TRAI committed to fair play in broadcasting, urges auditors to enforce transparency
TRAI Chairman Anil Kumar Lahoti’s remarks come at a crucial time for the broadcasting industry, which remains sharply divided over proposed changes to audit-related regulations.
ADVERTISEMENT
In a strong push for transparency and fairness in the broadcasting sector, Anil Kumar Lahoti, Chairman of the Telecom Regulatory Authority of India (TRAI), reaffirmed the Authority's commitment to regulatory equity.
During a day-long workshop held with 43 TRAI-empanelled auditors and key industry stakeholders on Wednesday at TRAI Headquarters, Lahoti said, “TRAI's objective is to create a fair and equitable environment for all stakeholders. Our regulatory measures aim to maintain a balanced approach among diverse stakeholders, while keeping the consumers at the forefront.”
Lahoti further said, “Empanelled auditors must function not merely as technical reviewers but as guardians in enforcing transparency, accuracy, and accountability.”
The workshop provided a platform for participants to share insights, experiences, and suggestions on improving audit quality and alignment with regulatory standards. Expert sessions were conducted by BECIL, audit firms, and other industry voices, in response to requests for more frequent and structured auditor training.
Lahoti’s remarks come at a crucial time for the broadcasting industry, which remains sharply divided over proposed changes to audit-related regulations.
TRAI had earlier issued a Consultation Paper on August 9, 2024, to review the audit framework under the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017, and its associated Audit Manual.
The consultation drew 55 responses, revealing a clear rift: broadcasters largely supported stronger audit enforcement, citing revenue loss from non-compliant DPOs, while many Distribution Platform Operators (DPOs) reportedly resisted annual audits—particularly the contentious Clause 15.1, which mandates them.
This division has complicated TRAI’s efforts to revise the framework in a way that balances commercial interests with consumer protection. The lack of robust data and contrasting industry viewpoints have emerged as significant hurdles in the policymaking process.
Currently, all DPOs are required to undergo annual audits of their Subscriber Management Systems (SMS), Conditional Access Systems (CAS), and related infrastructure. Non-compliance could result in financial penalties.
The All India Digital Cable Federation (AIDCF) has stated that TRAI should retain regulation 15 (1) and has requested that the authority share a list of non-compliant DPOs on its website. They further requested that broadcasters be mandated not to provide signals to these non-compliant DPOs.
The AIDCF stated “Moreover, if any broadcaster is found providing signals to DPOs who are non-compliant, then the broadcasters should be held responsible for the non-compliance of audits and should face a financial penalty (up to ₹10 lakhs) if they are found providing signals to non-compliant DPOs.”
Most distributors, such as DEN Network, GTPL Hathway, Dish TV, SITI Networks Ltd, TATA Play, and Airtel, support keeping regulation 15 (1) and have even suggested better enforcement.
To ensure the timely completion of DPO audits, some DPOs have suggested shifting the responsibility to broadcasters. For example, DEN has suggested imposing financial penalties on broadcasters that continue to provide signals to DPOs that do not conduct timely audits.
Many distributors want fixed timelines for broadcaster-initiated audits, with some arguing that such audits are unnecessary. Interestingly, TATA Play and Airtel have suggested removing provision 15 (2) of the Interconnection Regulations, 2017, which allows for broadcaster-initiated audits.
In its response, Airtel proposed removing the broadcaster-initiated audit provision altogether. If it is retained, they suggested that broadcasters should have a fixed period of six months after the DPO audit to initiate their audit if needed. After this period, no further audits should be allowed. While TATA Play recommended that broadcasters should not be allowed to audit DPOs and that Regulation 15 (2) should be eliminated.
A broadcaster, speaking on the condition of anonymity, stated that, “There is minimal compliance with requirements related to DPO-initiated audits, as the majority of DPOs (85%) fail to conduct these audits or provide audit reports to broadcasters. Moreover, DPOs employ delaying tactics to postpone the start and completion of broadcaster-initiated audits.”
The broadcaster further added, “We urge the Ministry of Information and Broadcasting (MIB) to nudge TRAI to expedite the removal of Clause 15.1 due to its misuse and lack of compliance. Lack of data will worsen the state of broadcasting sector as DPOs continue to not submit the data to broadcasters.”
The Authority recently released an updated list of empanelled auditors, effective from April 9, 2025, through April 2027, featuring prominent firms such as Deloitte Touche Tohmatsu India LLP, Bansal Rathi & Mazumdar, and J.K. Sarawgi & Associates. These auditors are tasked with ensuring nationwide compliance with TRAI’s digital addressable systems (DAS) standards.
