TRAI recommends major cut in DTH license fees

New Delhi: The telecom regulator TRAI has recommended reducing the authorisation fee for Direct-to-Home (DTH) services from 8% to 3% of adjusted gross revenue (AGR), with a plan to phase it out entirely after the fiscal year 2026-27. 

This proposal is part of TRAI's recommendations on the “Framework for Service Authorisations for Broadcasting Services’ under the ‘Telecommunications Act, 2023.

The recommendation, announced on Friday, comes as a potential lifeline for an industry facing stiff competition from over-the-top (OTT) streaming platforms and evolving consumer preferences.

The rationale behind these recommendations is to establish a level playing field across various broadcasting services.  

TRAI stated, "The current fee structure has led to a disparity between DTH operators and other service providers, hindering fair competition. The proposed changes aim to align these conditions and ensure a more balanced regulatory framework."

With the repeal of the Indian Telegraph Act, 1885, TRAI aims to streamline the regulatory framework for broadcasting services, aligning it with the provisions of the new Telecommunications Act. 

The recommendations, requested by the Ministry of Information and Broadcasting (MIB) in July 2024, seek to simplify service authorisations, promote industry growth, and enhance ease of doing business.

Other key recommendations

Transition to Telecommunications Act

• • Broadcasting service authorisations are to be granted under Section 3(1)(a) of the Telecommunications Act, replacing the previous licensing system under the Indian Telegraph Act.

New authorisation framework

• • Two sets of terms and conditions: one for applicants seeking authorisation and another for entities providing services.
  • Rules for service authorisations will be framed under Section 56 of the Act.

Migration of existing licenses

• • Migration to the new authorisation regime will be voluntary until existing licenses expire.
  • No entry or processing fees will be required for migration.

Introduction of new services

• • Ground-based Television Broadcasting and Low Power Small Range Radio Service added to the framework.

Infrastructure and technology updates

• • Mandatory co-location for radio broadcasting services to be removed.
  • Voluntary infrastructure sharing recommended between broadcasting and telecom providers.
  • Interoperable Set-Top Boxes (STBs) are encouraged for television distribution services to enhance consumer choice and reduce e-waste.
  • Technology-agnostic terms for radio broadcasting to enable digital adoption.

Financial and regulatory harmonisation

• • Standardised fees and charges for broadcasting services, particularly for DTH and HITS services.
  • Separate Programme and Advertisement Codes to be introduced for radio broadcasting.
  • Delinking of terrestrial radio service authorisation from frequency auctions to be handled separately.

Validity and renewal terms

• • DTH and HITS services: 10-year validity, with provision for renewal.
  • Terrestrial Radio: 20-year validity, renewable in 10-year increments.