EXCLUSIVE: TRAI flags need for MIB-led policy fix on 10+2 ad cap, says regulation must not hurt growth

The Telecom Regulatory Authority of India (TRAI) has placed the onus on the Ministry of Information and Broadcasting (MIB) to frame a policy solution to the long-standing 10+2 advertising cap issue, with TRAI chairman Anil Kumar Lahoti stating that the regulator is bound to implement the existing law and that any change would require legislative action by the ministry.

Lahoti also underscored that regulation of the broadcasting sector should not come at the cost of growth, emphasising that TRAI’s approach is to ensure compliance while allowing the industry to expand.

Multiple broadcasting industry stakeholders met Telecom Regulatory Authority of India (TRAI) chairman Anil Kumar Lahoti on Tuesday, renewing calls to resolve the long-running 10+2 advertising cap issue that broadcasters say is hurting the sector’s economics.

According to people aware of the discussions, Lahoti told stakeholders that a lasting resolution would require amendments to the existing law by the MIB, as TRAI was obligated to enforce the regulations currently in place. “The chairman made it clear that the regulator is only implementing what the law mandates, and any change has to come from the ministry,” said a senior broadcast executive who attended the meeting, requesting anonymity.

The meeting follows TRAI’s recent move to issue show-cause notices to several leading television broadcasters for allegedly breaching the 12-minute advertising cap per clock hour. The issue had revived a dispute that dates back more than a decade and remains sub judice, with the Delhi High Court having granted interim protection to broadcasters in 2013, restraining the regulator from taking coercive action. The matter is now pending final hearing in the apex court.

Industry representatives told Lahoti that strict enforcement of the 10+2 cap—allowing up to 10 minutes of commercial advertising and two minutes of self-promotion per hour—could further strain broadcaster revenues at a time when advertising growth has shifted sharply towards digital platforms. “This regulation was framed in a very different market reality. Today, broadcasters are competing with unregulated digital players, and the same rules don’t apply to everyone,” said another industry executive.

While reiterating that broadcasting is a regulated sector, Lahoti sought to reassure stakeholders that TRAI’s intent was not to impede growth. “He emphasised that the regulator is conscious of the industry’s challenges and does not want growth to be hampered,” said a person familiar with the conversation.

Lahoti also informed the meeting that TRAI has already made recommendations to the MIB for the adoption of a National Broadcast Policy, which could provide a more coherent framework for the industry’s future. “A comprehensive policy could bring much-needed certainty and help the sector grow in a more harmonious manner,” said an executive present at the meeting.

The 10+2 advertising cap is laid down in the Standards of Quality of Service (Duration of Advertisements in Television Channels) Regulations, 2012, notified by TRAI, and is also mirrored in the Cable Television Networks Rules, 1994. Broadcasting and cable services were brought under TRAI’s jurisdiction through a government notification under the TRAI Act, classifying them as telecommunication services.

Industry executives said the latest round of discussions underscores the need for the MIB to step in with legislative clarity. “Unless there is a new or amended law, this issue will keep coming back. The industry needs certainty and a framework that reflects today’s market dynamics,” said one executive.