Latest news with #Trai
Economic Times
7 hours ago
- Business
- Economic Times
DTH companies may get licence fee relief
Mumbai: The ministry of information and broadcasting (MIB) is reviewing the licence fee structure for direct-to-home (DTH) services as lobbying by operators intensifies amid rising subscriber churn and falling revenues, people aware of the development told ET. The ministry is in the process of preparing a Cabinet note that could lead to a significant reduction in the fee charged to private DTH operators, namely Tata Play, Airtel Digital TV, Dish TV and Sun Direct, the people cited earlier said, adding that any proposal to reduce licence fee will also require approval from the finance ministry, as it involves revenue considerations. Following the inter-ministerial consultation, the proposal will require the Union Cabinet's approval for implementation. DTH providers pay 8% of their adjusted gross revenue (AGR) as licence fee. Industry players argue that this cost has become increasingly difficult to bear, as more consumers migrate to OTT streaming services and the free-to-air DD Free Dish officials confirmed that deliberations are underway and indicated that a decision is likely, though they did not specify a possible revision follows repeated recommendations from the Telecom Regulatory Authority of India (Trai), which has urged the ministry to reduce the fee to 3% in FY26 and abolish it entirely by the end of FY27. Trai argues that DTH platforms should be treated on par with other distribution services, whether regulated or not, such as cable TV, DD Free Dish and OTT platforms, none of which pay a licence fee."The DTH sector is under considerable financial strain, and we urge the government to implement Trai's recommendations without delay," said Dish TV CEO Manoj Dobhal. "Regulatory relief is essential for our viability, especially as consumer behaviour shifts and revenues decline."India's active pay-TV DTH subscriber base has dropped from 70.26 million in 2020 to 56.92 million in 2025, a loss of over 13 million subscribers in five years, according to Trai's Performance Indicators FY24, the combined revenue of the four private DTH operators stood at ₹10,230 crore, down 5% from the previous year. Meanwhile, the IB ministry has issued demand notices worth over Rs16,000 crore to these companies for unpaid licence fees, a figure that exceeds the sector's total annual ministry's licence fee collection from DTH has plunged from ₹1,581 crore in FY22 to ₹648 crore in FY25, a decline of nearly 59%, highlighting the sector's worsening financial operators have previously petitioned the government to eliminate the licence fee altogether. They argue that their platforms should be treated on par with other TV distribution systems such as cable and IPTV, which are not subject to similar levies.
Time of India
7 hours ago
- Business
- Time of India
DTH companies may get licence fee relief
Mumbai: The ministry of information and broadcasting (MIB) is reviewing the licence fee structure for direct-to-home (DTH) services as lobbying by operators intensifies amid rising subscriber churn and falling revenues, people aware of the development told ET. The ministry is in the process of preparing a Cabinet note that could lead to a significant reduction in the fee charged to private DTH operators, namely Tata Play, Airtel Digital TV, Dish TV and Sun Direct, the people cited earlier said, adding that any proposal to reduce licence fee will also require approval from the finance ministry, as it involves revenue considerations. Following the inter-ministerial consultation, the proposal will require the Union Cabinet's approval for implementation. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Data Science Design Thinking Healthcare MCA PGDM Public Policy Cybersecurity Management healthcare MBA Project Management Data Analytics Degree Finance Product Management Operations Management Leadership Others Technology Data Science others Artificial Intelligence CXO Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details DTH providers pay 8% of their adjusted gross revenue (AGR) as licence fee. Industry players argue that this cost has become increasingly difficult to bear, as more consumers migrate to OTT streaming services and the free-to-air DD Free Dish platform. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 most beautiful women in the world Undo Government officials confirmed that deliberations are underway and indicated that a decision is likely, though they did not specify a timeline. The possible revision follows repeated recommendations from the Telecom Regulatory Authority of India (Trai), which has urged the ministry to reduce the fee to 3% in FY26 and abolish it entirely by the end of FY27. Live Events Trai argues that DTH platforms should be treated on par with other distribution services, whether regulated or not, such as cable TV, DD Free Dish and OTT platforms, none of which pay a licence fee. "The DTH sector is under considerable financial strain, and we urge the government to implement Trai's recommendations without delay," said Dish TV CEO Manoj Dobhal. "Regulatory relief is essential for our viability, especially as consumer behaviour shifts and revenues decline." India's active pay-TV DTH subscriber base has dropped from 70.26 million in 2020 to 56.92 million in 2025, a loss of over 13 million subscribers in five years, according to Trai's Performance Indicators Reports. In FY24, the combined revenue of the four private DTH operators stood at ₹10,230 crore, down 5% from the previous year. Meanwhile, the IB ministry has issued demand notices worth over Rs16,000 crore to these companies for unpaid licence fees, a figure that exceeds the sector's total annual revenue. The ministry's licence fee collection from DTH has plunged from ₹1,581 crore in FY22 to ₹648 crore in FY25, a decline of nearly 59%, highlighting the sector's worsening financial position. DTH operators have previously petitioned the government to eliminate the licence fee altogether. They argue that their platforms should be treated on par with other TV distribution systems such as cable and IPTV, which are not subject to similar levies.
