20 per cent is broadcasting sectoral cap for DTH

When the DTH notification was issued by the information & broadcasting (I&B) ministry this week, it was not clear whether the 20 per cent restriction was the maximum a single media company could invest or whether the figure applied to the investment a bunch of media companies could put into a DTH operation.

Yesterday, I&B minister Sushma Swaraj clarified the issue. Speaking to The Economic Times she said that 20 per cent applies to the entire investment that either a group of broadcasters or cable TV operators can pump into a DTH venture. If the minister has not been misquoted, then the announcement should spike any enthusiasm that Zee TV and C. Sivasankaran's Sterling group had about becoming DTH bedmates. It could well spell the death knell of DTH in India.

Unless, of course there are some enthusiastic entrepreneurs willing to diversify and risk their all behind what could prove to be a long-gestation venture.


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