100% FDI in DTH service

Source: The Hindu

News: Union Cabinet has approved revised guidelines for Direct-to-Home (DTH) broadcasting services.

Facts:

  • Direct to Home(DTH): It enables a broadcasting company to directly beam the signal to your TV set through a receiver that is installed in the house.There is no need for a separate cable connection.
  • Advantages of DTH:
    • One can do away with the cable operator who will give you channels of his choice.
    • The quality of signals in this case is expected to be superior since the signal is not split through a cable.
    • There is a possibility of reducing your monthly cable bill.
  • Disadvantages: Capital cost has to be borne initially. Since this involves setting up of a receiving apparatus at the subscribers end, the cost can be prohibitively high.

What are the revised guidelines for DTH Services?

  • It allowed 100% Foreign direct Investment(FDI) in the direct-to-home (DTH) broadcasting services sector.Currently, FDI was limited to 49%.
  • License for the DTH will be issued for a period of 20 years in place of present 10 years.Further the period of License may be renewed by 10 years at a time.
  • License fee has been revised from 10% of GR (gross revenue) to 8% of AGR (adjusted gross revenue).License fee will be collected on a quarterly basis against the current annual basis.
  • Sharing of Infrastructure between DTH operators. DTH operators, willing to share DTH platforms and transport streams of TV channels on a voluntary basis will be allowed.
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