Trai seeks views on FDI and norms for TV channels

Broadcasting regulator Telecommunications Regulatory Authority of India (Trai) today sought views of stakeholders in the sector on issues such as raising limits on foreign direct investment (FDI) and on whether there is need for modifications in uplinking and downlinking guidelines for television channels.

Trai decided to have a relook on the two issues after it got requests from the Ministry of Information and Broadcasting to revise the existing recommendations on them.

The Department of Industrial Policy and Promotion (DIPP), under the commerce and industry ministry, earlier this year had proposed that FDI ceiling for FM broadcasting be raised to 24 per cent from the existing 20 per cent. It had also suggested that the FDI cap in the direct-to-home (DTH) sector be raised from the existing 49 per cent to 74 per cent.

Though Trai had given its recommendations on FDI in broadcasting sector in April 2008, in the light of DIPP's suggestions, the ministry has requested the regulator to revise its recommendations.

Trai has requested stakeholders to submit their views by November 2, 2009.

According to a statement issued by the regulator, I&B Secretary Raghu Menon had written to Trai Chairman J S Sarma on two separate occasions in the last three weeks, on both the issues.

In a letter to Sarma dated October 8, 2009, the ministry has sought Trai's recommendations on whether the uplinking and downlinking guidelines can be revised, in the light of the fact that too many channels have come up in the recent past and in future this could lead to jamming of airwaves, creating problems in spectrum allocation.

It has, thus, requested Trai to look into the possibility of revising guidelines so that entry of too many TV channels can be regulated.

In another letter written to Trai chairman, dated September 30, 2009, the I&B secretary in light of Department of Industrial Policy and Promotion’s recommendations on FDI caps in broadcasting sector, has sought to know whether the telecom regulator would revise its earlier recommendations on the matter.