The Telecom Regulatory Authority of India (TRAI) has issued another consultation paper on foreign investment limits in the broadcasting sector based on direction received from the Ministry of Information and Broadcasting. This is to facilitate stakeholders to be able to suggest changes needed in view of the new policy on estimating direct and indirect foreign investment. Earlier in April 2008 TRAI had recommended increasing the foreign investment limit from 20 percent to 49 percent in FM radio and news and current affairs broadcasting, and from 49 percent to 74 percent for cable, DTH, HITS, and teleports. Our bureaucracy appears to be in no hurry to move forward to close the new foreign investment limits.

TRAI has also released a supplementary consultation paper on tariff related issues for DTH services. DTH services today come bundled in different basic packages and add-on packs. TRAI appears to be working to put a system in place where the price of each channel is transparent and there is a minimum monthly charge per subscriber. The last date for comments is January 18, 2010 and thereafter TRAI will formulate its recommendations.

The Ministry of Information and Broadcasting has amended the down-linking guidelines to allow head end-in-the-sky (HITS) service providers to access content from broadcasters through satellite TV channel signal reception decoders. Companies like Wire and Wireless (formerly Siti Cable) from the Zee group will be leveraging on HITS to expand their cable customer base and protect their turf from the DTH onslaught.

The Chandigarh High Court has granted Haryana cable operators a stay on a proposal by the Haryana government to auction cable TV licenses in the state. This legal process will be watched closely by cable operators in other parts of the country as well. Other state governments chasing more revenue could be encouraged to go for similar cable license auctions if the courts allow the Haryana government to have its way.

BES Expo 2010 will be held from January 29-31, 2010 in New Delhi and will provide a platform to equipment manufacturers for customer interaction and introduction of new technologies. We invite you to visit the Broadcast and CableSat booth at the show.