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TRAI to review foreign investment limits for broadcasting
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Sub-limits for FDI, FII within various segments to be established
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Our Bureau
New Delhi, March 3 Foreign investment caps for the Direct-to-Home and cable sectors, and for news and non-news broadcasters, could be reviewed, once the Telecom Regulatory Authority of India (TRAI) makes its recommendations to the Ministry of Information and Broadcasting.
Consultation paper
The TRAI on Monday issued a consultation paper on foreign investment (FI) limits for various segments in the broadcasting sector. In the past, the regulator had given its views on FI limits for various individual segments, including for FM radio, IPTV (Internet protocol television), and HITS (headend in the sky) amongst others.
The current consultation paper, in addition to these sectors, seeks views for DTH (currently allowed up to 49 per cent for FI, and up to 20 per cent FDI) and cable (up to 49 per cent) segments.
“In view of the divergence in FI limits for different segments, the need to undertake a review of the FI policy for the broadcasting sector has been highlighted time and again by the Authority through its recommendations. This is necessary for consistency in policy and for a level playing field among competing technologies in view of convergence of broadcasting and communication technologies,” says TRAI.
The paper will also review caps on teleport and satellite radio, which is currently un-capped.
Sub limits for FDI and FII within segments will also be established.
The Authority would also seek to classify different broadcasting segments into carriage services and content services, so that FI limits laid down are uniform in categories or sub-categories.
Recently, while making its recommendations for the FM radio segment, the Authority had suggested news content be allowed for FM radio broadcasters, and FI caps be set at 26 per cent for news FM radio services and 49 per cent for non-news FM radio services.
With regard to IPTV, the Authority had specified that services offered by telecom players should be allowed FDI on par with the telecom sector, while limiting it to 49 per cent for IPTV services offered by cable. Views have been sought before March 28.
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