Remove DTH license fee, Tata Play joins Airtel & Jio

At the Open House Discussion held by TRAI yesterday, RJio and Airtel reiterated their objection to the license fee being levied on the telcos for DTH services. Tata Play also backed this request.

Airtel has proposed that the license fee, currently levied on content revenue from DTH operators, be shifted to broadcasters, who ultimately benefit from the revenue. Additionally, the definitions of GR, ApGR, and AGR, as set for the telecom sector, should also apply to DTH operators. Jio, on the other hand, emphasized that DTH operators, which avoid significant investments in terrestrial fiber or cable networks by relying on the free spectrum, should refrain from receiving fee waivers. Meanwhile, fixed-line and mobile service providers—who invest heavily in infrastructure—continue to pay license fees. Tata Play urged TRAI to implement this change promptly and called for removing cross-media restrictions that limit broadcasters to owning no more than 20% of a distribution company. Airtel has Bharti Telemedia, which operates under the Airtel Digital TV brand; and Jio DEN Networks, and Hathway Cable & Datacom, and holds a significant stake in GTPL Hathway.

In August 2023, TRAI recommended that the MIB reduce the DTH license fee to 3% of AGR from the current 8%, planning to phase it out entirely by FY27. This recommendation aims to bring DTH into parity with other TV distribution platforms such as cable TV, HITS, and IPTV.

Also Read, Airtel seeks a level playing field, on DTH license fee

BCS Bureau