The Telecom Regulatory Authority of India (Trai) has opposed the proposals of the Information and Broadcasting (I&B) ministry on the permissible levels of FDI
Trai wants 49 per cent FDI in news channels and FM, 74 in cable
NEW DELHI The Telecom Regulatory Authority of India (Trai) has opposed the proposals of the Information and Broadcasting (I&B) ministry on the permissible levels of FDI across four media segments — news television channels, cable TV networks, private FM radio and satellite radio.
If the regulator’s verdict is accepted by the government, foreign investments are expected to go up significantly in news TV channels and FM radio stations, experts pointed out.
“Foreign investments have an important role as a source of funding in the development of the sector,” Trai said in a statement on Saturday while recommending FDI caps across the media sector.
While the government (I&B ministry) wants the FDI cap for news TV channels to remain at the current level of 26 per cent, Trai has recommended an increase to 49 per cent.
In cable TV networks, the government favours FDI cap at the existing level of 49 per cent, but the regulator wants it hiked to 74 per cent.
In private FM radio, the government is keen to increase the FDI cap to 24 per cent from the current 20 per cent, but Trai wants it much higher at 49 per cent.
In the case of satellite radio, where no policy exists, the I&B ministry would like to cap FDI at 74 per cent. But Trai has said that it would recommend the FDI level for satellite radio separately.
Trai, which monitors the telecom and the broadcasting sectors, on Saturday recommended that all carriage platforms including direct-to-home (DTH), cable networks, mobile television, headend in the sky (HITS) and teleport hubs should be allowed foreign investment up to 74 per cent.
Categorising news TV channels and FM radio as content services, Trai has recommended an FDI cap of 49 per cent for them.
For non-news TV channels, the regulator has not imposed any FDI cap thereby allowing up to 100 per cent foreign investment.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}