Government may lower DTH licence fee

The government is considering a proposal to decrease the licence fee for direct-to-home (DTH) players by 4 per cent. “We will deliberate on the matter. This amendment to the existing licence condition could lead to healthy competition among the DTH operators. Other delivery platforms will also be forced to innovate, bringing considerable benefit to the consumers,” said Sushma Singh, secretary, Ministry of Information & Broadcasting at the sidelines of the conference.

Minister of State for Information and Broadcasting and External Affairs, Anand Sharma, announced plans to set up a national centre for animation, gaming and VFX. The centre will address the growing need for skilled manpower in the newer industry verticals.

The minister added the government would raise the issue before the Empowered Committee on value-added tax. GST is slated for introduction from April, 1, 2010.

“We will consider the entertainment industry’s demand, articulated by Ficci, for inclusion of entertainment tax in GST itself, so that there is a single tax on the industry,” the minister said.

Responding to the observations made by Harsh Pati Singhania, president, Ficci, Sharma said the government was prepared to consider further requirements of the media and entertainment industry to help it weather any adverse fallout of the global economic crisis.

Sushma Singh added the government was working on devising a suitable regulatory framework for digitalisation of cable services. “This is a key factor in getting rid of problems such as under-declaration of subscribers and the practice of carriage fee being charged by cable operators, particularly in major TRP-providing cities.”

She added the government was in the process of amending the FM Phase II policy for the launch of FM Phase III in about 275 cities, with as many as 790 channels.

“We are also trying to resolve issues like music royalties. We hope that these initiatives will enhance the growth rate further,” Singh said.