Key Points
TRAI proposes significant reduction in DTH operator fees
Aims to promote growth in broadcasting services
Streamlining regulatory framework under new Telecom Act
Removing financial barriers for service providers
The telecom regulator recommended a reduction in the authorisation fee for DTH services from the current 8 per cent to 3 per cent of the adjusted gross revenue (AGR).
In addition, TRAI also proposed the complete phasing out of the authorisation fee for DTH players by the end of fiscal 2026-27.
Aiming to promote growth and enhance ease of doing business in the sector, TRAI also recommended to reduce bank guarantees and processing fees for DTH and HITS services.
This recommendation comes as part of TRAI's broader efforts to streamline the regulatory framework for broadcasting services under the new Telecommunications Act, 2023.
The government has notified the Telecommunications Act, 2023 which repeals the Indian Telegraph Act, 1885. However, the appointed date for various sections of the Telecommunications Act, 2023 is yet to be notified.
“Section 3(1)(a) of the Telecommunications Act, 2023 mandates authorisation for those intending to provide telecommunication services, subject to the terms and conditions, including fees or charges, as may be prescribed,” according to the Ministry of Communications.
On October 30, 2024, the Authority initiated a consultation process by releasing a consultation paper and sought stakeholder’s comments.
Based on the comments and counter-comments, TRAI has collated and restructured the terms and conditions into a simplified authorisation framework.
Accordingly, TRAI has finalised its recommendations on ‘Framework for Service Authorisations for provision of Broadcasting Services under the Telecommunications Act, 2023’.
The recommended authorisation framework provides for two distinct sets of terms and conditions, the first set, for the applicant entity intending to obtain authorisation for broadcasting services; and the second set, to comply with by the authorised entity for service provisioning during the period of authorisation.
The minimum net worth requirement of Rs 100 crore for the Internet Service Providers to provide IPTV Service is recommended to be removed and the same should be aligned with the provisions contained in the authorisation for Internet Services to be issued by DoT.
