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GUIDELINES FOR OBTAINING LICENSE FOR PROVIDING DIRECT-TO-HOME (DTH)
BROADCASTING SERVICE IN INDIA 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 The prohibition on the reception and distribution of television signal in Ku Band has been withdrawn by the Government vide notification No. GSR 18 (E) dated 9th January, 2001 of the Department of Telecommunications.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 : · Applicant Company to be an Indian Company registered under Indian Company’s Act, 1956. · Total foreign equity holding including FDI/NRI/OCB/FII in the applicant company not to exceed 49%. · Within the foreign equity, the FDI component not to exceed 20%. · 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 investors through FDI/NRI/OCB investments, shall form part of the above said FDI limit of 20%. · 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. · 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 share in a broadcasting and/or cable network company. · The Licensee shall be required to submit the equity distribution of the Company in the prescribed Proforma (Table I and II of Annexure to Form-A) 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 fulfils 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 Communicatons. However, the license can be cancelled/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 (Form-B) v)
Procedure for application
and grant of licenses: ·
To apply to the Secretary, Ministry of I&B, in triplicate,
in the prescribed proforma (Form-A
) ·
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. ·
After these clearances are obtained, the applicant would
be required to pay an initial non-refundable entry-fee of Rs.10 crores
to the Ministry of Information and Broadcasting. ·
After such payment of entry-fee, the applicant would be
informed of intent of Min. of I & B to issue license and requested
to approach WPC for SACFA clearance. · After obtaining SACFA clearance, within one month of the same, the Licensee will have to submit a Bank guarantee (Form-C) 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. · 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 (Form-B). · 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. · The Licensee 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. · 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: Incase 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. ***** FORM-A Application form for obtaining license to set up
DTH platform in Ku Band.
The Secretary Ministry of Information & Broadcasting ‘A’ Wing, Shastri Bhawan New Delhi-110 001 1. i) Name of Applicant Company ii) Particulars of the Directors & the Chief Executive.
a) Chief Executive
(a) Head Office (b) Regional Office ii) Telephone Number (s) iii) Registration details (enclose certificate of incorporation/registration) 3. Structure of Equity Capital i) Authorised share capital ii) Paid up share capital # 4. Share-Holding pattern: (Enclose details as per Annexure) i) Direct investment (as % of total paid up capital) (a) Indian_______% (b) Foreign______% Break-up of Foreign Direct Investment Individual………….% Company…………..% NRI………………..% OCB……………….% PIO………………..% ii) Portfolio Investments (a) Indian…………% (b) Foreign………..% Break-up of Foreign portfolio Investment FIIs NRIs OCBs PIOs 5. Particulars of other business/activities. ±6. Particulars of the other broadcasting companies and cable network companies holding share in the applicant company along with the quantum of share holdings
±7. Particulars of equity holding of the applicant company in other broadcasting companies and cable network companies
8.
Details of DTH Space Segment , uplink earth station and
ground terminal: A. Space Segment of DTH Platform 1. Name of the satellite proposed to be used 2. GSO Orbital location 3. Type & number of transponders to be hired 4. Frequency band of operation : 10.95 – 11.2 GHz / 11.45 – 11.7 GHz (downlink)(circle appropriately): 12.2 – 12.5 GHz / 12.5 – 12.75 GHz 5. Transponder Center frequencies: 6. No. of TV channels in each transponder: 7. Details of data rate, FEC, modulation, bandwidth and specific frequency range for each TV channel 8. Satellite transmit Max. & Min. EIRP over India in dBW : (enclose satellite transmit antenna/ eirp gain contours over India) B. Details of Uplink Station · DTH uplink station location: · Uplink frequency band (circle appropriately): 13.75 – 14 GHz / 14.0 – 14.25GHz / 14.25 – 14.5 GHz · Uplink antenna size: · Uplink antenna gain: · Uplink EIRP (Max.): (Min.): C. Size of downlink (Max.) antenna size (Min.) Proposed no. of channels:
