Trai Pins Down Five Multi System Operators for Not Complying With New Regulatory Framework

The Telecom Regulatory Authority of India (Trai) has struck five Multi-System Operators (MSOs) with a new direction. The telecom regulator has demanded that these multi-system operators provide a compliance report with the new regulatory framework within seven days. The regulator has reached out to these MSOs for non-adherence to the new regulatory framework and violating some causes of the new regulations. The five MSOs which are in the crosshair of the telecom regulator include Hathway Digital, DEN Networks, Siti Networks, GTPL Hathway and IndusInd Media and Communications Ltd (IMCL). It is worth noting that Trai has been going about conducting audit inspection of the headend conditional access system (CAS), subscriber management system (SMS) and the network system through BECIL. It was during these audits that the MSOs were found to be violating a few regulations of the new Trai rules, and we hence issue the new direction.

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Two Major Points for Non-Compliance of MSOs

The last time that Trai had made a similar move was in June. During the audit that time, Trai had found discrepancies and shortcomings with the parameters mentioned and then served a direction to these companies asking them to report compliance within fifteen days of issue of direction. When Trai received replies from these MSOs, it made note that these companies still did not fully comply with the new regulatory framework of Trai, 2017 on various points. One of the points of non-compliance was that LCOs without GST Registration were collecting tax amount from the subscribers but not depositing it. Another point of non-compliance was that the LCOs were not presenting the consumers with itemised invoices and were instead supplying their own cash memo bill.