Airtel and Tata Play merger talks highlight DTH industry's need for regulatory help: Dish TV CEO

New Delhi: The government should immediately implement TRAI's recommendation to reduce the licensing fee from the current 8% to 3% of Adjusted Gross Revenue (AGR), said Dish TV CEO Manoj Dobhal on Thursday.

He urged the Ministry of Information & Broadcasting (MIB) to act swiftly as it can drive long-term sustainability and growth of the DTH industry, which is currently struggling.

"Implementing TRAI’s recommendations will unlock greater investment, foster innovation, and improve consumer access to quality services. A forward-looking regulatory approach is crucial for ensuring a competitive and thriving Pay TV ecosystem. We urge the MIB to expedite these much-needed reforms to support the industry's evolution in an increasingly digital landscape," Dobhal said.

On February 21, to ease the financial burden on DTH operators, the Telecom Regulatory Authority of India (TRAI) recommended a reduction in the authorisation fee from the current eight per cent to just three per cent of AGR.

The current licensing structure is placing the DTH industry in a precarious position, threatening the survival of service providers and the broader Pay TV ecosystem, he said.

Without immediate intervention, DTH players will continue to struggle under an unsustainable cost structure, limiting investment and hindering industry growth, Dobhal added.

"The DTH industry is at a pivotal moment, where decisive policy action can drive long-term sustainability and growth," he said.

When asked about the announcement by leading telecom services provider Bharti Airtel of merger talks with Tata Group for its loss-making Direct-To-Home (DTH) business, Dobhal said this is because the industry needs regulatory support.

"Tata Play and Airtel are exploring the merger; even if there is no confirmation from any of them, the fact that the news is around establishes that the DTH industry needed the regulatory help in ensuring a level playing field that would have saved a lot of expenses, and the same could be put into creating better offerings and a broader digital horizon," he said.

Airtel is holding discussions with the salt-to-software conglomerate for the merger of Bharti Telemedia, which offers cable and satellite TV services, with Tata Play, according to a regulatory filing from the Sunil Bharti Mittal-led firm.