Trai for 74% FDI cap in key broadcast services

Currently, the FDI cap in DTH, cable network and teleport hub is 49 per cent while there is no existing FDI policy for HITS and mobile television.

Trai has also recommended increasing the FDI cap in FM radio firms from 20 per cent to 49 per cent and also a hike in the FDI cap for news channels that are uplinked from within the country to 49 per cent from 26 per cent.

This move will help a number of broadcasting and cable companies to raise additional investments. If accepted by the government, DTH companies, such as Dish TV and Tata Sky and several more in the pipeline, will be able to raise capital to fund their expansion and launch plans.

Trai has made these recommendations at the behest of the I&B ministry. The I&B ministry wrote to Trai in December requesting a review of the FDI caps in various existing and emerging media platforms.

For uplinking of television news channels, Trai has recommended an increase in the FDI cap from 26 per cent to 49 per cent. The move will help news channels, such as NDTV, Zee News, Aaj Tak among others, who uplink their channels from within the country.

However, the government has made it clear that it may not be in favour of increasing the FDI cap in news channels because of its sensitivity in moulding public opinion.

For the private FM radio sector, Trai has suggested increasing the FDI cap from 20 per cent to 49 per cent.

But the I&B ministry has already indicated that it is not in favour of increasing the FDI cap in FM radio, uplinking of news channels and the cable network.

Recently, the I&B ministry said that it would consider only a 4 per cent increase in the FDI cap for FM radio companies