THE MINISTER OF INFORMATION AND BROADCASTING
( SMT. SUSHMA SWARAJ )
(a): Yes, Sir.
(b): After Government guidelines for seeking DTH licence are issued, the desirous
companies will be able to submit application for seeking DTH licence. Company would
need about one year to begin DTH services after it obtains licence.
(c): The salient features are annexed.
(d): Various safeguards have been proposed to address the concerns relating to
vulgarity. These include mandating establishment of earth station within the country,
requirement of licensee to maintain a record of the material uplinked for a reasonable
period and adherence to the programme and advertisement codes laid down by this
Ministry.
(e): Cable Operators are already well established in India. Therefore, protective
measures for cable operators are neither necessary nor envisaged.
(f): The DTH system would facilitate access to larger number of television channels,
with good signal quality to the homes of Indian consumers. It will provide subscribers a
wide choice of selection in TV programmes as well as access to IT services through the
DTH platform. Ku-band transmission will also improve quality of TV broadcasting in
the country.
ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA
UNSTARRED QUESTION NO.2115 FOR ANSWER ON 1.12.2000
SALIENT FEATURES FOR ESTABLISHMENT, MAINTENANCE AND
OPERATION OF DIRECT-TO-HOME (DTH) BROADCASTING SERVICE.
(i) The applicant company shall be an Indian company, registered under the Indian
Companies Act, 1956.
(ii) The total Foreign Investment, including FDI/NRI/OCB/FII in the DTH
Broadcasting sector, shall not be more than 49%, in which the share of FDI will
not exceed 20%.
Provided that the quantum represented by that proportion of the paid up equity
share capital to the total issued equity capital of the Indian promoter Company
held or controlled by foreign investors through FDI/NRI/OCB investments shall
form part of the above said FDI limit of 20%.
No Broadcasting Company and/ or Cable Network Company shall be eligible to
own more than 20% of the total equity of an applicant Company at any time
during the License period.
Provided further that the Licensee, at all times, shall keep the Licensor informed
of any change in the holding pattern of the Equity.
(iii) The applicant company must have Indian management control with majority
representatives on the Board, as well as the CEO of the Company being a resident
Indian citizen.
(iv) There will be no restriction on the number of licensees and the license will be
issued by the Government for a period of 10 years, on non-exclusive basis.
(v) The applicant company shall be required to pay an entry fee of Rs.10 crores, in the
beginning. In addition, 10% per year of the revenue collected by the platform
owner from channels shall be payable to Government as annual fee. The licensee
would also be required to execute a Bank guarantee of Rs.40 crores valid for the
duration of the licence. Licensee will additionally be required to pay the license
fee and royalty for spectrum used, as prescribed by the Wireless Planning
Coordination authority (WPC), under the department of Telecommunications.
Note: Approvals for foreign equity shall be routed through the FIPB route.
(vi) The Licensing Authority shall have the power, after recording the reasons in
writing, to revoke/suspend the license in public interest. However, before taking
such action the licensing authority will give the licensee an opportunity of being
heard. The decision of the licensing authority shall be final.
(vii) For violation of license conditions, in addition to any other action which may
include revocation of license, a penalty upto Rs.50 crores can be imposed by the
Licenser on the Licensee. However, before taking such action the licensing
authority will give the licensee an opportunity of being heard. The decision of the
licensing authority shall be final.
(viii) The licensee shall establish the uplink Earth Station in India within 12 months
from the date of issue of license. All Content provided by the DTH platform to
the subscribers, irrespective of its source, to pass through the common encryption
and conditional access system, located within the Earth Station, situated on Indian
soil.
(ix) The licensee shall ensure adherence to the Programme Code (PC) and
Advertisement Code (AC), laid down by the Ministry of Information and
Broadcasting, from time to time. Record of the programmes and advertisements
carried on the platform to be kept by the Licensee for a period of 90 days after
broadcast and to be made available to the authorised representative of the
Licenser, as and when required.
(x) The licensee shall provide access to various content providers/ channels on a non-
discriminatory basis. The licensee shall not carry any channels prohibited by the
Ministry of I&B.
(xi) Licensee shall provide access to the Licensing Authority or its duly authorised
representative. to all its facilities including equipments, records, systems, etc.
(xii) Though licensee can use the bandwidth capacity for DTH service on both Indian
as well as foreign satellites, proposals envisaging use of Indian satellites will be
extended preferential treatment.
(xiii) The licensee shall ensure subscriber`s interests through Single Conditional Access
Technology, Single Subscriber Management System (SMS), an Open Architecture
(Non-proprietary) Set Top Box, a Cast Iron Encryption System and an efficient,
responsive and accurate billing and collection system. The Licenser shall not use
any equipment, which is identified as unlawful.
(xiv) The Licenser reserves the right to prohibit the transmission or reception of
programmes in the interest of national security or in the event of emergency/war
or similar type of situation. Notwithstanding any agreement between the licensee
and the content providers, the licensee shall stop forthwith, transmission of TV
channels or any content, as and when directed to do so by the Licenser or any
other designated lawful authority.
(xv) The DTH facility shall not be used for other modes of communication, including
voice, fax, data, communication Internet, etc. unless specific license for these
value-added services has been obtained from the competent authority.
(xvi) The licensee shall obtain clearances/approvals, as may be prescribed or required,
from the Wireless Planning Coordination Wing or from the Department of Space.
(xvii) The DTH Licensee will be bound to carry channels of Prasar Bharati on the most
favourable financial terms offered to any other channel.
(xviii) The Licenser reserves the right to modify or incorporate new conditions at any
time in the terms and conditions of this license, as and when necessary in public
interest or interest of national security.
(xix) The licensees will adhere to provisions of any legislation which may be
brought in future with regard to broadcasting.