(16 April 2008 7:00 pm)

NEW DELHI: The direct-to-home (DTH) operators in India have formed an association to coordinate all the sector's issues with the regulator and the government.

DTH Operators Association of India's (DOAI) immediate agenda is to take up the issue of excess taxation.

"DTH operators end up paying up to 56 per cent in taxes. This is stifling the sector and needs immediate attention," said Tata Sky CEO Vikram Kaushik while addressing the press here today.

Essel Group of companies vice chairman Jawahar Goel announced the formation of the association. Also present were Big TV CEO Prakash Vajpai, Sun Direct COO Tony D’Silva, and Bharti DTH director N Srjun.

There was, however, no announcement on the various posts to be held by each of the stalwarts.

Vajpai, while welcoming the Telecom Regulatory Authority of India's (Trai) decision to reduce the license fee to six per cent of gross revenue, said that the need is to bring it to the adjusted gross revenue, which has been the persistent industry demand.

Vajpai also sought to rubbish the general perception created of DTH being a product for the rich, and said that in reality, this is the platform that would take digitalisation into the deepest pockets of the country.

This will not only give the required push to the DTH platform but actually make it affordable for the masses, D'Silva added. Content price, which is a major impediment for DTH, will become cheap.

The DOAI has assured the broadcasters that DTH would offer a better business model and complete addressability will mean higher remittances.