The TRAI Effect

Long legal battle ends with Supreme Court upholding the Telecom Regulatory Authority of India (TRAI)’s new tariff order; but will it actually impact bottomlines in the broadcast sector?

- Dipali Banka

A dramatic judicial battle involving the regulator, broadcasters and distributors in the television industry finally came to an end last week, when the Supreme Court dismissed Star India’s appeal challenging the new tariff order of the Telecom Regulatory Authority of India (TRAI) passed in 2017, paving the way for its implementation. Now the question being asked is, how will the regulatory authority ensure compliance, and whether the new tariff regime will actually impact bottomlines in the broadcast sector.

HOW THE BATTLE RAGED

While passing the judgement, the two-judge bench of the Supreme Court comprising Justice Rohinton Fali Nariman and Justice Navin Sinha explained that the issue of Copyright Act and TRAI Act did not infringe on each other – as argued by Star India - and that in the public interest, the former shall give way to the latter.

TRAI had implemented the Telecommunication (Broadcasting and Cable) Interconnection (Addressable Systems) Regulations 2017 on July 3, 2018 after it was upheld by the Madras High Court with an exception. Star India had approached the Supreme Court questioning TRAI’s jurisdiction to frame a tariff order on the grounds that the authority has no jurisdiction on content as that actually comes under the Copyright Act and not TRAI Act.