The Telecom Regulatory Authority of India (TRAI) has released a draft of its Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Seventh Amendment) Regulations, 2025, which proposes significant changes in audit obligations for distributors of television channels. Notably, distributors with fewer than 30,000 active subscribers will no longer be obligated to undergo mandatory annual audits. These smaller operators are encouraged to undertake audits voluntarily.

Alignment With Financial Year & Stricter Audit Timeline

Under the proposed amendment, audits will follow the financial year cycle (April-March) instead of the calendar year. Distributors must share the audit reports with all broadcasters by 30 September of each year for the previous financial year.

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Strengthened Role for Broadcasters & Dispute Resolution

Broadcasters will have greater oversight: they must be given at least 30 days’ advance notice of the audit schedule and the auditor selected. They will also be allowed to send a representative to observe and submit inputs during the audit process. If a broadcaster finds discrepancies in the audit report, it can raise objections within 30 days. The auditor must then issue a revised report within another 30 days. If there is still no resolution, broadcasters may seek a special audit, subject to approval.

Infrastructure Sharing & Data Segregation

Where systems like Subscriber Management System (SMS), Conditional Access System (CAS), or Digital Rights Management (DRM) are shared across multiple distributors, TRAI proposes that separate instances be maintained for each distributor in order to ensure data segregation and enable clean reconciliation.

Watermarking rules are also being updated: broadcaster-level logos must be inserted at the encoder side, while last-mile distributors may add their own logos; however, the number of visible logos on-screen at any time should be no more than two.

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Penalties & Effective Date

The draft retains penalties for missing audit deadlines. Distributors who fail to deliver audit reports by the prescribed date may face financial disincentives, and broadcasters may, in serious cases, disconnect non-compliant distributors. These rules are scheduled to come into effect from 1 April 2026, and TRAI has invited stakeholder comments through 6 October 2025.

Implications

These proposed changes aim to balance two priorities: reducing regulatory and cost burdens for smaller cable operators while ensuring accountability and transparency across the broadcasting-distribution ecosystem. Broadcasters seek accurate subscriber data for revenue sharing, and the draft seeks to strengthen their rights without overburdening small operators.

Some concerns remain that exempting smaller operators might lead to under-reporting or misuse; in response, TRAI has provided mechanisms for oversight and dispute resolution.

What Happens Next

Stakeholders in the broadcasting, cable, DTH, and IPTV sectors will need to review the draft and submit feedback by the deadline. Once finalised, the amended regulations will mark a shift in how audits, compliance, and broadcaster rights are enforced in India’s cable and broadcasting distribution landscape.