By Javed Farooqui
Copyright indiatimes
The Telecom Regulatory Authority of India (TRAI) has proposed sweeping changes to the audit framework for television distributors such as Tata Play, Airtel Digital TV and Hathway Digital, aimed at making the process more transparent, structured and time-bound.The draft regulations, open for stakeholder comments until October 6, shift the audit cycle from the calendar year to the financial year. Distributors will be required to audit their subscriber management, conditional access, digital rights management and related systems annually, and share the report with broadcasters by September 30.In a major change, broadcasters will for the first time be allowed to depute a representative to attend audits and provide inputs, though without influencing the process. Distributors must also give 30 days’ prior notice of audit schedules and auditor details.Recognising the burden on smaller operators, TRAI has proposed an exemption for distributors with 30,000 or fewer subscribers. At the same time, the scope of audits has been widened to explicitly include digital rights management systems.The regulator has introduced a stepwise mechanism to handle disputes over audit findings. Broadcasters must flag discrepancies within 30 days, auditors must address them within the next 30 and if issues remain unresolved, broadcasters can approach TRAI for a special audit, at their own cost.Live EventsThe move limits broadcasters’ earlier power under clause 15(2) to initiate their own audits, requiring them to follow a structured process of raising objections, seeking a revised report and, if needed, requesting TRAI’s approval for a special audit.Distributors collect subscription fees from viewers and pass them on to broadcasters based on the number of subscribers who have opted for their channels or bouquets in their network.TRAI has retained the penalty structure for non-compliance: distributors failing to complete audits on time face fines of Rs 1,000 per day for the first 30 days and Rs 2,000 per day thereafter, capped at Rs 2 lakh.According to FICCI-EY report, distribution revenue declined 3% to Rs 38,500 crore in 2024, driven by a 6% drop in Pay TV homes, a loss of six million subscribers, bringing the base down to 111 million, partly offset by a marginal rise in average revenue per user to Rs 281 (gross of taxes).Add as a Reliable and Trusted News Source Add Now!
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