Higher FDI cap for digital TV likely
[2008-7-31]
Tag : cable end cap
The government may bring in separate guidelines and foreigninvestment rules for the cable industry based on the mode ofdistribution of signals to end-consumers.
With the government gearing up to announce the policy for digitalplatforms like Headend in the Sky (HITS) and IPTV, industry expertssay digital services like DTH, HITS and IPTV will need huge foreigndirect investment (FDI) to expand. For this reason, they wantdifferent FDI rules for these services than the analogue cableindustry.
This means the cable companies engaged in last-mile distribution ofTV channels will qualify for the existing 49 per cent FDI limit,while operators of DTH, HITS, IPTV and multi-system operators(MSOs) will be able to bring in up to 74 per cent FDI, a limitproposed by broadcast regulator Telecom Regulatory Authority ofIndia (Trai).
Sources say the policy for HITS has been delayed in the Ministry ofInformation and Broadcasting (I&B) due to FDI issues. SeveralMSOs and media companies interested in becoming licensees of HITSare waiting for the policy. Subhash Chandra's Essel Group is theonly HITS licensee so far.
"But the government is now looking at an FDI regime based on themode of transmission. This will sort out regulatory and foreigninvestment issues," said a highly placed source.
The government may bring in separate guidelines and foreigninvestment rules for the cable industry based on the mode ofdistribution of signals to end-consumers.
With the government gearing up to announce the policy for digitalplatforms like Headend in the Sky (HITS) and IPTV, industry expertssay digital services like DTH, HITS and IPTV will need huge foreigndirect investment (FDI) to expand. For this reason, they wantdifferent FDI rules for these services than the analogue cableindustry.
This means the cable companies engaged in last-mile distribution ofTV channels will qualify for the existing 49 per cent FDI limit,while operators of DTH, HITS, IPTV and multi-system operators(MSOs) will be able to bring in up to 74 per cent FDI, a limitproposed by broadcast regulator Telecom Regulatory Authority ofIndia (Trai).
Sources say the policy for HITS has been delayed in the Ministry ofInformation and Broadcasting (I&B) due to FDI issues. SeveralMSOs and media companies interested in becoming licensees of HITSare waiting for the policy. Subhash Chandra's Essel Group is theonly HITS licensee so far.
"But the government is now looking at an FDI regime based on themode of transmission. This will sort out regulatory and foreigninvestment issues," said a highly placed source.
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