Trai recommends slashing authorisation charges for DTH, radio services

Calls for interoperable set-top boxes, infrastructure sharing among broadcasters and telcos

The Telecom Regulatory Authority of India (Trai) has recommended that the authorisation fee for direct-to-home (DTH) service operators be slashed to 3 per cent of adjusted gross revenue (AGR), down from the current 8 per cent.

 

The regulator has outlined plans to eliminate the fee entirely after 2026-27. It has also reduced the bank guarantee needed for DTH services to ₹5 crore, or 20 per cent of the authorisation fee for two quarters, whichever is higher.

 

As part of new recommendations on a unified framework for service authorisations for broadcasting services under the Telecommunications Act, 2023, Trai on Friday also called for the voluntary sharing of infrastructure among broadcasters and telecom operators. The recommendations also include interoperability of set-top boxes (STBs) to ensure consumer choice and the removal of the existing ₹100 crore minimum net worth requirement for internet protocol TV (IPTV) service providers.

   

Trai has said the Centre should grant broadcasting service authorisations under Section 3(1)(a) of the Telecommunications Act, 2023, instead of the existing practice of issuing licences. This aligns with its proposals for service authorisations for telecom operators and network authorisation for telecom infrastructure providers.

 

The migration of existing licensee/permission holders in the broadcast and radio sectors to the new authorisation regime will, however, be voluntary, and entities will have time until the expiry of their licences. Further, no processing fee or entry fee will be required for migration in the case of broadcasting services. However, the validity period of the respective service authorisation should start from the effective date of migration, the regulator said.

 

The Telecommunication Engineering Centre (TEC) under the Department of Telecommunications (DoT) will prepare and notify standards for interoperable STBs and television sets with inbuilt STB functionality.

 

The telecom regulator has also proposed two new services — Ground-based Broadcasting of a Television Channel and Low Power Small Range Radio Service — based on its earlier recommendations.

 

The Ministry of Information and Broadcasting should prescribe a separate Programme Code and Advertisement Code for radio broadcasting service providers, Trai said.

 

Signaling changes for radio 

The terms and conditions for radio broadcasting services have been made technology agnostic, enabling the adoption of digital technology. Trai has also said radio operators should be allowed to receive service authorisation for ‘terrestrial service’ without first applying for spectrum in an auction, as is currently required.

 

In addition to broadcasting radio channels, authorised entities for terrestrial radio services should be allowed to stream the same content through the internet concurrently, the recommendations stated.

 

Trai has also proposed changes to authorisation fees for radio broadcasting services, standardising the rate at 4 per cent of AGR across all cities. For specified regions, a reduced rate of 2 per cent will apply for the first three years before transitioning to the standard rate.

 

Authorisation will be renewed every 10 years. The provision for renewal did not exist earlier.   

Proposals 

- DTH authorisation fee cut: To be reduced from 8% to 3% of AGR, with plans for complete removal after 2026-27 

- Lower bank guarantee: Set at Rs 5 crore or 20% of the authorisation fee for two quarters, whichever is higher

  - Unified authorisation framework: Shift from licensing to service authorisations under the Telecommunications Act, 2023

  Radio broadcasting reforms

  - Technology-agnostic approach to enable digital adoption

  - Radio operators can get terrestrial service authorisation without auction-based spectrum allocation