IndianMascot
Core Member
The Telecom Regulatory Authority of India has come up with recommendations to curb/avoid monopolisation in the cable Tv space. The recommendations come after the Ministry of Information and Broadcasting in December 2012 asked the regulatrory body for the the same in lieu of which, TRAI issues a consultation paper on June 30, 2013.
The main takeaway from the recommendations is that no single multi-system operator (MSO) can have more than 50% of the market share in a relevant market. TRAI has further recommended that the relevant market be considered state wise in the country. The market dominance should be determined based on market share in terms of the number of active subscribers (registered users) of MSOs in the relevant market. For measuring the level of competition or market concentration in a relevant market, the Herfindahl–Hirschman Index (HHI) should be used.
The HHI is a measure of competition with a market that is derived by summing the squares of the market share of each competing firm in the market. If, for example, there were only one firm in an industry, that firm would have 100% market share, and the HHI would equal 10,000 (100 raised to 2), indicating a monopoly. Or, if there were thousands of firms competing, each would have nearly 0% market share, and the HHI would be close to zero, indicating nearly perfect competition.
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