Cable TV

Trai proposes 74% FDI in cable TV

NEW DELHI: The Telecom Regulatory Authority of India (Trai) wants 74 per cent foreign direct investment (FDI) to be allowed in cable TV which would bring the sector in parity with telecom companies.

The current regulation allows only 49 per cent FDI in cable TV while telecos can attract 74 per cent foreign investment.

In a consultation paper released on onvergence and competition in various broadcasting and telecom services, Trai says, "Cable TV network is a carriage for delivering voice, data and TV just like the copper or fibre wires that are being used by the telecom industry for providing these services."

The paper adds, "In view of convergence and future broadband and telephony business, it is suggested that the cable industry should also be allowed parity with telecom."

Pointing out that convergence is already a reality, the regulator said the present paper is based on previous work done by it in individual recommendations on various industry-related issues.

Another key proposal made in the paper is on unification of customs duty. "A number of items pertaining to the cable TV industry, which have similar functions as that of items in telecom, must have similar customs duty rates," it says.

The paper also includes issues for consultation based on the report of a committee that had been set up by Trai to examine issues relating to broadband and telephony over cable TV networks.

In 2004, the broadcast and cable TV services were re-designated as telecom services by the then government to bring them under the purview of Trai.

The consultation paper begins with an introduction to the issues of convergence and competition and goes on to introduce the idea of convergence and alternative definitions of convergence as well as various ways to approach it.

Then the paper, the full text of which is available on, looks at the impact that convergence has on markets, regulations and consumers and highlights the developments taking place elsewhere in the world.

The issues for consultation are essentially the following:

# Need for a comprehensive legal framework for promoting convergence.

# Approach to unified licensing.

# Technology and service neutral spectrum licensing.

# Issues on which suggestions have been made by the committee on broadband and telephony over cable TV networks such as rationalisation of differential customs duty regime, restriction on use of protocols, license fees and right of way.

"A well-designed scheme of regulation that helps convergence can vastly increase the competitiveness and efficiency of the Indian economy. This is all the more important in an era of growing importance of information and communications," Trai has summed up.

Written comments on the issues raised are to be sent to the regulator by 30 January, 2006.

Also read:

Trai moots 2010 as deadline for digitalisation of cable TV 

Government announces broadband policy

Trai releases recommendations for broadcast sector

Latest Reads
Subscription revenue drives up Den’s PAT

Multi-system operator (MSO) Den Networks’ financial results for Q3 2018 show consolidated revenue of Rs 330 crore as against Rs 293 crores in the corresponding quarter a year ago, up by 12 per cent. In Q2 2018, consolidated revenue stood at Rs 328 crore.

Cable TV Multi System Operators
Hinduja Ventures board okays amalgamation with Grant Investrade

Hinduja Ventures Ltd's (HVL) the board of directors has approved the amalgamation of Grant Investrade Ltd (GIL), a wholly owned subsidiary, into the company.

Cable TV Multi System Operators
Kolkata cable operators want cable TV GST at 5%

MUMBAI: The plea of cable TV operators in Kolkata to reduce the goods and services tax (GST) from the current 18 per cent to 5 per cent has been heard.

Cable TV Local Cable Operators
Den Networks buys 51% in VBS Digital

MUMBAI: Multi-system operator Den Networks Ltd (Den) has acquired 51 per cent stake in cable televison distributor VBS Digital Distribution Network Pvt Ltd (VBS Digital) for Rs 2.64 crore in cash. According to Den's release to the Bombay Stock Exchange, the deal will strengthen the company’s cable...

Cable TV Multi System Operators
TiVo's next-gen solution to help cable operators retain customers

MUMBAI: TiVo Corporation has launched Next-Gen Platform, a range of cloud-based products with a unified backend to help operators stay ahead of the game. The platform can be deployed for QAM, hybrid and IPTV to anticipate and quickly address customer needs.

Cable TV Local Cable Operators
Ortel to move broadband business to new entity

Multi-system operator Ortel Communications Ltd plans to incorporate a new wholly owned subsidiary, Ortel Broadband Ltd, in order to operate the broadband business separately.

Cable TV Multi System Operators
DEN Networks tops as most attractive Cable TV brand: TRA Research

DEN Networks Ltd, one of the largest cable MSOs in India, is the top cable brand according to the "Most Attractive Brands 2017" report by Trust Research Advisory (TRA)

Cable TV Multi System Operators
Government to once again make MHA clearance compulsory for MSOs?

Every multisystem operator (MSO) which is licensed with the ministry of information & broadcasting (MIB), will now have to also seek the ministry of home affairs' s (MHA's) ecurity clearance. A notification to this effect is being planned and passed by the Narendra Modi government.

Cable TV Multi System Operators
MSOs move Madras HC seeking relief on inter-connect pacts

MUMBAI: The All India Digital Cable Federation (AIDCF) had filed a petition in the Madras High Court few days back pleading a directive to broadcasters to maintain a status quo on renegotiating agreements between TV channels and MSOs till a final judicial call was taken on TRAI’s new tariff regime...

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories