Draft Broadcast Bill at odds with TRAI's FreeDish encryption rules, experts warn

Industry leaders express concerns over Broadcast Bill exempting DD FreeDish from the encryption mandate that can undermine efforts to combat piracy and maintain industry standards

by Aditi Gupta
Published - August 12, 2024
6 minutes To Read
Draft Broadcast Bill at odds with TRAI's FreeDish encryption rules, experts warn

The broadcast industry is currently experiencing significant upheaval, with a flurry of activity among authorities and stakeholders. These discussions have led to various recommendations and draft bills aimed at establishing new mandates within the sector.

On one hand, the Telecom Regulatory Authority of India (TRAI) recently unveiled its recommendations on the National Broadcast Policy, which aims to overhaul and regulate broadcasting practices in India. This policy is expected to address several pressing issues within the industry, including content distribution and regulatory compliance.

A month later, the Ministry of Information and Broadcasting (MIB) introduced a second draft of the Broadcasting Services (Regulation) Bill 2024, which further complicates the regulatory landscape by proposing new rules and guidelines for the industry.

Broadcasters, cable operators, and Direct-to-Home (DTH) service providers have traditionally been at odds over various issues. This long-standing conflict now extends to a new point of contention: Prasar Bharati’s free-to-air DTH service, DD FreeDish. This platform, which has been the focus of increasing scrutiny and debate, represents a significant challenge to the existing regulatory and competitive framework.

Launched in 2004, DD FreeDish initially offered just 20 channels, but it has since expanded to include over 200 channels. This rapid growth highlights the platform’s success and popularity, particularly in providing free access to a wide range of television content. However, its unencrypted status has become a major issue in recent discussions.

DD FreeDish operates without encryption, which means that its signals are not scrambled and can be easily accessed by anyone with the appropriate receiving equipment. This open access has led to concerns about piracy, as smaller cable operators can intercept these signals and retransmit them to their customers without authorization. This practice undermines the revenue models of both cable operators and other DTH services, creating a significant financial impact on the industry.

Industry experts and observers have raised alarms about the lack of an effective mechanism on DD FreeDish to authenticate subscriber data. This gap has led to unauthorized access and retransmission, further exacerbating the problem of piracy.

In response to these concerns, TRAI’s June recommendations included a proposal for upgrading DD FreeDish to an addressable system. This move is intended to address both the issue of unauthorized access and the need for a more equitable competitive environment for private television channels.

In July, TRAI took further steps by notifying a new regulatory framework for broadcasting and cable services. This framework included specific directives for Prasar Bharati, instructing it to encrypt the signals of private TV channels at the DD FreeDish headend before uplinking. The objective is to prevent unauthorized transmission and ensure that the platform aligns with industry standards.

“To enhance the quality of the viewing experience, prevent unauthorized retransmission of television channels, combat piracy, and maintain accurate subscriber records, Prasar Bharati must transition DD FreeDish from a non-addressable system to an addressable system,” TRAI emphasized in its recommendations. This transition would involve encrypting the signals of private satellite television channels, and addressing the concerns of piracy and unauthorized retransmission.

However, the latest draft of the Broadcasting Services (Regulation) Bill 2024 complicates this scenario. The bill mandates that all cable and satellite broadcasting network operators transmit or retransmit programmes in an encrypted form through a digital addressable system.

Despite this requirement, the draft bill exempts broadcasting networks governed by the Prasar Bharati Act, which means DD FreeDish is not obligated to comply with the encryption mandate. This exemption has sparked significant controversy and concern among industry stakeholders.

The cable industry, in particular, has been vocal about its opposition to this exemption. Cable federations have raised the issue repeatedly, even taking legal action against DD FreeDish by approaching the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). They argue that the unencrypted status of DD FreeDish is a violation of TRAI’s regulations and undermines efforts to combat piracy and maintain industry standards.

An industry expert shared concerns about the draft bill, emphasizing the importance of encrypting DD FreeDish. “Encryption of FreeDish is crucial. Many Pay TV channels are being run. Without encryption, piracy is encouraged. It is the responsibility of the Ministry of Information and Broadcasting to prevent piracy. Exempting FreeDish from encryption is detrimental to both the cable and DTH industries,” the expert, who wished to remain anonymous, stated.

Another industry observer, also speaking on condition of anonymity, highlighted the background of digital addressable systems (DAS). Implemented in 2012, DAS was introduced to curb piracy by providing subscribers with digital addresses via Conditional Access Systems (CAS). This system ensures that only authorized subscribers can access encrypted channels through set-top boxes. Multiple system operators (MSOs) adopted DAS in phases from 2012 to 2016 to address piracy issues.

“Despite this widespread adoption, DD FreeDish continues to operate without encryption, which remains a contentious issue,” the expert said.

MSOs provide encrypted signals to their subscribers through set-top boxes, adhering to industry practices designed to reduce piracy. The exemption granted to DD FreeDish from these practices has been a point of contention, with experts arguing that it undermines the effectiveness of encryption and piracy prevention measures.

The draft Broadcasting Services (Regulation) Bill proposes that all cable and satellite broadcasting network operators must transmit or retransmit programmes in encrypted form through a digital addressable system. However, it stipulates that operators authorized under the Prasar Bharati (Broadcasting Corporation of India) Act are exempt from this requirement, subject to prescribed conditions. This provision reflects the unique status of Prasar Bharati and its role in the broadcasting sector.

The Prasar Bharati Act governs both Akashvani (All India Radio) and Doordarshan (the television network), with Prasar Bharati operating DD FreeDish as the largest free DTH platform in India. The draft bill also mandates that broadcasting network operators publicize information related to subscription rates, quality of service standards, and grievance redressal mechanisms. They must maintain records of transmitted programmes and share them with the authorized officer and the Central Government as required. Additionally, operators must not require subscribers to use a specific type of receiver set, but they must use a digital addressable system to receive programmes.

In summary, the debate over DD FreeDish’s unencrypted status and the regulatory framework surrounding it highlights significant challenges within the Indian broadcasting industry. The balance between ensuring free access to television content and addressing piracy and competitive fairness remains a central issue. As the industry continues to evolve, stakeholders will need to navigate these complexities to achieve a solution that aligns with both regulatory objectives and market dynamics.

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