TDSAT ad cap: All arguments done

MUMBAI: It has been a long three weeks of
hearings at Telecom Disputes Settlement
Appellate Tribunal in the ad cap case between
the News Broadcasters Association and other
channels versus the Telecom Regulatory
Authority of India (TRAI). Several arguments
went back and forth between all the parties
and, finally, it has come to an end.
The last day saw the music channels, Polimer
Media and TRAI give their rejoinders. Polimer
Media’s rejoinder was that Article 19 1 a of the
Constitution does not apply in this case since it
is not a writ petition. It also said that pay
channels and FTA channels cannot be treated
the same.
The music channels’ counsel Ramji Srinivasan
argued that TRAI cannot use both section 36
and section 11 of the TRAI act for the
regulation and now do a flip and call it a
direction. If TRAI did want to frame the
regulation, it should have done so under
section 36 and not used multiple sections from
multiple acts.
However the music channels’ counsel said that
they do have a license from the TRAI but if the
regulator wants to use it then it needs to to
apply section 7 (11) of the Cable TV Networks
act strictly without additions or subtractions.
He also presented data showing the effect the
ad cap will have on their revenues. He said
that channels in this genre will need to resort
to a 30 per cent hike in ad rates if the cap
does come into effect.
Srinivasan said that amicus curiae Aman
Ahluwalia had said that news channels will be
severely affected by ad cap since their
viewership is low; similarly the music channels
are also in danger since they are are also niche
with a limited viewership. And hence the ad
regulation should not be applied to anyone at
all.
Finally the TRAI gave its rejoinder clarifying
that it has framed a regulation under section
36 of the TRAI act and if the TDSAT feels it is a
direction then it is not impeded in saying so.
However the regulator maintained that it is not
a direction, it is a regulation.
The TDSAT is supposed to announce its
judgement on the case.