The Hindu Business Line : TRAI may set FDI norms for broadcasting, cable services

New Delhi, Feb. 9 The telecom regulator is all set to prescribe FDI norms for all broadcasting and cable services, including Direct to Home and Cable services.

TRAI will be issuing a consultation paper within the next fortnight calling for stakeholders’ views on FDI norms in broadcasting and cable services. It hopes to review existing norms, debating the merits of setting uniform FDI and FII levels, and to discuss whether these should be uniform across segments or whether sub-segments should be identified to create level playing fields for services across platforms and technologies.

TRAI had already made its recommendations for Mobile TV, and Headend-in-the Sky, the satellite-based cable service. For both, it recommended permissible FDI levels of 74 per cent.

‘Level the field’

TRAI’s recommendations for FM radio are expected very soon. They will also include a revision, expected to be upwards of the existing 20 per cent FDI cap.

FM Radio operators have been demanding a level playing field with satellite radio which is uncapped.

Current FDI levels for cable stand at 49 per cent. DTH is allowed foreign investment of up to 49 per cent with FDI capped at 20 per cent.

While IPTV services offered by telecom players have been allowed FDI levels at par with the telecom sector, cable IPTV businesses are limited to 49 per cent.

TRAI had earlier suggested that limits for broadcasting and cable services be brought on par with that in the telecom sector — to 74 per cent.

A level playing field was needed, given that telecom players have already ventured into the broadcasting business, and newer technologies were allowing similar services to be offered by competing and converging technologies.

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TRAI may set FDI norms for broadcasting, cable services