TRAI Notifies Seventh Amendment to Broadcasting and Cable Interconnection Regulations

New Delhi: The Telecom Regulatory Authority of India (TRAI) on Wednesday notified the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Seventh Amendment) Regulations, 2026, introducing significant changes to the audit framework governing broadcasters and distribution platform operators (DPOs).

The amendments aim to improve transparency, reduce repetitive audits, strengthen auditor accountability, and ease compliance burdens on smaller distributors, while ensuring credibility in the audit process.

Why the changes were introduced

TRAI said the amendments were finalised after extensive stakeholder consultations, during which broadcasters and distributors raised concerns about:

• repetitive and overlapping audits causing operational disruption,
• lack of accountability and standardisation among auditors,
• gaps in audit provisions related to infrastructure sharing, and
• the need for clearer timelines and procedures.

To address these issues, TRAI had earlier tightened auditor eligibility norms through an Expression of Interest (EOI) issued in August 2025, introducing technical qualification requirements, experience-based categorisation of auditors, and stricter accountability provisions.

Consultation process

The regulator released a consultation paper in August 2024 and received 64 comments and three counter-comments from stakeholders, followed by an open house discussion in December 2024. A draft amendment regulation issued in September 2025 attracted 37 stakeholder submissions before the final rules were notified.

Key changes under the amended regulations

Under the Seventh Amendment Regulations:

• Audits will now be conducted on a financial year basis, replacing the earlier calendar-year system.
• Distributors must complete audits and submit audit reports to broadcasters by 30 September each year.
• Broadcasters may depute representatives during audits to enhance transparency.
• Broadcasters can seek clarifications on audit discrepancies through the distributor, and auditors must respond within defined timelines.
• If dissatisfied, broadcasters may conduct a fresh audit at their own cost, subject to TRAI approval.
• If a distributor fails to submit an audit report by 30 September, broadcasters may initiate an audit themselves.

To promote ease of doing business, TRAI has made annual audits optional for distributors with fewer than 30,000 subscribers, though broadcasters retain the right to audit such distributors at their own expense.

Infrastructure sharing provisions

The amended framework also introduces detailed provisions for infrastructure sharing:

• Subscriber Management Systems (SMS) and Conditional Access Systems (CAS/DRM) must meet regulatory requirements separately for each distributor.
• Separate system instances must be created to enable entity-wise reconciliation.
• Infrastructure providers must insert network logo watermarking at the encoder end, while seekers must provide logos through set-top equipment or middleware, with a preference for no more than two visible logos to ensure viewer experience.

TRAI said a revised audit manual aligned with the new regulations will be issued shortly.

Expected impact

According to the regulator, the amendments will enhance credibility and accountability in the audit process, reduce unnecessary repeat audits, lower compliance costs for broadcasters and distributors, and ensure time-bound completion of audits without compromising stakeholder trust.