Union information and broadcasting (I&B) minister Prakash Javadekar on Wednesday said that the Cabinet has approved revision in the guidelines for providing Direct-to-home television (DTH) services in the country. According to the new guidelines license for DTH would be issued for 20 years and the license fee would be collected on a quarterly basis.
Addressing a press briefing, Javadekar said that license for DTH would be issued for 20 years and the license fee would be collected on a quarterly basis. Previously, the license for all service providers was issued for a duration of 10 years, according to the Telecom Regulatory Authority of India (TRAI).
As per the revised guidelines, DTH licenses will now be issued for a period of 20 years instead of 10 years and may be renewed for 10 years at a time. Further, the guidelines would also allow 100% FDI in the DTH sector.
The cabinet, chaired by PM Narendra Modi, also approved revising of the license fee from 10% of Gross Revenue (GR) to 8% of Adjusted Gross Revenue (AGR). The proposed reduction is intended to align the license fee with the regime applicable to the telecom sector.
"AGR will be calculated by deduction of GST from GR. License Fee will be collected on quarterly basis in lieu of presently annual basis. DTH operators shall be permitted to operate to a maximum of 5% of its total channel carrying capacity as permitted platform channels," Javadekar said.
Earlier, the TRAI issued a consultation paper on December 7 seeking views and comments with regard to the regulatory framework recommended for DTH services. A written response was sought from stakeholders on the consultation paper by December 14 and on the feedback by December 19.
Javadekar during the briefing also said the cabinet approved the merger of Films Division, Directorate of Film Festivals, National Film Archives of India, and Children’s Film Society, India with National Film Development Corporation.