations in place. 251(14) The permission shall be granted subject to following conditions: (a) The adherence and compliance to all the provisions of the terms and conditions to be notified as rules to be made by the Ministry of Information & Broadcasting and WPC & SATCOM Monitoring Centre (SMC), Department of Telecommunication (DoT) for grant of authorisation to the HITS operator shall be the responsibility of the existing operator and the new entity proposing to share the infrastructure to the extent as may be required/ applicable individually. (b) Each distributor in sharing environment shall undertake to ensure the encryption of signals and addressability to all the subscribers in all circumstances and provide requisite access for audit or for authorized officers of Government wherever demanded. (c)Accountability of operators is ensured with reference to the SMS, their respective subscribers and to the respective state Governments and local administration as well as to the Central Government on all relevant aspects of Tax collection. (d) Compliance to TRAI regulation pertaining to CAS/SMS, Finger printing, STB as per Schedule III of ‘The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017’ and as amended shall be the responsibility of the respective operator individually to ensure proper reporting of subscriber's base, checking unauthorised distribution and piracy. Note: Please note that all permissions & approvals and final uplinking permission in all cases shall continue to be taken from SATCOM Monitoring Centre (SMC) as per terms and conditions/ rules/ guidelines, norms and practice. 2524. Value Added Services (VAS) The authorised entity shall be able to use his network for providing other value-added services, which otherwise do not require any specific authorisation. Services, which require a specific authorisation from the competent authority may only be provided after obtaining such authorisation. However, the authorised entity is required to give prior information of all value-added services to be provided by it to the Central Government. 5. Prohibition of certain activities (1) The authorised entity shall not carry any channel(s) prohibited by the Central Government. (2) The authorised entity shall invariably ensure that the subscribers of the service do not have access to any pornographic channel or to secret/ anti-national messaging and the like through the HITS platform. If the authorised entity fails to do so, the authorisation granted shall be revoked and the entity shall be disqualified to hold any such authorisation in future for a period of five years, apart from liability for punishment under Bharatiya Nyaya Sanhita (BNS), 2023 and other applicable laws. (3) The authorised entity shall not carry the signals of a broadcaster against whom any regulatory body, tribunal or court have found the following (a) refused access on a non-discriminatory basis to another HITS operator contrary to the Regulations of TRAI; (b) violated the provisions of any law relating to competition including the Competition Act, 2002 and as amended. 253[Explanation: It shall be the sole responsibility of the authorised entity to ascertain before carrying the signals on its platform whether any broadcaster(s) has been found to be in violation of the above conditions or not. In respect of Television Channel(s) already being carried on the platform, the authorised entity shall ascertain from every source including the Central Government, TRAI, Tribunal or a Court, whether concerned broadcaster(s) or the channel(s) is in violation of the above conditions. If any violation so comes to its notice, the authorised entity shall forthwith discontinue to carry the channel(s) of the said broadcaster] (4) The authorised entity shall not enter into any exclusive contract for distribution of Television Channels. (5) An Authorised Entity shall not carry or include in his HITS Service any television broadcast or channel which has not been permitted by the Ministry of Information & Broadcasting for being viewed within the territory of India. Notwithstanding any agreement entered into between the authorised entity and broadcaster(s)/ television channel owner(s), the authorised entity shall stop from carrying/ including in its HITS service, television channel(s), whenever such registration/permission is withdrawn. 6. Miscellaneous (1) The authorised entity shall adhere to the regulations, order, direction of the regulatory authority (TRAI). (2) The authorisation shall be governed by the provisions of the Telecom Regulatory Authority of India Act, 1997, the Telecommunications Act, 2023 as amended from time to time and any other law as applicable to broadcasting facilities/services, which has or may come into force. 254(3) The Central Government, Ministry of Information and Broadcasting shall have the right to modify at any time the provisions of these Rules, if in the opinion of the Central Government it is necessary or expedient to do so in public interest or in the interest of the security of the State. The decision of the Central Government shall be final and binding in this regard. 255CHAPTER 3.3: DRAFT TERMS AND CONDITIONS FOR INTERNET PROTOCOL TELEVISION (IPTV) SERVICES (1) A person holding an authorisation under Section 3 of the Telecommunications Act, 2023 for provision of triple play services, IPTV service as well as Cable Television operators registered under Cable Television Network (Regulation) Act 1995 (referred as Cable Act hereafter) shall be required to submit a self-declaration to Central Government (viz. Ministry of Information & Broadcasting, Ministry of Communication) & Regulator (viz. TRAI) giving details of authorisation under which IPTV service is proposed, the start date, the area being covered, and details of the network infrastructure etc. in the format prescribed in Schedule-XI before provision of IPTV services. (2) While providing IPTV services, an Authorised Entity under section 3 of the Telecommunications Act, 2023 shall be required to pay authorisation fee at applicable rates under its authorisation to provide triple play service/ IPTV service wherein, the revenue from IPTV service shall also be included along with telecom revenues under its authorisation to provide telecom services. (3) The IPTV service provider shall ensure that the IPTV set top boxes required to receive IPTV services conform to the applicable Indian standards. (4) The Cable operators while providing IPTV services will continue to be governed by the provisions of the Cable Television Networks (Regulation) Act, 1995, The Telecom Regulatory Authority of India Act, 1997 and any other laws as applicable and as such shall be able to provide such content on their IPTV service which is permissible as per the Cable Act and which is in conformity with the Programme and Advertisements Codes prescribed thereunder. 256(5) An Authorised Entity for provision of triple play and/ or IPTV services under the Telecommunications Act, 2023 while providing television channels through IPTV shall transmit only such broadcast television channels in exactly same form (unaltered) as authorised by the Ministry of Information & Broadcasting. In such cases, the responsibility to ensure that content is in accordance with the extant laws, rules, regulations etc. shall be that of the broadcaster. The IPTV service provider shall not carry any broadcast television channels prohibited either permanently or temporarily, or not authorised by the Ministry of Information & Broadcasting. (6) An Authorised Entity for provision of triple play and/ or IPTV services under the Telecommunications Act, 2023 may obtain content from the Multi System Operator or the Cable Operator for providing IPTV services. (7) An Authorised Entity for provision of triple play and/ or IPTV services under the Telecommunications Act, 2023 providing IPTV service shall show only those News and Current Affairs television channels which have been registered with Ministry of Information and Broadcasting. An Authorised Entity for provision of triple play and/ or IPTV services under the Telecommunications Act, 2023 shall not produce or provide any other broadcast or non-broadcast channel having any element of News and Current Affairs. (8) The provisions of Programme Code and Advertisement Code as provided in Cable Television Network (Regulation) Act 1995 and Rules there under shall be applicable even in the case of content other than Television Channels from broadcasters provided by the Authorised Entity for provision of triple play and/ or IPTV services under the Telecommunications Act, 2023 for providing IPTV 257services. Such entity shall be responsible for ensuring compliance with the Codes in respect of such content. In addition, such entities shall also be bound by Indian laws-civil and criminal; instructions/ directions/ guidelines issued by the Central Government from time to time to regulate the content, which is either produced by it or sourced from a third-party content provider other than the broadcasters. (9) The IPTV service provider shall be required to compulsorily carry those channels of Prasar Bharati, or any other channel as notified by the Central Government (Ministry of Information& Broadcasting). Such notification may contain the numbers and names of channels of Prasar Bharati or any other channel and the manner of reception and retransmission of such channels by the IPTV service provider. (10) The IPTV service provider shall provide commercial interoperability so that if the subscribers decide to switch over to any other service provider or platform, they should be able to do so at least cost. Commercial interoperability here would mean that in addition to offering the receiver set on an outright purchase basis, a subscriber shall also have the option to purchase it on a hire-purchase basis or on rental basis with a provision to return the receiver set on such terms and conditions as may be laid down by the regulations. (11) The Central Government (Ministry of Information & Broadcasting) may direct the IPTV service provider to ensure preservation and retention for a period of 90 days unless specified otherwise, of different kinds of content made available to their subscribers and requires it to ensure its security and also that it is not tampered with during such period. The IPTV service provider may be 258required to produce the same to the Government or its authorized representative, as and when required and the IPTV service providers will be required to ensure compliance to all such directions. (12) The IPTV service provider shall provide the necessary facility for continuous monitoring of the IPTV network at its own cost and maintain the recordings of programmes and advertisements carried on the network for a period of 90 days unless specified otherwise, from the date of broadcast and produce the same to the Government or its authorized representative, as and when required. The monitoring system must provide Set Top Box subscriber information as well as contents to the law enforcement agencies in plain readable, audible and viewable format, as the case may be. Provided that in case of any dispute the records of broadcast of programmes and advertisements shall be maintained till final disposal of the dispute. Provided further that the IPTV service provider shall provide access to the Government or its authorized representative to all its facilities including equipment, records, system etc. for purposes of inspection. In addition, the IPTV service provider shall, if required, by the Government or its authorized representative, provide necessary facilities for continuous monitoring for any particular aspect of the companies’ activities and operations. (13) On demand by the Central Government (Ministry of Information and Broadcasting) or its authorized representative, an IPTV service provider shall provide the necessary equipment, services and facilities at designated place(s) for continuous monitoring of the 259IPTV service by or under supervision of the Government or its authorised representative. (14) The IPTV service provider shall submit such information with respect to its service as may be required by the Central Government (Ministry of Information& Broadcasting) or its authorized representative from time to time. (15) The IPTV service provider shall furnish any such information at periodic intervals as may be required by the Central Government (Ministry of Information& Broadcasting) or its authorized representative concerning Programme Content and Quality, Technical Parameters etc. relating to the service in the format as may be required by the Central Government or its authorized representative from time to time. (16) The Central Government (Ministry of Information & Broadcasting) or its authorized representative may inspect the IPTV service facilities. Such inspection shall ordinarily be carried out after reasonable notice except in circumstances, where giving such a notice will defeat the very purpose of the inspection and in such cases, it may be carried out without prior intimation. (17) The Central Government (Ministry of Information & Broadcasting) or its authorized representative may inspect the IPTV service facilities. Such inspection shall ordinarily be carried out after reasonable notice except in circumstances, where giving such a notice will defeat the very purpose of the inspection and in such cases, it may be carried out without prior intimation. (18) Any breach of the provisions of Act/ Rules/ Authorisation by the authorised entity shall be dealt with by designated agencies which 260are responsible for administering such Acts/ Rules/ Authorisations. (19) The Government may modify at any time the provisions of these rules, if in the opinion of the Government it is necessary or expedient to do so in public interest or in the interest of the security and sovereignty of the State. 