The Hindu Business Line : Broadcasting sector divided over foreign investment norms review

New Delhi, April 2 The broadcasting industry is divided over the Telecom Regulatory Authority of India’s proposal to review foreign investment norms in the sector.

While Bharti, which is all set to launch its own DTH service soon, is in favour of raising limits, Big TV, the Reliance ADAG’s DTH business, wants all foreign investment limits capped at 49 per cent. TRAI’s exercise is aimed at bringing the foreign investment limits in certain segments of the broadcasting sector at par with those in the telecom sector.

Welcoming the possibility of raising foreign investment limits to 74 per cent, Bharti suggested that sub-limits on individual components of foreign investment, whether FDI or FII, not be prescribed. With the exception of news content service, considered sensitive in nature, Bharti wanted foreign investment limits raised both in content and delivery services.

Big TV, however, questioned the very scope of the paper. “There is a need to look into all the regulatory aspects in totality and not just foreign investments. No useful purpose will be served by rationalising FDI alone,” it said. It is proposing that foreign investment limits in case of teleport hub, DTH, HITS, mobile TV and cable TV all be limited to 49 per cent. “After issue of DTH licences, competition is emerging in the distribution of satellite TV channel market. A number of cable companies have started replacing coaxial cables with fibre optics so that they too can offer consumers quality services and choice of hundreds of channels like DTH systems,” says Big TV’s comments on the TRAI Web site. Calling for foreign investment limits for FM radio and satellite radio to be revised to 49 per cent, it has suggested that the same be maintained for DTH, HITS, and TV channels.

Zee Networks, representing the home grown media giant’s businesses across the sector covering television, DTH and cable, also regretted that the regulator had chosen to take a “simplistic view”. “At the outset, we would like to point out that the suggestions of TRAI in standardising the limits of foreign investments to a uniform level across various delivery platforms in the broadcasting sector is fraught with danger as media is a sensitive sector and DTH, cable TV, mobile TV, IPTV, FM radio and so on being the media content carriers, are a part and parcel of media establishment,” said Zee. The company called on TRAI to expand the scope of paper to include issues such as national commitments related to broadcasting in forums such as the WTO and others. It also wanted a comparison with what regulators elsewhere had allowed.

Ortel Communications Ltd and solutions provider NSD expressed disappointment with the TRAI and Ministry view in the past that foreign investment limit for cable remain at 49 per cent, and wanted it increased to 74 per cent. TRAI has so far received comments from 13 stakeholders.