100% Foreign Direct Investment (FDI) in direct-to-home (DTH) service, extension of the license period from 10 years to 20 and a reduced licence fee.
Fee has been reduced to 8% of Adjusted Gross Revenue, after setting off service tax, as opposed to 10% on Gross Revenue now.
India has which 6 crore television sets operate on DTH out of 18 crore.
The I&B Ministry claimed that the revised guidelines would help in fair degree of stability and bring in new investments.
Since the DTH sector was a highly employment intensive sector, these changes would increase employment opportunities
DTH's Beliefs: No pricing powers since New Tariff Orders (NTO) for television..
- Any high fee would, therefore, be anomalous, in their view. The broadcasters, on the other hand, have approached the courts against the amended NTO issued in January, which increased the available channels for a mandated network capacity fee paid to platforms like DTH, reduced the maximum price of pay channels in bouquets, and curbed price rigging using bouquet arrangements. These are measures that strike a blow for the common man.
Source: The Hindu
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