The Telecom Regulatory Authority of India on Wednesday made moves to limit the control broadcasting companies have over distribution operations, The Wall Street Journal reported. TRAI proposed that entities which hold more then a 20 percent share of a broadcasting company should not own more than 20 percent of a media distribution company.
The recommendations are being made in an attempt to separate "big broadcasters from the distribution business, and creating a level playing field," a Mumbai-based media analyst told the Wall Street Journal.
The authority assured broadcasters who presently control distribution networks will have "sufficient time of three years for restructuring," TRAI stated in its recommendations to the Ministry of Information and Broadcasting. This allows Indian broadcasters such as the Essle Group and Sun TV Network who control both the cable TV distribution as well as the television platforms time to rearrange their business models, according to The Wall Street Journal.
Aware of the global economic crisis' affect on the Indian media, particularly the print media, TRAI has taken a prolonged perspective to proposed regulation. "The recommendations are with a long-term view, but there is no immediate impact, it will bring in more investors into the sector," Anand Shah, an analyst with Angel Broking Ltd., told The Wall Street Journal.

