Broadcast regulator Trai on Tuesday suggested restriction on political bodies and corporates entering the television and newspaper businessso as to ensure plurality of news and views.
“Ownership is a huge concern... How do you know that a TV channel operated out of Bhopal owned by a local MlA or MP is conveying the truth rather than tinted version of the truth. This is one problem with political ownership,” said Trai Chairman Rahul Khullar while releasing recommendations on ‘Issues Relating to Media Ownership’.
About corporate ownership, the regulator said, it has to be seen as to how much independence is enjoyed by the editorial team in a media house owned by them.
“...To what extent the editorial is actually independent and how thin is the line between the newsroom and the boardroom. Second problem with media corporate ownership is this business of advertorials, private treaties... I am sorry to say it has reached scandalous position... You cannot carry on by passing out advertisements as news,” Khullar added.
Trai also recommended that in case of “advertorials”, a clear disclaimer should be mandated, to be printed in bold letters, stating that the succeeding content has been paid for.
Commenting on corporates entering media, Trai said: “On grounds of the inherent conflict of interest, the Authority recommends that ownership restrictions on corporates entering the media should be seriously considered by the Government and the regulator.”
Telecom Regulatory Authority of India (Trai) suggested that entities including ‘political bodies, religious bodies, Central and State Government ministries and Government funded entities be barred from entry into broadcasting and TV channel distribution sectors’.
The regulator even suggested that even surrogates of such entities “should be barred from entering into the sector”. Trai has suggested enactment of a new legislation through a executive decision for it. It has also suggested that an exit route option should be provided in case permission to any such organisations have already been granted.
In the recommendations, Trai relies heavily on media articles and TV documentaries to illustrate how political parties own channels in various states and how they and newspapers black out news that are adverse to their interests.
Trai has recommended a single independent media regulatory authority - headed by a retired Supreme Court judge and comprising predominantly of eminent non-media persons - for TV and print media to check and impose penalties for “paid news”, “private treaties” and issues related to “editorial independence”.
The proposed regulator would have powers to probe and impose penalties, if the media houses are found guilty for being on the wrong side. “The media regulator would be looking at and deciding all the complaints. It would be adjudicating with admonishing an punishing powers,” Khullar said.
On cross holding, he said an owner cannot hold more than 32 per cent in both electronic and print media if they are concentrated. In order to determine concentration Trai has given three metrics - volume of consumption, reach and revenue of the media house.
“We would look at the market and see if the TV media is concentrated or the print media is concentrated and if there is concentration in both and one particular person has more than 32 per cent share... Then, sorry, that guy has to dilute equity in either TV or print,” he added. Trai has recommended a rule based on Herfindahl Hirschman Index (HHI) be implemented.