Time of India
a day ago
- Business
- Time of India
Satcom spectrum allocation rules likely to be in place within two months
New Delhi: Rules for the allocation of spectrum for satellite communications services are likely to be in place within two months, a government official said on Monday. The spectrum allocation rules are the last lap that will enable Elon Musk-led Starlink , Bharti Group-backed Eutelsat Oneweb and Jio SES to apply for the radiowaves and start rolling out their services. "Spectrum allocation rules are likely to be fixed in two months. After that, it will be at the discretion of satcom services when they want to roll out their services," the official said. The Telecom Regulatory Authority of India (Trai) has recommended that the government should allocate spectrum without auction and through an administrative process-- a move that has seen huge resistance from telecom operators Reliance Jio and Bharti Airtel initially. The regulator has suggested that spectrum for satcom services can be for a period of up to five years and considering the market conditions, the government may extend it for a further period of up to two years. Trai has suggested that spectrum charges for both GSO-based and Non-Geostationary Orbit (NGSO) Fixed Satellite Services should be levied at 4 per cent of adjusted gross revenue (AGR). OneWeb and Starlink fall into the LEO (low earth orbit) category which are considered to be Non-Geostationary Orbit (NGSO) satellites. Besides, NGSO-based Fixed Satellite service providers should also pay an additional per subscriber charge of ₹500 per annum in urban areas while exempting the rural and remote areas from this additional charge. While allaying the threat to land-based telecom networks from satcom services, Union Minister Pemmasani Chandra Sekhar said that Musk-led satellite communication services provider Starlink can have only 20 lakh connections in India with a peak speed of 200 megabits per second. A government official mentioned that the limit on Starlink connections is due to its existing capacity. The minister said that the upfront cost for satcom services will be too high and the monthly cost may be around ₹3,000. PTI
Time of India
a day ago
- Business
- Time of India
Satcom spectrum allocation rules likely to be in place within two months
Rules for the allocation of spectrum for satellite communications services are likely to be in place within two months, a government official said on Monday. The spectrum allocation rules are the last lap that will enable Elon Musk-led Starlink, Bharti Group-backed Eutelsat Oneweb and Jio SES to apply for the radiowaves and start rolling out their services. Explore courses from Top Institutes in Please select course: Select a Course Category others Data Science Others Management CXO Design Thinking PGDM Artificial Intelligence Cybersecurity Data Science Digital Marketing Project Management Healthcare Public Policy Operations Management Technology Data Analytics MBA Finance Degree healthcare Product Management Leadership MCA Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details "Spectrum allocation rules are likely to be fixed in two months. After that, it will be at the discretion of satcom services when they want to roll out their services," the official said. The Telecom Regulatory Authority of India (Trai) has recommended that the government should allocate spectrum without auction and through an administrative process-- a move that has seen huge resistance from telecom operators Reliance Jio and Bharti Airtel initially. The regulator has suggested that spectrum for satcom services can be for a period of up to five years and considering the market conditions, the government may extend it for a further period of up to two years. Live Events Trai has suggested that spectrum charges for both GSO-based and Non-Geostationary Orbit (NGSO) Fixed Satellite Services should be levied at 4 per cent of adjusted gross revenue (AGR). OneWeb and Starlink fall into the LEO (low earth orbit) category which are considered to be Non-Geostationary Orbit (NGSO) satellites. Besides, NGSO-based Fixed Satellite service providers should also pay an additional per subscriber charge of Rs 500 per annum in urban areas while exempting the rural and remote areas from this additional charge. While allaying the threat to land-based telecom networks from satcom services, Union Minister Pemmasani Chandra Sekhar said that Musk-led satellite communication services provider Starlink can have only 20 lakh connections in India with a peak speed of 200 megabits per second. A government official mentioned that the limit on Starlink connections is due to its existing capacity. The minister said that the upfront cost for satcom services will be too high and the monthly cost may be around Rs 3,000.
