Question : FDI in DTH Sector

(a) Whether the Government has recently taken some significant decisions regarding direct-to-home (DTH) services including allowing 100 percent foreign direct investment therin and if so, the details thereof;

(b) the details of benefits likely to accrue to the DTH sector especially the smaller cable operators, due to these proposed changes;

(c) whether the DTH operators have also been facing a challenge from high bandwidth Internet and new generation entertainment providers using Over The Top (OTT) channels that are chipping away at their urban viewer base which is valuable to advertisers and if so, the details thereof;

(d) whether the Government has any plans for helping the indigenous companies by extending capital subsidy and technology upgradation scheme to play at par with foreign companies in DTH busines and if so, the details thereof; and

(e) other measures being taken by the Government to improve the quality of DTH services to the people of the country?

THE MINISTER OF ENVIRONMENT, FOREST AND CLIMATE CHANGE; MINISTER OF INFORMATION AND BROADCASTING; AND MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI PRAKASH JAVADEKAR)
(a) Government of India has, on 30.12.2020, notified some amendments to the guidelines for providing Direct to Home (DTH) services in India. As per the revised guidelines, Foreign Direct Investment (FDI) for DTH Sector has been aligned with the Department for Promotion of Industry and Internal Trade (DPIIT’s) FDI Policy, as notified from time to time. As per extant FDI policy, 100% FDI is allowed in DTH Sector through automatic route. However, Infusion of fresh foreign investment, beyond 49% in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require Government approval.
(b) It is expected that the revision of DTH guidelines will infuse fresh FDI thereby boosting growth of the DTH sector. It is also expected to take the DTH services to remote areas and increase its subscriber base, thus promoting access to digital TV channels for a larger population.
(c) No specific instances in this regard has been brought to the notice of this Ministry. Further, the DTH Sector has also been growing in the period. The active DTH subscriber base has grown from 69.98 Million subscribers in December 2019 to 70.70 Million subscribers in September 2020.

(d) Though the provisions of capital subsidy and technology upgradation are not planned as such, the amended guidelines will usher in ease of doing business with steps like aligning FDI with current policy, sharing of infrastructure, rationalization of license fee, staggered license fee payments etc.
(e) Telecom Regulatory Authority of India has notified the Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service (QoS) and Consumer Protection (Addressable Systems) Regulations, 2017 on 03.12.2017. The QoS framework empowers consumers to transparently view the channel prices on Electronic Programmable Guide (EPG) which contains information about activation of channels, cost, ownership, maintenance provisions etc.
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