(Enclose Lease Agreement and footprint of the satellite on which the transponders are proposed to be hired)
I/We, __________________________________the applicant(s) do hereby declare that the above facts are correct in all respects. Place : (Signature of Applicant) Date : Name Office Address: Enclosures: ******
ANNEXURE TO FORM - A
FORMAT FOR SHAREHOLDING PATTERN TO BE FURNISHED ALONG WITH APPLICATION TABLE-1 SHAREHOLDING PATTERN OF APPLICANT COMPANY M/s ______________________ AS ON __________ FACE VALUE OF THE SHARE RS.__________________
* For Indian company, information as per proforma in Table-2 also to be supplied. *******
TABLE-2DETAILS OF SHAREHOLDING PATTERN OF EACH INDIAN COMPANY HOLDING SHARE IN THE APPLICANT COMPANY AS IN SERIAL NO.2 IN COLUMN (1) OF TABLE-1 i) Name of the company ii) Information as on date iii) No. and %age of shares held by the company in the applicant company iv) Face value of the share Rs.______ v) Shareholding pattern of the company
Note: Repeat same information about each Indian company holding share in the applicant company
*****
FORM-B LICENSE
AGREEMENT This Agreement is made on this ______ day of______, 2001
between the President of India
acting through _____________________________, Ministry
of Information and Broadcasting, Government of India, Shastri
Bhawan, New Delhi (hereinafter called the Licensor) of the One Part and
M/s ________________, a company registered under the
Companies Act, 1956 and having its registered office at ___________________________ (hereinafter called the Licensee which expression shall unless repugnant to the context include,
its successors in business, administrators, liquidators and assignees
or legal representatives) of the Other Part. WHEREAS pursuant to the request of the Licensee,
the Licensor has agreed to grant license to the Licensee under Section
4 of the Indian Telegraph Act 1885,
and the Indian Wireless Telegraphy Act, 1933 on the terms and
conditions appearing hereinafter to establish, maintain and operate
DTH Platform and the Licensee has agreed to accept
the same. NOW THIS AGREEMENT
WITNESSETH AS UNDER:
IN
WITNESSTH WHEREOF the parties hereto have caused this Agreement to
be executed through their respective authorised representatives, the
day, month and year as mentioned above. Signed Executed and Delivered
on behalf of President of India by
__________________ Signed
Executed & Delivered on behalf of ________________________ by its holder of General Power of
Attorney dated _______ executed in accordance
with
Board Resolution dated
_______ by
________________________.
SCHEDULE TO FORM - B TERMS
AND CONDITIONS ARTICLE-1ELIGIBILITY CONDITIONS 1.1
The Licensee company shall be an Indian company, registered
under the Indian Companies Act, 1956. 1.2
The total Foreign Investment, including FDI/NRI/OCB/FII in
the paid up equity of the Licensee Company, shall not be more than
49%. 1.3
The FDI component of the foreign equity in the total paid up
equity of the Licensee company shall not
exceed 20%. Explanation
: 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%. 1.4
The Licensee shall not allow Broadcasting Companies and/or
Cable Network Companies to collectively hold or own
more than 20% of the total paid up equity in its company at
any time during the License period. The Licensee shall submit the equity
distribution of the Company in the prescribed proforma (Table I and
II of Form-A) once within one month of start of every financial year.
The Government will also be able to call for details of equity holding
of Licensee company at such times as considered necessary. 1.5
The Licensee company not to hold or own more than 20% equity
share in a broadcasting and/or Cable Network Company. The Licensee
shall submit the details of investment
made by the Licensee company every year once within one month
of start of that financial year. The Government. will also be able to call for details of investment
made by the Licensee company in the equity of other companies at such
times as considered necessary. 1.6 The applicant company shall always have Indian management control with majority representatives on the Board, as well as the Chief Executive of the company being a resident Indian citizen. ARTICLE-2 TERM OF LICENSE 2.1
The validity period of License
shall be ten (10) years, on non-exclusive basis, and shall be reckoned
from the date of issue of Wireless Operational License by the WPC, unless terminated earlier for default or for insolvency or
for convenience or for transfer of the License.