261PART-IV: DRAFT SPECIFIC TERMS AND CONDITIONS OF THE BROADCASTING (RADIO) SERVICES INDEX Chapter Description Page No. 4.1 FM Radio Broadcasting 263 4.2 Community Radio Station 281 4.3 Low Power Small Range FM Radio 288 4.4 Digital Radio Broadcasting 289 262CHAPTER 4.1: FM RADIO BROADCASTING 1. Restructuring of Entity Any restructuring of the company/ reorganization of FM radio authorisation between different holding companies/ subsidiaries/ interconnected undertakings/ companies with same management may be done anything during the currency of authorisation, only with prior approval of the Ministry of Information & broadcasting. The Central Government may consider granting such authorisation only after all the channels allotted to any of the company holding service authorisation stand operationalised undergoing restructuring. The new authorised entity shall have to conform to the prescribed eligibility conditions and shall also be subject to the fulfilment of the following conditions:- (a) The new company shall sign a fresh agreement with the Government on identical terms and condition (except for transferability of shares as provided herein) for the remaining period of license of the original company. (b) No new tax regime will be designed to provide any incentive to encourage creation of subsidiaries, merger/ demerger, amalgamation of FM Broadcasting companies. (c) Any tax implication arising out of such merger/ demergers or amalgamation would be governed by the provisions of the Income Tax Act, 1961 as applicable from time to time. (d) The processes/ action taken by the license companies including for formation of new companies/ subsidiaries/ mergers/ amalgamations and/or disinvestment of undertakings/ or part thereof, of existing companies etc., need to be compliant with the Companies Act, 2013. The applicant shall not dilute such requirement through its Articles of Associations or any Agreement. 2632. Restrictions on operation of Multiple channels in a city Every authorised entity shall be allowed to run not more than 40% of the total channels in a city subject to a minimum of three different operators in the city. However, in case the 40% figure is a decimal, it will be rounded off to the nearest whole number. [NOTE (1): The channels allotted to the following categories of the companies would be reckoned together for the purpose of calculating the total channels allotted to an entity: (a) Subsidiary company of any applicant/ allottee; (b) Holding company of any applicant / allottee; (c) Companies with the Same Management as that of applicant/ allottee; (d) More than one Inter-Connected Undertaking with regard to the applicant/ allottee. NOTE (2): In respect of existing license/permission/LOI holders, the license(s)/ permission(s)/ LOI(s) already held by them shall also be taken into consideration for calculating for the 40% limit. 3. Cross Media Ownership 1) If during the currency of authorisation, government policy on cross- media ownership is announced, the authorised entity shall be obliged to conform to the revised terms and conditions within a period of six months from the date of such notification, failing which it shall be treated as non-compliant of service authorisation, and liable for punitive action and withdrawal of authorisation. Provided, however, in case the authorised entity is not in a position to comply with cross media restrictions for bona fide reasons to the satisfaction of the Ministry of Information & Broadcasting, the authorised entity shall be given an option of furnishing one month’s exit notice along with a compensation 264calculated on a pro rata basis of the NOTEF amount(s) for the remaining period of authorisation(s) held by the authorised entity. 4. Annual Authorisation Fee 1) The authorised entity in the States of North East (i.e. Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura,) and Jammu & Kashmir (J&K) and island territories (i.e Andaman and Nicobar islands and Lakshadweep) will be required to pay an Annual Fee to the Government of India charged @ 2% of Gross Revenue for each year or 1.25% of NOTEF for the concerned city, whichever is higher, for an initial period of three years from the date from which the annual license fee becomes payable and the permission period of 15 years begins. The revised fee structure will also be applicable to existing operators in these States/UTs to enable them to effectively compete with the new operators. The three year period for the existing operators shall be reckoned from the first day of the commencement of the next quarter (refer para 4) subsequent to the date of issuance of these guidelines. 2) Subject to the provisions contained in above para (1), the authorised entity shall be liable to pay an Annual Authorisation Fee to the Central Government every year charged @ 4% of Gross Revenue of its FM radio channel for the financial year or @ 2.5% of NOTEF for the concerned city, whichever is higher. 3) Gross Revenue for this purpose would be the gross inflow of cash, receivables or other consideration arising in the course of ordinary activities of the FM Radio Broadcasting enterprise from rendering of services and from the use by others of the enterprise resources yielding rent, interest, dividend, royalties, commissions etc. Gross Revenue shall, therefore, be calculated, without deduction of taxes and agency commission, on the basis of billing rates, net of discounts to advertisers. Barter advertising contracts shall also be included in the gross revenues on the basis of relevant billing rates. 265In the case of an authorised entity providing or receiving goods and services from other companies that are owned or controlled by the owners of the authorised entity, all such transactions shall be valued at normal commercial rates and included in the profit and loss account of the authorised entity to calculate its gross revenue. 4) Annual Fee shall be paid in advance on quarterly basis in four equal instalments within the first fortnight of each quarter of a financial year. For this purpose, four quarters shall be tri-monthly periods beginning 1st April, 1st July, 1st October and 1st January respectively. 5) The first year’s authorisation fee shall become payable with effect from the date of operationalisation of the channel. The authorised entity shall be required to initially pay advance quarterly installments calculated on the basis of the minimum prescribed % of the NOTEF mentioned in para (1) or (2) as applicable, till the end of the financial year and even beyond till the determination of the first year’s gross revenues. After the determination of first year’s gross revenue, the quarterly installments will be determined on the basis of NOTEF or the gross revenue of the last year, for which gross revenue has been determined, whichever is higher. 6) Once the final fee for the financial year is determined on the basis of actual gross revenue as given in para 2, and is found to be higher than the prescribed percentage of the NOTEF the permission holder shall pay the balance in one lump sum within a period of one month from the date of such determination, and in any case not later than 30th September of the following year. 7) From the second year onwards, the authorised entity shall pay advance annual authorisation fee on the basis of the last year for which the gross revenue has been determined, or minimum prescribed % of the NOTEF, whichever is higher, within the first fortnight of each quarter, and balance due of final annual 266authorisation fee, if any, by 30th September of the following financial year. Any delay on the part of the authorised entity to pay the quarterly fee, or the balance due of the final annual authorisation fee, determined on the basis of the gross revenue figure, will attract simple interest @ 1% per month for the period of such delay. 8) Every authorised entity shall furnish a performance bank guarantee for an amount equal to the annual authorisation fee calculated on the basis of NOTEF formula as applicable and maintain its validity throughout the currency of the authorisation. Amount of bank guarantee shall be increased so as to be equal to the annual authorisation fee paid by the authorised entity for the previous year if such annual authorisation fee exceeded the bank guarantee already furnished by the authorised entity. The authorised entity shall be liable to pay the Annual Authorisation Fees within the prescribed time period, failing which the Central Government shall have the right to invoke the Bank Guarantee furnished by the authorised entity without any prior notice. Such right shall be without prejudice to any other action that may be taken by the Central Government under the terms and conditions of the authorisation. In the event of invocation of the Performance Bank Guarantee, the authorised entity shall furnish a fresh bank guarantee of the same amount within a period of three months from date of invocation of the Performance Bank Guarantee, in favour of the Central Government. 9) In the event of authorised entity’s failure/ inability to operationalise the Channel as required within the prescribed time period, the Central Government shall have the right to recover the Annual Authorisation Fee for the first year and all the years of such failure/inability as a lump-sum payment, and in the event of default by the authorised entity, by invocation of the Performance Bank 267Guarantee furnished by it. As aforesaid, in the event of invocation of the Performance Bank Guarantee, the authorised entity shall furnish a fresh bank guarantee of the same amount within a period of three months from date of invocation of the Performance Bank Guarantee, in favour of the Central Government, for the succeeding year’s Annual Authorisation Fee. 10) Every authorised entity shall maintain separate financial accounts for each Channel, which shall be audited by the Statutory Auditors. At the end of each financial year, the entity shall provide the statement of gross revenue forming part of the final accounts of the authorised entity as prescribed by Ministry of Information & Broadcasting duly certified by the Statutory Auditors and duly supported by the audited accounts for the financial year. 11) So as to verify that the Gross Revenue is correctly disclosed to it, the Central Government shall have the right to get the accounts of any authorised entity audited by CAG or any other professional auditors at their discretion. In case of difference between the Gross Revenue determined by the Statutory Auditor of the Company and the Central Government appointed auditors, the views of the Government appointed Auditor subject to opportunity of hearing to the authorised entity shall prevail and the expenses of such audit shall be borne by the authorised entity. In case any amount is deemed to be deposited by the authorised entity the same shall be deposited within 15 days of such determination along with interest calculated through Bharatkosh. 