Reliance Jio Media Suggests Keeping Rs 18 Crore as Minimum Net Worth Requirement for MSOs to Trai

Last when we reported development about this, the Telecom Regulatory Authority of India (Trai) was ideating on the likely net worth of MSOs for their eligibility. Now a new update has come up which points out that Mukesh Ambani led Reliance Jio Media has made a suggestion about the eligibility of the MSOs saying that their minimum net worth should be Rs 18 crores. To recall, Trai had floated a consultation paper titled ‘Entry Level Net worth requirement of Multi-system Operators in Cable TV services’ to which Reliance Jio Media had drafted a counter comment saying that the figure of Rs 18 crores has been calculated keeping in mind the basic CAPEX requirement for getting an MSO off the ground.

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New Trai Tariff Regime and Requirements for MSO Setup

This net worth amount also considers that the Multi System Operator (MSO) would have a channel capacity of 300 and a minimum of 50,000 subscribers which is the minimum number of viable subscribers for the MSOs to sustain in the business. Reliance Jio Media also added that this requirement is for headend, CAS and SMS system which would comply fully with the quality of service norms laid down by the Trai for the setup of an MSO.

To this, the company also added that the essence of the new Trai tariff regime of 2017 has to do with a level playing field for all the operators, DPOs, cable TV providers and MSOs and to bring fair pricing and enhanced quality for the subscribers. The new tariff regime is also in favour of all ownership models like registered partnership or proprietorship, registered companies or a group of individuals to meet the minimum requirements. The company has also proposed that in case of a group of individuals who want to setup MSO, the minimum net worth requirement must be verified by the submission of Net worth Certificate, Balance Sheet and P&L accounts to the Ministry of Information and Broadcasting (MIB).