Financial Daily from THE HINDU group of publications
Tuesday, Jan 03, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 03, 2006 |
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Radio/TV Industry & Economy - Foreign Direct Investment Info-Tech - Convergence TRAI panel proposes 74% FDI in cable TV operations Our Bureau
New Delhi , Jan. 2 THE Telecom Regulatory Authority of India's Committee on Broadband and Telephony over Cable TV Network has suggested allowing 74 per cent foreign direct investment in cable TV operations to bring it on par with the policy governing cellular and fixed line telephone operations. The committee's proposal is part of a TRAI consultation paper, which seeks to revive discussion on a convergent law for telecom and broadcasting sectors. The paper has also suggested revamping the existing spectrum allocation method to give way for flexibility to service providers. On hiking the FDI cap, the TRAI committee, said, "The FDI limit for ISPs is already at 100 per cent and for telcos it has been hiked to 74 per cent. In view of convergence and future broadband and telephony business it is suggested that the cable industry should also be allowed parity with telecom. It may be noted that cable TV network is only a carriage for delivering voice, data and TV just like copper or fibre being used by telcos for providing these services." TRAI has, however, acknowledged that broadcasting is a highly regulated sector all over the world and has sought industry feedback, on the various issues raised in the consultation paper, by January 30. Need for merging rules Hinting at the need for merging the regulation for telecom and cable TV networks, TRAI pointed out that while telecom operators are looking to offer IPTV (Internet Protocol TV), cable operators have already started offering broadband and data services using their network. "Large scale changes are taking place due to convergence and without a converged regulatory framework any attempts to regulate the communications/ broadcasting sectors in coming times may result in problems," TRAI said in the paper. The move comes even as the earlier attemptto merge laws governing the two segments, in the form of Communication Convergence Bill 2001, had failed to get the Parliament nod. Re-look at spectrum allocation TRAI has also sought a re-look at the way spectrum is being allocated. At present, spectrum is separately allocated for telephony services and for broadcasting application. In case the same spectrum is to be used with a new technology for the same service or a different service, the operator would have to go back to the Government and take specific approvals.
Related Stories: More Stories on : Radio/TV | Foreign Direct Investment | Convergence
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