Plan to extend licence period for DTH operators to 20 years

Broadcast regulator Telecom Regulatory Authority of India on Wednesday recommended extension of licence period for direct-to-home (DTH) operators to 20 years, while proposing bringing down fees to eight per cent of the adjusted gross revenue.

In its recommendations on a new DTH licensing regime, the Trai said vertically integrated broadcasters must be subjected to a set of additional regulations, allowing them to control only one distribution platform operator (DPO). Vertically integrated broadcasters are entities which run TV channels as well as distribution platforms as MSO and DTH.

On the tenure of DTH licence, Trai suggested that it to be increased from 10 years to 20 years, renewable by 10 years at a time. To bring parity with telecom operators in terms of licence fee with the DTH operators, Trai also recommended a reduction in existing licence fee from 10 per cent of gross revenue (GR) to eight per cent of the adjusted gross revenue (AGR). The sectoral regulator also recommended a one-time entry fee of Rs 10 crore for the DTH industry.

Moreover, Trai has also suggested giving liberty to the existing DTH operators to "migrate to the new regime at any time during their currency of their existing licenses".

The DTH operators are paying 10 per cent of their GR, while the telecom operators pay only eight per cent of their AGR.

Under AGR, revenues arising out from other activities like interest on savings, dividends, bundling of handsets and others are excluded for calculating the licence fee.

Trai has also suggested BIS (Bureau of Indian Standards) to come out with updated specifications for the set-top-boxes (STBs) in consultation with the regulator. On the issue of cross holdings in the broadcasting and the distribution sectors, Trai said there was a need to bring "uniformity" in the sector.

SO SAYS THE REGULATOR

• Vertically integrated broadcasters must be subjected to a set of additional regulations, allowing them to control only one distribution platform operators
   
• Trai has also suggested giving liberty to the existing DTH operators to "migrate to the new regime at any time during their currency of their existing licenses"