Reliance Jio and Bharti Airtel, the two leading telecom operators, have presented opposing views on the matter of waiving DTH (direct-t0-home) license fees. In response to TRAI's (Telecom Regulatory Authority of India) consultation on the 'Framework for Service Authorisations for the Provision of Broadcasting Services under the Telecommunications Act, 2023', Airtel said that license fees for DTH operators should be waived. Airtel has said that TV distribution platforms don't have to pay licensee fees, but DTH operators do.
Tata Play has also urged for the earliest implementation of the same and further requested that TRAI allow broadcasters to own more than 20% of a distribution company.
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Bharti Airtel has even said that the license fee paid by the DTH companies on content revenue should be borne by broadcasters instead. But Reliance Jio has opposing views here.
As per Jio, the current system should continue where the DTH operators have to pay license fees. Jio told TRAI that the spectrum which DTH operators get for free is a very big advantage, and that's actually a loss for the national exchequer. Whereas the IPTV (internet protocol TV) players and cable TV operators don't get such an advantage.
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DTH operators don't have to invest in terrestrial fiber or cable networks, thus, they should not be considered for fee waivers, believes Jio. The telecom regulatory had recommended to MIB (Minister of Information and Broadcasting) in 2023 that the DTH license fee should be reduced from 8% to 3% of AGR (adjusted gross revenue).
Aside from this, Reliance Jio has requested TRAI that it should conduct an independent analysis of competitive advantages granted to DTH operators over cable TV, fixed-line, and mobile services due to free spectrum allocation.