5. News and Current Affairs Programs 1) The authorised entity shall be permitted to carry the news bulletins of All India Radio in exactly same format (unaltered) on such terms and conditions as may be mutually agreed with Prasar Bharati. No other news and current affairs programs are authorised. 2682) The broadcast pertaining to the following categories shall be treated as non-news and current affairs and shall therefore be authorised: a) Information pertaining to sporting events excluding Live coverage. However Live commentaries of sporting events of local nature may be authorised; b) Information pertaining to Traffic and Weather; c) Information pertaining to and coverage of cultural events, festivals; d) Coverage of topics pertaining to examinations, results, admissions, career counselling; e) Availability of employment opportunities; f) Public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts etc. as provided by the local administration; g) Such other categories not authorised at present, that may subsequently be specifically authorised by Ministry of Information and Broadcasting from time to time. 6. Programme Content 1) The authorised entity shall follow the same Programme and Advertisement Code as followed by All India Radio as amended from time to time or any other applicable code, which the Central Government may prescribe from time to time. 2) The authorised entity shall also broadcast Public Interest Announcements as may be required by the Central Government/concerned State Government for maximum of one hour per day suitable/proportional time slots interspersed during that day shall be earmarked for this purpose. In case the total demand of Central Government and the State Government exceeds one hour per 269day, the concerned State Government shall be eligible for announcements covering only the period remaining after meeting the demand of the Central Government. 3) The authorised entity shall ensure that at least fifty percent (50%) of the programmes broadcast by it are produced in India. 4) In case of multiple authorisations to an entity/related entity(ies) in a city the attempt shall be to distinguish programming on each channel based on era of music, language of music, genre of music etc. to the extent possible to ensure diversity of programming to the listener. 7. Prohibition of Certain Activities 1) The authorised entity shall not grant a sub-authorisation directly or indirectly. The service authorisation is non-transferable Provided that no authorised entity, whether with or without foreign investment, shall be permitted to change the ownership pattern of the company through transfer of shares of the majority shareholders/promoters to any new shareholders without the written permission of the Ministry of Information & Broadcasting. The term majority shareholders/promoters shall be construed to mean the persons constituting the ‘largest Indian shareholder’ as specified in the Company Act, 1956 or 2013. 2) The authorised entity may resort to outsourcing of content production as well as leasing of content development equipment as long as it does not impact authorised entity’s rights as FM broadcaster and enjoys complete control over the channel. However, the authorised entity shall be fully responsible for any violations/omissions of the provisions with respect to the content of News and current affairs programs and program content. 2703) The authorised entity may hire or lease broadcasting equipment on long-term basis as long as it does not impact authorised entity’s rights as FM Radio broadcaster and it enjoys complete control over the channel. However, the authorised entity shall be fully responsible for any violations of the technical parameters as specified in these Rules. 4) The authorised entity shall not enter into any borrowing or lending arrangement with other authorised entity(ies) except recognized financial institutions and its related entity(ies) (to say, its subsidiary or holding company, a company with the same management and an inter- connected undertaking), which may restrict its management or creative discretion to procure or broadcast content or its marketing rights. 5) The authorised entity shall ensure that there is no linkage between a party from whom a programme is outsourced and an advertising agency. 6) The authorised entity shall ensure that no content, messages, advertisement or communication, transmitted in its Broadcast Channel is objectionable, obscene, unauthorized or inconsistent with the laws of India. 7) The authorised entity shall not either directly or indirectly assign or transfer its right in any manner whatsoever to any other party or enter into any Agreement for sub-authorisation and/or partnership relating to any subject matter of the authorisation to any third party either in whole or in part. Any violation of these Rules shall be liable for punitive action and withdrawal of authorisation. 8) The authorised entity shall fix or modify the ‘Channel Identity’, which is the brand name of the FM radio channel, only after prior approval of the Ministry of Information & Broadcasting. 2718. Penalty for Non operationalisation of services 1) Each authorised entity shall operationalize the channel and ensure completion of the activities preceding thereto within the time limits as prescribed by the Central Government from time to time, failing which the authorisation shall be revoked/ withdrawn, and authorised entity shall be debarred from allotment of another channel in the same city for a period of five years from the date of such revocation/ withdrawal. The frequency so released may be allotted to the next highest bidder from the waiting list, if available and valid or through subsequent bidding. The authorised entity shall be liable to pay one year’s annual fee. The Central Government shall be well within its right to recover the same from the Performance Bank Guarantee (PBG) already submitted. No claim shall be admissible against the NOTEF paid to the Central Government. 2) The Ministry of Information & Broadcasting may also revoke/ withdraw the authorisation, if the channel is closed down either continuously or intermittently for more than 180 days in any continuous period of 365 days for whatever reason. 9. Networking 1) An entity shall be authorised to network its channels in its own network within the country. However, it is also to be ensured that at least 20% of the total broadcast in a day (reckoned from 0000 Hrs to 2400 Hrs), is in the local language of that city and promotes local content. This may include the Radio Jockey speaking in local language(s)/dialect(s) or programmes focused on local culture/tradition/folk music etc. or other permissible programmes/ advertisements in the local language(s)/ dialect(s). 2) No two entities shall be authorised to network any of their channels in any category of cities. 27210. Technical Parameters and Standards: The authorised entity shall comply with the following technical parameters and standards both for transmission and audio quality of the service. 1) Technical Parameters for FM radio: The transmission equipment including antenna are to conform to the following technical parameters: (i) ERP and EHAAT Category Basis (One or more of Effective Antenna Height the following) Radiated Power (EHAAT) (ERP) (in kW) (in meters) Min Max Min Max A+ Metro cities 25 50 (Delhi, 75 200 Mumbai, Kolkata, 75 175 Chennai) A Population above 20 10 30 75 150 lakhs B Population above 10 5 15 50 100 lakhs and upto 20 lakhs C Population above 3 lakhs 3 10 30 75 and upto 10 lakhs D Population above 1 lakhs 1 3 20 40 and upto 3 lakhs Others Cities with a population 1 3 20 40 upto 1 lakhs [NOTE:1 For the purposes of this para the terms ERP and EHAAT shall mean the following:- 273(i) “Height of Antenna above Average Terrain (HAAT)” is the height of the centre of radiation of the antenna above average elevation of the terrain between 3 and 15 Km from the antenna for each radial. (ii) “Effective Height of Antenna above Average Terrain (EHAAT)” is the average of HAATs for 8 radials spaced every 45 degrees of azimuth starting with true north. (iii) “Effective Radiated Power (ERP)” is the product of the transmitter output power and Antenna Gain relative to half wave dipole. NOTE 2: In cases, where (i) it may not be possible to remain within the prescribed limits of EHAAT due to topographical constraints or non- availability of a suitable tower meeting the prescribed values of EHAAT or due to any security considerations that the Government may deem appropriate to factor in, or (ii) the EHAAT/ERP needs to be fixed to take care of signal interference or security concerns or concerns relating to safety of flights in the vicinity, The authorised entity shall have to adjust the ERP of their transmitters so as to lay RF signal not exceeding that due to combination of maximum ERP and maximum EHAAT, as may be prescribed. NOTE 3: In case of interim set up, the LOI holder/authorised entity shall, as far as practicable, adhere to the technical parameters for the respective cities. In case it is not possible, it should ensure that the coverage from the interim set up is not less than 60% by area of the coverage of the permanent set up. i. Antenna Polarization: Circular 274ii. Stereophonic Transmission System: Pilot-tone iii. Pre-emphasis in transmission system: 50 micro-sec iv. Max Deviation in transmission system:+/-75 KHz v. Harmonic/spurious: Shall conform to the ITU Radio Regulations and relevant ITU-R Recommendations vi. Frequency Stability: Shall conform to the ITU Radio Regulations NOTE 4: In case of border cities with a population less than one lakh, Ministry of Information &Broadcasting may make a special dispensation in consultation with, MoD, MHA, and WPC to ensure coverage including those in shadow areas keeping in view the geographical terrain and strategic requirements. 2) Technical Standards for FM Radio: The authorised entity shall comply with the audio and transmission standards for FM sound broadcasting at each centre conforming to the ITU-R (International Telecommunication Union) Recommendations viz: 450-3, 467, 646 and 644-1; a) The authorised entity shall also comply with the technical standards on data broadcasting on FM sub-carriers, whenever introduced, conforming to ITU-R Recommendations viz. 643-1 and BS-1194-2. Technical Standards for Digital Radio: To be provisioned when notified by the Central Government 11. Number of Frequencies Subject to availability of frequencies the total number of channels for allocation to private broadcasters shall be notified from time to time by Ministry of Information and Broadcasting in consultation with WPC. 27512. Co-location 1) Co-location of transmission facilities by sharing of infrastructure is preferable and shall be encouraged. Ministry of Information and Broadcasting may issue from time-to-time suitable guidelines/ instructions/ orders in this regard and prescribe timelines for entering into mutual agreement for infrastructure sharing with either Prasar Bharati or Broadcast Engineering Consultants India Limited (BECIL), for cities, wherever their sharable infrastructure may be available. 2) The authorised entity shall endeavour to utilize the Prasar Bharati Infrastructure or Common Transmission Infrastructure (CTI) created by BECIL, wherever available, before trying to create their own transmission facilities. Further, the transmission facilities created by the authorised entity shall be offered for sharing with other entity, who are authorised for operation of FM Radio in the same city. 3) Sharing of infrastructure including sharing methodology, commercial revenue sharing mode, service level agreement and methodology for upkeep of such infrastructure shall be based on mutual agreement between the parties. 13. Frequency allocation and SACFA clearance The authorised entity shall be required to obtain frequency allocation/ assignment from WPC wing of Department of Telecommunication (DoT) under the Ministry of Communication. The authorised entity shall also be required to obtain SACFA clearance from WPC wing of Department of Telecommunication (DoT)under the Ministry of Communication before start of operations and radiating the broadcast channel. 