Minimum ₹100 crore net worth IPTV requirement a financial barrier

Internet exchange provider Extreme Infocom has suggested doing away with the minimum net worth requirement of ₹100 crore for IPTV and moving to fibre-based delivery. The company wrote to the Telecom Regulatory Authority of India (TRAI), stating that fibre-over-satellite can solve latency and cost issues, provide benefits like bundled services for consumers and work in favour of broadband expansion.

The minimum net worth requirement was a criterion issued by the Information and Broadcasting Ministry within the ‘IPTV Service Guidelines.’ The rule was based on the scope of licence for ‘Internet Service’ as defined in the ‘Licence Agreement for Provision of Internet Services.’ However, the Department of Telecommunications in 2013 notified the Unified License regime that remove the requirement to simplify entry of new players and promote fair competition. Currently, there are 33 registered IPTV operators in India, with a subscriber base of 5.74 lakh.

However, stakeholders like the Broadband India Forum (BIF) and Bharti Airtel continue to bat in favour of the minimum net worth requirement. Airtel called it “a filter to ensure that only those with the financial capability to meet [the technology and network infrastructure investment] demands can provide services at the required standard.” The telco argued that lower net worth requirement could reduce service quality whereas the current threshold ensures that only serious operators enter the IPTV market.

Financial barrier
However, Extreme Infocom called the criterion a financial barrier that disproportionately affects smaller and emerging service providers. It said that the requirement focused market power in the hands of a few large players, impacting service offering diversity, price competition and innovation. It listed fibre-based delivery as one such innovative solution.

“By leveraging dedicated fibre connections, IPTV providers can receive broadcaster content directly without the satellite link step. The fibre pathway offers high data capacity, faster speeds, and lower latency compared to satellite transmission. To address potential challenges, including high deployment costs and regional disparities in fibre infrastructure availability, the government could consider introducing incentives such as subsidies or public-private partnership models to accelerate fiber deployment in underserved areas,” said Extreme Infocom in its submission, adding that fibre connections also help with convergence-driven telecommunications solutions.

Aside from the internet exchange provider, other entities like the All India Digital Cable Foundation (AIDCF) and AA Plus Consultants also supported the decision to review the minimum net worth requirement.

Mahesh Uppal, Director of Com First (India), also favoured the idea of using optical fibre to improve capacity and efficiency. “This would keep India’s IPTV rules in line with technology developments and global best practices,” he said. The Hindu BusinessLine