100% FDI IN DTH SERVICES

100% FDI IN DTH SERVICES

Context

Union Cabinet approved revised guidelines for Direct-to-Home (DTH) broadcasting services, allowing 100 per cent foreign direct investment (FDI) as well as increasing the licence period to 20 years.

Details

• Under the revised guidelines the licenses will be issued for a period of 20 years, compared to 10 years at the moment, and will be renewed for a 10-year period.
• The license fee has been revised from 10 per cent of gross revenue (GR) to 8 per cent of adjusted gross revenue (AGR), which will be calculated by deduction of GST from GR.
• Broadcasting firms will have to pay the license fee on a quarterly basis, rather than the annual basis as of now.
• The government has also allowed DTH operators to share infrastructure.
• DTH operators, willing to share DTH platform and transport stream of TV channels, on a voluntary basis, will be allowed.
• Distributors of TV channels will be permitted to share the common hardware for their Subscriber Management System (SMS) and Conditional Access System (CAS) applications.

About Direct to Home

• The DTH technology 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.
• In India, direct-to-home (DTH) Broadcasting Service refers to the distribution of multi-channel TV programmes in Ku Band by using a satellite system by providing TV signals direct to subscribers' premises.
• For DTH connection the broadcasting company provides a set that comprises the dish and a receiving set.
• The company beams an encrypted signal that only the set installed in your household can receive and enable viewing