New Delhi, Mar 3 (UNI) Telecom Regulatory Authority of India (TRAI) today released a consultation paper on foreign investment limits for the broadcasting sector.
Presently, the policy regarding Foreign Investment (FI) is not uniform across different segments of the broadcasting sector and in view this divergence, there was the need to undertake a review of the FI policy for the sector, TRAI said.
The Ministry of Information and Broadcasting had sought recommendations of the Authority on Foreign Investment limits for various segments of broadcasting sector such as news and non-news broadcasters, teleport, DTH, satellite radio, Headend-In-The-Sky (HITS), cable operators and FM radio.
Earlier, while sending its comprehensive recommendations separately for HITS, mobile TV and FM radio, the Authority had also recommended that FI caps should be fixed at 74 per cent for HITS and mobile TV, and 26 per cent for news FM radio service and 49 per cent for non-news FM radio service.
This consultation paper covers the need for foreign investments, current status of limits on foreign investments and need for review of existing foreign investment limits in different segments of broadcasting sector. It seeks views from stakeholders on various policy issues like the need for revision of foreign investment limits, quantum of FI limits and sub-limits for FDI and FII within this limit.
It also invited views regarding permission for FI through the automatic route and the need for a sub-limit beyond which FIPB approval be required as well as classification of different segments of broadcasting sector into carriage services and content services for the purposes of laying down FI limits.
With the convergence of telecom and broadcasting sectors, the need for alignment of FI limits in broadcasting sector with the foreign investment limits in the telecom sector, and standardisation of methodology for calculation of foreign investment limits in different segments of broadcasting sector.
The Authority has invited all stakeholders to respond to the issues raised in the consultation paper by March 28.
UNI NAZ SR HS2019