The Union Cabinet has approved changes to guidelines for providing Direct to Home (DTH) services to bring it in line with the existing policy that allows 100 percent FDI in the DTH broadcasting services sector.
The licences will now be issued for 20 years with a renewal provision after every 10 years. At present, DTH licences are issued for 10 years.
The licence fee has also been lowered from 10 percent of gross revenue to eight percent. The fee will have to be paid quarterly instead of annual payment as at present. The licence fee will be similar to that in the telecom sector.
A 20-year licence period will provide stability and be beneficial for players due to large capital investments that they have made. It also gives DTH the recognition of being an infrastructure intensive sector. This will resolve the longstanding impasse on the DTH licence policy.
The Commerce and Industry Ministry had earlier provided for 100 percent FDI in DTH. But due to the Information & Broadcasting guidelines, it was restricted to 49 percent.
The cap of 49 percent FDI in the existing DTH guidelines will be aligned with the policy on FDI as amended from time to time.
The decision was taken after discussions with the Telecom Regulatory Authority of India (TRAI) on removing the existing anomalies and will help bring about a level playing field.
The DTH operators will be permitted to operate to a maximum of five percent of its total channel carrying capacity as permitted to platform channels.
A one-time non-refundable registration fee of Rs 10,000 per PS channel will be charged from DTH operator.
The amended DTH guidelines with a longer licence period and clarity on renewals, relaxed FDI limits, etc will ensure a fair degree of stability and new investments with employment opportunities.