| Date: |
04-04-2012 |
| Subject: |
FDI cap for broadcasting services to be increased up to 74% |
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The Union Cabinet can soon accept a proposal to increase foreign direct investment (FDI) cap in broadcasting services like Direct-to-Home and cable TV networks to a uniform 74%.
The expected 74% FDI rise would be considered in mobile TV, which is an area of future growth. The proposal now awaits Cabinet's approval.
The proposal, mooted by Department of Industrial Policy and Promotion (DIPP) in the Industry Ministry, has proposed that FDI limits in the broadcast carriage services providers, including Head-end in the Sky (HITS) must be uniform.
HITS is a satellite multiplex service that provides cable channels for cable television operations.
At present, 49 per cent FDI is allowed in cable TV and DTH, while it is 74 per cent in HITS.
For other broadcasting networks, TV news channels, FM radio and content providers, the FDI limit will stay at 26%.
In June 2010, Telecom Regulatory Authority of India (Trai) had suggested to raise the FDI for broadcast carriage services like DTH to 74 per cent.
As per an estimate, there are about 106 million households with cable and satellite TVs in India, of which 26 million use DTH and 80 million get feed from the cable network.
Source : mediamughals.com
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