Dish TV's CEO has reportedly urged the government to immediately implement the Telecom Regulatory Authority of India's (TRAI) recommendation to reduce the Direct-To-Home (DTH) license fee from 8 percent to 3 percent of Adjusted Gross Revenue (AGR). He urged the Ministry of Information and Broadcasting (MIB) to act swiftly, as this move could drive long-term sustainability and growth in the DTH industry, which is currently struggling, according to a PTI report.
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Lower DTH License Fees
"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," the report quoted Dish TV CEO Manoj Dobhal as saying.
On February 21, TRAI recommended a reduction in the authorization fee from the current 8 percent to just 3 percent of AGR to ease the financial burden on DTH operators.
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"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," Dobhal reportedly said, adding that without immediate intervention, DTH players will continue to struggle under an unsustainable cost structure, limiting investment and hindering industry growth.
"The DTH industry is at a pivotal moment where decisive policy action can drive sustainability and growth," he reportedly said.
Bharti Airtel and Tata Group Merger Talks
When asked about the announcement by telecom services provider Bharti Airtel regarding merger talks with the Tata Group for its loss-making Direct-To-Home business, Dobhal reportedly said, "This is because the industry needs regulatory support."
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Bharti Airtel Limited (Airtel) and the Tata Group are in bilateral discussions to explore a potential transaction to merge the Tata Group's Direct-To-Home (DTH) business, housed under Tata Play Limited, with Bharti Telemedia Limited, a subsidiary of Airtel, Bharti Airtel said in a regulatory filing on February 26.
