Telecom regulator TRAI today pitched for raising FDI limits in the broadcasting sector by recommending that up to 49 per cent foreign investment should be allowed for uplinking news and current affairs channels and FM radio and 100 per cent in broadcast carriage services.
At present, only 26 per cent FDI is allowed for uplinking news and current affairs TV channels and FM radio.
In carriage services, the present FDI limit is 74 per cent excluding cable operators and MSOs not engaged in digitisation for whom the foreign investment cap is placed at 49 per cent.
In the recommendations, which had been sought by the I&B ministry in a reference in July, TRAI said that Foreign Investment Promotion Board (FIPB) process to approve FDI proposals should be streamlined and made time bound.
As per its TRAI's recommendations, FDI flows beyond 49 per cent in broadcasting carriage services and all foreign investments in news and current affairs channels and FM radio should be allowed after FIPB approval.
Broadcast carriage services include teleports, Direct to Home (DTH) companies, Headends in the sky (HITS), mobile TV, IPTV, cable TV networks and Multi System Operators (MSOs).
Explaining its reasons TRAI said that broadcast carriage services are akin to telecom services and there is a growing convergence between the two.
It said that in the telecom sector the FDI limit has since been enhanced to 100 per cent. "Thus, to maintain parity, the same ought to be made applicable for FDI investments in the broadcast carriage services," TRAI said.
It explained its decision to allow more FDI in news and current affairs channels saying that provisions to safeguard management and editorial control in news creation in the uplinking guidelines are adequate to safeguard against any adverse impact arising from FDI infusion in the news broadcasting sector.
