A PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
******
GUIDELINES FOR DTH BROADCASTING SERVICE IN INDIA
(Posted on 4 April, 9:30 pm)
New Delhi, 16th march, 2001
The union Government has decided to permit Direct-to-Home
(DTH) TV service in Ku Band in india. The prohibition on the reception
and distribution of television signal in ku Band has been withdrawn
by the Government vide notification No. GSR 18 (E) dated 9th January
2001 of the Department of Telecommunications.
The salient features of eligibility criteria, basic conditions
/obligations and procedure for obtaining the license to set up
and operate DTH service are briefly described below. For further
details, reference should be made to the Ministry of information
& Broadcasting.
Direct-to-Home(DTH) Broadcasting Service, refers to distribution
of multi channel TV programmes in Ku Band by using a satellite
system by providing TV signals direct to subscribers premises
without passing through an intermediary such as cable operator.
Following are the eligibility criteria for applicants , conditions
which will apply to DTH license and procedural details:
I. Eligibility Criteria:
a. Applicant Company to be an Indian Company registered
under Indian Company's Act, 1956.
b. Total foreign equity holding including FDI/NRI/OCB/FII
in the applicant company not to exceed 49%.
c. Within the foreign equity , the FDI component not to
exceed 20%
d. 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 the foreign
investor through FDI?NRI?OCB investments , shall form part of
the above said FDI limit of 20%.
e. The applicant company must have Indian Management Control
with majority representatives on the board as well as the Chief
Executive of the company being a resident Indian.
f. Broadcasting companies and/or cable network companies
shall not be eligible to collectively own more than 20% of the
total equity of applicant company at any time during the license
period. Similarly , the applicant company not to have more than
20% equity shares in a broadcasting and/or cable network company.
g. The License shall be required to submit the equity distribution
of the Company in the prescribed proforma once within one month
of start of every financial year.
II. Number of Licensees:
There will be no restrictions on the total number of DTH licenses
and these will be issued to any person who fulfills the necessary
terms and conditions and subject to the security and technical
clearances by the appropriate authorities of the Govt.
III. Period of License:
License will be valid for a period of 10 years from the date of
issue of wireless operational license by Wireless planning and
Coordination Wing of Ministry of Communications . However , the
license can be canceled/suspended by the Licensor at any time
in the interest of Union of India.
IV. Basic conditions/obligations:
The license will be subject to terms and conditions contained
in the agreement and its schedule
V. Procedure for application and grant of licenses:
a. To apply to the Secretary , Ministry of I&B, in triplicate
proforma
b. On the basis of information furnished in the application
form, if the applicant is found eligible for setting up of DTH
platform in India, the application will be subjected to security
clearance in consultations with the Ministry of home Affairs and
for clearance of satellite use with the Department of Space.
c. After these clearances are obtained, the applicant would
be required to pay an initial nonrefundable entry-fee of Rs.10
crores to the Ministry of Information and Broadcasting.
d. After such payment of entry-fee, the applicant would
be informed of intent of ministry of I & B to issue license and
requested to approach WPC for SACFA clearance.
e. After obtaining SACFA clearances,within one month of the
same ,the License will have to submit a Bank guarantee from any
Scheduled Bank to the Ministry of Information and Broadcasting
for an amount of Rs.40 crores valid for the duration of the license.
f. After submission of this Bank Guarantee , the applicant
would be required to sign a licensing agreement with the Ministry
of information and Broadcasting as per prescribed proforma.
g. After signing of such licensing agreement with the ministry
of Information and Broadcasting, the applicant will have to apply
to the wireless planning & Coordination (WPC) Wing of the Ministry
of Communications for seeking Wireless Operational License for
establishment , maintenance and operation of DTH platform.
h. The License shall pay an annual fee equivalent to 10%
of its gross revenue as reflected in the audited accounts of the
company for that particular financial year, within one month of
the end of that financial year.
i. The Licensee shall also in addition pay the license
fee and royalty for the spectrum used as prescribed by Wireless
planning & Coordination Authority (WPC) , under the Department
of Telecommunications
VI. Arbitration Clause:
In case of any dispute matter will be referred to the sole Arbitration
of the Secretary, Department of legal Affairs, Government of India
or his nominee for adjudication. The award of the Arbitrator shall
be binding on the parties. The Arbitration proceedings will be
governed by the law of Indian arbitration in force at the point
of time Venue of Arbitration shall be India.
The detailed procedure proforma and tabled etc. are available
on the Internet at the following websites:
www.pib.nic.in
www.mib.nic.in