2.2
The license shall not be transferred
without prior approval of the Licensor. LICENSE FEE 3.1
The Licensee shall pay an initial non-refundable
entry fee of Rs.10
crores before the issue of letter of intent to him by Licensor, and,
after the issue of the Wireless Operational License by the Wireless
Planning and Coordination (WPC) Wing of the Ministry of Communications,
an annual fee equivalent to 10% of its gross revenue in that particular
financial year within one month of the end of that year. 3.2
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. BANK GUARANTEE 4.1 The Licensee
shall, within one month of issual of SACFA clearance by W.P.C., submit
to the Ministry of I & B, a Bank Guarantee from any Scheduled
Bank in Form-C for an amount of Rs.40 crores valid for the duration
of the license. 4.2 The Licensor
shall be at liberty to encash the Bank Guarantee in full or part in
the event of non-payment of the license fee or violation of any of
the license condition. ARTICLE-5 COMPLIANCE
WITH PROGRAMME AND ADVERTISING CODES 5.1 The
Licensee shall ensure adherence to the Programme Code (PC) and Advertisement
Code (AC), laid down by the Ministry of Information & Broadcasting
from time to time. ARTICLE-6 PROHIBITION OF CERTAIN ACTIVITIES 6.1 The Licensee
shall not carry any channels prohibited by the Ministry of Information
& Broadcasting. 6.2 The Licensee
shall ensure that its facilities are not used for transmitting any
objectionable or obscene content, messages or communication
inconsistent with the laws of India.
The use of the facility or service for anti national activities
would be construed as an offence punishable under the Indian Penal
Code and applicable laws and will attract immediate termination of
License. 6.3 The Licensor
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 Licensor or any other designated lawful authority. 6.4 Except with
prior approval of Licensor, the Licensee shall not either directly
or indirectly assign or transfer its right in any manner whatsoever
under this Agreement to any other party or enter into any Agreement
for sub-license and/ or partnership relating to any subject matter
of the License to any third party either in whole or in part.
Any violation of the terms shall be construed as breach of
the License Agreement and License of the Licensee shall be terminated
immediately. ARTICLE-7 TECHNICAL STANDARDS AND OTHER OBLIGATIONS 7.1
The
Open Architecture (non-proprietary) Set Top Box, which will ensure
technical compatibility and effective interoperability among different
DTH service providers, shall have such specifications as laid down
by the Government from time to time. 7.2 The Licensee shall ensure subscriber’s interests though a Conditional Access System (CAS), which is compatible with an open Architecture (non-proprietary) Set Top Box. 7.3 The Licensee shall ensure subscriber’s interests through a Subscriber Management System (SMS) for an efficient, responsive and accurate billing and collection system. 7.4 The Licensee shall not use any equipment, which is identified as unlawful. 7.5 All content provided by the DTH platform to the subscribers, irrespective of its source, shall pass through the encryption and conditional access system, located within the Earth Station, situated on Indian soil. 7.6 The Licensee shall provide access to various content providers/channels on a non-discriminatory basis. 7.7 The Licensee shall adhere to any guidelines/regulations which may be laid down by the Licensor in the interest of consumer such as pricing of bouquet(s) or tier(s) of channels, etc. 7.8 The Licensee shall carry channels of Prasar Bharati on the most favourable financial terms offered to any other channel. ARTICLE-8 MONITORING AND INSPECTION 8.1
The Licensee shall provide the necessary facility for continuous
monitoring of the DTH broadcasting service at its own cost and maintain
the recordings of programmes and advertisements carried on the platform
for a period of 90 days from the date of broadcast and produce
the same to the Licensor or its authorised representative,
as and when required. 8.2
The Licensee shall
furnish any such information at periodic intervals
as may be required by the Licensor concerning Channels or content
being transmitted or provided under the service,
technical parameters etc.
in the format as may be prescribed by the Licensor from time
to time. 8.3 Licensee shall provide access to the Licensing Authority or its duly authorised representative. to all its facilities including equipments, records, systems, etc. 8.4 The Licensee will, if required by the Licensor or its authorised representative, provide necessary facilities for continuous monitoring for any particular aspect of the Licensee’s activities and operations. 8.5
The Licensor will ordinarily carry out the inspection after
reasonable notice except in circumstances where giving such a notice
will defeat the very purpose of the inspection. ARTICLE-9 NATIONAL SECURITY AND OTHER CONDITIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||