Trai proposes market share cap to end monopoly in cable sector

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Trai wants changes in cable laws so that any merger and acquisition activities between local cable operators. (AP) Trai wants changes in cable laws so that any merger and acquisition activities between local cable operators. (AP)
SummaryIn order to curb dominance by a single player in the cable distribution sector across states.

web of "power, money and politics". "A time of 12 months is given to group(s), contributing over 2,500 to market HHI of a relevant market, to limit its 'control' in MSOs or LCOs in such a way that the contribution of market HHI of that 'group' reduces to less than or equal to 2500," the regulator said.

As per Trai officials, if a single entity is covering over 50% of the market, it will not be allowed to merge with or acquire another MSO or LCO in that particular market. As per Trai, if an entity controls many MSOs and LCOs simultaneously in a relevant market, these shall be treated as inter-connected entities.

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