Mint
6 days ago
- Business
- Mint
Trai wants more enforcement teeth to rein in telcos, may ask govt to amend rules
The Telecom Regulatory Authority of India (Trai), set up in 1997 to regulate telecom services, tariffs and promote fair competition, wants stringent financial punitive powers to ensure that companies under its oversight strictly play by the rules. According to three government officials aware of the matter, the telecom regulator is working on a plan to get the decades-old Trai Act, 1997 amended and give itself more teeth. To be sure, Trai has sufficient powers to regulate telecom service quality, resolve disputes via TDSAT, and protect consumer interests, but lacks adequate enforcement powers. 'Trai cannot impose strong penalties, attach bank accounts or properties in case of violation, and ask for bank guarantees," the first of three officials cited earlier said, all of whom spoke on the condition of anonymity. This official said that the gaps in the Trai Act make it difficult for the regulator to effectively enforce rules and ensure compliance in the telecom sector. The officials A key demand from the regulator is to have the powers to seek bank guarantees from telecom operators. The bank guarantee will bring seriousness in compliance from telecom operators and can be invoked in case they fail to pay penalties imposed by the regulator, the first official said. Also Read: Tata Communications renews private 5G push In fact, the issue of giving more powers to Trai also came up at a recent meeting of Trai officials with the department-related Parliamentary Standing Committee on Home Affairs, a second official said. This official added that the proposal, which is in the works, will be sent to the department of telecommunications (DoT), under the Union communications ministry. Queries emailed to Trai did not elicit any response till press time. Why Trai can't act tough on telcos As per the Trai Act, 1997, its powers are primarily regulatory, advisory, and enforcement-focused through directions. This is different from other regulators. For example, the markets regulator Securities and Exchange Board of India (Sebi) can pass binding orders independently. However, for Trai, the power to enforce orders is limited. The telecom regulator, for instance, relies on the department of telecommunications for licence actions. One of the key issues is also the enforcement of financial disincentives or penalties, which Trai does not have powers on. 'Trai can enforce a limited penalty but they don't have the power to recover that penalty," said Satya N. Gupta, a former principal advisor at Trai. According to Gupta, the telecom regulator should have the powers to grant licence and implement policy, whereas the government should just make policies. 'In almost every country, the regulator has licensing power. In India, the government has kept both licensing and policy making," Gupta said, adding that Trai has control over a few things such as quality of service orders and tariffs (which is now under forbearance). A key reason for Trai to seek more powers also stems from the financial disincentives worth over ₹140 crore imposed on telecom operators for failing to curb spams, which the operators refused to pay and sought an interim stay in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). The case is scheduled to be next heard on 8 August. Also Read: Reliance Jio Q1 results: 5G, home broadband milestones boost growth 'It is not illegal for telcos to challenge such orders by Trai but it delays enforcement. Often, operators do not take such orders seriously and also delay compliance with the regulator's request on sharing of certain data for research and investigation," the third official said, adding that Trai can impose some penalties, but not enough to hold companies fully accountable for serious violations. It lacks the teeth to enforce bigger actions — that's the problem, the official added. Call for binding powers, guarantees 'Trai should be empowered to directly issue, amend, or revoke telecom licences, rather than leaving this authority solely with the Department of Telecommunications. This would allow Trai to hold service providers more directly accountable," said Murtuza Kachwala, managing director at business consulting firm Protiviti Member Firm for India. 'Its recommendations—on tariffs, service quality, and consumer protection—should carry more weight by being made binding, rather than just advisory, so operators are obligated to follow them unless a legal challenge overturns them," Kachwala said. According to Kachwala, Trai's enforcement powers should be upgraded so it can independently impose penalties, fines, or other sanctions on operators that violate regulations—similar to the powers Sebi holds in the financial sector. Currently, if telecom operators do not comply with Trai's order on financial disincentives, the best route for Trai to recover the same is through the chief metropolitan magistrate. The Trai Act gives the regulator powers to file a complaint with the magistrate to initiate criminal proceedings if a telecom operator is in violation of Trai's directions or regulations, and fails to comply. However, the process is cumbersome and Trai has not exercised the powers in the last many years, the third official said. In February, the regulator also recommended to DoT that the authorization regime for licence holders such as telecom operators should include a provision for a bank guarantee. This guarantee would cover financial dues and ensure compliance with Trai's regulations, orders, and directions issued from time to time. Also Read: Bharti Airtel slashes pay hikes for employees, including top brass Trai made these comments in its recommendations on the terms and conditions of network authorizations under the Telecommunications. Trai had said that compliance with its orders and regulations is a critical component of the efficient performance of authorized entities (telecom service providers). The DoT, however, has not accepted the recommendations. Bank guarantees are required to secure telcos' payments towards licence fees, performance fees and penalties. When guarantees are invoked, the bank is supposed to pay that much to the institution to which it was provided and the borrower has to immediately repay the bank.
