TRAI lists media ownership norms

NEW DELHI: Telecom and broadcast regulator TRAI has recommended restrictions on vertical cross-ownership, or common ownership, in broadcasting and distribution in media.

The regulator, however, said that there is no threat in allowing horizontal integration, which means a single company can own media companies across different segments, like print, television and radio.

On Wednesday, TRAI released its recommendations on media ownership, which it will submit to the Ministry of Information and Broadcasting.

The regulator has recommended that any entity having 20% stake in a broadcasting company should not have over 20% stake in any kind of distribution company, such as a multi-system operator, cable company or direct-to-home firm. The regulator added that existing broadcasters, which own a stake in distribution firms, should be given three years to comply with the recommendations.

The regulator also said that media companies should be allowed to expand horizontally, as there are enough players competing in various segments and ���there is no emerging threat of market failure���. However, it added that a detailed market study and analysis should be carried out by the ministry to identify safeguards to ensure that ���plurality and diversity of views are maintained.���

The regulator noted in its recommendations that the current global economic slowdown is having an impact on the Indian media industry, especially the print medium. ���In such a scenario, it is essential that none of the safeguards should have an adverse impact on this sector,��� TRAI added. TRAI has not recommended any restrictions for radio.