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Tata Sky’s review petition on licence fee grounded by Tdsat









MUMBAI: Telecom Disputes Settlement and Appellate Tribunal (Tdsat) has overruled a review petition filed by Tata Sky over calculation of licence fee.


The direct-to-home (DTH) operator had pleaded that revenues earned from sales of set-top-boxes (STBs) be kept out of the purview of calculating the licence fee, reported PTI.

 

The Tdsat bench, in its order dated 26 August, 2008 had ruled that sale of STBs would be part of the DTH operator‘s gross revenue. It also held that dividend income would be excluded.


At present, DTH industry has to pay around 10 per cent of its gross revenue of a financial year as annual licence fee.


In its plea, Tata Sky contended that since the DTH operators do not manufacture STBs and it is not mandatory for customers to purchase STBs from them, revenues earned through sale of the boxes should not be included while calculating the licence fee.


However, the sector tribunal rejected Tata Sky‘s petition observing that STBs could not be purchased by customers from third parties.

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