There have been a lot of recent developments in the DTH segment in India. TRAI (Telecom Regulatory Authority of India) supported the Government’s decision to reduce the licence fee for DTH operators from 10 per cent to 6 per cent of gross revenues. The current and future DTH operators such as Tata Sky, Reliance Big TV, Dish TV etc. welcomed the move, stating that this will help them lessen their losses due to a highly competitive market. Although the operators choose not to pass on any of these benefits to the consumers.
Apart from reduction in the license fee, TRAI has recommended a hike in foreign direct investment (FDI) from 49% to 74% which will help operators to raise capital for equipment and infrastructure.
TRAI also stated that the rates of bouquets and a la carte (standalone) pay channels, on any DTH platform, should not exceed 50% of the rates charged in the non-CAS or non-addressable TV homes.
Resources:
A larger bouquet for DTH subscribers
TRAI supports reduction in licence fee on DTH
Trai for 74% FDI cap in key broadcast services
TRAI for raising I&B foreign fund cap