27614. Mandatory sharing of certain broadcast signals with Prasar Bharati The authorised entity shall ensure compliance with the provisions of Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharti) Act, 2007 and rules, guidelines and notifications issued thereunder. 15. Monitoring and requirement to furnish information 1) The authorised entity, at its own cost, shall, a) Preserve the recordings of content broadcasted by the authorised entity for a period of three months from the date of broadcast and produce the same to the Central Government or its authorized representative, as and when required and b) Provide the necessary equipment, services and facilities at designated place(s) as may be required and shall pay such charges as may be required for continuous monitoring of the broadcast content by or under supervision of the Central Government or its authorized representative. c) Provide the necessary equipment, services and facilities at designated place(s) for continuous measuring, recording and monitoring of prescribed technical parameters of broadcast as may be required and shall pay such charges as may be required for continuous monitoring of the broadcast service to BECIL. 2) The authorised entity shall be liable to furnish to the Central Government or its authorized representative or TRAI or its authorized representative, such reports, accounts, estimates, returns or such other information and at such periodic intervals or at such times as may be required. An annual report shall also be required to be submitted by the authorised entity that includes audited accounts, 277Profit & Loss Account, balance sheet, shareholding, Board of Directors and key executives of the company. 3) The authorised entity shall submit all such information as may be required by the Central Government to dispose of complaints by public with respect to its broadcast. 4) In case of non-payment of dues, if any, the Central Government shall recover such dues from the PBG/ Security Deposit furnished by the authorised entity. 16. Inspection 1) The Central Government, Ministry of Information & Broadcasting or its authorized representative or TRAI or its authorized representatives, shall have the right to inspect the broadcasting facilities. No prior permission/intimation shall be required to exercise the right of Central Government or its authorized representative to carry out the inspection. The authorised entity shall, if required by the Central Government or its authorized representative, provide necessary facilities for continuous monitoring for any particular aspect of the company’s activities and operations. 2) The inspection shall ordinarily be carried out after reasonable notice except in circumstances, where giving such a notice shall defeat the very purpose of the inspection. 3) The Ministry of Information & Broadcasting shall carry out periodic technical audit of the technical setup at the cost of the authorised entity through a designated agency. 17. Surrender of Authorisation 1) The authorised entity may surrender the authorisation by giving an advance notice of one month to the Central Government as well as to 278all concerned/affected parties including the listeners of the service to this effect. No claim shall be admissible against the Non-refundable NOTEF paid to the Central Government. The authorised entity shall however, continue to observe compliance to these Rules including the criteria for the quality of broadcast during the notice period and any failure to do so shall be regarded as contravention to these Rules and shall be liable for punitive action. 2) In case of surrender of authorisation, the Central Government may (at its own discretion), in order to ensure the continuity of the Broadcast, take over the FM Radio Broadcast Channel of the authorised entity or issue authorisation to another eligible entity for running the service. The authorised entity shall be obligated to facilitate the transfer of authorisation to the new authorised entity or the Central Government, and of all assets as are essential and necessary for continuity of the service on payment of such compensation as may be mutually agreed. 18. Provisions relating to data in FM broadcasting services sub- carriers 1) The services provided shall be free-to-air services and no charges shall be required to be paid by listeners to the FM / Digital Radio broadcaster for such services. 2) None of the data services shall carry any audio/video/text/data falling within the purview of news and current affairs. 3) Any broadcasts as part of data services shall also be required to adhere to monitoring and storage requirements as provided herein. 4) Any service specific to an individual listener/subscriber like radio paging shall not be authorised as such services require a separate authorisation from Department of Telecommunication (DoT). 2795) Emergency Warning Services (EWS), if provided shall only be used with the specific approval and guidance of the local District administration. 6) Revenues, if any, earned by provisioning of such services shall form part of the overall Gross Revenue of the authorised entity for the purposes of determination of annual authorisation fee. 19. Miscellaneous 1) The grant of authorisation shall be subject to the condition that the authorised entity shall comply with these Rules, the Telecommunications Act, 2023 and any regulations, orders and directions issued by TRAI from time to time under the TRAI Act 1997. 2) The authorisation shall be governed by the provisions of the Telecommunications Act, 2023, Telecom Regulatory Authority of India Act, 1997, as amended from time to time and any other law as applicable to broadcasting which has or may come into force. 3) The Central Government shall have the right to modify at any time the provisions of the terms and conditions of service authorisation, if in the opinion of the Central Government it is necessary or expedient to do so in public interest or in the interest of the security of the State. The decision of the Central Government shall be final and binding in this regard. 280CHAPTER 4.2: COMMUNITY RADIO STATION (CRS) 1. Content regulation & monitoring 1) The programmes should be of immediate relevance to the community. The emphasis should be on developmental, agricultural, health, educational, environmental, social welfare, community development and cultural programmes. The programming shall reflect the special interests and needs of the local community. 2) At least 50% of content shall be generated with the participation of the local community, for which the station has been set up. 3) Programmes shall preferably be in the local language and dialect(s). 4) The authorised entity shall have to adhere to the provisions of the Programme and Advertising Code as prescribed by Prasar Bharti for All India Radio (AIR). 5) The authorised entity shall preserve all programmes broadcast by the Community Radio Station for three months from the date of broadcast. 6) The authorised entity shall not broadcast any programme, which relate to news and current affairs and are otherwise political in nature. However, Community Radio Station may broadcast news and current affairs contents sourced exclusively from All India Radio (AIR) in its original form or translated into the local language/dialect. All India Radio (AIR) shall source its news to Community Radio Station without any charges. It shall be the responsibility of the authorised entity to ensure that the news is not distorted or edited during translation. The broadcast pertaining to the following categories shall be treated as non-news and current affairs broadcast and shall therefore be authorised: 281a) Information pertaining to sporting events excluding Live coverage. However Live commentaries of sporting events of local nature may be authorised; b) Information pertaining to Traffic and Weather; c) Information pertaining to and coverage of local cultural events, festivals; d) coverage of topics pertaining to examinations, results, admissions, career counselling; e) Availability of employment opportunities; f) Public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts etc. as provided by the local administration, g) such other categories not authorised at present that may subsequently be specifically permitted by Ministry of Information and Broadcasting from time to time. 7) The authorised entity shall ensure that nothing is included in the programmes broadcast which: a) Offends against good taste or decency; b) Contains criticism of friendly countries; c) Contains attack on religions or communities or visuals or words contemptuous of religious groups or which either promote or result in promoting communal discontent or disharmony; d) Contains anything obscene, defamatory, deliberate, false and suggestive innuendoes and half-truths; e) Is likely to encourage or incite violence or contains anything against maintenance of law and order or which promote-anti- national attitudes; 282f) Contains anything amounting to contempt of court or anything affecting the integrity of the Nation; g) Contains aspersions against the dignity of the President/Vice President and the Judiciary; h) Criticises, maligns or slanders any individual in person or certain groups, segments of social, public and moral life of the country; i) Encourages superstition or blind belief; j) Denigrates women; k) Denigrates children; l) May present/depict/suggest as desirable the use of drugs including alcohol, narcotics and tobacco or may stereotype, incite, vilify or perpetuate hatred against or attempt to demean any person or group on the basis of ethnicity, nationality, race, gender, sexual preference, religion, age or physical or mental disability. 8) The authorised entity shall ensure that due care is taken with respect to religious programmes with a view to avoid: a) Exploitation of religious susceptibilities; and b) Committing offence to the religious views and beliefs of those belonging to a particular religion or religious denomination. 2. Imposition of penalty/revocation of Authorisation In case there is any contravention of these Rules, the Central Government may suo-motu or on basis of complaints take cognisance and take action as per provisions in these Rules or the Telecommunications Act, 2023. 2833. Transmitter Power and Range 1) Community Radio Station shall be expected to cover a range of 5-10 km. For this, a transmitter having maximum Effective Radiated Power (ERP) of 100 W shall be adequate. However, in case of a proven need where the authorised entity is able to establish that needs to serve a larger area or the terrain so warrants, higher transmitter wattage with maximum ERP up to 250 Watts may be considered on a case-to-case basis, subject to availability of frequency and such other clearances as necessary from the Ministry of Communication. Requests for higher transmitter power above 100 Watts and up to 250 Watts shall also be subject to approval by the Committee constituted under the Chairmanship of Secretary, Ministry of Information & Broadcasting. 2) The maximum height of antenna authorised above the ground for the Community Radio Station shall not exceed 30 meters. However, minimum height of Antenna above ground shall be at least 15 meters to prevent possibility of biological hazards of RF radiation. 3) In disaster situations the District Magistrate’s authorisation shall be sufficient to relocate Community Radio Station. However, Ministry of Information and Broadcasting shall be informed of the change of place by both the Community Radio Station and the District Magistrate. 4. Funding & Sustenance 1) The authorised entity shall be eligible to seek funding from multilateral aid agencies. Applicants seeking foreign funds for setting up the Community Radio Station shall have to obtain FCRA clearance under Foreign Contribution Regulation Act, 1976. 2) Transmission of sponsored programmes shall not be permitted except programmes sponsored by Central & State Governments and other organisations to broadcast public interest information. In addition, 284limited advertising and announcements relating to local events, local businesses and services and employment opportunities shall be allowed. The maximum duration of such limited advertising shall be restricted to 7 (seven) minutes per hour of broadcast. 