TRAI Revamps TV Supplier Audit Rules for Transparency

TRAI proposes sweeping changes to TV supplier audit framework (Tata Play, Airtel). Aims for transparency, time-bound process, conflict resolution. Broadcasters can attend audits. Fiscal year cycle. Fines for non-compliance.

The Telecommunications Regulatory Authority of India (TRAI) has actually recommended sweeping modifications to the audit structure for tv suppliers such as Tata Play, Airtel Digital Television and Hathway Digital, aimed at making the process much more transparent, time-bound and structured.

Conflict Resolution System

The regulator has presented a step-by-step system to take care of conflicts over audit findings. Broadcasters must flag discrepancies within 1 month, auditors have to address them within the following 30 and if problems continue to be unresolved, broadcasters can come close to TRAI for an unique audit, at their very own cost.

In a major adjustment, broadcasters will for the very first time be allowed to depute a rep to go to audits and provide inputs, however without influencing the procedure. Distributors have to likewise provide thirty days’ prior notice of audit routines and auditor information.

Key Changes to Audit Process

The draft policies, open for stakeholder remarks up until October 6, move the audit cycle from the calendar year to the financial year. Distributors will certainly be needed to investigate their client monitoring, conditional accessibility, digital rights administration and relevant systems yearly, and share the report with broadcasters by September 30.

TRAI has maintained the charge framework for non-compliance: representatives falling short to finish audits on time face fines of Rs 1,000 daily for the first 1 month and Rs 2,000 each day thereafter, capped at Rs 2 lakh.

Non-Compliance Penalties

According to FICCI-EY record, circulation income declined 3% to Rs 38,500 crore in 2024, driven by a 6% drop in Pay TV homes, a loss of 6 million subscribers, bringing the base down to 111 million, partly balanced out by a minimal increase in typical earnings per individual to Rs 281 (gross of tax obligations).

TRAI has proposed major reforms to the audit structure for television suppliers like Tata Play, Airtel Digital Television, and Hathway, aiming for an extra clear, organized, and time-bound process. Trick modifications include shifting audits to the fiscal year, mandatory annual checks of client management and digital civil liberties systems, and allowing broadcasters to attend audits without influencing them.

Reforms for TV Suppliers

Identifying the problem on smaller drivers, TRAI has actually proposed an exception for distributors with 30,000 or fewer clients. At the exact same time, the scope of audits has actually been widened to clearly include digital rights administration systems.

The step limits broadcasters’ earlier power under stipulation 15( 2) to launch their own audits, needing them to comply with a structured procedure of increasing objections, seeking a changed record and, if required, asking for TRAI’s approval for an unique audit.