AIDCF urges MIB to reject TRAI’s DTH license fee cut proposal

New Delhi: The All India Digital Cable Federation (AIDCF) has submitted a formal representation to the Ministry of Information and Broadcasting (MIB), strongly opposing the Telecom Regulatory Authority of India’s (TRAI) recommendation to slash license fees for Direct-to-Home (DTH) operators.

TRAI has proposed reducing the license fee from the current 8% of Adjusted Gross Revenue (AGR) to 3%, with a roadmap for complete waiver by FY 2026–27. 

AIDCF, which represents India’s largest digital Multi-System Operators (MSOs), warned that the move would severely undermine the principle of regulatory parity in the broadcasting distribution ecosystem.

AIDCF flagged that the proposal, if accepted, would worsen the imbalance between DTH and digital cable TV operators, already operating under unequal cost structures. 

In its submission, the Federation stated that over 880 MSOs and 1.6 lakh Local Cable Operators (LCOs) stand to suffer due to the proposed fee waiver, endangering the livelihoods of more than 10 lakh people directly dependent on the cable distribution sector.

“This move threatens the very foundation of equitable competition in the broadcasting distribution space. Spectrum for DTH is already allocated administratively, without auction or cost, whereas cable operators continue to bear substantial Right of Way (RoW) charges and heavy capital expenditure on underground infrastructure. Any waiver of license fees would not only distort the market but also violate the principle of regulatory neutrality,” said an AIDCF spokesperson.

The Federation noted that, unlike DTH players who benefit from administrative spectrum allotments, digital cable operators incur significant infrastructure costs and RoW levies imposed by local authorities. 

It warned that a unilateral benefit to DTH platforms would trigger accelerated subscriber migration from cable to DTH, threatening the financial sustainability of cable operators who are already grappling with competition from unregulated services such as Free Dish, FAST TV, OTT platforms, and digital distribution platforms (DPOs).

AIDCF argued that the license fee for DTH operators reflects a form of spectrum usage charge and should not be diluted without a broader review of spectrum valuation norms and cost recovery mechanisms. 

Instead of fee cuts, the industry body recommended a “balanced and equitable framework” that ensures a level playing field across all distribution technologies.

“Reducing the license fee for DTH will accelerate subscriber churn from digital cable TV operators, who, as per AIDCF, are already struggling under financial duress due to other unregulated platforms like Free Dish, FAST TV, OTTs and Digital DPOs,” the Federation stated.

The representation also raised questions on regulatory consistency and the commercial value of spectrum. AIDCF insisted that any policy shift must account for spectrum costs incurred across sectors and avoid introducing distortions that disproportionately favour one platform over another.

The Federation has urged the Ministry of Information and Broadcasting to reject TRAI’s recommendation and ensure that policymaking reflects the realities of all stakeholders in the broadcasting and cable distribution chain.

The development comes at a time when the Ministry is reviewing TRAI’s suggestions on DTH licensing conditions, spectrum usage charges, and ease-of-doing-business measures. 

While TRAI has argued that the fee rationalisation will promote affordability and investment in the DTH segment, cable operators maintain that the move could deal a fatal blow to a sector already battling structural challenges.