3) Revenue generated from advertisement and announcements shall be utilized only for the operational expenses and capital expenditure of the Community Radio Station. After meeting the full financial needs of the Community Radio Station, surplus, if any, may, with prior written authorisation of the Ministry of Information & Broadcasting, be ploughed into the primary activity of the organization i.e. for education in case of educational institutions and for furthering the primary objectives for which the NGO concerned was established. 5. Other Terms & Conditions 1) The basic objective of the Community Radio broadcasting shall be to serve the cause of the community in the concerned service area by involving members of the community in the broadcast of their programmes. For this purpose, community shall mean people living in the zone of coverage of the broadcasting service of the authorised entity. The authorised entity shall provide the services of his Community Radio Station on free-to-air basis. 2) The authorised entity shall operate the service under these Rules and shall adhere to there regulations, orders, directions of the regulatory authority (TRAI) issued from time to time. 3) The authorised entity shall provide such information to the Central Government on such intervals, as may be required. In this connection, the authorised entity is required to preserve recording of programmes broadcast during the previous three months failing which authorisation is liable to be revoked/ withdrawn. 2854) The Central Government or its authorized representative shall have the right to inspect the broadcast facilities of the authorised entity and collect such information as considered necessary in public and community interest. 5) The Central Government reserves the right to take over the entire services and networks of the authorised entity or revoke/terminate/suspend/ withdraw the authorisation in the interest of national security or in the event of national emergency/ war or low intensity conflict or under similar type of situations. 6) All foreign personnel likely to be deployed by way of appointment, contract, consultancy etc. by the authorised entity for installation, maintenance and operation of the authorised entity’s services shall be required to obtain prior security clearance from Ministry of Home Affairs, Government of India. 7) The Central Government reserves the right to modify, at any time, these Rules, if it is necessary to do so, in public interest or for the proper conduct of broadcasting or for security considerations. 8) Notwithstanding anything contained anywhere else in these Rules, the Central Government shall have the power to direct the authorised entity to broadcast any special message as may be considered desirable to meet any contingency arising out of natural emergency, or public interest or natural disaster and the like, and the authorised entity shall be obliged to comply with such directions. 9) The authorised entity shall be required to submit their audited annual accounts to the Central Government in respect of the organization/division running the Community Radio Station. The accounts shall clearly show the income and expenditure incurred and the Assets and Liabilities in respect of the Community Radio Station. 28610) The Government shall make special arrangements for monitoring and enforcement of the ceiling on advertisements, particularly in those areas where private FM radio stations have been granted authorisation. 287CHAPTER 4.3: LOW POWER SMALL RANGE FM RADIO BROADCASTING 1. Provision of Low Power Small Range FM Radio Broadcasting 1) The Low Power Small Range FM Radio Broadcasting shall be allowed to operate after the grant of a authorisation by the Central Government. 2) On notification of this service a new category of service provider for provision of low power small range FM radio shall be introduced, called ‘Low Power Small Range FM Radio Broadcasting’. 3) The authorised entity of low power small range FM broadcasting shall be allowed to deploy any type of transmission technologies (analog/digital/any other). 2. Low Power Small Range FM Radio Broadcasting Service Obligations 1) Maximum permissible transmission power of the transmitter for low power small range FM broadcasting shall be say 1 watt. 2) The maximum permissible transmission range of ‘Low Power Small Range Radio Broadcasting’ shall be say 500 meters. 3) The authorised service area of frequency assignment in case of low power small range FM shall be location-specific based on the precise geographical coordinates say longitude and latitude of the intended service location (be it a building, stadium, convention centre, expo area etc.). 288CHAPTER 4.4: DIGITAL RADIO BROADCASTING The terms and conditions for authorisation of Digital Radio Broadcasting may be framed once the said service in notified by the Central Government. 289Schedule-I DEFINITIONS Definitions. – In these rules, unless the context otherwise requires, (1) “Addressable system” means an electronic device (which includes hardware and its associated software) or more than one electronic device put in an integrated system through which transmission of programmes including re-transmission of signals of television channels can be done in encrypted form, which can be decoded by the device or devices at the premises of the subscriber within the limits of the authorization made, on the choice and request of such subscriber, by the distributor of television channels; (2) “authorisation” means a permission, by whatever name called, granted under the Telecommunications Act, 2023 for— (i)providing telecommunication services; (ii)establishing, operating, maintaining or expanding telecommunication networks; or (iii) possessing radio equipment; (3) “Authorisation Fee” means a fee payable by Authorised Entity at prescribed intervals and rates for the period of the authorisation; (4) “Authorised Entity” means a person holding an authorisation under Telecommunications Act, 2023; (5) “broadcaster” means a person or a group of persons, or body corporate, or any organization or body who, after having obtained, in its name, authorization from the Central Government for its channels, is providing programming services; 290(6) “Broadcasting Services” means the dissemination of any form of communication like signs, signals, writing, pictures, images, videos and sounds of all kinds by transmission of electromagnetic waves through space or through cables intended to be received by the general public either directly or indirectly and all its grammatical variations and cognate expressions shall be construed accordingly; (7) “Cable Television Service” means the transmission of programmes including re-transmission of signals of television channels through cables; (8) “Cable Television Network” or “Cable Television Network” means any system consisting of a set of closed transmission paths and associated signal generation, control and distribution equipment, designed to provide cable television service for reception by multiple subscribers; (9) ‘Central Government’ shall refer to the President of India acting through any authorised officer; (10) “Company” means a company incorporated under the Companies Act, 1956 or 2013; (11) “Designated Partner” means a person as defined in clause (j) of section 2 of the Limited Liability Partnership Act, 2008; (12) “Devotional Channel” means a television channel, which predominantly broadcasts devotional/spiritual/yoga content, as identified by the Ministry of Information and Broadcasting; (13) “Director” of a company means a Managing Director, Whole time or Executive Director but does not include an Independent Director, as per the Companies Act, 1956 or 2013; 291(14) “Distribution services” means distribution service within their respective scope of services provided by a DTH operator, HITS operator, Every Permission Holder shall maintain separate financial accounts for each Channel (15) “Distribution Service Provider” shall include DTH operator, HITS operator, IPTV operator or Multi-System Operator (MSO); (16) “DTH” (Direct-to-Home) service means re-transmission of signals of television channels, by using a satellite system, directly to subscriber’s premises without passing through an intermediary such as local cable operator or any other distributor of television channels; (17) “Effective Radiated Power (ERP)” is the product of the transmitter output power and Antenna gain relative to half wave dipole; (18) ECG (Electronic Content Gathering) refers to use of electronic technologies that allows a reporter or a representative of television Channel to gather and provide the content to broadcaster from remote locations outside the television studio using terrestrial communication medium viz. cellular network/ internet/ leased line or any other medium/ equipment, excluding SCG; (19) “Entry Fee” means a non-refundable fee required to be paid by the applicant entity for obtaining Authorisation to provide Authorised Services in a Service Area; (20) “Financial year” means the period starting from 1st April of a year and ending on the 31st day of March of succeeding year; 292(21) “Ground-Based Broadcasting” means providing programming services using terrestrial communication medium for delivering channels to the distributors of television channels”; (22) “HITS (Head end in the sky) service” or “HITS service” means transmission of programmes including re-transmission of signals of television channels either to intermediaries like local cable operators or multi-system operators or to the subscribers by using satellite system and its own cable networks; (23) “IPTV” (Internet Protocol Television) service (or technology) is a convergence service (or technology) of the telecommunications and broadcasting through QoS controlled Broadband Convergence IP Network including wire and wireless for the managed, controlled and secured delivery of a considerable number of multimedia contents such as Video, Audio, data and applications processed by platform to a user via Television, PDA, Cellular, and Mobile television terminal with STB module or similar device; (24) “Key Managerial Personnel” means a person defined under sub- section (51) of section 2 of the Companies Act, 2013; (25) ‘’LLP” means a Limited Liability Partnership firm registered under the Limited Liability Partnership Act, 2008; (26) “Multi-System Operator” or ‘MSO’ means a cable operator who has been granted registration under rule 11 of the Cable Television Networks Rules, 1994 and who receives a programming service from a broadcaster and re-transmits the same or transmits his own programming service for simultaneous reception either by multiple subscribers directly or through one or more local cable operators; 293(27) “National channel” means a television channel other than a regional channel or a devotional channel; (28) “News channel” means a Radio/ television channel, which predominantly broadcasts news and current affairs content programmes; (29) ‘’Non-news channel” means a Radio/ television channel other than a news channel; (30) “SMC” means SATCOM Monitoring Centre, erstwhile NOCC – Network Operation Control Centre; (31) “Non-operational channel” means a channel, whose signal is not being broadcast in India for a continuous period of sixty days, other than for reasons of suspension by the Ministry; (32) “Platform Services” are programme transmitted by the Distribution Service Provider(s) exclusively to their own subscribers and shall not include Doordarshan channels or any other permitted television channels; (33) “Person” shall include an individual, any company or association or body of individuals, whether incorporated or not, by whatsoever name called or referred to; (34) “Programme” means any Radio/ Television broadcast and includes- (i) exhibition of films, features, dramas, advertisements and serials; (ii) any audio or visual or audio-visual live performance or presentation; and the expression “programming service” shall be construed accordingly; 294(35) “Public entity” means (a) the Central Government, (b) State Governments, (c) Local Authority, (d) Any Authority, body, company or institution incorporated or established by the Central Government or the State Government, under any statute, or I any non-government entity vested