Changes to DTH Operator Guidelines

Direct To Home or DTH Operators in India are the reason broadcasting industry of the country is on the rise. Realizing this, the government of India, via Ministry of Information and Broadcasting, introduced several new rules for them.

in 2020, the Union Minister approved amendments of the then-present guidelines for providing Direct-To-Home Broadcasting service in India. In this article, we are going to shine a light on these guidelines and tell you about their importance.

DTH operator Guidelines changes

The union ministry has put for the following changes to promote the broadcasting industry in India:

The increase in the validity period of license: Prior to the changes, the DTH Operator license was only valid for 10 years. Although a large validity, it didn’t bode well for ambitious entrepreneurs who want to keep updating their technology. Thus, the government of India has increased the validity period now to 20 years.

The decrease in license fee: Finally heeding the call of the broadcasters to make the license fee fairer, the government of India has made revisions to it. Now, instead of 10% of gross revenue, the license fee will be 8% of adjusted gross revenue. The broadcasters must submit this fee on a quarterly basis.

Operation of channels: As per the new guidelines, a DTH Operator can now operate maximum of 5 percent of its channel carrying capacity as permitted platform channels. the reason of such percentage is to ensure that the quality of signal is not affected. Related Post: Temporary Uplinking

Infrastructure sharing

Quelling the concern for large cost of broadcasting infrastructure, the government has allowed the distributors of TV channels to share the common hardware of their SMS and CAS. SMS refers to Subscriber Management System and CAS refers to Conditional Access System. This would aid the DTH Operators deal with the scarcity of satellite resources and reduce the cost the subscribers have to pay.

FDI implemented as per DPIIT: Now, the cap of 49% to the Foreign Direct Investment in a DTH Operator Company will align itself with the provisions of DPIIT. Department for Promotion of Industry and Internal Trade has taken a more lenient yet thorough approach to foreign investment in Indian companies.

The above changes would have immense positive impact on the industry. With the increased validity bringing more certainty to the broadcasting industry. Read More: Network License

The decreased license fee allowing broadcasters to focus on their technology, and infrastructure sharing allowing the operators to work together, future of the broadcasting sector in India now seems brighter.

What still remains in the guidelines

While the recent changes are to be commended, there is still much to be done in way of making the regulations more conducive to the growth of the broadcasting industry.

Many broadcasters have stated that there is a disparity between the license fee that they pay and the one paid by the cable TV operators. They seek parity so that the broadcasting sector has a level playing field.

Conclusion

DTH Operator rules are going through a transformative journey. In their form, they can prove a boon to the broadcasting industry. However, the pot is still hot and courtesy of COVID many businesses have suffered.

Read More About: Non Network License

Therefore, we are in need of more drastic changes to the policies to truly create an environment that can push the broadcasting sector even further.

Union Ministry introduced new changes to the DTH Operator guidelines  last year. And we are talking about it through this bog. Read it to know more.