Trai’s proposals provide leeway to DTH operators

Telecom Regulatory Authority of India (Trai) has recommended an extension of permits of DTH operators to 20 years, instead of 10 years at present, and a reduction in license fee on adjusted gross revenue to 8% from 10%. The broadcasting regulator further said that the adjusted gross revenue should be calculated sans service tax, entertainment tax and sales tax or value-added tax paid to the government from the gross revenue. Besides, DTH operators, including TataSky, Dish TV and Sun Direct, should be allowed to migrate to the new licensing regime at any point of time. The recommendations will be released on crossmedia ownership within two weeks and they would be ratified by the government. Trai’s recommendations come after the information and broadcasting ministry sought its suggestions last year on certain terms and recommendations for the extension of the period of DTH licences, including an interim arrangement, etc. Six private DTH operators are providing pay TV services to more than 37 mn subscribers. Trai has also made recommendations on cross-holdings and control of the broadcasting and distribution sector, which suggests that vertically integrated broadcasters, or entities that run TV channels as well as distribution platforms such as cable and DTH, must be subjected to a set of additional rules, and that they should be allowed to control only one distribution platform operation. On cross-holdings in the broadcasting and distribution, Trai said there was a need to bring “uniformity” and suggested a “comprehensive definition of control to be adopted” across all segments of both sectors.