with the ownership, control or management of any public facility or class of public facilities, as notified by the Central/ State Government; (36) “Radio equipment” means telecommunication equipment used or capable of use for telecommunication by means of Hertzian or electromagnetic or radio waves; (37) “Radio waves” means electromagnetic waves of frequencies propagated in space without any artificial guide; (38) “SACFA” shall mean the “Standing Advisory Committee on Radio Frequency Allocation”; (39) “SCG (Satellite Content Gathering)” refers to use of satellite based electronic technology/equipment that allows a reporter or a representative of TELEVISION Channel to gather and provide the content to broadcaster from remote locations outside the TELEVISION studio; (40) “Service Provider” means entity authorised to provide services under Section 3(1) of the Telecommunications Act, 2023; (41) “Set Top Box” or “STB” means a device, which is connected to or is part of a television receiver and which enables a subscriber to view subscribed channels; (42) ‘Shareholding pattern’ means the number of equity shares of a company held by various shareholders; 295(43) “Spectrum” means the range of frequencies of Hertzian electromagnetic or radio waves; (44) “Subscriber Management System” means a system or device which stores the subscriber records and details with respect to name, address and other information regarding the hardware being utilized by the subscriber, channels or bouquets of channels subscribed by the subscriber, price of such channels or bouquets of channels as defined in the system, the activation or deactivation dates and time for any channel or bouquets of channels, a log of all actions performed on a subscriber’s record, invoices raised on each subscriber and the amounts paid or discount allowed to the subscriber for each billing period; (45) “TEC” means Telecom Engineering Centre, an arm of Department of Telecommunications, Government of India; (46) ‘Teleport” means an earth station facility from where multiple television channels carrying audio, video content can be uplinked to a geostationary satellite on permitted frequency band as per the provisions of section 4 of the Telecommunications Act, 2023; (47) ‘Teleport Hub” means set-up of teleports for uplinking of television channels, where multiple antennas are installed for two or more satellites; (48) “Television channel” means a channel, which has been granted authorisation by Central Government for broadcasting services under the rules issued or amended from time to time and reference to the term ‘channel’ shall be construed as a reference to “television channel”. (49) “TRAI” means Telecom Regulatory Authority of India constituted under the Telecom Regulatory Authority of India Act, 1997 as amended from time to time; 296(50) WPC” means Wireless Planning and Coordination Wing of the Ministry of Communication, Department of Telecommunication, Government of India; (51) All other words and expressions used in the Broadcasting (Grant of Service Authorisations) Rules but not defined, and defined in the Telecommunications Act, 2023 and rules and regulations made thereunder or the Cable Television Networks (Regulation) Act, 1995 (7 of 1995) and the rules and regulations made thereunder, shall have the meanings respectively assigned to them in those Acts or the rules or regulations, as the case may be. 297Schedule-II FORMAT FOR CERTIFICATION OF NET WORTH BY STATUTORY AUDITORS We have audited the Books of Accounts of _______ for the financial year/period ended month-day-year _______ and certify that the “Net Worth” of M/s ______________ the Applicant Company as on _______ is Rupees _______ lakhs (rupees in words lakhs). We further certify that the Net Worth of the Applicant Company is computed as follows: Sl. Particulars Amount in Rupees-lacs No. 1. Book Value of assets 2. Book Value of fictitious and intangible assets 3. Liabilities other than owner’s funds 4. Net Worth {1-(2+3)} Place/Date Statutory Auditors Note: Net Worth: The excess of the book value of assets (other than fictitious and intangible assets of an enterprise over its liabilities. This is also referred to as Net assets or shareholder’s funds. Book Value of assets: The amount at which an item appears in the books of account or financial statement. It does not refer to any particular basis on which the amount is determined. e.g. cost, replacement value etc. Fictitious assets: Items grouped under the assets in a balance sheet which has no real value (e.g. The debit balance of the profit and loss account). Liabilities: The financial obligation of an enterprise other than owner’s funds. 298Schedule-III The Broadcasting (Television Programming) Services Annual Processing Minimum Net Bank Renewal Security Authorisation Broadcaster/Teleport Fee Worth Guarantee Fees Deposit Fee (in Rs.) (in Rs.) (in Rs.) (in Rs.) (in Rs.) (in Rs.) News and 2 cr./ Current Affairs channel 10,000 per Uplinking of channel Television 2 lakh/ channel 4 lakh Non-News Channels and 1st 1 cr./ Current TELEVISION channel Affairs Channel-20 10,000 per cr. From India- channel News and From India-5 Current 10 lakh/ lakh/ channel Additional-5 Affairs Downlinking of cr. 10,000 per channel Television Not Prescribed channel Channels Non-News Outside and Outside India-15 India- Current lakh/channel 30 lakh/ Affairs channel 299Ground Based To be provisioned when notified by the Central Government Broadcasting News Agency for Not Television 10,000 Not Prescribed Not Prescribed 10,000 Not Prescribed Prescribed Channel(s) 1st Teleport- 25 lakh/ 2 lakh/ 10,000 per 3 cr. 10,000 per 4 lakh/ Teleport teleport teleport teleport teleport teleport Additional-1 cr. Coverage of Live Event by 1 lakh per day Not Prescribed foreign Channel Other Services related to Broadcasting (Television Programming) Services Processing Minimum Net Renewal Annual Bank Security Fee Worth Fees Permission Fee Service Guarantee (in Deposit (in Rs.) Rs.) (in Rs.) (in Rs.) (in Rs.) (in Rs.) Purchase/ Hiring and use of 10 lakh per Not Not 10,000 Not Prescribed Not Prescribed SCG equipment van Prescribed Prescribed Live telecast by a news and Not Prescribed current affairs channel 300Live uplinking of an event by a non-news and current Refer Note (ii) Below affairs channel Change of name and logo of 1 lakh Not Prescribed a television channel Change of satellite/ teleport 10,000 Not Prescribed Intimation for change of language/ mode of Not Prescribed transmission etc. Change of category of a 10,000 Not Prescribed television channel Change in operational status Not Prescribed ,, Note: i. Registration fee for downlinking television Channels uplinked from other countries: One time Registration Fee - 10 Lakhs. ii. Fees for Live uplinking of an event by a non-news channel: a) National channel Rs 1 lakh per channel per day; b) Regional Channel : Rs 50,000 per channel per day c) Devotional channel : No fees for a devotional/spiritual/yoga content 301The Broadcasting (Television Distribution) Services Service Processing Fee Entry Fee Net-worth Authorisation Bank Guarantee Spectrum/ Fee (Erstwhile frequency License Fee) allocation and Royalty Fee DTH Not Prescribed 10 cr. Not Prescribed 3% of AGR; to Rs. 5 crores for the As prescribed be brought first two quarters. by WPC down to zero by Thereafter, an FY 2026-2027 amount equivalent to Initial BG (i.e., 5 crore) or 20% of the License Fee for two quarters, whichever is higher. HITS 1 lakh 10 cr. 10 cr. Not Prescribed 40 cr. Valid for 3 As prescribed years by WPC IPTV Not Prescribed Not Prescribed ISP: 100 cr. ISP: 8% of AGR Unified Access/Access/Internet TSP: 8% of Not Not Prescribed Service Providers: Not AGR Prescribed Prescribed MSO: Not Prescribed MSO: Not Prescribed 302The Broadcasting (Radio) Services Service Authorisation Fee Net worth Processin Entry Bank Security Renewal Spectrum/ g Fee Fee Guarantee Deposit Fee frequency allocation and Royalty Fee Radio For authorised · E category 25,000/- Determi 25% of Not Not As prescribed Broadcasting entities (existing Cities To be ned reserve Prescribe Prescrib by WPC from (FM/Digital) permission holders) : provisioned through price d ed time to time 4% of GR (without when notified by Auction deduction of taxes) the Central or 2.5% of NOTEF, Government whichever is higher. ·D category Cities and cities For participating in with population the upcoming up to 1 lakh: 50 bidding: 4% of GR Lakhs (excluding GST). 303·C category Cities: Rs. 1 Crore ·B category Cities: Rs. 2 Crore ·A category Cities: Rs. 3 Crore ·A+ category Cities Rs. 3 Crore ·All categories of Cities in all regions: 10 Crore Community Not Prescribed Not Prescribed 500/- Not 25 Not Not As prescribed Radio Station Prescrib thousand Prescribe Prescrib by WPC ed for a d ed period of 10 years Low power • Rs. 1000/- for Not Prescribed Nil Not Prescribed small range FM authorizations up Radio to 30 days. 304• Rs. 10,000/- per annum for authorizations up to 5 years. 305Schedule-IV ROLL OUT OBLIGATIONS AND PERFORMANCE BANK GUARANTEE FOR BROADCASTING (PROGRAMMING AND DISTRIBUTION) SERVICES SI. Type of Roll Out Obligations Performance Bank Guarantee No. Service (PBG) Authorisation Broadcasting (Television Programming) Services 1. Television The authorised entity sha•ll The applicant entity shall furnish Channel operationalize the authorised a Performance Bank Guarantee Television Channel within (PBG) of 1 crore (for Non-news & one year from the date of Current Affairs channel)/ 2 crore obtaining all necessary (for News and Current Affairs clearances from WPC and Channel) from any scheduled SATCOM Monitoring Centre bank for each News/ Non-News (SMC). and Current Affairs channel, before grant of authorisation, in the format as specified by the Ministry for fulfilling the rollout obligation. If the channel is not operationalised within the stipulated period, the authorisation shall be liable to be withdrawn and the PBG shall stand forfeited. 3062. Teleport/ The authorised entity shall • The applicant entity shall Teleport Hub operationalise the teleport furnish a Performance Bank within one year from the date Guarantee (PBG) of Rs 25 lakh for of obtaining all necessary each teleport, before grant of clearances from WPC and authorisation in the format as SATCOM Monitoring Centre specified by the Ministry for (SMC). fulfilling the rollout obligation, from any scheduled bank in favour of the Ministry of Information and Broadcasting. • If the teleport is not operationalised within the stipulated period the authorisation would be liable to be withdrawn and the PBG shall stand forfeited. Other Services related to Broadcasting (Television Programming) Services 3. SCG The authorised entity shall • The applicant entity shall operationalise the SCG within furnish a Performance Bank six months from the date the Guarantee (PBG) for 10 lakhs authorisation is granted by the from any scheduled bank for Ministry of Information and each SCG van, before grant of Broadcasting. authorisation, in the format as specified by the Ministry for fulfilling the rollout obligation in favour of the Ministry of Information and Broadcasting. 307• If the SCG van is not operationalised within six months, the authorisation shall be liable to be withdrawn and the PBG shall stand forfeited. Broadcasting (Television Distribution) Services 4. DTH The authorised entity shall If the DTH platform is not establish and complete the operationalised within twelve installation of the uplink earth months, the authorisation shall station in India including the be liable to be withdrawn and the monitoring facility etc. and bank guarantee may be forfeited. commission the DTH Platform within twelve months from the date of issue of the SACFA clearance by the WPC of Ministry of Communication after obtaining frequency assignment and shall submit a report to the Central Government in this regard. 6. HITS • If the authorised entity If the authorised entity does not fulfils the Roll obligation within start the service within two years one year of the issuance of from the date of issuance of SACFA clearance by the WPC, SACFA clearance by the WPC, the then full amount of full Performance Bank Guarantee Performance Bank Guarantee (PBG) shall be forfeited and (PBG) shall be refunded. action for revocation of the • If the authorised entity authorisation shall also be meets the Roll obligation after considered on completion of two one year but within two year of 308the issuance of SACFA years from the date of issuance of clearance by the WPC, then SACFA clearance by WPC. half of Performance Bank Guarantee (PBG) shall be refunded. 