In a significant regulatory intervention aimed at strengthening transparency and streamlining compliance in the broadcasting and cable television sector, the Telecom Regulatory Authority of India (TRAI) has notified the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Seventh Amendment) Regulations, 2026.
The revised regulations, which came into force on February 5, 2026, seek to address long-standing concerns surrounding audit-related provisions under the Interconnection Regulations, 2017, including repetitive audits, lack of clarity in timelines, operational disruption for service providers, and declining confidence in the audit mechanism.
Why the amendments were needed
According to TRAI, extensive consultations with broadcasters, distribution platform operators (DPOs), and other stakeholders over the past few years revealed persistent shortcomings in the existing audit framework. Stakeholders flagged that audits were often unclear in scope, repetitive in nature, and resource-intensive, leading to avoidable compliance burdens without commensurate regulatory outcomes.
The regulator acknowledged that multiple audits of the same entities resulted in wastage of manpower, disruption of routine operations, and disputes over audit findings, undermining the credibility of the overall process. The latest amendments aim to correct these structural deficiencies.
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Shift to financial year–based audits
A key change introduced under the new regulations is the transition from calendar year–based audits to financial year–based audits. TRAI said this move aligns the audit process with the accounting practices and statutory financial reporting cycles followed by companies.
The regulator believes that synchronising audits with the financial year will improve data consistency, reduce reconciliation issues, and limit disputes arising from mismatched accounting periods.
Clearly defined timelines for audits
For the first time, the amended regulations lay down clearly defined timelines for the conduct and completion of audits. This is intended to eliminate uncertainty for both DPOs and broadcasters regarding the initiation, duration, and closure of audit exercises.
TRAI said fixed timelines would curb delays, prevent open-ended audits, and reduce instances where entities are subjected to repeated verification for the same period without regulatory justification.
Broadcasters allowed to depute representatives
Another major provision allows broadcasters to depute their representatives during the audit process. This measure is aimed at enhancing transparency and ensuring that technical, commercial, or operational clarifications can be addressed in real time.
According to the regulator, the presence of broadcaster representatives will help resolve issues during audits themselves, rather than escalating them into post-audit disputes or litigation, thereby strengthening the credibility of audit outcomes.
Curb on repetitive audits
The amended framework directly addresses the issue of repetitive audits of DPOs, which had emerged as a major industry grievance. TRAI noted that repeated audits rarely generated additional regulatory value and often imposed unnecessary compliance costs.
Under the revised rules, audits are to be conducted in a more need-based and purpose-driven manner, ensuring that regulatory oversight remains effective without becoming intrusive or procedural.
Infrastructure sharing brought under audit lens
For the first time, the audit framework explicitly incorporates provisions relating to infrastructure sharing, including shared networks, headends, and technical facilities. This will enable regulators to verify whether shared infrastructure is being utilised in accordance with existing norms and contractual obligations.
Industry experts believe this move could help improve operational efficiency while ensuring regulatory compliance in an increasingly converged broadcasting ecosystem.
Impact on the industry
Broadcasting and cable sector analysts said the amendments are likely to reduce regulatory uncertainty and improve trust between regulators and service providers. Clear timelines, reduced audit duplication, and greater transparency are expected to improve the ease of compliance and investor confidence.
However, some operators cautioned that the real impact of the changes will become evident only after the first complete audit cycle under the revised regulations.
TRAI has indicated that it remains open to reviewing the framework in the future, should technological or market developments warrant further refinements.
With these amendments, the regulator has underscored that its objective is not merely enforcement, but the creation of a balanced, transparent and credible regulatory environment for India’s broadcasting and cable television ecosystem.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
