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May 2018

TRAI: 10CR & 20 YEARS FOR DTH LICENSE

On April 12. TRAI reiterated its recommendation to the I&B ministry that DTH licenses be issued for a period of 20 years and then renewed for 10 years.

Further, a one-time entry fee of ₹ 10 crore be charged in the new DTH licensing regime.


2014 RECOMMENDATIONS

In July, 2014, the TRAI had made a number of recommendations regarding the issues related to the new DTH licensing regime. However, after considering comments from other ministries and departments, the MIB had proposed to grant only 10 year licenses, and charge a ₹ 25 Crore entry fee. The MIB had sought TRAI's views on this.

To Better Compete With Cable TV's Zero Entry fee, DTH Should Have a Lower (₹ 10 Cr) Entry Fee - TRAI




RELOOK

TRAI opined "It is felt that a longer licence period would provide certainty in the market. Keeping a short license period may adversely affect the potential investment in the sector and would also negate the efforts of the government, inter alia, including the liberalisation of the FDI regime."

TRAI pointed out that in the telecom sector, the license period under the Unified License (UL) regime is 20 years and renewal is 10 years at a time. "In view of the growing convergence between the broadcasting and telecom sectors, it is logical to align the license period for DTH sector with that in the telecom sector under the UL," it said.

Reiterating its ₹ 10 Crore entry fee, TRAI said "In order to encourage more entrants in the DTH industry, and to compete with the cable industry, wherein there is no entry fee, the TRAI recommends to retain the entry fee to ₹ 10 crore." n