309Schedule-V PERFORMA FOR PERFORMANCE BANK GUARANTEE In consideration of the President of India acting through the[designation of the officer concerned], the Ministry of Information & Broadcasting (hereinafter called the “Central Government”) having agreed to grant an authorisation to M/s____________________ *[Name and address of Company/LLP] (hereinafter called the “Applicant Entity”) to comply with the prescribed obligations for executing the Service Authorisation (thereinafter the Applicant shall be called “the Authorised Entity”) to provide services [Name of the service/ scope of service/ service area], wherein it has been stipulated that the Applicant/ Authorised Entity shall furnish to the Ministry with a Bank Guarantee from a Scheduled Bank for the sum specified therein as security for the due observance and performance of the obligations as per the terms and conditions contained in the Broadcasting (Grant of Authorisation) Rules, and the Broadcasting (Programming and Distribution) Services Rules. WHEREAS we ________________________ Bank, [indicate the name, address and other particulars of the Bank], a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 (hereinafter referred to as ‘the Bank”) having its Head Office at ___________________ and a branch office amongst other places at _______________________[Indicate the branch from where the PBG is being issued] has agreed to irrevocably and unconditionally guarantee to the Central Government that the Authorised Entity shall render all the necessary services in accordance with the terms and conditions contained in the Broadcasting (Grant of Authorisation) Rules, and the Broadcasting (Programming and Distribution) Services Rules, and 310which may be required for and in connection with the said authorisation and performance thereof to the satisfaction of the Central Government. NOW THEREFORE we, the Bank, hereby affirm that we are the Guarantor and responsible to you, on behalf of the Authorised Entity M/s ------------- up to a total of Rs._____________ [Amount of Guarantee] _______________________________________ [in words] payable, and we undertake to pay you, upon your first written demand and without cavil, demur or argument, any sum or sums within the limits of Rs.________________[Amount of Guarantee] as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified herein. We, the Bank, do hereby agree that the decision of the Central Government as to whether the Authorised Entity has failed to or neglected to perform or discharge his duties and obligations as aforesaid and/or whether the service is not free from deficiencies or defects or not is in accordance with of the terms and conditions of the said authorisation and as to the amount payable to the Central Government by the Bank hereunder, shall be final and binding on the Bank. Any dispute between the Central Government and the said Authorised Entity shall not affect our obligation under this guarantee. We hereby waive the necessity of your demanding the said debt from the Authorised Entity before presenting us with the demand and acknowledge that we are the primary obligee and not just the surety of the Authorised Entity. We further agree that no change or addition to or other modification of the terms of the authorisation or of the works to be performed there under or of any of the related documents shall in any way release us 311from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification, etc. We __________________ Bank, do hereby declare and agree that: (a) The Guarantee herein contained shall remain in full force and effect till the expiry of the validity period of authorisation. It shall also continue to be enforceable till all the dues of the Central Government under and by virtue of the said authorisation have been fully paid and its claims satisfied or discharge or till Central Government informs that all the terms and conditions of the said Authorisation have been fully and properly carried out by the said Authorised Entity and accordingly discharged this guarantee. (b) The Central Government shall have the fullest liberty without our consent and without discharging in any manner our obligations hereunder to vary any of the terms and conditions of the said Authorisation or to extend time of performance of any obligations by the said Authorised Entity from time to time or to postpone for any time or from time to time any of the powers exercisable by the Central Government against the said Authorised Entity and to forbear or to enforce any of the terms and conditions relating to the said authorisation and we shall not be relieved from our liability by reason of any variation or extension being granted to the said Authorised Entity or forbearance act or omission on the part of the Central Government or any indulgence by the Central Government to the said Authorised Entity or to give such matter or thing whatsoever which under the law relating to sureties would but for this provision, have effect of so relieving us. 312(c) Any claim which we have against the Authorised Entity shall be subject and subordinate to the prior payment and performance in full of all the obligations of us hereunder and we will not without prior written consent of the Central Government exercise any legal right or remedy of any kind in respect of any such payment or performance so long as our obligations hereunder remain owing and outstanding. (d) This guarantee shall be irrevocable and the obligations of us herein shall not be conditional of any prior notice by us or by the Authorised Entity. (e) The Bank will not revoke the guarantee during the currency except with the previous consent of the Central Government. The bank under its constitution power gives this guarantee and Sh. ________ [provide name of the officer of the bank who will sign this BG] who has signed on behalf of the bank is duly authorised to execute this guarantee. This guarantee shall not be discharged or affected due to any change in the name, constitution or address of the bank or the Authorised Entity. This guarantee shall be valid initially for a period of ________[Period of Validity of the BG] from this date and until 28 days after the date of issue of the Defect Liability Certificate by the Ministry of Information and Broadcasting (Central Government). In special cases, this guarantee shall be renewed at least one month prior to its expiry. SIGNATURE AND SEAL OF THE GUARANTOR _________________________ 313NAME OF BANK ______________________________________________________ ADDRESS _________________________________________________________________ _____________________________________________________________________ __ PIN CODE__________________ CITY__________________ STATE__________________ DATE __________________ Witnesses: In the presence of: 1. __________________________________________________________ [Name and Occupation] 2. __________________________________________________________ [Name and Occupation] 314Schedule-VI FORMAT FOR GRANT OF AUTHORISATION GOVERNMENT OF INDIA MINISTRY OF INFORMATION AND BROADCASTING AUTHORISATION TO PROVIDE BROADCASTING SERVICES [under Section 3 of the Telecommunications Act, 2023 and subject to The Broadcasting (Grant of Service Authorisations) Rules and The Broadcasting (Television Programming, Television Distribution and Radio) Services Rules] Authorisation No. __________ Issue Date: [DD/MM/YYYY] Valid Up to: [DD/MM/YYYY] Details of Authorised Entity: Entity Category*:______________ Name of Entity: ___________________ Corporate Identification/ Registration Number: _________ Date of Incorporation/ Registration: ___________ Address: ________________ Name of the Channel**: ____________ Category of the Channel***: News & Current Affairs/ Non-news & Current Affairs Scope of Service: ________________ Service Area: ______________ Date: ________ **Applicable for both television programming and radio broadcasting ***Applicable only for television programming Signature of the Officer the Central Government: ________________ (On behalf of the President of India) 315Entity Category may include: Registered Company/LLP/Autonomous * bodies/State Agricultural Universities (SAU)/Indian Council of Agricultural Research (ICAR) institutions/Krishi Vigyan Kendras/Civil Society Organisations/Voluntary Organisations/Not for profit organisations set up by self-help groups (SHGs) and Farmer Producer Organisations/Non-Government Organisation/Government Organisation/Educational Institute/Public Charitable Trust/ Registered Society/Resident Welfare Association 316Schedule-VII FORMAT FOR SHAREHOLDING PATTERN TO BE FURNISHED ALONG WITH APPLICATION TABLE-1 SHAREHOLDING PATTERN OF APPLICANT COMPANY M/s______________ AS ON________________ FACE VALUE OF THE SHARE RS. ____________________ S.No. Category of Shareholding Stakeholders Direct Portfolio Investment Investment No. of % of No. of % of Shares total Shares total paid up paid up shares shares 1. Indian Individual 2. Indian Company 3. Foreign Individual 4. Foreign Company 5. NRI 6. OCB 7. FII 8. PIO 9. Any Other *For Indian Company, information as per proforma in Table-2 also to be supplied. ******* 317TABLE-2 DETAILS OF SHAREHOLDING PATTERN OF EACH INDIAN COMPANY HOLDING SHARE IN THE APPLICANT COMPANY AS IN SERIAL NO.2 IN COLUMN (1) OF TABLE-1 i) Name of the Company ii) Information as on date iii) No. and %age of shares held by the company in the applicant company iv) Face value of the share Rs. _____________ v) Shareholding pattern of the company S.No. Category of Shareholding Stakeholders Direct Portfolio Investment Investment No. of % of total No. of % of total Shares paid up Shares paid up shares shares 1. Indian Individual 2. Indian Company 3. Foreign Individual 4. Foreign Company 5. NRI 6. OCB 7. FII 8. PIO 9. Any Other Note: Repeat same information about each Indian Company holding share in the applicant company 318Schedule-VIII Application for Platform Service channel 1. Name of Applicant Company: 2. Address of the Applicant Company a) Head Office : b) Regional Office : 3. Corporate Identification Number (CIN) allocated by Registrar of Companies (RoC) : 4. Identity of its beneficial owners: 5. Total channel carriage capacity: 6. Area of Operation: 7. Details of Platform Services channels: a) Existing Platform Services channels offered: S.No Name of Logical Nature / Satellite . Channel Channel genre of used No. content b) New Platform Services channels to he offered: S. Name of Logical Nature / Satellite N Channel Channel genre of used o. No. content 319Declaration: Itis hereby declared that the programme/ content transmitted on the above-said platform channels is exclusive to the platform of M/s and shall not be shared directly or indirectly with any other distribution platforms. Signature ____________________ (Name of the Authorised signatory) Tel. No:____________________________ Email Id:__________________________ 320Schedule-IX REASONS FOR EXCLUDING ‘OTHER INCOME’ HEADS FROM GR TO ARRIVE AT APGR S.No. Other Reasons Income i. Income from Income from dividend is return on investment Dividend made by the company. Such investment is made out of surplus funds available with the company. Companies Act, 2013 and Accounting Standard-9 classified dividend income as ‘other income’ i.e., distinct from the core operations of the entity. Therefore, income from dividend shall not be a part of ApGR for the purpose of computation of Authorisation Fee. Gain from mutual funds shall also be excluded. ii. Income from Income from interest is return on investment made Interest by the company in bank deposits, corporate deposits, debentures etc. Such investment is made from surplus funds available with the company. Also, sometimes TSP receives interest from Tax Authorities on advance tax or refundable tax. Companies Act, 2013 and Accounting Standard-9 classified interest income as ‘other income’ i.e., distinct from the core operations of the entity. Similarly, DTH operators accepts refundable deposits from customers, and other vendors. These deposits essentially are part of DTH operations and 321needed to identify/ keep separately to maintain separately identity of these deposits, DTH operators shall open a separate bank account for refundable deposits from customers, telecom vendors and other TSPs. The interest income earned on such accounts shall be recorded and kept separately. In view of above, the income from interest shall not be part of ApGR for the purpose of computation of Authorisation Fee. However, interest earned on refundable deposits from customers and other vendors shall be considered in ApGR for the purpose of computation of Authorisation Fee. In case segregation of such interest income is not possible, entire interest income shall be considered part of ApGR. Further, any refundable deposit received by the DTH operators on the strength of broadcasting services viz. linkage with tariff, advance rental etc. shall also have similar treatment for inclusion in ApGR. Interest on direct tax/ indirect tax refunds also excluded. iii. Income from Capital gain earned by the DTH operator on the sale of fixed account of profit on sale of assets and securities, assets and are of from investing activities instead of from DTH securities operations. Therefore, revenue on account of sale of immovable property, securities, warrants or debt instruments, other items of fixed assets shall not be part of ApGR for the purpose of computation of LF. Capital gains on business combination e.g. 322merger, demerger, slump sale etc. shall be excluded. Capital receipts shall also be excluded. iv. Gains from Foreign Exchange differences arise when actual Foreign rates at the time of settlement differs from those at Exchange rates which they were initially recorded in the books. The fluctuations provisions contained in the Accounting Standard- 11 which requires a notional entry for exchange differences in respect of liabilities at the closing date of the AFSs. The foreign exchange gains reflected in the profit and loss statement of DTH operator could arise from reduction of payment liability or increase in the value of foreign exchange accounts receivables. In other words, foreign exchange fluctuation is a contingency which has impact on every business which may have something to do with foreign exchange and is not specific and unique to DTH business. In view of above, the revenue/profit arising out of upward valuation or devaluation on account of fluctuation of foreign exchange shall not be part of ApGR for the purpose of computation of Authorisation Fee. Market to market accruals shall also be excluded. v. Income from DTH operators may rent or lease part of their property rent properties and earn revenue in the form of rent. Some DTH operator as part of staff welfare measure provides staff quarters to their employees and receive rent from such staff. The revenue from rent cannot be distinctly treated as only from DTH 323business. Therefore, the revenue/ income from property rent shall not be part of ApGR for the purpose of computation of Authorisation Fee. Further in case property is let out for ‘establishing, maintaining and working of broadcasting services’, then revenue/ income from such rent shall be considered in ApGR for the purpose of computation of LF. vi. Insurance A receipt from Insurance company against loss of claims property/fixed assets is basically a reimbursement in nature for the loss occurred by the DTH operator. Therefore, the receipt of insurance claim from insurance company shall not be part of ApGR for the purpose of computation of Authorisation Fee. Claims received on account of business loss also excluded. vii. Bad Debts Bad debt is an amount owed by a debtor that is recovered unlikely to be received/realized and recognized as an expense in the books of accounts. Bad Debts recovered represents reversal of debits (i.e., bad debts) appearing in the profit and loss account of previous year(s). This basically represents an adjustment to the amount of an expense (i.e., bad debts) as estimated in an earlier year(s) in which it had already recorded as part of revenue from operations. Therefore, the income on account of bad debts recovered shall not be part of ApGR for the purpose of computation of Authorisation Fee. 324viii. Excess Excess Provisions written back represent the Provisions reversal of excess provision made for any liability written back or expenses in any previous year. On settlement, this excess provision is written back into books of accounts as other income. This basically represents an adjustment instead of actual revenue earned. Therefore, the income on account of excess provisions written back shall not be part of ApGR for the purpose of computation of Authorisation Fee. Reversal on account of writeback off vendor balances would also be excluded. 325Schedule-X (Format of Statement of Revenue and License Fee) Statement of Revenue and License Fee of M/s____________ (Name of the Licensee) for the quarter ________ of the financial year________ (Amount in Rupees) Actuals Actuals Cumulative S. for the for the up to the Particulars No. previous current current quarter quarter quarter 1. Revenue from DTH Services i. S ubscription Revenue Revenue from subscription of Platform ii. Service channels Advertisement Revenue generated from iii. Plat form Service channels Advertisement Revenue generated from iv. any other means v. In stallation charges vi. A ctivation charges Service Revenue (Visiting, Restoration, vii. R eactivation, Relocation charges, Repair & Maintenance charges, etc.) viii. C arriage Fee ix. M arketing & Placement agreements Sale, repair, and maintenance of Customer Premises Equipment x. (Antenna, Set Top Box, LNB, wiring etc.) xi. S ale of toolkits and accessories Revenue from Customer Support xii. Service xiii. C ommission xiv. R oyalties xv. P romotional events xvi. M usical/ Star events xvii. S ponsored Programmes 326Related party transactions (please specify sub-heads) xviii. a. b. … xix. G oods and Service Tax (GST) Any other/ miscellaneous income of the enterprise (please specify) xx. a. b. … 2. Revenue from sharing of infrastructure i. R evenue from sharing earth station uplinking facility ii. R evenue from sharing satellite resources (transponder capacity) iii. R evenue from sharing of transport stream iv. Revenue from sharing of CAS and SMS v. R evenue from sharing of disaster recovery system in hot-standby mode vi. Goods and Service Tax (GST) Any other Income (please specify): vii. a. b. … 3. Other Income i. In come from Dividend ii. In come from Interest Income from sale of fixed assets and iii. securities Gains from Foreign Exchange rates iv. fluctuations v. In come from property rent vi. In surance claims vii. B ad Debts recovered viii. E xcess Provisions written back 327Revenue from activities under a 4. license/permission issued by Department of Telecommunications. Reimbursement, if any, from the 5. Government. GROSS REVENUE (GR) OF THE AA. LICENSEE COMPANY [Add 1-5] B. LESS Revenue from activities under a 1. license/permission issued by Department of Telecommunications Reimbursement, if any, from the 2. Government 3. Other Income i. In come from Dividend ii. In come from Interest Income of sale of fixed assets and iii. securities Gains from Foreign Exchange rates iv. fluctuations v. In come from property rent vi. In surance claims vii. B ad Debts recovered viii. E xcess Provisions written back BB. TOTAL (1+2+3) APPLICABLE GROSS REVENUE CC. (ApGR) (CC = AA – BB) DD. DEDUCT Goods and Service Tax (GST) paid to the 1. Government if the ApGR had included as component of GST. ADJUSTED GROSS REVENUE(AGR) EE. (CC-DD) LICENSE FEE @ 3% OF ADJUSTED GROSS REVENUE (EE) 328Schedule-XI FORMAT FOR SELF-DECLARATION BY IPTV SERVICE PROVIDER [Separate copies to be forwarded by IPTV service provider to, Ministry of Information & Broadcasting, Department of Telecommunication and TRAI] 1.(a) Name of the IPTV service provider (Individual/firm/company/association of persons/body of individuals) (b) Age/Date of establishment/Date of Incorporation 2. Details of Registration as a Cable Operator (if applicable) (a) Name/Address of the Post Office with which registered (b) Registration No./Validity up to (c) Copy of the Registration Certificate (enclose) 3. Details of Telecom License (if applicable) (a) Date of issuance of license (b) Validity up to (c) Copy of the license agreement 4. Complete Postal Address with Telephone/Fax No. E-mail ID (a) Corporate Office/Head Office (b) Registered Office (c) Regional Offices (d) Address for Correspondence 5. Name of authorized contact person, his designation and telephone/fax No./E-mail ID 6. *Registration detail under Companies Act, 1956: incorporation No. and Date (Attach a copy of Certificate of Incorporation and Memorandum and Article of. Associations) 3297. *Board of Directors (Attach list of Directors along with biodata of each Director giving date of birth, place of birth, parentage., nationality, permanent address, residential address, official address, passport No. (if any), qualification, experience, etc. 8. *Attach list of key executives including CEO/MD along with details as in 7 above 9. *(i) Authorized Share Capital, (ii) Paid-up Share Capital 10(a). *Shareholding pattern of the applicant entity in the format prescribed by the Ministry of Information & Broadcasting. 10(b). *In case there is any foreign investment direct or indirect in the applicant company then whether complying with foreign investment norms/ FIPB approval requirement (details) 11. (i) Present Area of Operation (if in more than one city, city-wise details to be given). (ii) Details of the area in which IPTv services are sought to be provided (iii) Date from which IPTV services are proposed to be offered (iv) Total no. of existing subscribers (v) Subscribers proposed to be covered by IPTV service 12. (i) No. and details of TELEVISION channels sought to be provided (own/ broadcaster’) (ii) Source of content (Broadcaster/MSO/Cable operator) with details (iii) In case the content is obtained from MSO/ Local Cable Operator, such MSO/ Cable Operator possesses due rights from the content owner / broadcaster for the IPTV platform. 33013. Other value-added services proposed to be provided (details along with how authorized/ approvals obtained from competent authority/ technical details) 14. How is the requirement of commercial interoperability of Set Top Boxes sought to be compiled with? 15. Arrangements made/proposed to be made to comply with content storage/content monitoring requirements as contained in the Guidelines (Give full details) I/We……………………...the applicant(s)* (individual/ firm/ company/ association of persons/ body of individuals) do hereby declare that the above facts are correct in all respects. I/ We hereby undertake to abide by all the conditions contained in the Guidelines for provisioning of IPTV services and any future amendments thereto/ directions/ orders/ regulations that the Central Government or the TRAI may lay down/issue for the provisioning of IPTV services, or any other law as may be applicable. Signature /Authorized person **(individual/ firm/ company/ association of persons/body of individuals) Place…………... Name: ………………………..….. Date …………. Address:………………………….. * To be given in case applicant isa Company ** Score out the word or words which are not applicable. 331Annexure-IV: Uplinking/Downlinking Guidelines dated 09.11.2022 332333334335336337338339340341342343344345346347348349350351352353354355356357358359360361362363364365Annexure-VA: DTH Guidelines amended upto 06.11.2007 366367368369370371372373374375376377378379380381382383384385386387388389390391392393Annexure-VB: DTH Amendment dated 30.12.2020 394395396397398Annexure-VC: DTH Operational Guidelines dated 16.09.2022 399400401402403404405406Annexure-VIA: HITS Guidelines dated 26.11.2009 407408409410411412413414415416417418419420Annexure-VIB: HITS Amendment dated 06.11.2020 421422423424Annexure-VII: IPTV Guidelines dated 08.09.2008 425426427428429430431Annexure-VIIIA: FM Radio Guidelines dated 25.07.2011 432433434435436437438439440441442443444445446447448449450451452453454455456457458459460461462463464465466467468469470471472473474Annexure-VIIIB: FM Radio Amendment dated 21.01.2015 475476477478479Annexure-VIIIC: FM Radio Amendment dated 04.10.2022 480481482Annexure-VIIID: FM Radio Amendment dated 10.09.2024 483484Annexure-IX: CRS Guidelines dated 13.02.2024 485486487488489490491492493