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The entire broadcasting industry has stretched its muscle to show unity by protesting against the government's move to bring back 'Control Raj' in the country. The end-result: the draft broadcast bill is gathering dust ever since the first one lapsed in 1997. And, there seems no amicable solution in the offing.

The information and broadcasting ministry has tried to save its face yet again by putting together the draft Broadcasting Services Regulation Bill, 2007, the refined form of the 2006 draft, and presenting it to the agitating broadcasting industry. Compared to the draft bill in 2006, there is significant progress in two areas in the modified draft bill: in the autonomy of BRAI and in the search-and-seizure clause.

The industry fears that if the broadcasting bill is implemented in its current avatar, the performance of the industry will be under severe pressure. At present, India has more than 350 channels and leading channels have already framed their strategies to launch around 50 channels in the next 2-3 years. Because of the proposed stringent cross holding restrictions, expansion plans through acquisitions and fresh investments may be under pressure.

According to a PricewaterhouseCoopers-FICCI survey, the television entertainment industry is likely to touch Rs 51,900 crore by 2011, and under the proposed new conditions the broadcasting industry will not be able to meet this revenue expectation. Broadcasters such as CNBC, Star, Sony, ESPN-Star Sports, NDTV, India TV, Aaj Tak, Sahara, Zee, Sun, Times Group, et al will be hit hard.

India is the third largest television market in the world with more than 112 mn television households that comprise 60% of the total households in the country. Sunil Lulla, CEO, Times Global Broadcasting, feels that the proposed bill has the capacity to hurt the industry as the new guidelines are not enabling but disabling. According to Lulla, the proposed content code is ambiguous and the industry is capable of governing itself.

Despite the hue and cry from the broadcasting industry and several industry associations, the broadcast bill may be on its way to the parliament. The industry is still lobbying. Does the government want to control freedom of speech, as well as the growth of the industry?

Detrimental to Growth
The government has from time to time tried to bring about some measure of control over broadcasting. The present attempt comes nine years after the last one, in 1997. The first attempt was shelved as the government changed, according to a CEO of one of the top broadcasters in the country.

There is fear in the mind of all top CEOs of the broadcast fraternity because this development will affect growth, they believe.

Draft Broadcasting Services Regulation Bill, 2007
Recommendation	Industry Reactions	Impact
Restrictions on ownership	Media business need large capital, has long gestation periods, which anyway limits entry and sustainability; cross media restrictions and sectoral caps will stunt growth	Industry to suffer
Public broadcaster privileges	DD cannot be called a public broadcaster and be exempted from the ambit of the law, and that of the regulator, as long as it competes with private broadcasters commercially	Private broadcasters will be affected
Public service broadcasting obligation	Is this confined to government-created or government-approved advertising?	Industry will not have any gains
Content code	Do we control the Internet? Do we control other sources of entertainment? Do we need a content code?	Viewers will be free from unnecessary programs
Discrimination	Advertising on TV is subject to service tax, while it is not in print	Broadcasting industry is facing the music
Local Content	How can we ensure stipulated content in a foreign channel?	Local industry will enjoy

Chintamani Rao, chief executive officer, India TV, said, "In the new bill, major issues remain, especially with regard to cross-media holdings; market share limitations; the privileges of Doordarshan as public broadcaster; and the public service broadcasting. I am not opposed to broadcast legislation or to a regulator, in principle. I am questioning some of the specifics, and I am certainly questioning the imposition of the government broadcaster in the guise of public broadcaster."

"The issue is much larger than and more fundamental than that. It is to do with the freedom of the press, and with the imposition of government TV in the guise of public broadcaster. In the end the most affected stakeholder is the viewer, the ordinary citizen," Rao added.