Govt moots hike in foreign stake in DTH

Regulator floats consultation paper

NEW DELHI: The government has proposed to raise the foreign investment limit in direct-to-home (DTH) broadcasting to 74%, from the current cap of 49% within which the FDI component is 20%, according to a consultation paper floated by the Telecom Regulatory Authority of India (Trai) on Monday.

The Trai paper is in reply to a reference received from the information and broadcasting (I&B) ministry. The ministry has proposed certain foreign investment limits for the various broadcasting segments, and has sought Trai recommendations on the same.

Trai has asked for industry inputs by the end of this month on the matter. Besides raising the foreign investment limit for DTH, the government has sought the regulator’s view on increasing the FDI cap in other broadcasting segments as well.

For instance, the government has proposed that FM radio companies could have foreign investment up to 24% (from 20% now), teleport hub 74% (from 49%), Headend-In-The-Sky (HITS) 74% (from 49%) and satellite radio 74% (currently in the absence of any policy there’s no FDI cap).  The government does not want any changes in the foreign investment limit in cable networks and news TV channels.

Trai has asked industry stakeholders whether the foreign investment limits need to be revised as proposed or if there should be any other cap.

m_nivedita@dnaindia.net