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 The
floodgates are finally opening up it would seem. Earlier
this week, the Union Cabinet allowed 100 per cent foreign
direct investment (FDI) in advertising and films. And if
reports trickling in from North Block are to be believed,
the government is expected to lift a major bugbear of the
broadcasting sector in the the next few days: that of the
20 per cent FDI equity cap in Indian DTH ventures. Apparently,
sources say, the I&B ministry, in conjunction with the communications
and IT ministry and the Prime Minister's Office, is likely
to raise the FDI bar to 49 per cent in DTH ventures. Other
anomalies in the DTH policy announced last year like cross
media restrictions are to be eased too, sources indicate.
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News
Corp's Rupert Murdoch's (right) Star India might be
battling the combined might of AOL Time Warner's Gerald
Levin (extreme left) & Zee's Subhash Chandra if
the government opens up DTH |
A
huge bash has been planned by AOL Time Warner CEO Gerald
Levin and the Zee Network chairman Subhash Chandra in Delhi
next week as a celebration of the new freedom, sources reveal.
Apparently, the duo is likely to announce a further cementing
of their relationship in the form of a DTH venture for India,
the sources say. Time Warner and the Zee Network announced
a distribution partnership in the form of a Zee-Turner joint
venture in December 2001.
Apparently,
News Corp chairman Rupert Murdoch is also slated to announce
similar plans at the same time, sources point out. He was,
at the time of writing, slated to arrive in India on 14
March while Levin is expected to touch down in India on
12 March. Star India officials refused to make any comments
when asked about its DTH plans. Star India CEO Peter Mukerjea
is reported to be in Shanghai along with Star Asia chairman
James Murdoch.
News
Corp's ISkyB venture has been on the backburner for the
past five years, thanks to the Indian government's fear
of loosening the strings on media and intense lobbying from
rivals.
But
Star India has been working on reviving it with Star Asia
executive Altaf Ali Mohammed working on a feasibility plan
for over a year now. Earlier it was examining a proposal
to launch its ISkyB project in partnership with the then
government owned long distance carrier, VSNL, sources reveal.
The plan was later aborted and today VSNL is in the private
hands of the Tata group.
If
the reports prove right, Murdoch will be battling the combined
might of AOL Time Warner and former partner Subhash Chandra,
which may make it appear to be a fight of unequals. But
then the septuagenarian, who became a father after many
years recently, loves the scent of battle and coming out
on top.
Click on the links below to know more about DTH:
Guidelines
for DTH Broadcasting services in India (4
April 2001)
Guidelines
for Obtaining License for Providing Direct-To-Home (DTH)
Broadcasting Service In India
Details
of DTH clearance from government notification
(2 November 2000)
DTH
In India: A few survival strategies (24
November 2000)
Government
press release on DTH (18 November
2000)
DTH:
A chronology (2 November 2000)
The
DTH wannabes (2
November 2000)
The
DTH opportunity (2
November 2000)
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