NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has notified the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Seventh Amendment) Regulations, 2026, marking a significant step toward strengthening the audit framework in the broadcasting and cable services sector while promoting ease of doing business.

The amendment addresses long-standing concerns raised by stakeholders regarding audit-related provisions under the Interconnection Regulations, 2017 and the associated Audit Manual. Industry participants had highlighted issues such as repetitive audits of Distribution Platform Operators (DPOs), operational disruptions, inefficient use of resources, lack of provisions for infrastructure sharing, and the need for greater accountability and credibility of auditors.

To improve the integrity of the audit ecosystem, TRAI has already taken steps to enhance auditor accountability by incorporating stringent technical proficiency requirements, experience-based categorisation of auditors, and robust accountability norms in the Expression of Interest (EOI) issued in August 2025 for empanelment of auditors.

The present amendments are the outcome of an extensive consultative process. TRAI had issued a consultation paper on audit-related provisions on 9 August 2024, which received 64 comments and three counter-comments from stakeholders, followed by an open house discussion on 5 December 2024. Subsequently, draft amendment regulations were issued on 22 September 2025, inviting further stakeholder feedback, resulting in 37 additional comments. After detailed examination of these inputs, the Authority has finalised the regulations.

Key Features of the Seventh Amendment Regulations, 2026

Under the amended framework, audits will now be conducted on a financial year basis, replacing the earlier calendar-year system. Clear timelines have been introduced, mandating distributors to complete audits and submit audit reports to broadcasters by 30 September each year, ensuring predictability and timely compliance.

To enhance transparency and confidence in the audit process, broadcasters are permitted to depute their representatives during audits. In cases where discrepancies or inadequacies are identified in audit reports, broadcasters may seek clarifications through the DPO, and auditors are required to respond within a specified time frame. If dissatisfaction persists, broadcasters may conduct a fresh audit at their own cost after obtaining approval from TRAI.

The regulations also empower broadcasters to initiate audits if audit reports are not received from distributors within the stipulated timeline. In a major relief measure aimed at ease of doing business, annual audits at the distributor’s cost have been made optional for DPOs with fewer than 30,000 subscribers, though broadcasters retain the right to conduct audits of such DPOs at their own expense.

Recognising the growing trend of infrastructure sharing, the amendments introduce detailed provisions to ensure transparency and accountability. Subscriber Management Systems (SMS) and Conditional Access Systems (CAS/DRM) must meet all specified requirements for each distributor, with separate system instances created to enable entity-wise reconciliation. For branding and identification, infrastructure providers are required to insert network logo watermarking for all pay channels at the encoder level, while seekers must provide network logos through set-top boxes or middleware. To preserve viewer experience, TRAI has recommended that preferably no more than two logos be displayed on-screen.

TRAI has also announced that the amended Audit Manual will be issued shortly to align with the updated regulatory framework.

Industry Impact

According to the Authority, these amendments, combined with the strengthened criteria for empanelment of auditors, will enhance the credibility and accountability of the audit process, reduce unnecessary and repetitive audits, lower compliance costs for both DPOs and broadcasters, and ensure time-bound completion of audits without compromising stakeholder trust. The full text of the regulations is available on TRAI’s official website. 

 

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